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Everything You Need to Know About Applying for a Personal Loan in Chennai

As a working professional, you may sometimes need immediate funds to meet a medical or financial emergency. Here, Online Personal Loans are your go-to solution. 

If you are in Chennai and apprehensive about getting a Personal Loan in Chennai, this article is for you.

A personal loan is an unsecured or collateral-free loan that helps you stay afloat during a financial crunch. At times the financial emergencies are so grave and unannounced that your savings and investments don’t suffice. In such a case, you can apply for a Personal Loan in Chennai and meet your expenses as it is one of the most viable and convenient options.  

Digitization and technological advancement in the financial sector has made applying for a Personal Loan faster and quicker. You are no longer required to visit the lender’s office. You can get the lowest Personal Loan rates and instant sanction online if you carry a good credit score.  

Here are all the details you need to know before applying for a Personal Loan in Chennai.

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Features and Benefits of Applying for a Personal Loan 

With the increasing number of digital lenders, avail a personal loan in chennai is quite affordable and hassle-free. Based on specific qualifications such as credit score, income, and other ongoing loans, a real-time verification can take place to determine your loan status within minutes. Post that, if you have all your documents scanned in place, e-signing the loan agreement and disbursal of the loan takes another few minutes. What took a couple of weeks has now been made available in minutes. The following features are common to Personal Loans in Chennai across almost all lenders.

No end usage restriction on Personal Loans

One of the significant benefits of Personal Loans in Chennai is that you can put this loan to use however you deem best. You can use the funds to plan your dream wedding, renovate your home, travel the world, fund your higher education, consolidate your debt consolidation, or in the time of a medical emergency.

Fast and seamless approvals

New-age lenders give instant approvals for Personal Loans in Chennai. Suppose the loan eligibility assessment on essential parameters such as age, nationality, monthly income, credit score, repayment capacity, etc., is met. In that case, the loan amount can get disbursed into your account within hours.

Collateral-free loans

No assets or investments need to be pledged as security to get Personal Loans. There is no need to have a third-party guarantor sign the loan agreement to avail of a Personal Loan in Chennai.

Hassle-free and seamless process

The Personal Loan application process is simple and convenient. It can take place from the comfort of your home and only requires an application form to be filled, documents to be uploaded, eligibility to be met, and within a few minutes, you get the approval. 

Flexible loan repayment tenure

When applying for a Personal Loan in Chennai, you can choose the repayment tenure at your convenience. The interest rate changes depending on the tenure being selected. Some lenders give you a choice to repay within five years, and some can even allow repayment until seven years. This offers convenience and goes easy on your money outflow. 

Access to free financial instruments

Lenders give applicants access to free financial tools to help them better plan their future finances. An EMI Calculator and Personal Loan Eligibility Calculator help you gauge your repayment capacity and clarify the monthly outflow. 

Interest rates

If you are doing well on the eligibility parameters, you can get the lowest Personal Loan rates when applying online. The interest rates vary based on parameters, such as monthly income and credit score, which are indicators of your credibility as a borrower. Even the loan amount and repayment period impact the interest rates. 

Documentation Required

The documents required for a personal loan in Chennai will vary based on whether you are self-employed or salaried. Salaried individuals need to provide: 

KYC details, Identity proof (PAN card, Aadhaar card, Passport, etc.), Proof of income for the last three months (salary or account statements), Address Proof (Aadhaar card, Ration card, voter’s ID, etc.), Passport-size coloured photograph, Income tax returns, Age proof (Aadhaar, Driving Licence, etc.)

A self-employed individual needs to provide all the above along with a balance sheet and profit & loss account statement, income computation for the past two years, income tax returns for the last two years, proof of business registration and license, income tax challans, etc.

Three-step Personal Loan application process: 

  • Go to the lender’s website and fill in the application form. 
  • Select loan amount and tenure, enter your number, and receive an OTP to verify it and get approval. 
  • Upload documents, sign the loan agreement, and wait for a fund disbursal into your account. Some disburse funds in as fast as 15 minutes.  

Keep the following considerations in mind when applying for a Personal Loan in Chennai: 

  • Ensure that your credit score is well over 630 so you are a favorable applicant for the lender. 
  • Compare a few lenders before shortlisting one. Don’t go by the one that offers the lowest interest rate. Check other associated fees, charges, penalties, terms, and conditions. Sometimes a high processing fee, foreclosure charges, prepayment fees, or additional charges can offset the benefits of a lower interest rate. 
  • Ensure you have met the lender’s eligibility criteria before submitting your application. If the loan application gets rejected, it adversely impacts your credit score, making you an unfavorable applicant for future borrowings. 
  • Do not apply to multiple lenders simultaneously, as this indicates that you are a credit-hungry applicant, which can adversely impact your credit score. Each time a lender inquires about your application, it is treated as a hard inquiry, affecting your score. 

To conclude, a Personal Loan is an ideal way to take care of a financial crunch, whether foreseen or unforeseen. Be a responsible borrower, repay on time and live worry-free.  

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