A personal loan is an answer to many of your money related problems. As this loan is an unsecured one, with instant approval and funds disbursement, minimum documentation and fundamental eligibility criteria, it is popular among borrowers. It is more so in metro cities like Chennai, where people have multiple reasons to get funds and have equally numerous options to make their choice. If you are a Chennaiite and are planning to apply for a personal loan, ask yourself these critical questions before making any final decision:
Some essential questions to ask yourself before taking a personal loan in Chennai:
We know that taking a personal loan in Chennai is not as simple as going to market and purchasing any item. It will help if you do lots of research and background study before zeroing down on any particular lender and his offer. It is because you have extensive options available in a state capital city like Chennai, offering you a myriad of loan offers. Ask yourself these four questions before finalizing your deal with any lender:
List Of Important Questions To Ask Before Personal Loan In Chennai
1. Why do I need a personal loan, and how can I apply for the same?
It is probably the most fundamental question which you must ask yourself before applying for a personal loan in Chennai. If your objective or reason for taking a personal loan is clear, you will be able to finalize the loan amount that you require. Although the lenders offer both offline and online application facility, the online loan application is simple, safe, and speedy process. You have to visit the lender’s loan portal or its website, fill the form, select the terms, upload a proper document and submit.
2. Am I eligible for a personal loan?
Every bank and NBFC has a set of eligibility criteria for the borrowers, like he/she must be a resident of India, between 21 to 60 years of age, and have a good steady income. Make sure that you fulfil all of them and can also provide documentary evidence for the same. You can make use of online personal loan eligibility calculators to check your eligibility for the loan. You should know your credit score also as it is the main decisive factor for your loan approval.
3. What interest rate is prevailing in the market and how much can I afford?
The interest rates for the personal loan in Chennai vary from one to the other lender. It also depends upon your credit score, the tenure you want to have and the mode of repayment you select. You must shop around for the lowest interest on offer and choose the lender who offers the most suitable deal. If you have an excellent credit score, low credit utilization ratio, and least debt to income ratio, you can negotiate for a loan with the lowest interest rate. You can go for online comparison of the loan offers of different lenders using their loan EMI calculators. For More Details Visit here:
4. What is my creditworthiness and what loan tenure should I select?
You can get your credit score from CIBIL free of cost. Check whether it is a good enough score that may give you a personal loan at attractive terms. Generally, any score above 750 is considered ideal. You can also select the loan tenure keeping in mind your repayment plan and the loan amount. A long term will result in lower EMI while a short loan term requires you to pay higher EMIs. Availing a personal loan in Chennai or in any city needs a lot of planning and research. Hence it is most important to study all the available options nearby you properly, research on them, compare them and select the lender who offers you the best deal.