A Personal Loan comes at higher rates of interest than secured loans, so many people hesitate to avail this facility. Still, there are circumstances when the benefits justify the cost. You can apply for Personal Loan online in Madurai and get the whole process finished without even leaving your home.
Why Choose a Personal Loan in Madurai?
There are many situations when you need additional funds. Borrowing from friends and relatives has the potential to affect relationships While borrowing from private lenders is risky.
Getting a Personal Loan does not require any collateral. This is why the interest rate is high, you do not put an asset at risk. If you have a good income and have had a habit of promptly clearing your previous debts, you can get a Personal Loan at low interest rates.
Have You Got a Good Credit Score?
Credit rating agencies like CIBIL collect each individual’s credit records from banks and other financial institutions. These records contain details about your credit cards usage, how you clear the monthly dues, records of loans taken through formal channels like banks, NBFCs and peer-to peer lending.
If you have a lot of loans running simultaneously, you are seen as credit-hungry and unable to manage your personal finances. If you fail to clear your credit card dues or fail to pay loan EMIs, your credit score goes down. You are viewed as unreliable when it comes to debt repayment. Lenders will be unwilling to give you loans.
If on the other hand, you pay all your credit card dues on time, only borrow money when you need it and clear the loans quickly, you will have a high credit score. Banks and NBFCs generally look for a CIBIL credit score of 750 or above when they process Personal Loan applications.
This is because Personal Loans are unsecured and your past record in loan repayments is the only reliable way to judge whether it’s worth the risk to lend you the money. So, be disciplined in your borrowings and always clear your debts in time. This will help you get any type of loan quickly and at lower interest rates.
Benefits of a Personal Loan
- Personal Loans do not require a security
- Personal Loans do not require much paperwork
- Personal Loans are processed fast as there is less number of documents to be verified
- Personal Loans can be used for any purpose
- You don’t have to tell the lender what you need the money for and account for it as with home loans
- You can use the loan for home renovation, for buying a consumer electronic appliance, for travel, for medical expenses, to buy a smartphone – in fact anything you need
You can apply online for a Personal Loan and get instant Personal Loan in Madurai. The minimum salary required to get a Personal Loan depends upon the lender, the city, the financial standing of the borrower and other factors.
Prepare a documents checklist and collect and keep all the required documents like KYC and income proof documents handy. When you apply for the personal loan, submit all the needed records and affidavits as needed and speed up the loan approval process.