Personal Loans are often life-saving options in times of emergencies. You can manage unexpected financial challenges. These include medical bills, last-minute wedding expenses, urgent home repairs, or spontaneous travel plans.
Step # One: Download the Loan App
You will find several loan apps offering instant Personal Loans. Compare them based on their interest rates, loan amounts, repayment terms, and other parameters to best suit your requirements. Find your selected lender’s authentic loan app on the Google Play Store or Apple App Store after checking its ratings and reviews. Download the selected app on your smartphone and register using your email address or mobile number. Here are a few things to check before finalising an app to download:
- Interest Rates: Ensure the lending institution offers a reasonable interest rate according to your eligibility and credit history. Even a slight difference may significantly impact your EMIs and total loan cost.
- Loan Amount: Evaluate your loan requirements and ensure the app provides an adequate loan amount to meet your needs.
- Repayment Term: Changes in the repayment term may increase or decrease EMIs for the same loan amount. The lender should provide flexible repayment terms with EMIs you can easily afford.
- Additional Charges: Compare the additional charges of various loan apps and choose one with reasonable obligations.
- Security: The app should implement robust security measures to protect your information.
Step # Two: Check the Eligibility Criteria
Every lending institution has a set of eligibility criteria you must meet to qualify for a loan. Once you download the loan app, check the lender’s eligibility criteria and ensure you can fulfil them. These include age, employment, work experience, monthly income, etc. For instance, to apply for instant Personal Loans at the Hero FinCorp app, you must fulfil the following conditions:
- Age: 21 to 58 years
- Citizenship: Indians only
- Occupation: Salaried or self-employed
- Work Experience: Six months for salaried and two years for self-employed
- Monthly Income: Minimum Rs. 15,000 per month
Checking the eligibility criteria before applying to avoid loan rejection for trivial reasons like age, income, etc.
Step # Three: Calculate Your EMIs
Calculating your EMIs is crucial when applying for a Personal Loan through a loan app. Since most lending institutions offer loan terms, you must choose one according to your monthly repayment capacity. Find an EMI calculator in your lending app and enter your loan amount, interest rate, and repayment term to calculate the estimated EMI amount.
An EMI calculator uses the following formula to calculate the EMIs:
EMI = P * r * (1 + r)^n / ((1 + r)^n – 1)
Here, P = principal loan amount, r: monthly interest rate, and n = loan tenure in months
As the tenure length increases, so does the EMI amount. However, it increases your total loan cost. Therefore, you must choose the shortest possible repayment tenure with conveniently affordable EMIs.
Step # Four: Submit the Required Documents
Digital lending apps have minimal documentation requirements only, including your identity, address, and income proof. Moreover, they do not require any office visits. Most new-age loan apps accept scanned copies of the required documents online. Since the documentation requirements vary for salaried and self-employed individuals, prepare them according to your profession.
The documents required to apply for a loan at reliable lenders like the Hero FinCorp loan app include the following:
- Duly filled application form
- Coloured passport-sized photograph
- Identity proof: Driving license, passport, PAN card, Aadhaar card
- Address proof: Driving license, passport, Aadhaar card, ration card, utility bill
For salaried employees:
- Address proof, like maintenance bills, utility bills, property documents, or rent agreements
- Income proof, like the last six months’ salary slips, the previous six months’ salary account statement, Form 16 for salaried employees
- Job continuity proof, like an appointment letter from the current employer or an experience certificate from the previous employer.
For self-employed professionals:
- Residence ownership proof, like maintenance bills, electricity bills, or property documents
- Business existence proof, like shop establishment proof, a copy of tax registration, or a company registration certificate
- Income proof, like the last six months’ bank statements and ITR for the previous two consecutive years
Step # Five: Approval and Disbursal
The verification process starts immediately when you submit the application form with the required documents. Suppose the lender is satisfied with your eligibility and credibility. In that case, they will email you a loan offer with the approved loan amount, interest rate, repayment tenure, applicable charges, and other terms and conditions. Review the loan offer carefully and accept it if everything seems fine. Once you accept the loan offer, the lender prepares a loan agreement. After completing all formalities, you will receive the loan amount disbursed into your bank account within a short period.
Features of Instant Personal Loans at Hero FinCorp
Now that you know the process to apply for a Personal Loan through a loan app, learn about the features of Hero FinCorp Personal Loans:
- 24/7 availability
- Competitive interest rates
- Flexible repayment terms of up to 36 months
- Ample loan amount of up to Rs. 5 Lakh without any end-use restrictions
- No office visits required
- 100% digital loan procedure
- Zero paperwork
- No collateral requirement
- Direct disbursal into your bank account
That is how to get a Personal Loan through a loan app in five easy steps. Hero FinCorp can make your dreams come true without any financial constraints. Are you planning to apply for an instant Personal Loan using the Hero FinCorp app? Follow these steps to obtain the best loan deal.
Disclaimer: The information provided in this blog post is intended for informational purposes only. The content is based on research and opinions available at the time of writing. While we strive to ensure accuracy, we do not claim to be exhaustive or definitive. Readers are advised to independently verify any details mentioned here, such as specifications, features, and availability, before making any decisions. Hero FinCorp does not take responsibility for any discrepancies, inaccuracies, or changes that may occur after the publication of this blog. The choice to rely on the information presented herein is at the reader’s discretion, and we recommend consulting official sources and experts for the most up-to-date and accurate information about the featured products.
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