One of India’s largest cities in the south, Hyderabad, is also steeped in centuries of historical culture, still prevalent in modern times. It’s a bustling metropolis and a major commercial hub, and home to a staggering 9.7 million people. Being an epicentre for much of South India’s industrial and commercial activities, it’s unsurprising that the cost of living in Hyderabad has skyrocketed over the last few years.

Basic expenses such as housing, food, and transportation are all significantly higher in Hyderabad than they are in smaller cities. As a salaried employee, there’s only a little leftover from your income to spare for savings or entertainment. Plus, if an emergency situation arises, you may not have the required funds to meet that expenditure. However, you need not worry if you’re experiencing a cash crunch, since taking a personal loan in Hyderabad is an easy and quick way to meet your financial requirements without putting a strain on your budget. 

You can opt for an unsecured personal loan in Hyderabad from digital lenders online, who do not require any collateral to avail the loans. Additionally, the application process is simple and easy and can be done right at home or office. All you need are a few basic KYC documents to apply for the loan.

One of the best features of an unsecured personal loan is that it has a wide variety of uses. You can avail a personal loan in Hyderabad for a number of reasons, such as paying off your credit card, high utility bills, shopping, travel, or any other personal requirements. Below is a detailed guide on the numerous uses of a personal loan, as well as the steps on how to avail one.

Personal Loan Uses

  1. Credit card payments

  2. Unexpected expenses

  3. High utility bills

  4. Wedding expenses

  5. Gifting

  6. Travel

  7. Education fees

  8. Hobbies

  9. Starting a business

  10. Medical expenses

  11. Debt consolidation

  12. Consumer purchases/ shopping

  13. Home renovation, repairs and maintenance

Personal Loan Eligibility Criteria

Personal loan eligibility will differ from lender to lender. Below are the common parameters for most lenders:

  1. Age (22-55)

  2. Monthly Income (minimum Rs. 15,000-25,000)

  3. CIBIL Score (minimum 625-700)

  4. Employment type (salaried or self-employed)

  5. Location 

It’s important to note that it is mandatory to meet the entire basic eligibility criteria of a lender before applying for a loan. Otherwise, your loan will be rejected outright even if you do not meet just one of the parameters.

Documents Required for Personal Loan in Hyderabad

As with the personal loan eligibility criteria, all lenders will have their own requirements for a particular set of documents required for taking a personal loan. However, the main types of documents required are the ones as follows:

  1. Identity Proof: Aadhaar card, driver’s license, PAN card, voter id

  2. Address Proof: Property documents, utility bill

  3. Income Proof: Bank statement, Form 16

  4. Employment Proof: Salary slip

  5. Selfie/digital photo (passport photos for physical loan copy)

How to Apply for a Personal Loan in Hyderabad

These days, there’s no need to physically visit a bank, only to wait for weeks to just get your loan application approved- and another several week to actually get the loan! Now, you can apply for your personal loan in Hyderabad online while sitting at home.

Follow our step-by-step procedure below:

  1. Figure out your requirements: Even though this can appear like an obvious step, one of the common mistakes you can make is miscalculating the actual amount you need for your loan. Even if you are eligible for a large loan amount, it’s best to carefully consider the costs for your requirement, and more importantly, whether you can realistically afford the loan.

  2. Search for loan providers: Check online and compare all the lenders available in your area. Make a list of important points, such as their interest rates, processing fees, late payment fees, prepayment charges and foreclosure fees. 

  3. Only apply for a few at a time: After you’ve made your list of lenders, narrow down the list to just a few. Do this by zeroing in on the lenders whose eligibility criteria you fully meet, as well as the ones who suit your loan requirements. Then, apply to only 2-3 lenders max within a given month. By following this step, you’ll ensure to get a higher approval chance, without negatively impacting your credit history by making too many loan applications. 

  4. Get your documents in order: Make sure to check the lenders’ eligibility criteria and have your documents ready for filling the application form. If you fail to provide the necessary documents for the application, your application will get rejected. Therefore, be ready beforehand by checking what documents would be required for the lenders you are applying with.

  5. Carefully fill the application form: While applying for the loan on the lender’s app or website, avoid silly mistakes with your application form, since you won’t get another chance to rectify them! Read the application form very thoroughly and ensure there is no information mismatch or incorrect document proofs uploaded. 

Once you’ve submitted your application, you will get an approval or rejection intimation to your registered mobile number and email id. If your loan gets rejected, work on improving your credit score, monthly finances, and then re-apply after 90 days.

If you loan gets approved, your lender will notify you of the approved loan amount and the next steps for receiving the funds. Now that you know all the steps, apply for your personal loan in Hyderabad today!

 

Published by Charlesa Gibson