You primarily depend on your salary to cover various expenses and financial obligations. Only a small amount would remain after meeting these expenses. An unplanned significant financial requirement, like a medical emergency, repair costs, or anything else, could mess up your financial plan. You may lack the financial resources to meet such requirements.

A Loan is a feasible financial option here. Loans like Personal Loans help you meet any of the mentioned requirements. However, you need to be eligible to meet those expectations. You can repay the Loan amount in affordable equated monthly instalments spread across your repayment tenure. Here is a quick overview of the disbursal process:

• Loan application and approval

You can apply for a Personal Loan with any leading bank, offline or online. Typically, you should apply with a bank offering the lowest interest rate. It makes Loan repayment affordable.  Fill out the application form and submit the necessary documents. The bank processes your application instantly.

Once your Loan gets approved, you are notified. You receive a sanction letter on your registered email address. This letter includes details like Loan amount, interest rate, and EMI payable.

• Loan disbursement and confirmation letter

On approval, your Loan amount gets disbursed within 24-48 hours. The Loan amount gets credited to your Bank Account or provided as a cheque. You are notified via SMS and email about Loan disbursement. Note that the Loan amount mentioned on the sanctioned letter and disbursed may differ. This is because the sanction letter says the total Loan amount.

The disbursed amount is credited to your account after deducting Loan fees and taxes.  Once disbursed, you will receive a welcome email and confirmation letter. The confirmation letter includes all details about your Loan. There are details about the EMI due date, amortisation table, payment guidelines, customer support etc.

• Loan repayment

Your Loan repayment starts the following month of the disbursal. You should plan your Loan repayment to ensure you can make timely payments without feeling burdened. Using the EMI calculator for Personal Loan helps you. It lets you understand and plan your Loan repayment. It is an online calculator accessible on every bank’s website or app. Use the calculator any number of times, free of cost.

If you receive an employee or festive bonus, you can use it to make pre-payments and foreclose Personal Loans. This removes the repayment burden off your shoulders early on. It also improves your financial standing incredibly. Hence, if making pre-payments is feasible, you should do it.