With a whopping population of 2.3 crore, Mumbai is the 6th most populous place among the world’s metropolitan cities. Not to mention, its commercial importance makes it an economically indispensable location for the country. With an always growing lifestyle, the city has also witnessed an increasing demand for household financing for various purposes, from overseas travel to higher education abroad, and lavish marriages. The easy availability of a personal loan in Mumbai makes sure city residents do not have to deprive themselves of needs and wants due to the lack of funding.
Availing a personal loan here is quick and convenient with several best lending institutions providing financing against simple eligibility requirements to candidates here. Nevertheless, it is always wise, personally as well as financially, to plan well before availing a personal loan. Here’s a look at some crucial factors you must keep a check on before applying for the advance in Mumbai.
Personal Loan Interest Rates
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Personal loans are unsecured advances, which raises the lending stake for financial institutions, making them hedge such higher risk with an increased rate of interest. So, as a rule of thumb, these loans are set to attract higher rates than secured advances. However, under the unsecured funding segment, personal loans can be quite affordable if borrowers choose the right lender and utilise ways that can help them reduce their interest rate levy on the advance.
Before applying for a personal loan in Mumbai, you must thus compare interest rates offered by available lending institutions and choose your financial institution accordingly. Other ways to reduce the rate of interest on these advances include the following.
- Choose wisely between fixed and floating rates system.
- Opt for a smaller loan amount than your maximum eligibility.
- Pay off existing debts before applying.
- Work on your credit score improvement.
- Apply with a co-signor holding a high eligibility for the advance.
- Negotiate with lender based on your employment and income capacity.
Other Fees and Charges
The fees and charges levied on personal loans can also contribute remarkably to the overall cost that a borrower ends up bearing by the tenure completes. Some common charges for the advance apart from interest include processing fees, document charges, late fees, penalty, bounce charges, etc. You must make sure to compare lenders and find the one provider that keeps these fees and charges nominal for improved borrower affordability. Some best lenders in Mumbai also eliminate some fees like statement charges to make these loans more attractive and useful to borrowers.
Features and Facilities from the Loan Provider
The overall usefulness of your personal loan can be quite easily determined through the available features and facilities on the advance. Some best providers for personal loan in Mumbai offer the following top features and benefits on these advances.
- High-value financing of up to Rs.25 Lakh
- Tenure flexibility of up to 5 years
- Online loan account management facility 24×7
- Repayment in easy EMIs
- Prepayment options at nil extra charges
- Quick approval within a few minutes of application
- Loan disbursement under 24 to 48 hours
Eligibility and Documentation
Personal loan documents and eligibility criteria are another parameter to check before finalising your loan option to apply for. With some best lenders keeping the eligibility bar quite low for wider loan accessibility, you can expect the standard eligibility requirements to be around the following factors only.
- Occupation of the applicant; salaried or self-employed
- Minimum and maximum age range based on occupation
- Work experience for salaried
- Business vintage for elf-employed professionals as well as non-professionals
- Minimum monthly income, which starts from Rs.15,000 in Mumbai
- Stability of Indian residential citizenship
To establish these eligibility factors, the lender would require a borrower to provide certain personal loan documents. They usually include income and employment proof along with standard KYC document for the total paperwork to complete.
Credit Score and History
As unsecured advances, personal loan approval heavily depend on an applicant’s credit score and the corresponding credit history. It allows the lender to gauge his/her creditworthiness based on past credit habits and records. The minimum credit score requirement for availing a personal loan in Mumbai varies from 700 to 750, under which an applicant may find it challenging to receive approval for the advance.
It is thus suggested that you check your credit score and history, and work on it for improvement at least 6 months prior to applying for the loan. It gives to time to take the necessary financial decisions and allows credit bureaus to adjust your score based on such records.
You must also check your repayment capacity for the loan and choose a financing value accordingly as personal loan in Mumbai. It is advisable to use a personal loan EMI calculator to make a well-assessed borrowing decision that keeps the EMIs well within your repayment capacity and helps with fast loan approval.