Bangalore, the tech capital of India, is home to over 1.5 million IT sector employees. Besides, there are plenty of other companies that have offices in Bangalore. The cost of living in any metropolitan city is high and so is the case of Bangalore. Managing monthly expenses can be challenging, especially in the post-pandemic era when medical bills contribute heavily to expenses. The good thing is that you can always choose to defer your immediate expenses by taking out a personal loan in Bangalore. It is certainly one of the smartest decisions that one can take to meet immediate financial obligations. Read on to know more about the features of a personal loan and some effective tips to get one easily.
Key Features of a Personal Loan
There are different loan products in the market and a personal loan is one of them. In the current scenario, financial institutions have taken a deep dive into the personal loan segment by offering customized loans for varied purposes. Here are some of the key features of a personal loan in Bangalore.
1. Collateral Free Loan
The most important feature of a personal loan that makes it an obvious choice for first-time borrowers is its collateral free nature. You don’t have to pledge collateral for obtaining the loan amount. Since there is no security involved, many people can opt for a personal loan. There is no risk of losing an asset involved in a personal loan in case of default. However, you must always make your payments timely because it can degrade your credit score. A poor credit score will limit your chances of getting a loan in future.
2. No Restrictions on Access or Use of Funds
Another key feature of a personal loan that makes it highly desirable is the flexibility to use the funds. There are no restrictions placed by the lender on how you can use the borrowed amount. The borrower has complete flexibility to use these funds the way they like. When you are unsure about the purpose of the borrowed amount, a personal loan is the best choice.
3. Flexible Tenure
Most personal loans offer a flexible loan tenure to borrowers for repaying the borrowed sum. The loan tenure offered by most financial institutions falls between 12 to 60 months. It is always recommended to opt for a higher loan tenure to reduce your monthly EMIs and chances of default.
4. Quick Processing and Disbursal
Today, you can get the funds from a personal loan in your bank account within 24 to 48 hours. The loan processing timeline has reduced drastically in the last couple of years. Financial institutions are aiming to make the process simple, with minimal documentation requirements and an easy application option. One can easily choose to apply for a personal loan online and get it approved instantly after submitting the required documents.
Tips to Get a Personal Loan Easily
Here are some effective tips and tricks that you can use for availing of a personal loan easily.
1. Good Credit Scores
A good credit score will certainly boost your chances of loan approval by any financial institution. Always try to maintain a credit score of over 750 points, as it is considered ‘very good’ by most lenders. A credit score helps to establish your creditworthiness in the market. A high credit score will indicate that you are a good borrower who repays on time.
2. Maintain a Good Debt to Income Ratio
The debt-to-income ratio denotes the percentage of your monthly income that is used for repaying the existing debts. A high debt to income ratio will certainly reduce the chances of your loan approval. It will indicate that you already have a lot on your plate. An ideal debt to income ratio falls in the range of 20% to 35%. It also gets easier to get a higher loan amount when your percentage of debt to monthly income is lower.
3. Compare Different Loan Products
Comparing different loan products will help you find the most attractive deal. You will get a discount on your loan at a lower interest rate. You must always compare different types of personal loan products from multiple loan providers before taking the final call.
4. Decide the Loan Amount
Always have a clear picture of the purpose of your loan and the amount needed before you start applying. It will help you avoid higher interest payments on account of additional funds that you don’t require.