Many banks and NBFCs in India are providing personal loans at affordable interest rates. This makes personal loans are the ideal option for fulfilling your financial requirements. Securing a personal loan in Vizag is not a long process as it involves less documentation and short processing time. These loans can be used for different purposes such as wedding, funding a small business, medical emergencies, buying electronics etc. Personal loan interest rates are lower than other loan interest rates. Personal loans are unsecured loans i.e. you no need to provide any asset to avail a personal loan.
The following are the basic eligibility criteria for getting a personal loan
1. Good credit score
2. Age: Applicant’s age should be between 21 to 58 years old but no more than 55 years old at the time of loan maturity
3. Nationality: He / She should be resident of India
4. Employment Type: Salaried and self employed individuals
The following are the required documents to get a personal loan:
For Salaried Individuals,
Last 3 to 6 months of bank statement
Guarantors and their same set of documents
Latest salary slips
For Self Employed Individuals,
Profit and Loss Account
Partnership deed and other mandatory documents
The interest rates of personal loans are high. So, when you apply for a personal loan, make sure to choose low interest rate which will directly affect the monthly EMIs. The interest rates are determined by various factors. Follow the below important points to avail a personal loan at low interest rate:
1. Improve Credit Score: When you apply for a personal loan, the lender will firstly consider your credit score. A credit score will tells your creditworthiness. The credit score is assigned by credit bureau in India. Credit score is generated based on your existing loans, repayment history and other factors. A credit score is ranging from 300 to 850 and the banks considers 750 is a good credit score. If you have a good credit score, then you can avail a loan at low interest rate. So, before going to apply for a personal loan you need to check your credit score. If you have a poor credit score, it is better to close your existing loans, avoid late payments and cheque bounces.
2. Get a co-signer: Request your family member or friend who has a good credit score to co-sign on your personal loan. This will be a result of getting a loan at low interest rate.
3. Shop around for Personal Loans: Spend more time to know more about personal loans available in the market.
4. Down Payment: It is better to make high down payment. This will affect to the interest rates. More than 30% of down payment is a good down payment for personal loan.
5. Debt to income Ratio: It is the ratio of your entire debt and your total income. If you have a good debt to income ratio, then banks will offer personal loans at lowest interest rate.
6. Loan Tenure: The tenure will affect on your interest rate of a personal loan. If you choose longer tenure, you need to pay high interest rate. It is advisable to choose short loan tenure even if your EMI is high.