Known as the oldest and most famous business area, Abids is a prominent commercial center in Hyderabad, India. The locality gained more importance as it is close to Nampally Railway Station.
Today this locality is considered the main shopping center with the street named Abids Road. In a business center like Abids, the cost of living is pretty high. As a result, your earnings might be only sufficient for living expenses, leaving very little for savings. Education fees, medical costs, or wedding costs can create enormous stress in handling the financial situation, especially when there is a sudden requirement. In such a situation, the best solution is to take a personal loan in an emergency.
This article will learn what a personal loan is and things to know before availing of a personal loan in Abids.
What is a Personal Loan?
A personal loan is usually offered without any collateral, and hence it is known as an unsecured loan. You can take a instant personal loan to fulfill your financial needs, a medical emergency, wedding plan, vacation, business, etc. This type of loan is considered more convenient as it requires very few documents, and the verification process is also swift.
Benefits and features of getting a personal loan in Abids
A personal loan has a lot of benefits compared to a traditional one. The following are the features and benefits offered for a personal loan in Hyderabad:
No Hidden charges You don’t have to pay prepayment charges or other hidden charges while applying for a personal loan.
Collateral free: Since personal loans are unsecured, it is unnecessary to submit any collateral to avail a personal loan.
Instant approval: If you meet all the required eligibility criteria and have a credit score above 750, your loan application will get approved instantly.
Get the loan within 24 hours: Since the process is online and quick, your loan amount will get disbursed to your bank account within 24 to 48 hours of verification.
Minimum Documentation: You only need minimum documents to verify your KYC, such as identity proof, address, and income, such as your Aadhar card, PAN card, bank statement, etc.
Flexible tenure for loan: Personal loans have flexible repayment tenure starting from 6 months to 60 months. Therefore, you can choose the tenure according to your budget and convenience.
Check out the Eligibility Criteria for getting a personal loan in Abids
The eligibility criteria can vary with different banks. Therefore, you must always check your eligibility to avail the loan either online or by visiting your nearest bank.
- The person must be a citizen of India.
- The applicant’s age should be between 22 to 58
- They should either be employed or self-employed
- The minimum income should be Rs.15,000 per month.
- Must have at least one year of complete working experience.
- Should have a good credit score of above 750
- Should not have any records of anti-social or criminal activities.
Mandatory Documents to be submitted for getting a personal loan in Abids.
The following documents must be submitted for KYC verification of your identity when availing of a personal loan:
- Proof of Identity: Voter ID, Aadhar Card, Driving License, Passport
- Address Proof: Electricity bill, Passport, Ration Card
- Income Proof: A salaried employee should submit a bank statement for the past six months, and a self-employed person should submit bank statements for the past three months.
- Certificate: The applicant should submit an Employment Certificate which mentions one year of complete service in a company.
- Complete the application form signature and declaration where applicable.
Things to know before getting a personal loan
Here are a few things that you should know before you could avail of a personal loan:
A credit score indicates the creditworthiness in a 3-digit number ranging from 300 to 900 (900 is the highest and 300 is the lowest). A credit score above 750 is considered excellent because it indicates that you can repay your debts before the stipulated deadline. Hence, to know if you have a good credit score, you can check using Buddy score, where you can get your credit report instantly.
Debt-to-Income ratio (DTI) is the percentage of gross monthly income to that of monthly debt payments. It shows how well you can manage your new debts, and lenders expect you to have your debt-to-income ratio less than or equal to 50%.
Relationship with your lender
An excellent and long-lasting relationship builds trust and loyalty. Maintain a good relationship with your lender. It will be easy for them to lend you money as they will already have all the information about your financial situation and your ability to repay the loan.
Clear all your past debts
You must always repay your bills and dues on time. But if you missed any payments, you must start clearing your pending debts as soon as possible. It will increase your credit score and increase the chance of getting low-interest rates as your creditworthiness will increase.
Decide your required loan amount.
If you take a loan amount more than what you require, you may feel difficult to repay your debts on time, and it will, in turn, impact your credit score negatively. Hence, avail of a personal loan only as much as you require.
Get a co-applicant
A co-applicant (also called co-borrower) is a person who shares the joint responsibility along with the borrower for the money borrowed from the lender. If you have a poor credit history, you can still avail a personal loan by getting a co-applicant who has a good credit score.
Know your EMI
Before you can apply for a personal loan, do detailed research about various banks, NBFIs, and lenders to get an idea about the interest rates, EMI, tenure of repayment, etc., that they provide. Calculate your EMI to be paid from various websites to know your budget. By doing so, you can choose the lender that provides loans at a low-interest rate.
A financial requirement can occur at any time without a forewarning. In that situation, all that we think about is instant funds. Moreover, asking your relatives and friends can be pretty tricky as even they might not be in a position to help. Therefore, taking a personal loan is the best option to handle this stressful situation. You can take a personal loan from Buddy Loan with interest rates starting from 11% per annum. It is known as one of the best third-party aggregators that offer loans for various purposes to meet financial requirements.
People Also Ask
- For what purpose can I avail a personal loan?
You can avail a personal loan for various purposes such as medical emergencies, wedding plans, vacation, business expansion, etc.
- What is the minimum credit score required for a personal loan?
It would be best to have a credit score above 750 to qualify for a personal loan.
- Can students apply for a personal loan?
No, you must either be a salaried employee or self employed to get a personal loan.