It is high time you start saving and cutting down on expenses so you can get your dream car or that expensive motorcycle you always wanted to have. Looking for a personal loan in Mumbai but still not finding a way to swim through it?
Well, then this is the right place for you to look. Here’s everything you need to know about personal loans, documents needed, eligibility, and how to apply for a personal loan in Mumbai.
What is a personal loan?
To put it in a phrase, a personal loan is an “unsecured loan” availed to meet your personal needs, from financing a vacation to funding higher education for your children.
It can be taken from both organised and unorganised sectors. The organised sector is preferable due to lower interest rates and the choice of the applicant.
You can get a personal loan in Mumbai for up to INR 40 lakhs from both banks and private lenders. However, this amount is very subjective and depends on the person’s means.
Mumbai as a location:
Mumbai, the “dream city,” also happens to be India’s largest economy. Its contribution to the GDP is about $600 billion, which is a huge number. Being the entertainment, fashion, and commerce hub of the country, it adds 6.2% to the country’s GDP.
With such a big number, it could be very tough to get a personal loan in Mumbai, mainly for the middle class. But, with the correct approach, you can easily get your loan in an instant.
What are the points to consider when applying for a personal loan in Mumbai?
Here are some important points you should keep in mind:
- Analyse the eligibility criteria carefully.
While most of the banks in Mumbai have the same kinds of eligibility and needs, the difference is in the “terms and conditions.”
You should go to the official website of the bank and read all the terms. In case you don’t get anything, you should either directly call the bank or ask your advisor about this.
- See what interest rate they are asking for:
Banks charge lower rates of interest in comparison to private financiers. Some private financiers charge higher rates of interest, and rarely is the payment mode designed according to your needs.
Sometimes private financiers have “hidden interest rates,” which could be difficult to identify.
Banks try to provide you with comfort and convenience and charge a lower interest rate. The period of repayment is generally long, mostly between 1 and 5 years.
You also have tailoring options where you can optimise the loan amount, the interest rate, and the mode of payment according to your requirements.
- Filling one application at a time:
Some people try to fill out multiple applications while applying for a personal loan in Mumbai. However, this can sometimes backfire and increase the load on your credit score.
It is best to show patience and apply for one at a particular time.
Eligibility criteria to apply for a personal loan in Mumbai
Here is a list of items you must cover to apply for a personal loan in Mumbai. Some of these rules may vary from bank to bank.
- You must be in the age range of 21 to 65 years.
- Nationality: Indian
- You must be a salaried employee of a good company or a government body, a professional, or a self-employed businessperson to get a personal loan in Mumbai.
- A handsome credit score is always preferable. To get better options, lower interest rates, and quick approval, a credit score of 750 or more is desirable.
- Some banks also look for your work experience. Most of the time, salaried people need one to two years of experience and businesspeople need two years of experience to be eligible.
Documents required to apply online:
As usual, there are some basic documents that banks generally ask for when you apply for a personal loan in Mumbai.
Some of them are your KYC details, like your Aadhar card, voter ID card, etc., which should cover up your ID proof and address proof.
You will also be asked for proof of your income, which could be your salary slips, bank statements, recent IT returns, etc.
Some banks might also ask about your current loan situation and your liabilities before handing over the amount. If you have a large loan amount that is yet to be repaid, chances are you might face some reduction in the loan amount.
Steps to apply for a personal loan in Mumbai online:
- Go to the website of the bank from which you chose to get your personal loan.
- You will be asked for your 10-digit mobile number that is linked to the bank. Enter your phone number and the OTP that is instantly sent to your phone.
- When the application form shows up on the screen, enter your basic details, like your name, age, address, loan amount, etc.
- After this, you will come to the last page where you will be asked for documents like your ID proof, address proof, PAN card (sometimes), bank statements, income proof, etc. Fill in all of them carefully.
- Click on “Proceed” and submit your application, and make sure you visit the page regularly to know about updates.
Sometimes, getting a personal loan in Mumbai seems tough, but with the correct approach and enquiry, you can crack that easily. Interest rates vary, and banks charge different amounts based on each person’s situation, but the lowest rate is 10.5% per year.
Your utmost priority should be checking all the schemes that your bank is going to provide before you go for a personal loan in Mumbai. Make sure that you have a good CIBIL score so that you get more handsome offers. If you need help with finances, you can always take the help of experts such as Piramal Finance to guide you through your personal finance woes.
Talk to your financial advisor or a bank employee directly about the loan process to avoid any kind of trouble.