Kolkata, the City of Joy, is one of the most densely populated cities in India with more than 14 million residents. Although, Kolkata is not the most expensive city to reside in but, according to the Union government’s Central Statistics Office or CSO data, the inflation was 7% in 2017-18, more than the national average.
Despite this, Kolkata has a large financial lending market, and personal loans in Kolkata are among the most availed financial products.
If you are looking to avail a personal loan in Kolkata, you must know how to best avail the loan at the most beneficial terms possible.
Here are the 7 golden rules you need to know before applying for a personal loan
1. Eligibility criteria
An individual needs to meet the basic eligibility criteria to avail of personal loans up to Rs.25 lakh. Other than being a resident of India, you need to meet basic criteria including
- Age – 23 – 55 years.
- CIBIL score –Around or above 750.
- Employment – Salaried, employed with MNC, private or public company
Top financiers can provide you with instant personal loans with approval and disbursal in 24 hours if you satisfy the eligibility criteria plus a few others as specified by the respective financer.
2. Required documents
You have to produce the basic KYC documents like an Aadhaar card, Voter ID card, PAN card, Driving license, Passport, etc. to apply for a personal loan. In addition to the previously stated documents, the other documents required for personal loan include –
- For salaried applicants
- Employment ID.
- Bank account statement for the last 3 months.
- Salary slip of last 2 months.
3. Calculate EMIs first
It is important to calculate personal loan EMIs beforehand to avoid any financial struggle. This way it will be easy to assess your upcoming expenditure and also to manage your finances.
Before availing of a personal loan in Kolkata, you also need to know that the EMI is not only on interest rates applicable but also on the tenor.
A longer tenor reduces the EMI but it increases the total interest payable. A shorter tenor increases the EMIs but significantly reduces the interest amount considering the shorter period for which the loan is availed.
You can choose any tenor of up to 60 months to repay your loan. But it is advisable to choose a short tenor according to your affordability.
4. CIBIL score
The CIBIL score defines your creditworthiness. It ranges between 300 to 900. The closer your credit score is to 900, the better terms and benefits you can avail of credit-based financial products and tools like loans or credit cards. You need to maintain a high credit score around or above 750 to successfully apply for a personal loan and avail of it.
5. Interest rate
The interest rate decides the total payable amount. Borrowers always look for the most competitive interest rates to clear the dues. Personal loan interest rates vary between financial institutions.
In this highly competitive market, NBFCs provide attractive interest rates and facilities with personal loans. For instance, Bajaj Finserv brings you pre-approved offers that ease out the lengthy and complicated process of availing loans. Pre-approved offers are available on multiple financial products like personal loans, home loans, business loans, etc. Provide your name and phone number to take a look at your pre-approved offer.
6. Understand your repayment capability
You need to estimate your financial capacity while availing a loan. To clarify, you should have enough cash flow after your basic expenditure to repay any credit. Your expenditure should be less than 50% of your income for lenders to consider you as a prospective borrower with ample repayment capability.
Before availing a personal loan in Kolkata, you should have complete knowledge of your financial strength.
7. Pay on time
You should always pay the debt on time as that will help you to avoid penalties or extra payable interest. Also, late payments or missing payments have a direct effect on one’s credit or CIBIL score. Always plan your finances by prioritizing EMI payments or credit card bill payments.
Lastly, you need to first assess your financial limit and check everything carefully before availing of a personal loan in Kolkata. It is always easier to borrow from the market than repayment. So, you need to be financially organized before applying for any loan.
Consider these pointers first before you apply for a personal loan in Kolkata. Refer to leading lenders, meet their eligibility criteria to the fullest, and successfully avail of the loan at the most beneficial terms. Make sure you follow up on everything you need to know about fees applicable to your loan before applying.
