Delhi is the 2nd most expensive city in India. And according to Mercer’s 25th annual Cost of Living Survey 2019, Delhi currently ranks as the 118th costliest city worldwide. Consequently, the per capita expenditure, the expenditure of one person out of total, is also high in this city.
Most individuals avail an instant personal loans in Delhi for medical emergencies, traveling, or personal expenses. Easy availability, zero end-use restrictions, and instant approval are among the primary benefits of such loans.
However, there are certain pointers which individuals should consider to avail of the loan at the most beneficial terms.
Here are these 5 points that need to be considered before taking a personal loan.
- Look for the easy application process
While looking out for a personal loan, you need to go for a lender, who can provide you hassle-free and quick processing. Simple eligibility criteria and only certain documentation need to be done to avail a quick personal loan.
Leading financiers will require only some basic criteria which include –
- Age – 23 to 55 years.
- Employment details – Employed with MNC, public or private company.
- Salary – Above the median income as per the city of residence.
- CIBIL or credit score – Around or above 750.
- Nationality – Indian.
Certain basic documentation is required to avail as well. A salaried applicant needs to submit documents including among others –
- Employee ID card.
- Bank account statement for the last 3 months.
- Last 2 months salary slip.
2. Calculate the EMI beforehand
It is important to calculate the EMI before you avail a personal loan in Delhi. Properly planning the finances is vital to effectively pay the EMIs on time.
Payable EMIs depends on the principal and tenor. To clarify, EMIs will be higher with a shorter tenor compared to a longer one. On the other hand, with a longer tenor payable interest amount will be higher.
Therefore, borrowers should know how to calculate personal loan EMIs before applying so they can make the decision according to their financial strength.
Bajaj Finserv offers Flexi Personal Loans with the facility multiple withdrawals from a pre-sanctioned loan amount where interest is charged only on the amount withdrawn and not on the total loan. This helps you save considerably on payable interest making repayment easier for you.
4. Understand your limit
You should only borrow what you can repay without hampering your monthly budget and savings. To understand your financial limits, you need to compare your monthly income and expenditures. This will also help you to decide the right amount should be taken as a personal loan in Delhi.
Also know that if you apply for a loan amount lower than the eligible loan amount offered to you, lenders will consider you as a creditworthy borrower and may additionally offer you with more affordable personal loan interest rates.
NBFCs like Bajaj Finserv provide attractive interest rates and other facilities to help you easily meet your financial needs. They additionally provide exclusive pre-approved offers that ease out the lengthy and complicated process to avail loans.
5. Improve credit score
Credit or CIBIL score is a 3-digit number ranging from 300 to 900 defining the creditworthiness of individuals who have already availed credit-based products from the financial market.
This certifies how an individual handles finance while repaying the debt. So, having a high credit score is mandatory to avail personal loans.
Here are some tips to improve credit score while using a credit card to –
Pay the total due and not the minimum due amount.
Don’t utilize more than 60% of your credit limit.
Never apply for too many loans or credit cards simultaneously.
Moreover, having a strong credit score certainly helps a borrower to negotiate the interest rate with the lender as well as avail a high credit amount.
The number of personal loans in Delhi and across most other Tier I and Tier II cities are increasing at a substantial rate of 27% YoY. Refer to leading lenders with a healthy CIBIL score to increase the chances of approval for your application. Also, check out how personal loans can provide you tax benefits to benefit further.