Before we at mymoneykarma give you all the details on how to how to apply for a personal loan, let’s tell you something about personal loans first.
A personal loan, simply put, is a loan approved for personal reasons or personal expenses. This can be anything from a home renovation, a wedding, a family vacation, or for anything that you personally need. This is different from a corporate loan or a business loan, where you take credit for meeting the expenses of your business or company.
In the case of a personal loan, you take the funds for personal reasons only. The good news is that in the case of personal loans, there are fewer regulations on the final use of the funds. This means that you have a greater degree of freedom to use the funds for any purpose, as long as it is legal.
Personal loans are attractive for two main reasons.
You have the flexibility to use the loan amount in any way you see fit. This is a stark contrast to auto loans and home loans, in which you need to spend the amount for buying a car and home, respectively. In most cases, car and home loans are disbursed directly to the seller.
All personal loans are unsecured loans. This means that you are not required to give the lenders any security like assets or cash. This makes personal loans more accessible to customers who do not wish to provide money or assets as collateral.
There are several ways in which you can apply for a personal loan. Some financial institutions require you to log in at their website and then apply for a loan directly from a bank or NBFC. Alternatively, you can also go to the bank branch in person to apply for a loan.
When you want a loan of any kind, you have to approach the bank or other lenders directly. That can be quite a hassle. We understand that, and that’s why we do the heavy-lifting for you.
Let’s say that you want a personal loan for Rs. 1,00,000. You approach us and tell us about your requirements. mymoneykarma is partnered with various notable banks around the country like Axis Bank, SBI, and HDFC Bank, to name a few. Hence, you can compare the various loan products from all these banks and pick the one that suits you. Based on your wish, we approach our partner to give you the loan.
3 steps to a personal loan online
Visit mymoneykarma website or click here to be taken directly to the personal loan portal.
Apply right away.
There are several places where you can go for getting a personal loan. Note that getting loans from some of these sources is tougher than the rest. Moreover, they may also differ in terms of qualifying criteria like salary level, nature of your job, educational qualification, and more.
Banks: It can be tough to get loans from banks, even though these are the most preferred avenue. Getting funds from a bank is convenient and secure. In most cases, banks prefer candidates who already have an account with them. You can improve your chances by having a co-guarantor. In this way, you get the funds, but your co-guarantor will also be responsible for paying it back. If you choose this option, make sure that your finances are in good order.
P2P Lending: Peer-to-Peer lending is a comparatively new development. You can get loans from money lenders, along with suggestions and multiple loan options. This option can be helpful if you do not qualify for credit through mainstream channels.
mymoneykarma: Visiting multiple banks or lenders can take a lot of time and energy. mymoneykarma makes it easier for you. Just visit our personal loan portal and we’ll take over from there!
Unsecured loans may seem attractive as you do not need to give any collateral, but there’s a catch. Banks do not offer loans to just anyone. Candidates are chosen very carefully based on their ability to pay back loans. For this, banks see your debt to income ratio.
If you are still interested in getting a personal loan online, here are the fool-proof steps you need to take.
Check your credit score: No one is going to give you a personal loan just like that. One of the main determinants is your credit score. Most lenders will not tell you outright what credit score they are looking for. However, know that generally, they mean good to an excellent score. This means anything upwards from 740. Before applying for any loan, ensure that you know what your credit score is and from where you can get it. mymoneykarma helps you to check your credit score for free!
Get your latest credit report: Credit score shows you how creditworthy you are, but still does not show the whole picture. Lenders often need a bit more detail. This detail is obtained from your credit report. The good news is that you are eligible to get one free report from each of the three credit bureaus namely, Experian, Equifax, and TransUnion. Credit Report is important as it shows outstanding debts, repayment history, and other factors that determine your credit score. At mymoneykarma, we help you to make sense of your Credit Report!
Pay bills on time: You can improve your credit score by paying back all your bills on time. Doing so shall increase your creditworthiness and your credit score, which shall increase your chances of getting a loan.
Pay back your debts: Another important determinant factor of your credit score is your debt-to-income ratio. Have a high ratio? Try paying back all your debts first before applying for any loans. You can do this by making extra payments, taking a side job or by increasing your income.
Have a stable source of income: This is one of the most important factors. Having a stable income means that you will be able to pay off the loan no matter what. Some lenders even have a specific income range as a qualifier.
Is a low or damaged credit score bothering you? Is it keeping you away from getting a personal loan online? mymoneykarma is there to help you out - we offer expert credit repair services as well.
For this, you’ll have to do a bit of research on your own. However, here is a very handy link. Here you can compare and learn about:
Personal loan interest rates and processing fees
How to get the best interest rates for personal loans
Dos and Don’t while applying for a personal loan
How to compare personal loan interest rate of all banks
How you can increase your chances of getting a personal loan
Documents you need to apply for this loan
Handy examples of a personal loan
Which bank is easiest to get a personal loan from?
There are several ways to get a personal loan: from a credit union, a bank, or an online lender. What the interest rate shall be and what kind of loan it shall be is dependent on your credit score. The higher your credit score is, the widest range of the best credit options you’ll get.
What documents are needed to apply for a personal loan?
Here are some of the documents that you need to get a personal loan:
Employment information and income information.
Bank statements and account information.
How can I get a personal loan fast?
If you need a personal loan fast, here are a few things that you could do:
Approach personal lenders
Get cash advance on your credit card
Consider a secured loan
Think about getting a payday loan
See if you can get loans from a family member or from a friend
Apply for a personal loan from mymoneykarma
If getting a personal loan online quickly is your aim, mymoneykarma shall hold your hand throughout this journey. As we are partnered with the top banks in India, we can provide you the best loan offers. Get in touch with us today so we can start helping you!