Sunday , September 26 2021

List of Documents required for a Personal Loan in Chennai

Known as Detroit of India, Chennai is one of the largest education and economic centres in India. It is easy for you to apply for a personal loan in Chennai specific to your financial needs since the city accommodates some of the most trusted banks and reputed financial institutions in India.

All Non-Banking Financial Companies (NBFCs) and banks offer secured and unsecured personal loans in the city. Banks offer loans of amounts ranging from 50,000 to Rs 40 lakh with no collateral in case of unsecured loans. You can borrow this loan to meet any of your financial requirements including a medical emergency, funding an international trip, to pay off your credit card bills, refurbishing your home, clearing wedding expenses, or pursuing higher education.

If you are thinking about applying for a loan, this is a basic list of documents you will need to furnish:

  • Photo ID and age proof

  • Signed application form with photograph

  • Residence proof

  • Last 6 months bank statement

  • Documentation for salaried applicants:

  1. Last 3 months salary – slips

  2. Form 16 or Income Tax Returns

  • Documentation for self-employed applicants:

  1. Last 3 years Income Tax Returns with computation of Income

  2. Last 3 years CA Certified / Audited Balance Sheet and Profit and Loss Account

Most banks and NBFCs have a minimum salary requirement ranging from Rs. 7,500 – 50,000 for salaried individuals looking for a loan. And if you are self-employed, you will have to provide proof of income. Banks have a minimum requirement of Rs. 1- 2 lakhs of annual income for non-salaried individuals.

Personal loan interest rates can vary depending on banks and your financial credibility. Some things to know about your final interest rate and loan terms –

  • To apply for a personal loan in Chennai, a credit score above 750 should do just fine. A good credit score lowers the loan interest rate significantly.

  • Making a sizeable deposit as a down payment can get you a better interest rate on your loan. Anything more than 20% of the loan amount that you are availing will positively influence the interest rate you will be offered.

  • Making sure that your debts, previous loans, credit, and bills are paid, and your debt-to-income ratio is positive will decide whether you will get the loan and your interest rate.

  • The right tenure influences your interest rates, personal loan charges, fees, and the EMIs. A short tenure will result in a lower interest rate and even the EMIs will be low. Length of the tenure directly affects your interest rates.

  • Being employed with an established company plays a key role in establishing if your loan will be approved. Working for a reputed company helps the bank trust you.

Contact reliable and trusted lenders for all your personal loan needs. Be it Chennai or any other city in the country, your requirements will be taken care of and you can secure a loan amount of your choice.

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