5 Interesting Facts You Should Know About Personal Loan in Chennai

Chennai is a vibrant metropolitan city in Tamil Nadu, reputed for its rising academia and business centres. Being a prime business and educational centre – business professionals, and students flock to Chennai in search of opportunities. The city is also fast emerging as the major IT hub and manufacturing capital of India. With its growing number of opportunities, it is attracting a lot of young entrepreneurs to initiate start-ups. They can opt for a personal loan in Chennai to cover their urgent expenses in the initial stages of their ventures. 

Apart from funding a business, it also caters to a wide range of requirements like:

  • Funding home renovation.
  • Bearing the expenses of a wedding.
  • Financing your child’s education.

However, There Are a Few Things You Should Know Before Applying For a Personal Loan. So, Here the 5 Facts to Look Into

Credit Score

Your CIBIL score reflects your creditworthiness. A credit score not only determines your loan eligibility but also plays a pivotal role in determining the loan interest rates. It is tough to avail loans without a proper credit score. However, you must check the terms applicable while applying for a personal loan for CIBIL defaulters, in case you are one.  

A good CIBIL score indicates your potential repayment capacity and also lowers the risk of defaulting. It must be noted that paying off your dues on time and maintaining a low outstanding debt ratio improves your CIBIL score.  

Personal Loan Interest Rates

The first thing to do before applying is to check personal loan interest rate offered by various lenders available in the market today. 

You can avail a Personal Loan from NBFCs like Bajaj Finserv that comes with numerous benefits like –

  1. Minimal documentation. 
  2. Instant approval and fast disbursal.
  3. Attractive interest rates.
  4. Flexible repayment tenor. 

Bajaj Finserv also brings you pre-approved offers that make procuring loans quick and hassle-free. These pre-approved offers are applicable on unsecured credits like personal loans, business loans and secured advances such as home loans among numerous other financial products. You can check out your pre-approved offer by sharing a few necessary details like your name and contact number. 

Fees and Charges

Interests are not the only fees that are levied on a personal loan in Chennai. There are some additional charges and expenses associated with a loan such as –

  1. Loan processing fee. 
  2. Late payment fees if you delay your monthly payment. 
  3. Part-prepayment and foreclosure charges.

Therefore, it’s mandatory to check the personal loan processing fees and interest rates before availing one. However, NBFCs like Bajaj Finserv offer zero part-prepayment and foreclosure charges if you avail Personal Loans at floating rate of interest. 

Eligibility Criteria

Personal loan eligibility criteria vary across lenders. The standard criteria include – age, stable source of income, occupation, etc. The common ones include – income statements, account statements, income tax returns and in case of self-employed applicants, a balance sheet or profit & loss statement of business audited by a CA. 

Check the personal loan eligibility and keep all papers handy before applying. 

Repayment Scheme

While opting for a personal loan in Chennai, make sure your lender provides you with a relaxed, clearly laid out repayment scheme. It is advisable to avail loans from lenders like Bajaj Finserv who offer flexible repayment tenor. This makes your repayments hassle-free without straining your monthly expenses.   

That being said, it’s best to carry out a thorough research and gather relevant information before taking up personal loans in Chennai.

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