A personal loan is a certain amount of money one can borrow from a bank for several purposes. For example, one may utilize a bank loan to repay their debt, repair a house, or for a certain event. Private loans are taken through banks, ward banks, and online lenders. Borrowed funds must be returned over time. They are repaid with interest amounts.
A personal loan operates in the same way that most loans do. You ask for a loan. Then you present the required papers. The bank evaluates the credit score before making a loan offer. The cash is deposited into your savings account and you can use it as per your wish.
Personal loans in Mumbai have an interest rate of around 10.25% per annum. It may vary from bank to bank. You can repay the loan in five years. The public sector also offers personal loans. The loan given by them has low interest rates. The repayment tenure of these loans is also longer than compared of a private lender. Banks also offer pre-approved loans and instant disbursal of loans.
What are the Features of Personal Loans in Mumbai?
Here are some features of the personal loans offered in Mumbai:
- Interest rates begin at 10.25% per annum
- You can get a maximum amount of 40 lakhs approved
- The loan is disbursed instantly
- No security or collateral is required
- You can also avail of pre-approved loans
- Repayment terms are up to five years
- Most financial firms permit one to apply online
What are the Eligibility Criteria to Get a Personal Loan in Mumbai?
To obtain a personal loan in Mumbai, you must meet the following eligibility conditions:
- You must be a resident of India.
- Salaried persons must have at least one year of experience.
- You must be employed at a reputed organization or a renowned MNC.
- You should be a minimum of 21 years old to apply for a personal loan.
- Your minimum credit score should be 750 or above.
- You must either be employed or own a stable business of yours.
- Self-employed individuals must have at least one year of experience in their current sector.
- You should be living in the same place or city for at least a year.
What are the Papers Needed to Get a Personal Loan in Mumbai?
Passport, Driver’s Licence, Voters ID Card, Aadhar Card, and PAN cards as identity proof have to be shown by both salaried and self-employed persons. Electricity bill, Telephone bill, Voter ID, etc for residential proof.
The following documents should be submitted by the salaried person to get a personal loan in Mumbai:
- Income Reports
- Payslips for the last three months
- IT return proof of the past two years with acknowledgement from the IT department
- Form 16 from the employer
- Bank account statement for the past six months
The following documents need to be submitted by self-employed persons:
- Reports of profit and loss and income, audit report, or balance sheet.
- Proof of IT returns of 3 years.
- The license of company registration
- Last one year’s bank statement
Ways to Apply for a Personal Loan in Mumbai
There are various methods to get a personal loan in Mumbai:
Apply online at the bank’s or NBFCs website
- Go to the bank’s or NBFC’s official website.
- Choose a personal loan from the offers menu.
- Read about the loan offer.
- Fill out the application form and add all the important details.
- After that, upload the documents as asked.
- Experts will verify your documents.
- Once the documents are approved, you will receive the loan amount in your bank.
Apply in person at the nearest branch with the necessary papers. If you do not want to apply online.
Why Take Personal Loans in Mumbai?
There are various reasons, you may want to apply for a personal loan. A few of the general ones are listed below:
You can avail of a personal loan if you are planning to travel with your family or friends. It is the best way to fulfil your dream of visiting exotic places. Remember, you repay the loan on time.
Indian weddings have long been about embracing unity. Nearly every remote family or friend attends your special day. To make your day even more memorable you can avail of a personal loan. Though extravagant marriages are renounced by many, still people love to spend openly on their special day. You can make your wedding memorable by availing of a personal loan and repaying it on time.
Carpentry work or buying new furnishings are all expensive. It sometimes restricts us to have a home decor of our choice. A personal loan is an excellent way to get finance and remodel your home. You can change your home without worrying about renovation costs. Contractors’ and interior designers’ fees, and the cost of raw materials can be easily managed by a personal loan.
A medical emergency can come at any time. You will need money to cover medical expenditures. The rising cost of healthcare worsens the problem. A personal loan from a bank can be used to cover any medical emergency, whether an unexpected hospitalization or an accident.
Availng a personal loan is not that difficult. Before applying for a loan, ensure that you have a good credit history. It will help you to get easy loans. If you want to know more about personal loans or any other type of loan do visit the official website of Piramal Finance. You will not only get good information on personal loans in Mumbai but detailed information on various financial topics.