5 Things to Know Before Applying for A Personal Loan in Hyderabad

Hyderabad, the city that is a charming blend of modernity and historical architecture, is well-known due to its burgeoning IT industry. Also known as Cyberbad due to its affiliation with all thing’s tech, the city is home to many global companies like Amazon, Oracle, Microsoft, and Google. With sprawling parks, shiny new pubs, and swanky restaurants, Hyderabad is a dazzling city that attracts a swarm of people to its midst. It’s an economic hub, with scores of opportunities to build a comfortable life.  

At times, to keep up with the fast-paced city life, people may require little financial assistance. To manage finances or even upgrade their lifestyle, citizens can apply for loans in Hyderabad from Poonawalla Fincorp.  Poonawalla Fincorp, a leading NBFC and loan company in Hyderabad, offers a variety of loan options right from online Personal Loans, Business Loans to Loan Against Property and Medical Equipment Loans.

A Personal Loan can help you to achieve your wishes or even specific financial goals. You can utilize a Personal Loan to plan your dream wedding, start a small business, debt consolidation, or even holiday abroad. There is no restriction to its usage. Further, you can apply for an online Personal Loan which requires minimal documentation and has the scope for instant approval and disbursal.  

Applying for Personal Loans in Hyderabad

Before you apply for a Personal Loan, you must ensure that you fulfil all the necessary eligibility requirements. Lenders evaluate your Personal Loan eligibility based on various factors including income, age, credit score, etc. Given below are some of the conditions required to avail of a Personal Loan- 

• Age- A borrower needs to be at least 22 years of age at the time of applying for the loan and not more than 58 years of age at the time of loan maturity.  
• Nationality- The borrower must be an Indian citizen at the time of applying for the loan. 
• Employment- The borrower requires to hold a full-time job with a private or public company or LLP. In case the borrower is self-employed, he/she will need to provide regular income proof. 
• Monthly Income- The salary of the borrower needs to be at least Rs.20,000 for availing of the Personal Loan.  
• Work experience- The borrowers should have a work experience of at least 1 year to be eligible for the loan. Additionally, they should have worked at their current place of employment for at least 2 months.  

Now that you have understood the eligibility requirements for applying for a Personal Loan in Hyderabad, let us understand the important aspects you need to keep in mind while availing of a Personal Loan.  

5 Things To Know Before Applying For A Personal Loan in Hyderabad

• Examine your reason for taking the loan- Taking a Personal Loan has implications on your financial health. How you manage the loan will make a huge difference to its outcome. A Personal Loan can make your life very easy and comfortable, provided you utilize it for its intended purpose. You may want a Personal Loan to renovate your home, upgrade your workstation, buy new machinery for your dental clinic, or even fund your trip abroad. If you have a thorough understanding of the “Why” of the loan, you’ll be in a better place to utilize it effectively.   
• Keep your credit score in check- A Personal Loan is an unsecured loan, which means you don’t have to put up any collateral while applying for it.  Given this, a lender will scrutinize your credit history thoroughly to evaluate your creditworthiness. A credit score is a 3-digit number that signifies your credit history. The numbers generally range from 300-900. A credit score above 750 is considered a good score. If your score is less than 750, lenders could reject your loan application, or you may have to pay higher interest rates. When it comes to Personal Loans, a credit score is a fundamental aspect of valuing your credibility. Maintaining a strong credit score is key to receiving your desired loan amount at an attractive interest rate.  
• Try opting for an online Personal Loan: The emergence of FinTech and widespread digital transactions has made applying for a Personal Loan so much easier. Borrowers can apply for the loan from the convenience of their homes. Just by uploading minimal documents online, with a click of a button, the loan amount could be credited to your account as early as a few days. No standing in long queues, no hassle of multiple documents and their copies and prints, and no complicated registration process that will leave you at your wit’s end. Poonawalla Fincorp has an easy and hassle-free online process that will give you instant access to your desired Personal Loan.
• Keep an eye on hidden charges: Every other bank and NBFC today is offering instant Personal Loans with attractive interest rates. However, it’s imperative to be aware of all the other charges that are covertly concealed in the fine print. Typically, a Personal Loan will come with 3 basic costs- 

1.    Processing fee- This fee encompasses the administrative charges that are tied to processing a loan. Finance companies and banks charge fees in the range of 1-2%, plus related taxes that are required to be paid. 
2.    Prepayment charges- Some lenders and NBFCs charge borrowers when they pay off their loan before it is tenure. Many times, such penalties cost as much as the interest. Borrowers tend to pre-pay their loans to save on interest costs. However, heavy pre-payment charges defeat the purpose, and they end up saving a negligible amount if any.  Therefore, you must opt for a lender or NBFC that offers the lowest pre-payment penalty. If applying for a Personal Loan from Poonawalla Fincorp, you don’t have to worry about the pre-payment penalty at all. There are zero prepayment or foreclosure charges applicable.  
3.    Late Payment Fee- If you are unable to service your loan promptly, your loan will attract a late payment fee. If you are unable to pay the instalments themselves, a late payment fee just adds to the burden. Therefore, before opting for a Personal Loan from a lender, you should make sure you are aware of the late payment fee charged on the loan. Try to select a lender who charges a reasonable rate.  

• Be ready with a payment plan: Availing of a loan is just one aspect. You must also be prepared with a detailed repayment schedule. For this, you will need to understand your financial profile and figure out your affordability. Can you afford to set aside some funds from your monthly salary immediately or do you need to dip into your savings? Are there other avenues you can tap? You need to realign your monthly budget to make space for this additional cost. Be prepared with an iron-clad budget and payment schedule so that you never miss your EMIs. 

In Conclusion

Living in Hyderabad can be very exciting. There are so many interesting choices and opportunities all around. You may want to partake in a lot of social activities, enjoy the various delights, upskill, and beautify your home. A Personal Loan can be very helpful in building the life that you desire. 

Disclaimer

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