Miyapur is located in the North-Western part of Hyderabad. With rapid expansion in infrastructure, it has become a fast-growing area. The main attractions are lakes and commercial complexes such as supermarkets, restaurants, schools, fitness centers and banks.
In Miyapur, the cost of living is pretty high because of the demand for real estate. Education fees, medical expenses, travel costs, weddings, etc., are challenging to handle when you need sudden cash. In this situation, you can choose to avail a personal loan in Miyapur without any collateral. In this article, we will learn what a personal loan is and the purpose for which you can avail of one and how you can apply for it.
What is a Personal Loan?
Personal loans are unsecured loans, which fulfill sudden financial needs such as medical emergencies, wedding costs, vacation plans, etc. While availing of this loan, you only have to submit minimum documents for verification and need not provide any collateral.
You can also apply for a personal loan in Hyderabad using an app Buddy Loan. It is one of the best third-party aggregator platforms that offer personal loans online for different categories at reasonable interest rates.
Reasons For Which You Can Avail of a Personal Loan In Miyapur
- Debt Consolidation: You can use a personal loan to consolidate your existing debts. It can also be used to repay all your credit card loans or other loans with low-interest rates.
- Renovation of your Home: Upgrading your home, renovating your kitchen, painting, or remodeling can cost you more. Hence, you can take a small personal loan to meet this need.
- Moving Costs: Moving from one place to another can be hectic, especially if you are moving to another city. Hence, you can avail a personal loan for moving expenses such as hiring movers and packers, buying new furniture, transportation of your vehicle, etc.
- Emergency Expenses: Medical emergencies are uncertain and can happen to anyone. Asking your relatives for instant money at that time can be uncomfortable. Therefore, you can avail of a best personal loan to meet your medical expenses within 24 to 48 hours.
- Purchase of new appliances: Electronic appliances such as a TV, washing machine, dishwashers, etc., come with a cost if you plan to buy a branded one. Hence, you can take a small personal loan to purchase new appliances instantly.
- Purchasing vehicles: Personal loans can be the best option if you want to purchase a new car without any collateral, unlike auto loans, where you have to submit collateral to get the loan amount.
- Wedding expenses: In India, the average cost of a wedding is around INR 10 lakhs to 15 lakhs. Hence, you have to plan your wedding budget carefully to have a clear picture while availing of a personal loan.
- Travel costs: If you plan to travel to your dream destination or want to go on a luxury vacation, then a personal loan is the best choice to make your dreams come true.
Pros and Cons of Availing a Personal Loan in Miyapur
Pros:
- Multi-Purpose: You can take a personal loan for many reasons such as Medical, wedding, travel, etc.
- No Collateral: When you apply for a personal loan, you need not submit any collateral.
- Negotiable interest rates: You can negotiate with your lenders to reduce your interest rates if you have a high credit score. You will also get a loan for comparatively low-interest rates if your monthly income is high.
- Flexible repayment tenure: You can repay your loan amount starting from 6 months to a maximum of 5 years.
- Minimum documents required: You have to submit minimum documents like Aadhar Card, PAN Card, passport, etc., for KYC verification.
- Instant Sanction of loan: Your loan will get approved instantly once the verification process is completed. It will be disbursed to your bank account within 24 to 48 hours.
Cons:
- High-interest rates compared to other loans: You will be charged high-interest rates for loan approval if you have a poor credit score which can be higher than a credit card.
- Other charges: Some lenders include charges such as “Processing Fees” and “GST,” which they may not disclose beforehand. Hence, you must pay this amount when you are applying for a loan.
- Prepayment penalty: Some lenders charge you a prepayment penalty if you repay your loan before the tenure period to compensate for the interest rates.
- Prone for scams: You have to check if the lender is legit before applying for a personal loan because scammers can use this opportunity to steal your data.
