A Complete Guide for Obtaining a Personal Loan in Chennai, Tamil Nadu.

personal loan in chennai

personal loan in chennai

Chennai, the capital city of Tamil Nadu. Located in the southern part of India, Chennai is one of the progressively fast-growing cities in terms of education, economy, and development. It stands as one of the major metro cities of India, which is excessively populated with students, IT organizations, powerful politicians, and many established business tycoons.

However, the luxury of living in a city like Chennai/Tamil Nādu comes with a lot of investment and managing finances. At times, one might not be able to complete their need with the compromised money or nominal earned salary, so he might seek better help from some reliable and trusted sources like opting for a personal loan in Chennai/Tamil Nadu.

If you are looking for a personal loan based in Chennai/Tamil Nadu, here is a detailed guide

Need of Personal Loans

People do indeed wish to live an independent lifestyle. They fantasize about living a luxurious and comfortable lifestyle in Chennai. To dwell among the advanced standards, they might have to go through certain difficulties in terms of finances. To tackle such situations, people tend to save some money out of their salary and, most commonly, take up a personal loan.

Under any dire condition, if one feels the need of seeking out a personal loan, then it is based on an individual’s need, depending on what kind of expenses they’re looking for. It can be sought for a variety of reasons and, understanding what the essential requirements are to be covered is important.

Apart from that, a personal loan can be availed to fulfill these essential needs and so on:

● Debt consolidation

● Medical bills or medical emergencies

● Vacation or family trip

● Home renovation and other hefty repairing work

● Wedding expenses

● Vehicle expenses

Expenses that specifically require long-term installments such as car loans, education loans, or home loans can also be achieved by a personal loan.

Also Read: Personal Loan Insurance Plans: Protect Yourself from Different Risks!

Benefits of Personal Loan

● You get an instant loan for any of your immediate requirements.

● The paperwork is minimum and hassle-free.

● Less time-consuming.

● Banks do not ask to reveal the purpose of the loan, so it can be kept confidential.

● Efficient and transparent process.

● Affordable interest rates.

● It gives you the convenience to repay according to your time.

● Does not require any collateral, pledges, or guarantor.

● You can compare all the banks providing personal loans based on interest rates, tenures, minimum salary allowance.

● Easy repayments and tenures.

How to Take a Personal Loan in Chennai/Tamil Nadu?

Personal loans in Chennai/Tamil Nadu are available from several Indian national and private banks. To make an informed decision, read through the details of the personal loan regarding the interest rates, costs, and charges, which are generally stated on all the bank websites.

Individuals can easily obtain a personal loan through a simple application process. The procedure is simple and quick, just like applying for any other loan where a personal loan could be taken out for many reasons. However, certain things must be considered before applying for a personal loan.

The Necessary Documents You Require To Get a Personal Loan in Chennai.

personal loan documents

● Acceptable forms of identification like Photo ID, biometric ID, or age proof details.

● All formalities like signatures and declarations on the loan agreement.

● Permanent address proof (Chennai/ Tamil Nādu citizenship)

● Bank statements of last six months 

● Income proof:  

  -Salary slips of last three months along with income tax returns statement (for salaried applicants)

 -3 years audited financial balance sheet along with income tax returns statement (for self-employed applicants.

Also Read : 10 Best Tips for Successful Personal Loans

What is the Minimum Salary Allowed to Get a Personal Loan in Chennai?

As far as the minimum salary allowance is concerned, applicants need to have a monthly earning of at least 15,000 or 20,000 INR per month. 

One can avail of a personal loan mainly under two conditions:

· If they are a salaried person, they are paid employees of a company.

· If they are a self-employed person or he has a reliable source of income.

Look Out For These Elements Before Applying For a Personal Loan in Chennai:

Maintain a good credit score: One of the primary things that must be looked out for is the credit score. No matter how much loan you want, what tenure you want the loan for, or which city you are applying for, only a good credit score will help you get one. 

