As per a survey in 2020, Mumbai turns out to be the most expensive city within the country and ranks 19th within the pan-Asian territory. Moreover, this city has also stood out to be the 60th expensive city worldwide. Surprisingly, no other Indian city comes even closer to Mumbai as the 2nd most expensive Indian city is Delhi with a global rank of 101.
From the above statistics, it is evident that the cost of living is significantly higher in Mumbai as compared to any other city in India. Therefore, the need for a personal loan in Mumbai is more evident than ever. Consequently, city dwellers must know about these advances before availing them so that they can make suitable financial decisions.
Following are some vital aspects that they need to know before availing the advance.
Things to know about personal loans in Mumbai
Personal Lending Eligibility Measures
The most convenient way to secure a loan in cities such as Mumbai is by holding an excellent credit score and fulfilling all the qualifying parameters. Applicants’ CIBIL score indicates their creditworthiness and provides insights into their credit record and behaviours. In other words, individuals with higher scores hold a better chance to acquire personal loans in Mumbai.
In India, 750 is considered a promising score preferred by most financiers. This score is evaluated on the basis of the repayment history, credit utilisation ratio, length of credit record, etc. Thus, individuals should practice repaying monthly instalments or card bills always before the due dates.
For eligibility measures, applicants have to meet the age range, minimum earning requirements set by the lender, and submit relevant documents to prove eligibility like KYC, income proof, etc.
Present Obligations and Income
When applying for an instant personal loan in Mumbai, individuals should also evaluate their current financial position. A comprehensive analysis of monthly income and fixed obligations can be beneficial to conclude this process. It helps borrowers to determine the most suitable advance amount based on their present financial standing.
Moreover, this fixed obligation to income evaluation is also useful to decide whether individuals should consider availing a personal loan at a given time or not. Notably, lenders can also deny loan applications if applicants’ current FOIR is any more than 50%. That means if consumers’ 50% of monthly earning goes towards debt repayment, they should reconsider further financing.
As much as individuals should be careful about existing debts, they also need to focus on factors that influence personal loan EMIs. Notably, these influencers are principal amount, tenor, and interest rate.
The rate of interest and loan amount is proportionate with the instalments. In other words, higher rates and advance amounts incur expensive EMIs.
Contrarily, an extended tenor provides significant relaxation to the EMI amount. However, it accumulates expensive interest in the long run. To make an informed decision, individuals can use a personal loan calculator before signing up for an advance.
This simple tool generates accurate results in minimal time on providing the above-mentioned determiners. So, borrowers can adjust the values of these components and select a suitable EMI based on their repayment capacity.
Key Benefits Offered by Financiers
After concluding all aspects and elements of financing, individuals should pick out a lender who can provide the most beneficial and economical deal on personal loans. Depending on the lender, the features of an instant loan in Mumbai can differ. For example, applicants can avail up to Rs.25 lakh of a loan amount for up to 60 months.
Lenders like Bajaj Finserv also come up with Flexi Loan facility that enables borrowers to save money on interest to a considerable extent. With this feature, individuals are allowed to withdraw in parts from a pre-sanctioned loan amount as per their need. Furthermore, they need to pay interest on the withdrawn amount only and not on the total funds availed.
Additionally, the lender also provides pre-approved offers that simplify loan processing. These offers are applicable to various financial products, like business loans and personal loans. Applicants can view their pre-approved offer by entering their contact numbers and names.
When applying, individuals can simply visit the authorised website of their preferred financier and fill up the application form for a personal loan in Mumbai online. Afterwards, a representative would contact to collect documents and the borrower can receive the loan amount within 24 hours of approval. These are some of the best tips and tricks to take out personal loans with maximised benefits.