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How to apply for a loan?

Wondering about how to apply for a loan? Getting a loan is a process which requires a lot of matters to be dealt with.

Some important points related to how to apply for a loan are:

• Eligibility Criteria: The people who are eligible for a loan are salaried individuals, individuals who run their own business and self-employed professionals like doctors, lawyers. Other factors taken into account are a person’s income, work experience, repayment capacity etc.

• Interest rates: There are three types of interest rates – floating, fixed and flat. The interest rates may vary in accordance with the loan amount and also from one bank to another.

• The various documents required are:

i. Identity Proof: A person’s passport, driving license, PAN card etc can be used as a proof of identity.

ii. Proof of age: The birth certificate or any of the above-mentioned documents can be produced as a person’s proof of age.

iii. Address Proof: Any document (e.g. passport) which contains proof of address of the person.

iv. Proof of Income: The latest salary slip can serve the purpose.

v. Job Continuity Proof: Form 16, relieving letter or the appointment letter of the job the person is associated with works as job continuity proof.

vi. Banking History: Last 2 or 3 months’ bank statement.

• Once a person is eligible for a bank loan and the necessary documents are submitted, the loan is issued within a few days.

So, while thinking about how to apply for a loan, a person has to make the best deal considering the above points.