The debate about the benefits that metro cities offer to people vis-a-vis non-metro cities is never-ending. Over the years, we have seen people migrating from non-metro cities to metro cities for better job opportunities, better living standards, better facilities, and other similar benefits.
Because of the higher income potential of individuals living in metro cities, the lenders are likely to approve a higher Personal Loan to them than those living in non-metro cities. This is a typical tendency often noticed due to a relatively lower per capita income level prevalent in non-metro cities in India.
In this blog, you will learn about different features and benefits associated with a Personal Loan in metro cities and non-metro cities located throughout the country.
As per the census commission, a city qualifies as a metro city when it has a population of more than 10 Lakhs or one million.
Cities like Delhi, Mumbai, Chennai, and Kolkata fall under this category. Over the last few years, more cities have been added to the list of metro cities majorly due to the migration of people. Pune, Bangalore, and Hyderabad, in particular, are growing rapidly in terms of population, facilities, job opportunities, and infrastructure quality.
Non-metro cities refer to urban areas that are not classified as major metropolitan cities. Non-metro cities are also known as Tier 2 and Tier 3 cities. These cities typically have smaller populations, less developed infrastructure, and limited economic and cultural amenities compared to metro cities.
Examples of some of the non-metro cities are Lucknow, Bhopal, Indore, etc.
You will find these prominent distinctions while comparing the Personal Loan terms extended to residents of metro and non-metro cities:
1. Monthly Income
Metro city dwellers are likely to face more stringent criteria to qualify for a loan. On the other hand, the criteria would be a bit lenient for non-metro city residents as opportunities for earning are limited. Also, in the latter case, the minimum income requirement is lower.
2. Interest Rates
Interest rates are comparatively lower for Tier-1 city loan applicants as they have many options. Unlike this, the competition among the lenders is not that much intense in non-metro cities. Hence, the interest rates can be higher in these locations.
3. Approval Time
A large population of metro cities apply for a Personal Loan. Hence, the processing or approval time is usually longer than expected in some cases. Contrarily, the loan agents need to handle fewer applications in non-metro cities. Thus, you can experience a faster loan processing time.
4. Loan Amount
Borrowers get a higher principal amount sanctioned as their income potential is high. For people living in Tier-2 and Tier-3 cities, the lender may not approve the desired amount every time, especially when they assess the greater risk involved.
Also, as the cost of living is relatively lower in non-metro cities, thus, financing bodies approve loan amounts judiciously.
Following are some of the important factors that influence a Personal Loan:
Generally, there is a huge difference when it comes to infrastructure in metro cities and non-metro cities. In the case of metro cities, you are more likely to find well-furnished houses and modern infrastructure with all the amenities.
Whereas, non-metro cities have fewer amenities, such as proper roads, drainage, electricity, and other basic conveniences. This directly influences the expenses of these cities, especially housing expenses.
Since housing costs (rented or owned) are higher in a metro area, an individual may need financial assistance from time to time to take care of any gaps in funding.
There are various transportation options available in metro cities, such as buses, autorickshaws, suburban trains, metros, etc. On the other hand, non-metro cities have few options for transportation. Other factors like travel fare and the distance covered with the transportation also vary in both cases.
Issues like traffic and time management also influence the individual’s decision to take a Personal Loan. In metro cities, you can see people opting for cars and more high-end bikes as compared to non-metro cities due to income differences and the limited availability of choice in vehicles.
There is a huge difference in the living standards of metro and non-metro cities. Personal spendings, particularly on recreational activities and food choices, result in an overall increase in expenditure. This is a common cause of many for relying on a Personal Loan in metro cities.
Larger groups in metro cities are easily swayed by trending social needs and thus end up spending unnecessarily. This is when they rely on a Personal Loan to bring back their budget on track.
These are the widely talked-about benefits of loans disbursed to citizens living in metro areas:
As you read earlier, lenders have greater confidence in people who are living in metro cities as their average income is higher. Thus, you can get high loan amounts if you are staying in a tier-1 city.
A cluster of banks and NBFCs exist in metropolitan zones. Therefore, you get many lenders to choose from and thus have greater chances to grab a completely personalised loan offer.
As individuals living in metro cities are considered to be less risky, the lenders approve loan offers at competitive interest rates.
If you are looking for a Personal Loan from any of the non-metropolitan cities in India, then you are most likely to enjoy these advantages:
As lenders deal with limited clients in these areas, you can expect customised solutions and more attention while being in a loan relationship.
Usually, lenders extend relaxed eligibility criteria for loan applicants from non-metro cities. This happens due to various reasons like fewer income opportunities, fewer applicants, low average expenditure, etc.
The total number of loan applications is considerably lesser compared to metro cities. Thus, financing institutions do not require much time to disburse the loan amount.
The eligibility criteria for a Personal Loan slightly differ between metro and non-metro cities. But generally, lenders consider several common criteria to determine an applicant's eligibility.
Here are some typical eligibility criteria for a Personal Loan for both metro cities and non-metro cities:
You can apply for a Personal Loan with Poonawalla Fincorp by following these steps:
Step 1: Click on ‘Apply Now’ to open the application form.
Step 2: Enter your personal details and attach the soft copies of the documents.
Step 3: Finally, click on the ‘Submit’ button.
After verification of the provided details, your loan will be approved and disbursed quickly.
Irrespective of whether you are seeking a Personal Loan in metro cities or non-metropolitan locations, you must do sufficient research to avoid potential overborrowing. Also, make sure to compare the loan deals of all the available lenders. Only by following this, you can successfully get a low-cost loan. Consider Poonawalla Fincorp as a trustworthy lender and apply for a Personal Loan today to meet your financial urgencies.
For a Personal Loan, you must check the reviews of your preferred lender before proceeding further. Also, NBFCs and banks with a well-established lending background are often considered favourable by borrowers.
The monthly instalments will vary depending on the agreed-upon interest and chosen tenure. For instance, you can get a Personal Loan with interest as low as 9.99% from Poonawalla Fincorp. In such a case, your EMI for a 5-year Personal Loan will be Rs. 21,242.
No, a borrower needs to earn at least Rs. 30,000 per month to avail a Personal Loan from reputed NBFCs like Poonawalla Fincorp.
We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Personal Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply
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