5 Tips to Follow When Applying for Personal Loan in Metro Cities
In the search of employment, the higher standard of living and quality education, every year a large number of people are moving to metro cities from villages and towns. Many Multinational Corporations, as well as the biggest Indian Corporate Houses, have their offices and manufacturing sides in the metro cities. However, living in metro cities, like Delhi, Mumbai, Chennai and Kolkata among others, comes at a higher cost. Thus, it is common for people living in these cities to face a shortage of funds occasionally. But as the qualified and experienced professionals, it is more hassle-free to access a personal loan in metro cities than applying for the same in Tier III or Tier IV cities.
As multiple financial organizations have a strong presence in the metro cities, it leads to the easy availability of a personal loan. However, before applying for a personal loan, you should have prerequisite knowledge about the personal loan application. So, just to help you out, below are the few tips which may help you in getting the personal loan in metro cities.
1. Know what you want
Before applying for a personal loan, always check the loan being offered to you by different lenders. You need to be sure about the type of loan you are looking for, the terms you can reasonably afford, and how long it will take for you to repay the loan in full.
2. Establish a good credit history
One of the important things that you should always try for is to have a good credit history before applying for a loan. Having a good credit history helps you to get a personal loan as this can be proof of your responsibility regarding repayment.
3. Provide only accurate information
Once you submit your loan application form, banks always verify all the information that you have provided. During the loan application process, banks will call you, the organization you work for, and any other people they deem necessary to confirm that your data and other information are true and accurate. If in case the given information is not accurate, then the bank may decline your application outright.
4. Know your limitations
You should be aware of the credit history and current score. Consider your financial limitations and aim for the realistic loan amounts when planning to apply for a personal loan. Apply for a loan based on your financial capability to make the repayments on a given period.
5. Know about all Costs & Penalties
Before applying for a personal loan, it is essential to think pretty much about all costs and charges associated with the loan procedure. Like:
- Handling Fee- Completely dependent on the lender, the processing charge usually fluctuates and can go between 1-3% of the principal loan amount.
- Prepayment / Foreclosure charges- If you pay the loan in advance either partially or completely before the due date, the lender may ask you to pay heavy charges for that as well.
- Late Payment Penalties- If you don’t make timely EMI payment, you will be liable to pay the penalties.
6. Compare rates & terms
Personal loan interest rates and terms vary from lender to lender. You should compare loans offered by multiple lenders to find the one that works best for you.
Lastly, we hope that these tips will help you in securing a good deal of a personal loan in a metro city.