As per a recent report, the personal loan market saw 3.8 times growth by volume and 2.3 times by value from FY17-FY21. One of the reasons for such massive growth can be justified by the sharp decline in economic activity since the end of 2019.
As a credit instrument, a personal loan helps individuals efficiently cover household, education, and sudden medical expenses. Individuals looking for an instant personal loan in Chennai and wondering about the process can follow the steps below.
Steps to apply for an instant personal loan in Chennai
Here is a step-by-step guide to applying for an instant personal loan online in Chennai.
Step 1 – Visit the official website of a lending institution of your preference.
Step 2 – Click on ‘apply online’ which will lead you to an application form.
Step 3 – Enter a few basic details, and an OTP will be sent to the given mobile number. Enter the OTP and fill out the application form with the necessary information.
Step 4 – Choose a suitable loan amount and repayment term.
Step 5 – Submit the application form.
Representatives of that lending institution will call the applicant to complete the next steps of the instant personal loan in Chennai.
While applying for personal loans in Chennai, individuals must check the eligibility criteria set by lenders to ensure instant approval. Read the following section to learn about these in detail.
Instant personal loan eligibility criteria
While the eligibility criteria may vary from one lender to another, the basic requirements include
- The applicant must be a resident of India.
- The age of the applicant must range from 21 years to 67 years.
- Salaried individuals who must be working with the public, private institutions, or an MNC.
- The applicant must have a CIBIL Score of 750 or more. (CIBIL’s full form- credit information bureau (India) Limited, one of the four credit rating agencies in India which assign a credit score to individuals.)
The instant personal loan application process does not end with fulfilling the eligibility criteria only. Applicants have to submit certain documents, read on.
Documents required for an instant personal loan
To avail of an instant personal loan in Chennai, applicants must furnish the following documents
- Address proof (Aadhaar card, passport, utility bills, ration card, voter ID, or other government-issued proof of address)
- Identity proof (Aadhaar card, passport, PAN card, voter ID, or other government-issued photo identity proof)
- Income proof (bank account statements of the previous three months, salary slip for the last two months)
The list mentioned above is indicative. Lenders may ask for additional documents (if required).
The instant personal loan availing process in Chennai is easy and straightforward. However, individuals must consider certain factors to ensure a hassle-free loan approval process.
Things to consider before applying for an instant personal loan in Chennai
Following is a list of factors that prospective borrowers must know about before applying for instant personal financing in Chennai.
- CIBIL score
CIBIL Score is a three-digit number (ranges from 300-900) that reflects a borrower’s creditworthiness. CIBIL score is important for personal lending as it shows the overall financial standing of a borrower in terms of disposable income, existing liabilities, repayment pattern, and history.
A higher CIBIL Score (closer to 900) helps applicants get hassle-free sanctions on instant personal loans and allows them to negotiate with lenders to secure the best terms. Here, one must know that a credit score of 750 or above is considered ideal for availing of an instant personal loan with favorable terms.
Selected NBFCs like Bajaj Finserv provide pre-approved offers to eligible applicants, making the instant personal loan availing process hassle-free. These offers apply to other financial products such as personal loans, business loans, and many others. Individuals can check their pre-approved offers by providing their names and contact details.
Apart from knowing what CIBIL score is and its importance, individuals must consider other factors as well.
- Loan amount and tenor
Before applying for an instant personal loan in Chennai, applicants must determine the loan amount they actually need to borrow. Choosing the right loan amount and tenor will help individuals plan their finances accordingly. Here, one can use an online personal loan calculator and apply various tenor options to calculate personal loan EMIs. Remember, a longer tenor brings down EMIs but increases total interest outgo and vice versa. Hence, applicants must be careful about choosing loan amounts as well as tenor.
- Interest rate and additional charges
If individuals have decided the loan amount, they must next focus on an interest rate which ultimately determines the total borrowing cost. The interest rate varies from one lending institution to another and depends on certain factors like the applicant’s income, creditworthiness, and other factors. Hence, borrowers must compare the interest rate of various lenders and settle as per their preference. Further, there are other charges like processing fees, penalties for missed EMIs, and pre/part payment charges that applicants must be aware of to avoid payment-related discrepancies in the future.
Read the application process of instant personal loans in Chennai carefully and consider the factors to ensure hassle-free loan approval.