Top 5 Things You Should Know to Get a Personal Loan in Bangalore
Bangalore, famously known as the IT hub, is also the Silicon Valley of India. If you reside in Bangalore, then most probably, you would have thought about launching your dream startup at least once in your life. While a startup requires considerable investment, you can cover the shortfall easily through various lending facilities available. Apart from this, Bangalore’s flourishing standard of living may take a toll on its resident’s pockets. Therefore, arranging funds may become necessary at any point in time. Personal loans are one such tool to meet all your financial requirements.
What are personal loans?
Personal loans are unsecured loans extended by banks and financial institutions to the borrowers. Being unsecured, it does not require the borrowers to provide any security to the bank thus, increasing its reach to a wider section of society.
If you are in Bangalore, then choosing the best personal loan may prove to be tedious. Therefore, the following points may merit consideration in this regard:
- Interest Rates: Personal loan interest rates are more affordable than other unsecured lending arrangements like credit cards. It usually depends upon the profile of the applicant. Even in Bangalore, the personal loan interest rates start at just 10.99% per annum.
- Eligibility Criteria: Personal loan eligibility criteria are simple to fulfil. In case you are residing in Bangalore, then you just need to fulfil the following criteria:
- Age: The age of the applicant should be 22 years to 58 years
- Occupation: Maybe salaried or self-employed
- Experience: Whether salaried or self-employed, the applicant should have a minimum of 1-year of working experience.
- Income: The applicant should earn a minimum of Rs. 15,000 per month.
- CIBIL Score: As personal loans are unsecured in nature, therefore CIBIL score becomes an important parameter for the lending institutions to assess the repayment capabilities of the borrowers. CIBIL score is a 3-digit score between 300-900 that gives a snapshot of the past credit performance of the borrower. A CIBIL score above 750 is considered good and desirable for approving the loan application. Also, a good CIBIL score can ensure quick sanctions of your personal loans as it gains the trust of the lender on the creditworthiness of the borrower.
- Foreclosure: At a certain point, borrowers may consider prepayment of a certain part of their loans when they possess idle funds. However, it is necessary to consider whether the lender charges penal interest or other charges for such prepayment, also known as foreclosure charges or prepayment charges. In most cases, for partial prepayment, no charges may be levied.
- End-Use: One of the biggest benefits of personal loans is that it comes with unrestricted end-use. Funds received from such loans can be used for any purpose, be it meeting medical emergencies, education, travel, marriage, business, etc. This makes it a preferred option among the borrowers. Also, being unsecured, no collateral is required to avail a personal loan.
Personal Loan EMI Calculator
If you are living in Bangalore and willing to go for a personal loan, then the right approach would be to preplan your budget by knowing the EMI amount in advance. The personal loan EMI calculator can give you the exact amount of EMI by just entering the loan amount, interest rate, and tenure.
As Bangalore’s standard of living is on the rise, people are witnessing a rise in expenditures as well. A financial exigency may knock on the doors of your bank account anytime. Personal loans can act as a saviour during such turbulent times and help you meet all your requirements.