A Personal Loan is a viable solution for obtaining funds promptly when the need arises. It provides flexibility to finance both long-term and short-term goals. When seeking a Personal Loan, you need to establish a collaborative relationship with your lender to develop a tailored repayment plan that aligns with your requirements. These loans are usually unsecured, which means they do not require collateral. The repayment period is structured through monthly instalments, commonly referred to as EMIs.
Getting a Personal Loan in Chennai Â
Chennai, the capital of Tamil Nadu, is a bustling metropolitan city that offers numerous opportunities for individuals to thrive. The city has many educational, IT, and industrial centres with world-class infrastructure. If you live or work in Chennai, you can avail of a Personal Loan from any NBFC.
Various financial institutions offer Personal Loans in Chennai without any collateral. The unsecured loan allows you to meet sudden financial expenses. Depending on the lender of your choice, you can get anywhere from ₹1 Lakh to ₹30 Lakh as a Personal Loan. Individuals get loans for various personal reasons, such as:
- Organizing a Wedding
- Renovating a House
- Meeting Medical Expenses
- Taking a VacationÂ
- Consolidating Debts
Understanding the Personal Loan Evaluation Process
- Assessing Risk and Financial Documents: Lenders evaluate each borrower based on their personal and financial situation. So, you can get a Personal Loan only after the lender completes a risk assessment for loan approval. The lender requires you to submit financial documents with proof of income.Â
- Assessing Employment Type: Financial institutions offer Instant Personal Loans for salaried employees and professionals. A Personal Loan is a quick and easy option to get cash fast because lenders are willing to offer credit without any collateral.Â
- Checking on Existing Loans: Any previous loan you may have will also be considered to evaluate your repayment capacity. However, lenders won’t reject your application because you already have another loan. With an excellent repayment history, you can expect lenders to extend credit for Personal Loans.
- Evaluating Creditworthiness and Interest Rates: The CIBIL score is a quantified measure of an individual’s creditworthiness. A CIBIL score of more than 700 is considered ideal. However, if your credit score is lower than that, you can still get a Personal Loan, but at higher interest rates.
Calculating the Cost of a Personal Loan
Before taking out a Personal Loan, you must understand the cost involved. Most Personal Loans are collateral-free or unsecured, which allows you to avail of a loan without putting an asset as security.Â
- Interest Rate: The interest rates for Personal Loans can vary between different lenders. You will be getting a great deal if you find a lender offering an interest rate below 10%. Lenders are taking a huge risk by allowing you to borrow money without collateral, and so their interest rates reflect the amount of risk they take. Many lenders will be willing to lower the interest rate for individuals with a good credit score.
- Processing Fees: Apart from interest rates, you must also have to pay a processing charge, which is generally 2-3% of the loan amount.Â
- EMIs: The lenders calculate EMI based on your repayment plan. Typically, the tenure for Personal Loans varies from 12-60 months. If you choose a longer tenure, you must pay more towards interest, but your EMIs will be lower.Â
Compare Lenders for the Best Deals
When it comes to securing a Personal Loan in Chennai, it’s crucial to explore your options and find the best deals available. By comparing various lenders and their offerings, you can ensure that you obtain a loan that suits your financial needs and requirements. The process of comparing Personal Loans has been made easier than ever before, thanks to online platforms that allow you to access multiple loan options in one place.
Taking the time to compare Personal Loan interest rates, loan amounts, repayment terms, and additional features can help you identify the most favourable deals. By doing so, you can potentially save money on interest payments and choose a loan that aligns with your budget and financial goals.
