How to Take & Close the Personal loan | RN Rating Pro

1. Research and Compare Lenders: Identify various lenders like banks, NBFCs, online lenders and compare their interest rates, fees, GST etc and terms to find the best option for your needs.
2. Eligibility : Determine if you meet the lender’s criteria based on your requirement, which typically includes minimum income, employment status, and residency Etc.
3. Age: Most lenders require applicants age should be in between 21 and 60 years old
4. Income level: Applicants must meet the minimum income requirement, which varies by lender, to ensure they can repay the loan in the given duration.
5. Employment status: Stable employment, either salaried or self-employed, is necessary to demonstrate a reliable source of income. Bank statement also required.
6. 3 latest salary slips with latest Form 16: You need to submit your last 3 months’ salary slips and the latest Form 16 to verify your income and tax details.
7. Check Your Credit Score: You need to ensure your credit score meets the lender’s minimum requirement, mostly 650 or higher, to increase your chances of approval.
8. Proof of identity (Aadhaar, PAN card): Provide valid identity proof, such as Aadhaar or PAN card, to verify your identity and prevent fraud.
9. Submission of Documents: Collect and submit all required documents, including proof of identity, address, income, and employment, as per the lender’s checklist.
10. Verification and Approval: The lender verifies your submitted documents and assesses your creditworthiness, employment, age, and income details and other required criteria.
11.  Loan Offer and Acceptance: Upon approval, the lender extends a loan offer detailing the loan amount which includes the interest rate, tenure (duration), and terms, which you must review and accept.
12. Disbursement: Once you accept the loan offer which includes the rates and duration with EMI details, the approved loan amount is disbursed to your bank account, usually within a few working days.
13. Repayment: Begin repaying the loan through Equated Monthly Installments (EMIs) as per the agreed schedule, including principal and interest components.
14. Set Up Auto-Debit: Set up auto-debit from your bank account to ensure timely EMI payments, avoiding missed payments and penalties
15. Loan Closure: After completing all EMI payments, obtain a loan closure letter from the lender, confirming that the loan is fully repaid and closed.
16. Obtain a No Dues Certificate: After loan closure, obtain a No Dues Certificate from the lender, certifying that no outstanding amounts are left.
17. Check Credit Report: Ensure the loan closure is reflected in your credit report, showing that the loan is fully repaid, positively impacting your credit score.

Note: This blog post reflects my personal opinion and Always do your own research or consult with a professional before making any decisions.