To avail of a loan, you will have to approach a bank or a non-banking finance company (NBFC) or P2P lenders.
Following these four steps that will help you get your loan:
1. Know your loan requirement: To avail of an auto loan, you will have to first apply for a loan.
2. Check eligibility: After you have figured out how much amount you need as a loan, you will have to check whether you are eligible for the same amount or not. Every bank has their eligibility calculators, so use it to know how much amount you are eligible for.
3. Calculate your EMI amount: Just like the eligibility calculator, banks offer EMI calculators as well. You can change the interest rate and the loan tenure to match it to your monthly income and decipher exactly how much amount you will repay as EMI.
4. Apply for the loan: You can either approach the bank or apply for a loan online. The documents you will have to furnish are:
- Income proof such as salary slips, IT returns, bank statements
- Address proof
- Identification proof
With everything in order, you should be able to get your personal loan in a matter of days.
However, if you don’t get a loan from a bank or an NBFC, you can try getting one via peer-to-peer lending. P2P or peer-to-peer lending is a form of borrowing and lending money which has become quite popular in India recently.
P2P helps formalise non-institutional lending between individuals. Thus, this is not the usual process of taking a loan from a bank or a non-banking financial company (NBFC).
P2P provides a platform for exchange of money between people who have money and people who need money in the form of a loan to be returned later. People with idle funds can now extend a loan to borrowers anywhere across the country and earn returns on their funds in the form of interest.
P2P lending helps borrowers in need of money connect with lenders from across India to crowdfund their loans. The returns are attractive enough for lenders to invest small amounts of money across multiple borrowers. Borrower details are thoroughly checked by the P2P lending platform and an assessment of the borrower’s credit profile is performed and the profile is then presented to the lenders.
Some common P2P lenders in India are:
- Faircent
- i2i
- Lendbox
- I-lend
- Monexo
- Lendenclub