Here are 5 tips for salaried employees if you want to avail a personal loan in Mumbai on a low-interest-rate. Go on, dig deeper right away! Do you live in Mumbai and get daily emails from banks and non-banking finance companies (NBFCs) for a pre-approved personal loan? However, the constant emails somehow convinced him to take a personal loan in Mumbai and give a new lease of life to his home. Here are five tips a salaried employee must do to land a personal loan on a low-interest rate.
Do Your Homework
When you go on a personal loan lookup spree, check the interest rates various banks, as well as NBFCs, are offering. Always settle for the lowest interest rate to keep the borrowing cost low. Always know that personal loans are unsecured loans and you don’t need to provide any collateral. But, the facility comes at a high-interest rate. Always check the interest rate of each lender, do your calculations and then only go for it.
Check Your Eligibility
If you want to grab a personal loan in Mumbai or somewhere else, you need to be in a steady job and must be working for at least 2 years. Mind it, if you switch jobs frequently, lenders may deny you the loan or may charge a high-interest-rate. Your salary should also fall under a particular bracket to be eligible for a personal loan. It depends on which city you currently live. You can check personal loan eligibility calculator of different lenders to check your final eligibility.
Choose EMIs Cleverly
EMIs will eat the monthly salary that you get what you pay up for a personal loan. Reduce the borrowing amount if you think you may not be able to pay the EMIs. Extending the tenor and reducing the loan amount may also work. You also need to be sure if the loan that you are going to avail is your need or not. If you require a personal loan between Rs.50,000 – Rs.1 lakh, do not succumb to attractive add-ons and offers. Because they seem beneficial at first sight, but end up adding to your EMIs.
Beware of The Hidden Charges
You should always know that a rate of interest is not the only cost of availing a personal loan. There are other costs involved as well which can increase the total cost of borrowing. Check pre-payment and foreclosure charges with your lenders because they will increase your total cost. What’s more, if you fail to pay EMIs, the service provider will always levy a late payment charge. Thus, be sure to know about these charges to avoid surprises later.
Check Your Credit Score
Before your personal loan in Mumbai approves, your creditor will surely dig deeper into your credit history. If you have a good CIBIL score (750 or more is a good credit score), the banks or the NBFCs may consider your personal loan application and offer a low-interest-rate. Also, make it a point to not apply for a personal loan with many banks and NBFCs to know about their interest-rates. Why? It may affect your credit score and impact your final on-the-offer interest-rate.
The Bonus Tip – Never Max Out Your Credit Card
No matter how tempting an offer may be online, never max out your credit card while your personal loan application is in progress. Why? The prospective lender may think that you may not be a serious contender because you have maxed out your credit card and may not be paying up the EMIs. Also, your credit score will go down without any doubts.
The Bottom Line
As an employee, you get a restricted source of income monthly. Before you take a personal loan, you need to make sure that your finances are smooth for the repayment. Always remember that a personal loan is a luxury and you should only use it in an emergency or to fulfill only a genuine need. Want personal loan in an instant? Now many lenders are approving online personal loans instantly. If you fulfill all the eligibility conditions and if you have relevant documents, you can get money in your bank account in less than 24 hours.
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