The demand for small personal loans is picking up in India. According to a report, personal loan ticket size has decreased by 40% between FY17 and FY21. Previously, the average personal loan amounted to Rs.2.4 lakh. However, in FY2021, this average ticket size was Rs.1.5 lakh. Therefore, it is not uncommon for individuals to opt for smaller credits, even as low as Rs.2 lakh loan.
Nevertheless, a potential borrower must know the loan application process in detail. Doing so eventually helps avail of personal loans faster and more conveniently.
How to apply for a Rs.2 lakh loan from Bajaj Finserv?
Follow the steps mentioned below to ensure a hassle-free personal loan application with Bajaj Finserv:
Step 1: Visit the official website of the lender.
Step 2: Navigate to the ‘Personal Loan’ section and click on ‘Apply Online’. Clicking on this option will open an application form on the screen.
Step 3: Fill in all your personal details and provide information about your income.
Step 4: Complete KYC and OTP verification.
Step 5: Select Rs. 2 lakh loan and choose the repayment tenor accordingly.
Step 6: Check all the data entered on this application form and click on ‘Submit’.
Besides an online application, one can walk into any Bajaj Finserv branch and apply for credit. Individuals must remember that the NBFC offers a flexible repayment tenor ranging up to 60 months.
Things to consider before availing of a small personal loan
Opting for a personal loan without proper financial planning can lead to defaults or other difficulties during repayment. The following are some of the aspects that one must keep in mind before submitting a personal loan application:
- Interest rates
Besides a borrower’s eligibility, several other factors affect personal loan interest rates. For instance, the RBI’s repo rate can lead to volatility in the rates of consumer loans. Moreover, lenders charge an additional spread over the base rate. This spread differs from one lender to another. A borrower can negotiate with a financial institution to avail favourable terms on their personal loans.
- Eligibility criteria and documentation
Every lender seeks loan applications from individuals who satisfy specific parameters. When looking for unsecured loans, an applicant must check whether they fulfil all of these criteria. To avail of a Bajaj Finserv Personal Loan, individuals must be between 21 and 67 years old. Both salaried and self-employed professionals can opt for such lines of credit.
Similarly, lenders specify a few documents that borrowers must submit along with the application form. These documents help in the verification process of a personal loan.
- Monthly instalments
Even when opting for a loan of just Rs. 2 lakh , computing one’s monthly liabilities is integral. The best way to plan repayment is to utilise an EMI calculator. This online tool aids in the evaluation of borrowers’ monthly outgo towards the personal loan. Such a calculator allows individuals to check their EMIs repeatedly after altering the loan tenor.
For instance, if a borrower opts for an Rs. 2 lakh loan at 13% for 2 years, they will have to pay Rs. 4,754 every month as EMI. However, if the borrower changes the tenor to 4 years, the EMI calculator reveals that their EMI will be Rs. 2,683.
- Credit score
A borrower’s CIBIL score is one of the most important determinants when it comes to loan approval. Individuals enjoying a credit rating of 750 or more can readily find the best unsecured loans in the market. If a potential applicant’s score is below this mark, they must take immediate steps to improve it. Some of the ways to build one’s credit score include:
- Paying off existing dues on time
- Maintaining a proper credit utilisation ratio
- Having the perfect mix of secured and unsecured loans in one’s portfolio
Note that higher credit scores lead to more favourable terms and vice versa. To enjoy hassle-free repayment, one must apply for a loan only when their credit score is high enough.
- Customised offerings
For such credit instruments, Bajaj Finserv also extends pre-approved offers. Other than personal loans, these offers are available across several other financial products, such as business loans, credit cards, etc. To make the financing less time-consuming, individuals can check their pre-approved offers by entering their name and contact details.
Apart from these offers, this financier also provides personal loans of up to Rs. 25 lakh. This added flexibility is just one more reason why Bajaj Finserv is the most preferred personal loan provider in India. Regardless of whether individuals are looking for an Rs. 2 lakh loan or a higher amount, considering the abovementioned factors should make their lives easier.
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