A Detailed Guide That Will Assist You in Getting a Personal Loan in Mumbai.

Personal Loan in Mumbai

Personal Loan in Mumbai

Mumbai, formerly known as Bombay, is the city of dreams for youngsters. Apart from its lively nightlife and the charm of Bollywood, the city has a lot to offer the people of every age group. In terms of the lifestyle, whether you live in a posh neighbourhood of Hiranandani or whether you are a college student moving to Bandra for your masters or just a millennial looking for a flat in an excellent locality of Collaba, Mumbai has the space for all. However, the luxury of living in a city like Mumbai comes with well-maintained finances and many investments. 

On average, the nominal salary of an individual residing in Mumbai is 30 thousand per month, which sometimes lacks to complete the expenses of long-term requirements. As per this statistic, it is not easy enough to keep up with your spending and live the life of your dream in an expensive city like Mumbai. With a decent salary apart from his earnings, one might want to take up some financial help as a personal loan to fulfill their immediate individual needs. If you, too, are looking for a solution like a personal loan in Mumbai, take a glance at these points while applying and get a clear picture of your planning.

Advantages of Personal Loan

Advantages of Personal Loan:

Opting for a personal loan not only reduces your burden of saving a lot but also benefits you in several ways. Following are some of the prime benefits you get from a personal loan.

Safe and hassle-free process- Online banking has bloomed in the banking industry, where every service can be achieved without visiting the centers. The loan process is easy and minimalistic. Being a digitally driven process, a personal loan gives the borrowers timely approval without having them stand in a long queue for hours.

Helps to grow your credibility: It allows you to increase your funds and build a decent customer credibility for future loan inquiries.

Minimum documentation required:  In this digital era, paperless documentation of banking work is a great advantage to people running in busy, hectic schedules.

Efficient and transparent: Banks take care of their customers by staying vigilant about their transactions. Lessor negligible chances of scams or fraud make it more desirable for people, making the process safe and reliable.

Also Read : A Comprehensive Overview of Personal Loans in 2021-2022

Affordable interest rates: Various bank branches across Mumbai offer personal loans at conveniently lower interest rates generally based on your credit score.

Collateral free loans: Banks do not ask for any collateral, meaning you do not need any pledges for security or guarantor in the form of money, land, jewellery, etc.

Quick sanctioning of loan: You can receive an instant loan deposited in your bank account within 48 hours of requesting and applying with the hassle-free procedure. You can avail of a maximum loan amount of thirty times your monthly salary provided with a maximum tenure of 5 years.

Opportunity to repay as per your convenience: This gives you the comfort of repayment according to your chosen period. You can select the loan tenure starting from 12 months to 5 years.

A plethora of loan providers: For borrowers, options are countless to avail a personal loan. Different banks offer different rewards, interest rates, offers, and perks, making a variety of choices for borrowers. 

 Are You Qualified For a Personal Loan? 

It’s important to confirm before you fill out a personal loan application. For that, check whether you meet the eligibility criteria which are mentioned below:

  • Photo ID/ age proof (Aadhar card/ voter ID/ Passport/ PAN card)
  • Resident proof (Maharashtra domicile)
  • Agreed application form with signatures and declarations.
  • Bank statement of last 6 months
  • For salaried applicants: last 3 months’ payment slips and Income tax returns.
  • For self-employed applicants: Audited balance sheet of last 3 months and income tax.
  • Applicants should hold Indian citizenship.
  • Applicants should have a minimum income of 15,000 INR – 20,000 INR per month.

Necessary Factors To Keep in Mind Before Making a Personal Loan Request. 

Sustain Strong Customer Credibility: 

The first and essential thing is holding a good credit score. Regardless of how much loan amount you want or which city you live in, only a good credit score can help you get one. A credit score is a three-digit numeric element (ranging from 300 to 900) that shows the borrower’s creditworthiness based on his credit history, transaction, and rating.

If you have a good or average credit score (between 600 to 700), your request for the personal loan may get approved but with a slightly high-interest rate. If you have more than a good or extraordinary credit score (above 700), the bank might offer you a personal loan with a low-interest rate. If your credit score is poor or less than the average score, this will lead the bank to reject your loan request.

You may also get assistance in this regard from Buddy loan. It offers you a personal loan of up to 15 lakhs with interest rates starting from 11% pa and without collateral.

Also Read : Common Myths about Personal Loan

Understand the Interest Rates: 

Starting from 11% per annum, many banks across the city offer personal loans at different reasonable interest rates. However, many banks tend to change their interest rates based on their market value. So, there might not be a constant interest rate set. Hence to avoid any confusion, it is suggested to check the websites and their current interest rates regularly.

Plan the Length of Tenure: 

For a more efficient process, choose the suitable tenure as the equated monthly installments (EMIs). The total interest charges on loan are affected by the repayment term, i e, the assignment. The EMI will be reduced if the tenure is long and vice-versa in the case of shorter tenure. Also, make sure if the bank has a minimum term of 12 months or is at least open-ended for the repayment, as this will reflect on the interest rate added to the loan amount.

Check The Security Of The Loan.

Make sure to check if the bank offers you an unsecured personal loan, and they do not constantly ask you to provide any assets in the form of either cash or land, co-signer, etc., irrespective of the purpose as unsecured loans are comparatively riskier than secured ones. However, it is ultimately the lender’s decision whether to approve the borrower’s loan request or not based on their creditworthiness.

Ensure Transparency in Terms of Charges and Rates

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. 

Choose a Sufficient Loan Amount.

Taking up the loan amount more than what is needed is unnecessary because, 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. It will also help the borrower to make his other loan requests process in the future as well.

Calculate the Down Payment and EMI for Each Month

Planning the expenses is not enough and does not clarify the end amount. An EMI calculator will be a great help to figure out how much money you will have to pay in interest, assist you in making crucial personal loan decisions, and provide a detailed breakdown of the loan amount.

Have an Insight 

A personal loan is one of the most accessible loans. Before applying for a personal loan, it is 

essential to compare loan details from various banks, lenders, and other financial institutions serving in Mumbai by researching their websites. Carefully read about all the necessary terms and conditions. Also, maintaining a good relationship with the bank and clearing all dues on time is highly advisable.

Maintaining a Good Relationship With Lenders: 

Availing of a personal loan can depend on many factors, but mandatorily having a good relationship with the bank. Otherwise, there are many possible reasons why the bank will not approve your loan request. These are some of the factors which might negatively affect the possibility of you getting a personal loan:

  • Lack of any credit transactions.
  • A high number of frequent loan inquiries
  • A high number of existing unsecured debts obligations
  • Poor loan repayment, non-payment, late payment of EMIs
  • Irregular due payments
  • Higher utilization of credit cards than the regular limit.
  • If you have ever been engaged in any criminal or unethical activities.

Wrapping Up 

If you are experiencing any financial difficulties in Mumbai, Personal loans are easy to obtain at the requirement. For a less time-consuming outcome, you can always consult some trusted experts and reliable financial advisors. Keeping your convenience as a priority, Buddy loan is a valuable financial platform where you find solutions to all your banking required services and help get a fair idea of planning your expenses, resulting in obtaining the necessary funds you are looking for.