Every year many people turn from villages or small cities to metro cities in search of employment, better life and education. Apart from many multi-national companies, offices and manufacturing units of big corporate houses are in metro cities. However, the cost of living in metro cities like Delhi, Mumbai, Chennai and Kolkata is high. Therefore, it is obvious that people living in metro cities are short of money. But despite having experienced and capable professionals, it is easier to apply for personal loans in metro cities than in cities like Tier-3 and Tier-6.
Since many financial institutions have a strong presence in metro cities, people get easy personal loans. But before applying for a personal loan, you should have a good knowledge about the personal loan application. So to help you, we are giving you some tips below, which will help you to get a personal loan in metro cities.
Know what you want
Before applying for a personal loan, always check at what interest rate various lenders are giving you the loan. You have to be very clear what kind of loan you are looking for, what conditions you will be able to fulfill and how long it will take to fully repay the loan.
Make a good credit history
One of the most important things is good credit history. Having a good credit history will make it easier for you to get a personal loan and it will be a proof of your responsibility to repay the loan.
Provide correct information
Loan application: After depositing the loan, the bank will verify whatever information you have given. During the loan application process, the bank will call you, take information from the institution where you work, or any such person, so that they can confirm whether the information is correct or not. If your given information is not found correct, the bank will reject your application.
Know your limits
You should know about credit history and current score. Whenever you plan to apply for a personal loan, keep in mind your financial limitations and apply for a loan amount that you have no problem in paying.
Know all penalties and costs
Before applying for a personal loan, you should know about the costs and fees associated with it.
– Handling fees: It depends on the lender, the processing charges are usually up and down and it is 1-3 percent of the original loan amount.
– Pre-payment / Foreclosure charges: If you want to repay the loan in advance a little or before the end of the term, then the lender can charge you a hefty fee.
– Late payment penalty: If you do not pay EMI on time, then you will also have to pay penalty