How To Get Personal Loan in Chennai

Chennai—a city that brims with temples, silk sarees, and jewellery stores. The fluffy idlis and crispy dosas with sambar are also worth mentioning. If you’re a resident of Chennai, you will very well know what more the city offers.

Planning to buy gold jewellery for your wife or going on a vacation? A Personal Loan can come in handy. Apply for loan from one of the many banks after comparing the interest rates. A Personal Loan from your bank can help lower a percentage of points that can bring down your EMI as well.

If you are wondering "How to get Personal Loan in Chennai", read on.

First of all, you have to determine the quantum of Personal Loan you need. The next step is to check your eligibility criteria. Your income level and credit score determine your Personal Loan eligibility.

Since you’re looking for a Personal Loan in Chennai, your monthly income must be Rs.40,000 at the least. This makes you eligible for a Personal Loan. Also, you need to have a credit score of 750+ to be able to have the loan approved as well as get the same at low-interest rates.

Tips to Get Low Interest Rate Personal Loan in Chennai

The very reason to take a Personal Loan is to meet sudden expenses which you have not budgeted for. Being an unsecured loan Personal Loans attract a high interest rate.

As a Personal Loan borrower, you have to look for lenders who offer low interest rates. Here are a few tips that can help get you a Personal Loan without having to cough up high interest charges.

a.) Your creditworthiness is your biggest asset when you’ve to take a Personal Loan. Please the lender with your credit history. Your past repayments and your reducing outstandings substantiated by your income also matter.

b.) Next, improve your credit score. A high credit score makes you eligible for a lower rate interest on a Personal Loan. You can't improve your credit scores overnight. Follow financial discipline by making payments on the due date. In the course of time, your credit score will improve.

c.) Maintain a good relation with your banker to help lower your interest rate

Personal Loans have very few formalities and the least documentation involved for approval. The Personal Loan approval process takes as less as 24 hours. This makes it an obvious choice to meet immediate cash needs. Once you submit the loan application and documents required for Personal Loan, your approval is almost ready.

Documentation:

• Salary slips of the last 3 months

• Identity proof

• Address proof

• Bank statements of the last 3 months

• Proof of employment

In case you’re self-employed, you need to furnish your financial statements. These would include your profit and loss account and balance sheet.

Steady employment and employer profile also impact your Personal Loan eligibility. These factors could affect the interest rates as well.

Personal Loans offer the best alternative to buying jewellery or taking a vacation. You can also pay off an old debt or settle outstanding credit card bills with a Personal Loan. Take a Personal Loan at low interest rates and put it to use as per your needs.

Arwind Sharma is a financial advisor with an experience of more than 7 years. He has worked for topmost financial firms in India and has been a visiting faculty at many reputed institutes in India.