Mumbai is synonymously known as the City of Dreams, attracting millions of people from across the country and around the world. While it’s exciting to live in such a large city like Mumbai, life in the metro can really put a dent in one’s finances.
Just basic living expenses like rent can take up a large portion of your monthly budget, making it difficult to have money for other basic necessities- much less for enjoyment! It can be hard to maintain your savings if you have such high expenses, especially if you are earning a low salary. And no amount of budgeting and eliminating unnecessary expenses can seem to help spare some extra cash for savings and entertainment.
In this scenario, you may not even be able to ask for financial assistance from family or friends; and this can cause you to live off of your savings, instead of being able to let the money grow.
Fortunately, you can improve your situation by taking a personal loan in Mumbai. Personal loans are extremely beneficial to anyone who has a tight budget. Over the last decade, the process of getting a personal loan has become highly simplified, minus all the heavy paperwork and excessive documentation. You can now apply for a loan online and get the money into your account in just 3 days or less!
Let’s go through the steps of how you can apply for a personal loan in Mumbai.
How to Apply for a Personal Loan in Mumbai
- Assess your requirements
First and foremost, ensure that you know how much you need to borrow. Although this sounds like an obvious step, it’s worth mentioning again because many people overestimate their needs; this will subsequently increase one’s financial burden and affect their repayment ability.
Whatever your needs are, apply for just what you need, or a little over the actual amount. If you do end up needing more money later on, you can always apply for a top-up loan from the same lender, without needing to go through the application process again from scratch.
- Know your finances and CIBIL score
Lenders will assess a borrower’s CIBIL score and finances to determine whether they are creditworthy. If you apply for a loan that is beyond your repayment capacity (on the basis of your salary and fixed outgoing costs) you will probably get rejected.
Your CIBIL also weighs heavily on your personal loan application, as it is one of the main deciding parameters by which lenders will determine whether you are creditworthy or not. If your CIBIL is less than 650, you have a higher chance of rejection. Therefore, only apply to lenders who accept a lower CIBIL score; or, slowly build your credit history by spending affordable amounts on your credit card and paying back in full before the due date each month.
- Check the lender’s eligibility criteria
Before you apply for a personal loan, you want to ensure that you aren’t immediately rejected because you did not match the lender’s basic eligibility criteria. This is a silly mistake that can be avoided at all costs!
Every bank and lender has a set of eligibility criteria, which is essentially a set of qualifying parameters based on which an individual can qualify for a loan. The eligibility criteria include factors such as income, age, CIBIL score, location, and other similar factors.
Ensure that you are only applying for a personal loan in Mumbai from a lender whose eligibility criteria you match; otherwise, your application will get rejected immediately. Do ensure that you only apply to just around 2-3 lenders at a time (whose full basic criteria you match) and keep the required KYC documents ready for verification.
- Read through all the terms and fees
Digital lenders aim to be transparent with their borrowers. Therefore, all information about the terms, conditions, and fees for availing a loan (processing fees, late payment penalties, foreclosure charges, etc.) will be clearly outlined on their app and website.
Ensure that you understand all of the fine print carefully, so you do not feel confused if a lender levies a particular fee. If there are things you aren’t sure about, always get clarity from the lender.
- Fill the application form carefully
While this sounds like another obvious step, you will be shocked to know how often a loan application gets rejected just because of silly mistakes in the application form.
Read through the application form carefully before filling it out, and make a note of anything you aren’t sure about to seek clarification about from the lender. Ensure that there isn’t any falsified information such as inflated income, fake bank statements or KYC documents. Lenders have the technology to identify false information and will immediately reject your application.
Even if an unintentional error like signature mismatch can lead to your application getting rejected, post which you can re-apply only after 3 months. Therefore, take extra caution when filling out the form.
Once you’ve submitted your loan application, you will get the approval or rejection message communicated directly to your registered contact details. If you get approved, congrats! Now all you have to do is pay your monthly EMIs on time and watch your credit score increase as a result.
Mumbai is an expensive city to live in, but you can always manage your finances with a personal loan as low as Rs. 20,000 or up to Rs. 2 lakhs. Whether its an unexpected situation or end of the month cash crunch, apply for your personal loan in Mumbai today and get approved in just 24 hours or less!