Living a comfortable life in a metropolitan city in India indeed comes at a cost. It is certainly a good experience, but not everyone can afford it. Creating a realistic budget based on your income and expenses and sticking to it is prudent. However, there can be expenses that have not been factored in at times, and it can imbalance the equilibrium. In this scenario, one must rely on external financial aid, mainly when one can’t rely on savings. Personal loans can also be the best financial aid if you need money last minute. In the contemporary digital era, people also have the flexibility to apply for an online personal loan Mumbai from the comfort of their homes. Read on to learn more about personal loans and how to get one quickly in Mumbai.
What are personal loans?
A personal loan can be defined as an unsecured credit tool borrowers use to get money from lenders without submitting any security. The amount borrowed as a personal loan can be used for various purposes, including debt consolidation, education, home renovation, marriage, vacation, etc. There is no restriction on how the borrowers will use the funds. This makes it ideal for those looking for a flexible loan option. Most personal loans can be taken for a duration of 12 to 60 months, depending on the needs and repaying capacity of the applicant. The interest charged on a personal loan is also lower than on credit card loans, making it a better option.
Tips to get a personal loan in Mumbai
Today, borrowers have an array of options when it comes to financial institutions offering personal loans. Getting a personal loan on Aadhaar is also a possibility. However, the lending party sets specific eligibility criteria for providing loans to interested borrowers. Here are a few tips to get a personal loan quickly in Mumbai.
- Know why you want to take a personal loan
Knowing why you want to take a personal loan is crucial before taking one. Personal loans come with a financial commitment of repaying the loan amount. Knowing the purpose of your loan will help you decide the right loan amount. You will be better able to determine how you want to spend the borrowed money and put it to productive use. A higher loan amount will add to the interest cost, and a lower amount will defeat the purpose of the loan. It is highly recommended that the applicant has a clear idea of why they are applying for a particular loan amount.
- Calculate the EMI amount
The repayment obligation associated with a personal loan is actual and can seem like a financial burden if not planned well. One must calculate the EMI amount using an online EMI calculator before applying for a loan. Choosing the right EMI amount keeps people away from the defaulter’s list. Before you apply for an online personal loan Mumbai, check the EMI amount for the loan amount, interest rate and tenure. It is recommended to take a longer-term for lower EMIs if the total amount can’t be reduced.
- Check the eligibility requirements
All personal loan products have eligibility criteria set to filter out unwanted borrowers. The exact eligibility criteria may vary depending on the loan provider. Most eligibility requirements demand that the borrower is in the age range of 21 to 60 years. There is a minimum income criterion as well. For metropolitan cities like Mumbai, the applicant must be earning a monthly income of over INR 25,000. In addition, most lending parties have a minimum credit score requirement, and the borrower’s score must be over 700. Besides this, one must submit the required documents such as ID proof, income proof and address proof.
- Compare different lenders
Comparing different lenders and loan products is strongly advised before applying for one. It will help you find the best deal and the lowest interest rate. Moreover, various lending parties might have additional terms and conditions associated with the loan, which should be closely evaluated. If you don’t want the hassle of visiting an office for your loan application, choose an online personal loan Mumbai provider.
One should be mindful of the tips mentioned above for getting a personal loan in Mumbai with ease. In addition, maintaining a high credit score and a low debt to income ratio will surely help one get favourable loan terms.