Personal loans have emerged as an excellent option to obtain funds quickly and with little to no waiting period. Previously, people had to call relatives and friends for money or go through a lengthy process at a bank to meet their immediate requirements. But, owing to personal loans, you no longer have to do any of that. You can apply for a personal loan in Chennai in just a few steps by submitting a few documents.

A personal loan does not need you to hold anything as collateral, which makes it more appealing to many people. The loan amount for a personal loan is up to ₹5 lacs. You also get a flexible tenure for repayment of your loan with a low rate of interest and affordable EMI options. Scroll down to the next section for more information about this loan.

What is a Personal Loan?

A personal loan is an unsecured loan that provides you with instant funding to address your financial demands. A personal loan can be used for various purposes, including schooling, medical expenditures, home renovation, travelling, or a wedding. Personal loans are popular these days because of their ease of approval, flexible payback terms, and variable interest rates. Personal loans involve minimal documentation and may be applied for in a variety of methods, including using a mobile app, the lender’s internet website, or by visiting the lender’s local location.

What Are the Key Features and Benefits of a Personal Loan?

There are various benefits of a personal loan. We have provided an extensive list of them below:

• Collateral is not required: Collateral is not required to be approved for a personal loan. Your credibility, which is established by your credit history, income, capacity to repay the loan, employer’s reputation, and other variables, is the only basis on which the loan will be approved.
• Versatile Loan: Personal loans may be used for several things, including paying for a vacation, home improvements, consolidating debt, paying medical expenditures, and other things.
• Flexible Repayment: One of the best things about personal loans is that, when you apply for one, you may choose from a variety of flexible repayment options, with durations ranging from 12 to 60 months.
• Minimal Documentation: Depending on your option, you may apply for a personal loan online or in person. Lenders frequently require applicants to provide proof of identification, proof of address, and proof of income.
• Rapid Disbursal: Personal loans can be disbursed within a few hours once the application is accepted. Processing time may be as little as a few minutes if you have a pre-approved loan offer.
• Variable Loan Amount: The sum of a personal loan granted is decided by the borrower’s repayment history, monthly income, age, occupation, employer reputation, and other factors. Taking all of this into consideration, you can obtain up to 5 lakhs when the loan is approved.
• Increases Credit Score: Whenever you take out a loan of any type and make payments on it, your credit score goes up. A credit score is just a number that is calculated based on your history of timely payments. A high credit score will make it simpler for you to get loans in the future. Your credit score may be greatly improved by taking out personal loans.

How to Apply for a Personal Loan in Chennai?

You can apply for a personal loan in Chennai in the following ways:

To apply for a personal loan online:

• Browse the website of your lender.
• Fill up the application form.
• Attach the necessary documentation.
• The loan staff will get in touch with you to finish the application process.
• Wait for the verification of documents and approval.
• The loan amount will be sent to your designated bank account once the lender approves your application.

To apply via the traditional method:

• Visit one of your local branch offices of the lender.
• Inform a representative of your needs.
• Soon after the representative has finished the process, your loan will be accepted.
• Last but not least, provide copies of any relevant documentation for verification.

What Is the Interest Rate for a Personal Loan?

Personal loans are a type of financing option with fixed monthly payments made over a defined period. Personal loan interest rates are expressed as a percentage of the borrowed amount as a loan by a person.

The interest rate on a personal loan is computed as a percentage of the loan amount. Personal loans are unsecured loans, which means that the interest rate on these loans is slightly higher than on secured loans due to the lack of recoverable assets as collateral. A personal loan’s interest rate may be computed using the interest rate calculator, which includes factors like your loan tenure and amount.

What is EMI and How Does an EMI Calculator Work?

The Equated Monthly Instalment (EMI) is a set monthly payment made by a borrower to the lender to pay off the principal amount plus interest on a certain date. When applying for a personal loan, it is critical to calculating the EMI to determine if you will be able to repay the amount.

The personal loan EMI calculator is a personalised online tool that calculates your EMI. When you enter your loan amount, interest rate, and tenure, the online calculator will calculate the monthly EMI you must pay to your lender each month. You may also adjust the loan time and amount to obtain different EMIs and determine which choice is best for you.

How to Know if You Are Eligible for a Personal Loan or Not?

To find out if you are eligible to apply for a personal loan or not, refer to the points given below:

• You must fall under the age bracket of 21 to 58.
• You must be a citizen of India.
• Both salaried and self-employed individuals are eligible to apply for this loan.
• A minimum income of ₹15,000 per month.
• A minimum of six months of work experience for salaried individuals.
• Two years of experience in an existing business for self-employed individuals.

What Documents Are Necessary While Applying for a Personal Loan?

You will require the following documents while applying for a personal loan:

For salaried individuals:

• A passport-size photo and application form
• Identity evidence such as a passport/ driver’s licence/ Aadhaar card/ PAN card
• Passport/ driver’s licence/ ration card/ utility bill/ Aadhaar card as residential proof
• As evidence of work continuity, provide a letter of appointment from your current employer and a certificate from your prior employer.
• Electricity bills/ maintenance invoices/ property documents serve as evidence of ownership of the home.
• Form 16, a salary account statement from the previous six months’ bank account, and the most recent six months’ worth of pay slips for income verification

For Self-employed individuals:

• A passport-size photo and application form
• Identity evidence such as a passport/ driver’s licence/ Aadhaar card/ PAN card
• Passport/ driver’s licence/ ration card/ utility bill/ Aadhaar card as residential proof
• Provide documentation of your office address, such as a lease agreement/ maintenance invoice/ utility bill
• Evidence of a business’s existence, such as a copy of a copy of tax registration/ company establishment certificate/ company registration certificate
• Bank statements for the past six months and two years’ worth of tax returns are also required.

A personal loan in Chennai is simple to obtain. You can do it from the comfort of your own home with sufficient documents. We recommend that you go through the eligibility requirements before applying for a personal loan. To determine whether you are qualified or not. Lastly, utilise the EMI calculator on your lender’s website to acquire an estimate of your EMI so that you can plan ahead of time.