Metro cities have an edge over other remote cities and villages of the country. They boast of better education and career prospects, medical treatments, infrastructure, amenities and other facilities which makes the living here more comfortable. As every good thing comes with a cost, likewise living in the metro cities like Delhi, Chennai, Mumbai and Kolkata also entail a decent amount of expenditure. To overcome any financial emergency, one can also easily avail personal loans which are being offered by various leading banks and NBFCs at a competitive rate of interest. With almost every bank having their branches in the metro cities, one can easily apply for a personal loan either by physically visiting them or by accessing their online portals. HDFC Bank personal loan and SBI Personal loan are the most sought after loan products in the lending sector.
However, before one applies for the personal loan, it is always better to educate self and gain knowledge on its various aspects. Unlike secured loans where the borrower secures the lender with an asset, a personal loan is unsecured in nature wherein the applicants are not required to put any asset as security against the loan. These loans thus incur a little higher interest rate than the formerly mentioned secured loan products.
Here are some important tips which one must keep in mind when applying for a personal loan in metro cities.
1. Don’t go overboard with loan amount:
One may feel intimidated to opt for a higher loan amount if one is eligible for the same. But one must keep a check on that and go for the loan amount which is actually required to sail through the financial emergency. Opting for a lower loan amount that will not solve your purpose is also not advisable. It is thus better to sit down and calculate the amount which you actually need. Also, check if you could easily repay back the borrowed loan amount without burdening your pockets. It is to be remembered that personal loans usually incur a higher rate of interest, and the more loan amount you borrow, the more interest you will be liable to pay.
2. Work towards bettering your credit score
Lenders in metros take your credit score into consideration before offering you their loan products. However, some lenders are not stringent about it, but one must certainly work towards enhancing their credibility to pave way for future credits. if managed correctly, a personal loan helps to considerably amp up the credit score. One can opt for short term personal loan with flexible loan tenure and easy EMIs and repay them timely to better their credit report.
3. Give correct details to the lender
Never ever mention any false personal and financial information in the personal loan application form as it could result in rejection of your loan application outright. The lenders seek the documents backing the information you enter and also do a verification of the same on their end. Thus, be true to yourself and your prospective lender.
4. Check your repayment capacity
Lenders are primarily concerned about the repayment of the loan. And thus, they give much heed to the income and financial status of the borrowers. It is advisable to be realistic in one’s approach and apply for the loan which can be repaid timely and comfortably without compromising on your lifestyle.
5. Check additional costs and charges related to loan
Always read the loan agreement and ask for the otherwise hidden charges like processing fees, foreclosure charges and late penalty costs to calculate the actual cost of the loan.
A personal loan is a saviour in times of financial emergency. One can use the loan amount to finance one’s wedding, travel, home renovation, medical expenses, education, business and to consolidate debts. Apply for a personal loan through LoansJagat portal if you wish to grab the most suitable deal matching your needs and credentials. Our platform helps you to compare different lenders on account of their offerings in terms of rate of interest, loan amount, loan tenure, EMI, processing fees and other charges. One can opt for either short term personal loan or avail one for a loan tenure of 5 years. Our EMI calculator helps you to know the amount which you can repay easily.