Easy Guide to Find the Best Collateral Free Loan Provider in Mumbai

Mumbai is the most expensive city in India. It is also among the top 50 most expensive cities in the world in terms of real estate.

Whether it is to renovate your house, arrangements for a wedding, higher education, or medical expenses, you may need to delve into your savings to meet these financial requirements.

A majority of individuals take the other way around and avail a personal loan in Mumbai to meet these short-term requirements. These loans help you keep your savings intact while efficiently catering to such immediate big-ticket expenses.

There are numerous financial institutions, which offer personal loans at competitive and attractive rates of interest. However, it is necessary that you pick the right loan provider.

Here Are Some of the Ways to do the Same:

  1. Check how much you can avail

NBFCs can provide up to Rs.30 lakh with a personal loan. However, you may not be eligible to avail the maximum amount. Companies consider various factors like your income, existing loans, net profit, and annual turnover to decide the loan amount they can sanction to you.

Hence, you must check what a particular lender can offer. An exceptional way to do so is to use a personal loan eligibility calculator. You can easily check the loan amount you are eligible and successfully apply for the same without fail.       

  1. Check if you get a pre-approved offer

NBFCs like Bajaj Finserv bring you pre-approved offers that help you save time when opting for loans by making the entire procedure hassle-free. Pre-approved offers are available not only on personal loans but also on home loans, business loans, and a host of other financial products and services. You can check your pre-approved offer by providing only your name and phone number.

  1. Consider the loan tenor

Generally, the repayment tenure for personal loan ranges from 12 to 60 months. The loan tenor is one of the factors that decide your EMIs.

Longer tenors make your monthly instalments affordable while shorter tenors can make them expensive. However, longer tenors also increase the total payable interest of your personal loan in Mumbai.

Using a personal loan EMI calculator can precisely help you determine your monthly instalments and tenor.

  1. Take a look at the eligibility criteria

Selecting a lender who offers the easiest-to-meet personal loan eligibility criteria will lower the hassle. You can apply for such loans if you’re either salaried or self-employed and fall within 22 and 55 years of age. Some NBFCs may also need you to have a business at least 3 years old if you are self-employed.

Do note that a 750 credit score is mandatory when applying for an unsecured loan irrespective of the financial institution.

  1. Make sure the documentation process is uncomplicated

Similar to eligibility criteria, go for a loan provider that requires you to provide only a few documents.

Salaried individuals have to provide the following:

  • Bank account statement of the last 3 months.
  • Employee ID card. 
  • Salary slips of the previous 2 months.

Self-employed customers have to produce the following:

  • Turnover of the last year audited by a CA.
  • Income tax returns of at least the past year.

Identity proof documents like Aadhaar, Driving License, Passport, PAN, Voter ID, etc. are necessary to apply for a personal loan in Mumbai.

  1. Check the interest rates

Interest rates are a crucial factor that determines the cost of loan, i.e. the principal plus the total payable interest on the loan. Make sure to compare them before you opt for a loan provider. An above-average credit score can give you the option to negotiate your personal loan interest rates.

  1. Check the charges

Similar to charges, you must also compare the charges associated with a loan. Some of these are processing fees, penal interest, and EMI bounce charges.

Keeping these above points will make it convenient to choose the most suitable personal loan for your financial requirements. Meet your monetary needs while making the repayment process as easy as possible simultaneously, all by choosing the right lender.