Instant personal loan in Delhi
According to the RBI’s report, personal loans are witnessing double-digit growth, recording a 13.5% increase YoY (Year-on-year) as of March 2021. The financial hardships due to COVID-19 resulted in such a sharp increase in people opting for personal loans.
Personal loans can fulfill a wide variety of needs, including medical treatment, home renovations, higher education, and more. Moreover, its easy-to-meet eligibility criteria, basic documentation requirements, and high loan amount make them an ideal choice for individuals looking for an instant personal loan in Delhi.
What is a personal loan?
A personal loan is an unsecured loan provided by financial institutions to people for their unique needs. Financial institutions offer these loans based on the applicant’s credit history, income level, employment history, etc.
Unlike secured loans like home or car loans, personal loans are unsecured. This means you don’t need to pledge collateral, such as property or gold, to get it. However, that is why they carry higher interest rates than home or car loans, as they come with higher perceived risks.
If the borrower defaults on his/her loan repayment, the lender will not auction anything he/she owns. However, it will have adverse effects on the borrower’s credit report, making it challenging to apply for credit cards or loans in the future.
Eligibility criteria for personal loans
You need to fulfill the following eligibility criteria to get an instant loan in Delhi:
- Age: Must be between 20 to 60 years of age
- Employment: The applicant can be either a salaried or self-employed individual. They must have a regular source of income.
- Nationality: Must be a resident Indian
- Income: Must have a salary above the minimum, based on city of residence
- CIBIL score: Ideal CIBIL score to get the maximum loan amount is 750 and above
Documents required to apply for a personal loan
The documents required to apply for a personal loan differ from one financial institution to another. The following are some of the important documents required to apply for a personal loan:
- Identity proof
- Address proof
- Salary slips of the previous two months (for salaried individuals)
- Bank account statement of last three months
- Certified copies of degree/license (for self-employed individuals)
Things to consider before taking a personal loan
- Authenticity of the platform
Before getting a personal loan, make sure to check if the lender and its website are authentic. The platform must be registered with RBI as an NBFC or other financial institution. Moreover, the company must have a registered office and a functional website.
- Interest rates
Since personal loans come with higher interest rates, individuals may want to use an interest calculator to pick the least expensive option. One should also check the market rates carefully before choosing between fixed or floating interest rates.
- Your repayment capacity
Before applying for an instant loan in Delhi, make sure you borrow only what you can easily repay. You can use a Personal Loan EMI Calculator Online in this regard to see if your income is enough to cover the loan repayment and your personal expenses.
- Consider all charges
Depending on the financial institution, several personal loan charges can be applied. This can include processing fees, late payment penalties, prepayment fees, etc. Thus, before applying for a loan, make sure to read the loan agreement carefully.
- Avoid multiple loan applications
Applicants who have filed for multiple loans appear to have immense financial stress to the financial institutions. This can also result in your credit score falling considerably.
- Maintain your credit score
You can keep your credit score high by ensuring that you repay all dues in time. You can automate your payments and reduce the number of your credit cards to make it easier to do so. This will make it easier to apply for a personal loan at lower interest rates.
You can also check your pre-approved offer online to make your loan approval more hassle-free. Many financial institutions offer this facility on various financial products, such as personal loans, business loans, credit cards, etc.
Personal loans provide an easy way to get finances without the risk of losing your assets. However, when availing of an instant loan in Delhi, make sure to take a loan that you can afford to avoid financial stress.
