You may often discover that your wages need to be increased to cover your immediate needs. A Personal Loan can assist you in better managing your financial emergencies. It can also help you in resolving other debts or plan for any additional, unforeseen needs. You have quick access to funds with instant loans, especially in emergencies. Knowing the process and how to get a personal loan can benefit you.

How to apply for a personal loan?

You can easily apply for a personal loan online from the comfort of your home with a few simple clicks. Find the right lender and visit their official site. Then fill out the online application, and provide the required documents and other personal information. Submit the duly filled form and wait for approval. This process is simple and fast. The lender will contact you, and after the verification of your documents and information loan amount will be approved.

You can also apply for a personal loan by visiting the nearest branch of the lender. Contact the representative of the personal loan provider near you. Fill out the application form and submit it with your documents. The personal loan provider will verify all your details and approve the application.

Eligibility for obtaining a personal loan

Anyone can apply for a personal loan in any bank or financial institution as long as they qualify for the basic eligibility criteria. A few essential criteria are mentioned below:

• The applicant must be a resident of India.
• They should be at least 21 years at the time of application and a maximum of 65 years at the time of loan maturity.
• They should be salaried individuals or self-employed.
• Monthly income varies from one lender to another. It should be at least Rs 15000 per month.
• The individual must have at least one year of work experience and a minimum of 6 months with the current employer.
• For a self-employed individual, the business must have at least three years of continuity.
• The individual must have a credit score of 750 or above.

What are the other options you can opt for?

If you don’t want to opt for a personal loan, you can also go for other options like revolving credit from credit cards or using an overdraft facility. Both cash credit and overdraft refer to credit lines with a lender. Let us discuss more about credit card vs overdraft facilities offered by a bank or financial institution.

Credit card vs Overdraft

The differences between credit card and overdraft facility:

	Credit card	Overdraft
Definition	Credit cards are classified as revolving credit, a type of borrowing. A revolving credit account typically provides the borrower with continued access to funds as long as the account is in good standing.	A bank overdraft is a facility banks offer customers wherein the individual can withdraw money even if their balance is zero or below zero. In other words, an overdraft is a form of short-term credit facility or a loan. By allowing the account to be overdrawn, the bank provides a line of extended credit facility. An overdraft is typically used if there is not enough balance in the account to cover a transaction or an outstanding transaction resulting in a negative balance.

Applying for a personal loan is relatively easy if you know the process involved and the documents required beforehand. Always look for a lender that provides you with the best interest rates on personal loans and offers other attractive discounts. In case you have any queries regarding the loan process, contact your lender to guide you through it. And if you want to look for options other than personal loans, you can also opt for a credit card or overdraft facility based on your needs and eligibility. They can also help solve your short-term needs without going through the process of obtaining a personal loan.