Have you faced a situation where some considerable expense is on the cards, and you need funds? You are not alone; most of us have.
This requirement could be for any purpose – a wedding, a medical emergency, education, travel, or a home renovation.
Now, if you are from a dynamic, developing city like Noida, the cost of living is continuously growing. In this scenario, taking a personal loan is your smartest move if you face a cash crunch.
How to Apply for a personal loan?
A personal loan is an instant funding source for salaried professionals. If you are looking for a personal loan in Noida, you must fulfil the basic eligibility criteria.
Here’s the eligibility:
- You require minimal documentation – identity proof | address proof | income proof.
- You should be a salaried professional with a minimum monthly salary of Rs 20,000.
- You do not require collateral as these are unsecured loans.
- You should be between 21-58 years.
Top lending institutions allow you to check your credit score and calculate EMIs for free on their websites before applying for a loan. This allows you to make smarter decisions.
Nowadays, a few lending institutions like Clix Capital follow online process for personal loan applications. Even the verification process is online, making the approval and disbursal quick.
5 Tips to Apply for a personal loan in Noida
Ensure you follow these five simple tips while applying for a personal loan in Noida. These will help you make the most suitable choice and also help you get the best rates.
#1 Check interest rates
Check the interest rates of the personal loan as it greatly contributes to the loan cost. Even a small difference can greatly impact the total loan cost.
You can expect low-interest rates if you have an existing relationship with a lending institution. The interest rate will also differ on your credit profile and eligibility.
Another important factor is loan tenure. You pay more interest when choosing a longer tenure, while the EMIs are less. If you choose a shorter tenure, you pay less interest, but the EMI amount is more.
Consider all these factors while making the loan decision.
#2 Look at All Charges
Besides interest rates, check for the processing fee and any other charges. Lending institutions usually charge a processing fee and other charges, including cheque bounce charges, late payment charges, loan cancellation charges, and also service tax.
Check all these before making your decision.
#3 Do Not Borrow More Than You Require
Your loan amount eligibility depends on your credit score, age, and repayment capacity. Applying for an amount that is more than your requirement will only add to your EMI. If you fail to pay the EMIs on time, you will have to pay the penalty. It is recommended to apply only for the required loan amount, even if you are eligible for a large amount.
#4 Maintain a Good Credit Score
Remember that the higher your credit score, the lower your interest rate is likely to be. Ensure that you have a decent credit score to avail the best rates.
You can check your credit score online on the websites of top lending institutions for free. An Experian credit score of 630 or above is required to get a personal loan online from Clix Capital.
#5 Check for Flexibility of Repayment
You will also want to look at the flexibility of repayment of the loan. Most lending institutions levy full or partial pre-payment charges. If you want to pay off the outstanding before the end of the tenure, you will have to pay a foreclosure charge. This charge varies from one lending institution to the other.
Choose your repayment tenure based on your monthly income and expenses. You can choose a loan tenure of 12-48 months and pay your EMIs accordingly.
You never know when you will need immediate cash in a financial emergency. A personal loan can help you get through the crisis. If you want to apply for a personal loan in Noida, follow the tips mentioned in this article to make a well-informed decision.
About the Author
Amaira sharma is finance expert and former business growth strategist who has more than 8+ years experience in the industry, now she helps others to get better financial stability and standards. She loves to write useful tips on personal finance and businesses.