Hyderabad, also known as the city of pearls, is one of the major cities in India. Located in the southern part of India, Hyderabad is believed to be a beautiful tourist attraction and is also a treat to other people of the nation for a nice holiday destination. Being known as one of the most populous cities in India, Hyderabad holds a population of approximately more than 10 million people.
However, this vast population makes it difficult for the residents to maintain comfortable and luxurious lifestyles that require significant investment. Due to this, many people end up taking an instant loan that can fulfil their requirements in the longer run. The loans people commonly take up are personal loans for personal investments. Let us learn more about how a personal loan can be obtained in Hyderabad.
Why Would One Go for a Personal Loan in Hyderabad?
Seeking out personal loans 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, having an understanding of what are the essential requirements to be covered is important.
Also, along with keeping up with mental and physical health, one might also need financial stability in some difficult phases of their lives. Of all the requirements one counts on, a personal loan will surely help you meet all your financial expenses whenever you are in a dire need of money.
For instance, a borrower has saved a certain amount of money for his child’s wedding to be organized in a royal banquet in their hometown, Gachibowli, but for some unexpected emergency, he ends up using the money he saved for his child’s wedding function. So, in such cases, the borrower must take up a personal loan for the upcoming purpose.
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
- Funeral expenses
- Vehicle expenses
But one thing that must be kept in mind is that one cannot take a personal loan for long-term installment purposes, such as education loan, student loan, car loan, or mortgage loan for this regard, that is used to fund specific expenses.
There is no such exceptional requirement needed for a person to request a personal loan mainly in Hyderabad. People in Hyderabad can easily opt for a personal loan with a hassle-free process. The process is swift and minimalistic, just like availing of any other loan. One might take up a personal loan in Hyderabad for a number of reasons.
Various national and private banks of India provide personal loans in Hyderabad. However, to make an informed decision, make sure to read over the details of the personal loan interest rates and fees that apply, which are listed on the company site carefully.
Documents Involved in Getting a Personal Loan in Hyderabad
- Photo ID or biometric ID or age proof.
- Application form with all formalities like signature and declarations.
- Address proof of your permanent address (Hyderabad Domicile)
- Bank statements of last 6 months (for all applicants)
- Income proof
- Salary slips of the past 3 months along with income tax statements (for salaried employees)
- An audited balance sheet of past 3 years along with income tax statement (for self-employed applicant).
Top features and benefits of getting a personal loan in Hyderabad.
- Easy and paperless documentation with minimum paperwork.
- Quick approval of loans makes it desirable for people.
- Transparent and efficient process.
- Different banks offer loans at considerably less or lower interest rates. Starting from 8.25% lakhs per annum, most loan rates vary from bank to bank which is affordable to people
- Flexible repayments and tenures.
- If you need money for a specific purpose, you can apply for a personal loan and repay it over time in equal monthly installments or simply abbreviated as EMIs.
- Personal loans at low-interest rates are available from a variety of lenders in Hyderabad. You can apply loan online or in person at any branch across Hyderabad.
- You can evaluate different interest rates and processing costs while applying for a personal loan online without having to visit different bank branches in Hyderabad.
The Loan Amount and Minimum Salary Allowance for the Personal Loan.
In Hyderabad, one can avail a loan amount ranging from 50,000 INR up to thirty times their monthly income at ease. And as far as the minimum salary allowance is concerned, applicants need to have a monthly earning of at least 15,000 or 20,000 rupees per month. Also, maintain a good relationship with the bank and try to clear all your dues on time.
Look Out for These Before Applying for a Personal Loan in Hyderabad
Have a good Credit score: First and foremost is having a good credit score. No matter how much of a loan amount you need or which part of the city you live in Hyderabad, only a good credit score can help you to get it approved. In this regard, the CIBIL score comes into the picture.
- A CIBIL score is a 3-digit numeric element that shows the individual’s creditworthiness based on his credit history, transactions, and rating. Depending on the CIBIL score, a personal loan at convenient interest rates can be achieved.
- In general, a poor credit score can decline your loan request, whereas a moderate score will help you get a personal loan at comparatively higher interest rates and an extraordinary credit score will lead to getting a personal loan at very lower interest rates. Based on the credit score, you have the power to negotiate with the bank to get a personal loan at cheaper interest rates. So, the credit score is the primary thing to look out for.
Check the Flexibility of tenures: It is very important for the borrower to choose the right tenure on the personal loan because it helps in saving money more efficiently. The equated monthly installment or simply known as EMI and the total interest charges on the personal loan is affected by the repayment term.
- A longer tenure will result in reduced EMIs and likewise, a shorter tenure will result in a greater EMI amount.
- In case if 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.
Know the Interest rates: As far as the interest rates are concerned, the applicant can compare the rate among other banks, so that he/she gets 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 Hyderabad.
In general, there are two types of interest rates, mainly, fixed, or floating interest rates and reducing-balance interest rates:
- Firstly, Fixed, or floating interest rates are those where the interest rates remain fixed throughout the tenure of the loan. To get a clear idea of what fixed interest rates are like, take an example where you availed a loan of 5 lakhs and throughout the tenure, your interest rate will remain the same, conditioned if the bank does not change the rates.
- On the contrary, reducing balance interest rates keeps changing the interest rates from time to time, 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. 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.
Choose the collateral: 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 the borrowers to reveal the reason and do not ask for a guarantor. Check if the bank in Hyderabad offers you unsecured personal loans meaning, you do not have to provide any assets in the form of either cash or land, etc. in future
Understand Additional charges: To avoid any scam, make sure 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 charges and documentation charges are also added as the total outstanding amount.
However, these are subject to change depending on the length of your loan, and they also show any ancillary fees that may be incurred because of a change in payment terms. These fees include fees for paying off your loan in part (over the agreed-upon EMI) or in whole before the end of its term, as well as fees applied in addition to bank loan interest rates for late or non-payment of dues.
Decide the amount of loan required: Taking up the loan amount more than what is needed is unnecessary because over time, the interest rates will be a burden for you as the loan period extends and the repayment comes closer. The borrower should be aware of borrowing the minimum and maximum loan limits to avoid any baggage in the future.
Make an EMI prediction: Use an EMI calculator to figure out 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 can make their decision regarding the same.
Research well: 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 own finances, strict financial discipline should be there. Prior to enrolling in a personal loan, it is very important to compare loan products from various banks, lenders, and other financial institutions serving in Hyderabad by researching a bit from their websites.
To sum up, personal loans are easy to avail if you are having financial personal needs, however, there are certain important things to be taken under consideration for a better outcome. Seeking advice from some 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 get assisted in obtaining the necessary funds you need.