Eligibility Criteria
| Sl.No | Particulars | Description |
| 1 | Nationality | Indian |
| 2 | Age | 21 to 60 |
| 3 | Employment Status | Employed or Self-Employed |
| 4 | Minimum Income | INR 20,000 per month |
| 5 | Work Experience | Min 1 year completed |
| 6 | Credit Score | Above 750 |
Documents Required
For Salaried Employee:
| Sl. No. | Particulars | Documents required |
| 1 | Proof of Identity | Aadhar Card, PAN Card, Driving License, Passport |
| 2 | Proof of Address | Electricity Bill, Water Bill, Passport |
| 3 | Proof of Income | Salaried: Bank statement for the past six months |
| 4 | Work experience Employment | Certificate for a minimum of 1-year experience |
For Self-Employed:
| Sl. No. | Particulars | Documents required |
| 1 | Proof of Identity | Aadhar Card, PAN Card, Driving License, Passport |
| 2 | Proof of Address | Aadhar Card, Electricity Bill, Water Bill, Passport |
| 3 | Proof of Income |
|
Easy Ways to Get Your Personal Loan Approved in Miyapur
The lenders, consider the following factors before approving your loan. Here are easy ways you can get your personal loan approved in Miyapur:
- Monthly Income: Lenders check your monthly income to know if you have a constant flow of income. You must have a minimum income of INR 20,000 per month to get your loan approved quickly.
- Credit Score: A credit score indicates your creditworthiness and shows your repayment history. Lenders check your credit history before approving your loan. A score of above 750 is considered excellent and helps you get your loan approved quickly. You can also check your credit report using Buddy Score instantly.
- Incorrect information: Fill in all the details accurately without leaving anything blank. You must also submit valid documents for KYC verification, such as Aadhar Card, PAN card, passport, etc., to avoid rejection of your loan application.
- Have a co-applicant: If you have bad credit history but still want to avail of a personal loan, getting yourself a co-applicant can be helpful for you to get the loan. A co-applicant or co-borrower shares joint responsibility for the money borrowed from the lender. Hence, the lender may consider approving your loan when the co-applicant has a good credit score.
- Relationship with your lender: An excellent and long-lasting relationship builds trust and loyalty. Since you have a good relationship with your lender, they will already have all the information about your financial situation and your ability to repay the loan. It will also help process your loan easily without having to submit any documents.
- Debt-to-Income Ratio: The percentage of gross monthly income to that of monthly debt payments is called Debt-to-Income ratio. It shows the ability of an individual to manage monthly payments. Lenders expect your debt-to-income ratio to be less than or equal to 50% before approving your loan.
Also Read : Getting A Personal Loan In Manikonda Is Now Easy
Common Errors That Occur in a Credit Report
A credit report shows the summary of your credit history, and it includes all the financial transactions of your credit cards, personal loans and secured loans. But did you know that your credit report can have errors if you do not review it at least once a year?
Here are a few common errors that might occur in a credit report.
- Incorrect personal information: Fill out the forms with your correct name and address as mentioned in your Aadhar Card to avoid this error.
- Canceled or closed accounts: When you cancel or close an account, Check if it reflects in your credit report. Because sometimes, the credit report can still show the closed account as active or operational.
- Transaction records you did not perform: If you find any transactions you don’t recognize, check and report them immediately.
- Duplication of records: The credit report will have duplicate entries if the transaction is recorded twice. As a result, this error will negatively affect your credit score.
- Inaccurate record: If you have paid your debts on time, check if it is reflected in your credit report. Because if there are any missed payments marked in your account, it will reduce your credit score.
Steps To Fix Your Errors:
- Contact your credit bureau and report the error in your credit report.
- Specify the error and attach relevant documents for proof.
- Next, contact your respective financial institution from which the error was generated. Send the same details that you had sent to the credit bureau.
- You will receive an official acknowledgment from the regulatory authorities.
- After your dispute gets submitted, the error claimed will be investigated and corrected.
- Finally, you will receive a report of the findings and a corrected credit report.
In Conclusion
In a place like Miyapur, the demand for personal loans increases day by day as it is considered the most convenient source of funds, especially in an emergency. You can even apply for a personal loan using Buddy Loan app. It is one of the best third-party aggregators that offer instant loans online for different categories to curb the sudden financial requirements of the borrowers.
Apart from all this, reviewing your credit report once a year is necessary to avoid getting your loan from being rejected. You can also get your credit report instantly using buddy score to know your credit worthiness.
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