Bangalore, the capital of Karnataka, is officially known as ‘Bengaluru.’ This megacity is the 3rd most populous city in the country, with a population of around 12 crore. Bangalore is also known as the “Silicon Valley of India,” it has one of the largest Information Technology sectors in the country.
Other than being the IT capital of India, this city is also one of the significant hubs for start-ups. An individual aiming to initiate their business may face a shortage of liquid funds. Such individuals can avail a personal loan in Bangalore. A personal loan is an unsecured loan which does not require an individual’s property as collateral. Such advances can be used not only to start a business but also to meet other requirements of a borrower because the end-use of this policy is not restricted.
Every financial institution offers to provide such instant loans. But, the terms and conditions may vary, and an applicant should avail a personal loan which can suffice their financial requirements. Following are a few tips to avail the most suitable personal loan in Bangalore –
1. Compare the interest rates
One of the fundamental criteria to avail a personal loan at favourable terms is to compare the different rates on offer in the financial market. Different NBFCs offer competitive interest rates, and an individual should avail a policy which complements their repaying capacity. Comparing between lenders and not just availing the first personal loan offer available is one of the ways to avail affordable interest rates on your personal loan.
2. Go through the terms and conditions
An individual should go through the different terms and conditions applicable on a personal loan before considering applying. It is vital to get an insight regarding the various charges applicable on the loan like processing fees, statement charges, foreclosure penalties, etc. By getting acquainted with the conditions, an applicant can quickly evaluate whether they can abide by such terms or not. Furthermore, a borrower can also determine if such conditions can be at par with their budget.
3. Compare EMIs
An individual’s availed personal loan interest rates as well as the tenor chosen determine the loan EMIs. Hence, an individual should consider the EMI options available and avail the personal loan at the most suitable terms. Most financial institutions offer an online EMI calculator which can be used complimentarily. A borrower can calculate their personal loan EMI by using such online tools and plan their finances accordingly.
4. Look for special offers
An individual might stand a chance to avail a low interest personal loan.
For instance, Bajaj Finserv provides pre-approved offers which save time and make the loan application process easier. These offers are available on numerous other financial products including credit cards, business loans, home loans, etc. You can check your pre-approved offer by sharing a few essential details online.
Other than following the above-stated tips, an individual should meet a few eligibility criteria and furnish a set of essential documents to avail a personal loan in Bangalore.
5. Meet eligibility criteria
An applicant who best meets the applicable eligibility criteria specific to a lender can avail the loan at the most beneficial terms. Although such criteria vary between lenders, basic criteria include –
- An individual should be an Indian resident.
- A borrower should be aged between 23 years to 55 years.
- An applicant should be employed with an MNC, public or private company.
6. Provide necessary documents
Providing all necessary documents straight up can help fast-track the application.
Documentation requirements will include among others –
- KYC documents.
- Employee ID.
- Salary slips of the previous 2 months.
- Bank account statements of the previous 3 months.
By meeting the generic eligibility criteria and providing a few essential documents an individual can easily avail such instant advances. To avail the right personal loan in Bangalore, an individual should also be aware of their CIBIL Score and FOIR.
7. Maintain a high CIBIL score
CIBIL or credit score is a 3-digit numerical expression of an individual’s creditworthiness. Financial institutions utilise the score to anticipate which applicant is more financially responsible.
An individual should hold a CIBIL score of 750 to avail a personal loan. A borrower with a score of 750 and above can negotiate the interest rates with their lenders and avail a better offer.
Fixed Obligation to Income Ratio or FOIR is a parameter to determine an applicant’s repayment capability. The ratio between an individual’s monthly obligations and income is utilised by financial institutions to evaluate their borrowers’ repayment capacity.
An applicant with a low FOIR has fewer obligations and therefore has a higher repayment capacity to duly accommodate the personal loan EMIs.
By meeting a few criteria and comparing their options, an individual can easily avail the most suitable personal loan in Bangalore which can suffice their financial requirements.