The cost of living in metropolitan cities like Kolkata, Delhi, Bombay, and Bangalore can be quite high. You might need some financial aid to manage expenses during emergencies. Personal loan products are a great choice for medium-term debts that can be repaid easily over the chosen duration. Most loan providers offer a diverse range of personal loan products suitable for different customers. Choosing the right kind of personal loan requires an understanding of your personal financial needs and the benefits offered by a loan product. Read on to know more about personal loans in Kolkata.
Tips of getting a personal loan approved in Kolkata
Getting a personal loan approved is relatively easy these days if you have a consistent income source and an excellent credit history. However, there are other factors at play that decide the approval of your personal loan in Kolkata. Following the best practices makes it easier to get your loan approved. Here are a few tips to get your loan approved in Kolkata.
1. Check the eligibility criteria
One must conduct eligibility criteria check if they want to get easy approval on their loan application. Most loan providers have a strong online presence and even allow online applications. You can visit the official website of a financial institution to check the eligibility criteria online and assess if they match the same. There are different types of eligibility criteria such as age range, minimum monthly income, and credit score.
2. Maintain a high credit score
Another important thing to be mindful of is your credit score. A credit score or CIBIL score in India is a 3-digit score that provides a numeric estimate for an individual’s credit history. Credit scores can fall between 300 to 900. A higher score shows better credibility. A score over 750 is good and will easily get your loan approved if other criteria are met.
3. Ask for a reasonable loan amount
You must assess your current financial needs before making your loan application. You should not go overboard with the loan amount and only apply for the amount that you need. If you apply for a very high loan amount and don’t have a strong credit history, your loan will not be approved. In case it gets approved, you will have to pay high interest on the loan amount.
4. Keep your debt-to-income ratio low
The debt-to-income ratio is another important metric that helps to decide eligibility for a new loan. It is a measure of the percentage of total income that is used to pay for your monthly debt obligations. Suppose that you have a monthly income of INR 50,000 and you pay INR 10,000 as EMIs. Your debt-to-income ratio in this case is 20%. Meaning that 20% of your monthly income goes towards paying your debt obligations each month. If you already have multiple loans, your debt-to-income ratio will be higher. A ratio between 20% to 30% is considered as an ideal debt-to-income ratio and you will be easily able to get a loan on your income.
5. Keep your documents ready
If you are looking for instant approval on your loan in Kolkata, make sure that you have the required documents. Keeping your documents ready will fasten the process and get your loan approved instantly. Some of the most important documents that you need here include ID proof, address proof, income proof, PAN card, etc. If you are applying for an online personal loan through a website, always create a digital copy of these documents that can be uploaded online.
6. Compare loan products
Comparing loan products from different providers will help you find the most suitable one for your requirements. You must always compare different features of a personal loan being offered before making your final decision. It is recommended to opt for a product that has the lowest interest rate. This will reduce your monthly EMIs and total interest payment towards your loan. You must also consider the processing charges and other hidden fees rather than just blindly going for a lower interest rate.
Following the above tips can help you get a personal loan in Kolkata with ease. These are the best practices that everyone must follow while opting for a personal loan.