Mumbai, the city of dreams, houses a population of over 15 million people. People from all parts of India come to Mumbai to realize their dreams. Since it is a melting pot of cultures, you can experience the various shades of India. Its film industry is well-known all over the world and people come from far to make it big in this industry. Mumbai is a city that does not sleep and a city that is full of life.
Living in Mumbai can be expensive. Living expenses, medical expenses, etc. require money. With the help of personal loans, you can meet any unexpected contingency or pay off any outstanding dues. Personal loan providers like financial institutions, banks and private lenders offer various types of personal loan plans. As personal loans are usually unsecured loans, the rate of interest is higher. By comparing the various plans on offer, you would be able to find a deal that is best suited for your budget.
Persons eligible for a personal loan in Mumbai
You can get a personal loan in Mumbai if you are:
- A salaried person working in a private limited company or in a partnership firm
- A self-employed person with a stable income like a doctor, engineer, etc.
Features of personal loans in Mumbai
When going for a personal loan in Mumbai, always do an assessment of your finances. This way you will have an idea how much you can pay back every month. You can then take a personal loan according to your requirement. You should be able to repay the loan at the correct time. Defaulting on repayment can lead to increase in the interest rate to be paid on the outstanding loan amount.
Taking a personal loan is easy. Most personal providers require you to have a minimum monthly income of Rs.10,000 to avail a loan. For the self-employed, you will need to have an income of Rs.2,50,000 per annum.
Some of the features of a personal loan in Mumbai are:
- You can avail a personal loan from Rs.1,00,000 to Rs.15,00,000.
- Payback periods vary from a minimum period of 1 year to a maximum of 5 years.
- Interest rates are calculated at a fixed rate or a reducing balance rate. The interest rates will vary with the lender.
- You can get certain benefits if you are an existing customer of the bank you are applying the loan.
- Processing fees are charged by banks. This fee normally ranges from 1% to 3% of the loan amount in addition to applicable service tax on the fee.
Repayment of personal loans in Mumbai
Personal loans are repaid in Equated Monthly Installment or EMI. You can opt to pay by post-dated cheques, electronic clearing service or by giving standing instructions to automatically debit the money from your bank account.
If you opt to prepay your loan amount, you would have to pay a prepayment fee which normally ranges from 3% to 6% of the outstanding loan amount.
Personal loans Mumbai are the solution for people who need money immediately without the hassles of going through tedious paperwork and getting fast approval.