Whether you want to buy a car, start a new business or consolidate your existing debts, a personal loan could be just the financial product that suits your needs. If you’re considering applying for a personal loan but don’t know where to start, you have come to the right place. In order to apply for a loan successfully, it important to have a basic understanding of the application process as well as understand how to choose a personal loan that matches your requirements.
This simple guide will take you through each stage of the application process so that you can pick the right personal loan and apply for it without any hassles. Here’s a step-by-step guide on how to apply for a personal loan: –
Check The Eligibility Criteria
Checking the eligibility criteria is the first step to apply for a personal loan. Checking the eligibility criteria beforehand entails plenty of advantages. Firstly, you will be saved from the prospect of losing processing fee, as there will be low chances of your application being rejected. Secondly, you can save a lot of time by avoiding rejection of your personal loan application. Thirdly, your credit score will not be negatively impacted. Given below is the general eligibility criteria for a personal loan application in Indonesia: –
- Age – To qualify for a personal loan in Indonesia, you need to be at least 21 years of age or older, but not older than 60. For certain banks the age requirements for personal loans may be even tighter, requiring people to be under 55 or 50.
- Income – In order to be eligible for a personal loan, you need a steady source of income so that the bank is convinced that you will be able to make the loan repayments. Since personal loans are unsecured loans, the income criteria for personal loans can be quite rigid. If you have a low income, your personal loan eligibility will be lower as compared to high earners.
- Residency Status – In order to qualify for a personal loan, you will need to be an Indonesia citizen or have Permanent Resident (PR) status.
- Credit Score – The bank conducts a thorough credit check before approving your loan application to ensure that you will be able to repay the loan. If you have a poor credit history, you may have to pay a higher loan interest rate or even deal with rejection. Therefore, if you have a bad credit history try to improve it before applying for a personal loan.
It’s important to remember that the eligibility criteria for personal loans may differ from bank to bank. You can easily find out the eligibility criteria for a particular bank by simply visiting their website and checking the personal loans section.
Compare Rates and Policies
Once you understand the eligibility criteria, the next step is to compare the rates at which different banks offer personal loans. Besides the personal loan interest rates, you can also compare factors such as loan tenure, pre-payment clause, processing charges and turnaround time for processing the loan. It’s important to compare such factors before applying for a loan as it will ensure that the loan will match his requirements
Different Ways to Apply for A Personal Loan
After you have compared various personal loan options, the next step is to actually apply for a personal loan. There are several ways to apply for a personal loan:
- The Bank’s Website – Most banks in Indonesia offer online application facility for a personal Just visit the bank’s website and fill up the online application form. On completion of the online application, the bank will contact you with further instructions.
- Bank’s Phone Helpline – Some banks let you apply for a personal loan with just a phone call. Once you call the bank, the bank representative will guide you through the entire process of the loan application. However, some banks may require you to visit a bank branch while others may fax or email you a form to fill and return via the same mode.
Walk into a branch – You can always walk into the nearest bank branch of your chosen personal loan provider and inquire about the loan application. Most banks in Indonesia, provide fast approval on personal loans with minimal documentation.