Securing a personal loan can be of significant help in case of unexpected expenses or to achieve your personal goals. LoanTap provides personal loans up to ₹10 lakh at competitive interest rates with a repayment tenure of up to 60 months.
Applying for a personal loan through LoanTap is a straightforward and user-friendly process. Let’s take a look at how it works.
Steps to Apply for a Personal Loan
To apply for a personal loan through LoanTap, you can follow the steps below:
Step 1: Online Application
The first step is to visit the official LoanTap website or app and fill in the application form. Submit all the required information, including your basic details, income details, employment status, and contact details. You will also be required to upload the necessary supporting documents.
Step 2: e-KYC and Verification
After adding all your details, you will be asked to provide your date of birth and PAN card number. Once that is done, you must ensure to review the terms and conditions before finally submitting the application.
Once you have completed filling out the application form and attached all documents, the LoanTap team will verify the information.
Step 3: Fund Transfer
Once your application is verified, you must sign the e-agreement. After that, the loan will be disbursed directly to your bank account within 24-36 hours.
Things to Consider Before Applying for a Personal Loan
Before applying for a personal loan, be sure to consider the following:
Maintain a Strong Credit History
Your credit score reflects your creditworthiness and is based on your credit history. It typically ranges between 300 and 900, with scores above 700 considered optimal. To maintain a healthy credit score, it is important to pay your bills and EMIs on time.
Compare Interest Rates Across Lenders
Comparing interest rates from different lenders allows you to secure the most favorable terms, helping you choose a personal loan with the lowest interest rate and making your repayments more manageable.
Understand All Associated Costs
When taking a loan, there are various costs to consider, such as processing fees, prepayment penalties, and late payment charges. Before applying, review all these potential expenses to get a clear picture of the total cost. This will help you in managing your finances efficiently and determining if repaying the borrowed loan amount will be within your budget.
Choose the Right Loan Amount
Identify your financial needs and decide the loan amount you’ll need based on that. It’s also important to take into account your repayment capacity so you don’t borrow more than you need or can repay. Take a close look at your current financial situation, including your income, monthly expenses, and existing debt obligations, and get an idea of how much you can comfortably afford to repay each month without straining your budget.
Beware of Misleading Offers
Some lenders may offer seemingly attractive low-interest rates or promotional schemes. However, these offers can be deceptive, often involving floating interest rates that start low but can rise significantly over time. Additionally, some lenders may hide costs and fees in the fine print. To ensure a smooth borrowing experience, choose a lender who is transparent about all terms and conditions.
What to Do if Your Personal Loan Application Gets Rejected?
Here’s what to do if your personal loan application gets rejected:
Find the Reason for Rejection
The first step is to understand why your application was rejected. Lenders generally provide a reason for rejecting your application, such as a low credit score, high debt-to-income ratio, or incomplete documentation. Knowing the specific reason allows you to address the issue directly before reapplying.
Make Timely Debt Payments
If your rejection was due to a low credit score, it’s important to start making timely payments on any existing debts. Late payments can severely impact your credit score, and consistent, on-time payments can help rebuild your credit history over time. This will help increase your chances of getting approved for a loan.
Evaluate Your Debt-to-Income Ratio
A high debt-to-income (DTI) ratio is a common reason for loan rejection. This ratio is a comparison of your monthly debt payments to your monthly income, and a high DTI indicates that your debt is too high with respect to your income. Take steps to reduce your existing debt, either by paying off smaller loans or consolidating your debt, to improve your DTI ratio before reapplying.
Ensure Documentation Accuracy
Errors in your application or missing documents can lead to rejection. Review your loan application carefully to ensure that all the information is accurate and that you’ve uploaded all the required documents.
Limit the Number of Applications
Applying for multiple loans in a short period can negatively impact your credit score as each application generates a hard inquiry on your credit report. Instead of applying to multiple lenders simultaneously, focus on strengthening your application and reapply with one lender at a time.
Regularly Monitor Your Credit Score
Your credit score is important for your loan approval thereby making it essential to monitor it regularly. Check your credit report for any errors or signs of fraud, and dispute any inaccuracies you find. Regular monitoring helps you stay informed of your credit health and gives you time to address any issues before reapplying.
Reapply After Your Score Improves
Once you’ve addressed the issues that led to your rejection, whether it’s improving your credit score, lowering your DTI, or correcting documentation errors, you can consider reapplying. Take time to ensure your credit score has improved and that your financial situation is more favorable.
Conclusion
Applying for a personal loan with LoanTap is a customer-friendly process that is designed to help you meet your financial needs efficiently. By following the steps outlined – understanding your eligibility, gathering the necessary documents, and choosing the loan amount that suits your requirements—you can secure a loan up to Rs. 10 lakhs with competitive interest rates and flexible repayment options.
LoanTap’s user-centric approach ensures that you not only get quick access to finances but also enjoy a hassle-free experience from application to disbursement. Whether you’re planning a significant purchase, consolidating debt, or covering unexpected expenses, LoanTap is your reliable partner in achieving your financial goals.
Frequently Asked Questions
What documents are required for a personal loan application?
You usually need to provide proof of identity (e.g., PAN card, Aadhaar card), proof of address (e.g., utility bills, passport), proof of income (e.g., salary slips, bank statements), and recent passport-sized photographs.
What are the eligibility criteria for a personal loan with LoanTap?
Eligibility criteria include being an Indian citizen or resident, aged 23-58, with a minimum monthly income of ₹30,000 and a credit score over 700.
How much can I borrow through a personal loan?
The amount of loan you can borrow depends on your income, credit score, and other factors. With LoanTap, you can borrow amounts ranging from ₹50,000 to ₹10 lakh.
How do I check the status of my personal loan application?
You can check the status of your loan application by logging into your account on the LoanTap website or app, where you’ll find real-time updates.
What is the maximum repayment period for a personal loan with LoanTap?
The maximum repayment period for a personal loan with LoanTap is up to 60 months, allowing you to choose a tenure that suits your financial situation.