In this regard, the CIBIL score comes into the picture. This three-digit numeric element shows an individual’s creditworthiness and transaction consistency based on his credit history, transactions, and rating.      

 There can be three possible conditions:

● If you have a good credit score which ranges somewhere from 500 to 700 out of 900, you can get a personal loan but with a slightly higher interest rate.

● If you have an exceptional credit score (typically over 700), any bank will give you a personal loan based on that credit score with a low-interest rate.

● If your credit score is poor or less than the average score, the chances are high that your loan request will be declined.

Based on the credit score, you have the power to negotiate with the bank to get loan online at cheaper interest rates.

Know the Interest rates: As far as the interest rates are concerned, the applicant can compare the rate among other banks so that they get a clear picture of the planning and expenses throughout the loan bond. In India, most banks start their interest rate from 10.25% per annum and reach up to 16 % based on the bank and its market value in Chennai/Tamil Nadu.

However, many banks tend to make a fluctuation in their interest rates, so there is no fixed interest rate set for borrowers to avail the loan, which makes it an option for those borrowers who are planning to avail the loan by the time when interest rates are affordable sooner or later or as per their convenience.

Check the Flexibility of tenures: The borrower needs to choose the right tenure on the personal loan because it helps save money more efficiently. The equated monthly installment is known as EMI, and the total interest charges on the personal loan are affected by the repayment term.

Loan tenures can have two aspects:

● A longer tenure will result in reduced EMIs, and likewise, a shorter tenure will result in a greater EMI amount.

● In case you have chosen a longer loan tenure, chances are highest that you will have to pay a higher interest rate throughout the courses of the loan. So, make sure to check if the bank has a minimum tenure of 12 months or is open-ended for the repayment.

Check the Security: Personal loans can be secured, in which you must put up security to borrow money, or unsecured, in case you do not need to put up any collateral. Most of the banks do not generally ask for a guarantor. Check if the banks in Chennai/Tamil Nadu offer you unsecured personal loans meaning, you do not have to provide any assets in the form of either cash or land, etc., in the future. 

Understanding the Additional charges:  To avoid any scam, ensure the process is transparent. Check if there are any hidden charges apart from additional charges of GST and Prepayment and processing charges. Generally, a GST rate of 18 % is applicable in such banking services, and 0.5 % to 2.50 % is deducted as a processing fee from the loan amount. Apart from these, verification and documentation charges are also added as the total outstanding amount. 

Pre-decide the loan amount: Taking up the loan amount more than what is needed. Over time, the interest rates will burden you as the loan period extends and the repayment comes closer. In general, most banks offer a loan amount of around 50,000 INR to thirty times your monthly salary. So, the borrower should be aware of borrowing the minimum and maximum loan limits to avoid any baggage in the future.

An EMI prediction will help: Use an EMI calculator to determine how much money you will have to pay in interest. An easy-to-use tool that provides you with a comprehensive perspective of the loan’s financials assists you in making important personal loan decisions and will also help you with a detailed breakdown of the loan’s various expenses. Apart from that, applicants can go through some banks for further details and make their decision regarding the same.

Research: In today’s market, a personal loan is one of the most accessible loans. To avoid affecting your creditworthiness or taking a toll on your finances, strict financial discipline should be there. Before enrolling in a personal loan, it is very important to compare loan products from various banks, lenders, and other financial institutions serving in Chennai/ Tamil Nadu by researching a bit from their websites. Also, maintaining a good relationship with the bank and clearing all dues on time is highly appreciated.

Summing Up

To conclude, personal loans in Chennai/Tamil Nadu are easily available if you have personal financial needs. However, seeking advice from experienced professionals and trusted financial intermediaries about the finest personal loans will make the process much easier and less time-consuming. One such way to get a consultation is Buddy Loan. There you might be able to get guided in the correct direction and obtain the necessary funds you need.