Chandigarh serves as the joint capital of two neighbouring states of Punjab and Haryana. It is a city, district and union territory in India known for its rich architecture and culture. This place is also known as “The City Beautiful” as it is the only city that has monumental architecture and public gardens filled with 800 types of roses. This city was named after a temple, “Chandi Mandir”. Home to buzzing markets and customers along with pleasant weather, Chandigarh is thronged by tourists from various parts of India and the rest of the world. The city has continued to boom since 2000 with excellent property rates that are believed to be more expensive than New York. With such a rich heritage, this place is a dream to live.
However, the cost of living can be a burden as prices are high. It will leave very little for your savings, making it difficult to handle a sudden financial crisis. In such situations, the right option is to take a personal loan. It helps cover sudden emergencies such as medical, travel costs, business expansion, wedding costs, home renovation, etc. Moreover, you can easily apply for a personal loan using Buddy Loan and get your loan amount within a few hours. Hence, if you want to know more about personal loans, read this article further, as it will guide you to understand what they are, the eligibility criteria, the documents required and how you can apply for a personal loan in Chandigarh.
What is a Personal Loan?
Personal loans are nothing but unsecured loans that various banks and lending institutions offer to cover any financial requirements. When you apply for this loan, you need not submit any collateral. However, lenders first check your credit score to know if you can repay the loan on time before approving your loan application. Hence, it is important to have a high credit rating above 750 to get instant loan approval. You can apply for a personal loan for many requirements such as:
- Sudden medical expenses such as medical treatment, hospital bills, accidents, surgeries, etc
- Travelling costs for a vacation to your dream destination
- Expanding or growing your business
- Renovating or remodelling your home
- Wedding expenses include venue selection, catering, interior decoration, and attire.
- Purchasing vehicles like cars, bikes, etc
- Purchasing electronic gadgets like phones, smart TV, washing machine, etc.
Benefits And Features Of A Personal Loan In Chandigarh
Personal loans are the most convenient source of instant funds. And here are a few reasons why:
- No Collateral: The first and foremost benefit of applying for a personal loan is that you don’t have to pledge any assets to get this loan as it is unsecured.
- Multi-Purposes Loan: You can avail of a personal loan for any reason such as medical, travel, wedding, business, etc.
- Minimum Documents: When applying for this loan, you must submit only minimum documents for your KTC and income verification, such as Aadhar Card, PAN Card, Passport, Voter ID, Income Tax Returns, etc.
- Digital Process: The process of applying for this loan is online and paperless. You don’t have to visit your bank to get your loan.
- Instant Loan Disbursal: With the digital process, the verification is quick; hence, your loan amount will be disbursed within 24 to 48 hours.
- Flexible Repayment Tenure: Once you get your loan amount, you can repay through monthly EMIs with tenure starting from 6 months to 5 years. Hence, you can choose your repayment tenure according to your convenience.
Now, let us look at the required eligibility criteria and documents for a personal loan in Chandigarh.
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 | Bank statement for the past three months
Salary Slips of three months |
How To Apply For A Personal Loan In Chandigarh?
Here are the steps to apply for a personal loan in Chandigarh.
- Visit the bank’s official website or download the application you wish to apply for a loan.
- Check if you meet your eligibility criteria by filling in the desired loan amount, tenure, etc.
- Once you meet the eligibility, apply and fill the application with personal and professional details such as email address, employment type, monthly salary, mobile number, etc. and submit the form.
- The verification process takes place for a few hours. Therefore, your application will be rejected during cross-verification if your information does not match the documents provided.
- Once the verification is completed, your loan amount will be instantly disbursed to your bank account within 24 to 48 hours.
Also Read: How to Get a Personal Loan: A Complete Guide on Eligibility and Documents
Things To Remember Before Applying For A Personal Loan
Before you apply for a personal loan, you must remember various factors to have a smooth process when getting the loan.
Eligibility Criteria:
The first and foremost factor you must consider is to check if you meet the required eligibility criteria mentioned by your lending institution. Once you meet the criteria, you can easily apply for a loan.
Credit Score:
It is the most important factor that determines your creditworthiness. Lenders check your credit score to evaluate your ability to repay the loan amount on time. Hence, they expect you to have a score above 750 to qualify for the loan. And also, you can get instant personal loan at comparatively lower interest rates if you have a high credit rating. Now, if you want to know your creditworthiness, you can check your score using Buddy Score, get the credit report instantly, and keep track of your credibility.
Documents:
Usually, lenders ask only minimum documents for a personal loan for KYC verification. Hence, they expect you to submit documents with accurate information. Sometimes even if you do not have documents such as your salary slip, you can still get a loan by submitting your Form 16 as an alternate proof of income. Moreover, if you are an existing bank customer, the lender will be ready to offer the loan even without documents as they already know your financial status and trust you.
Debt-To-Income Ratio:
Lenders check your Debt-To-Income ratio to know how well you can manage your debts with your current income. It will also give them an idea of your ability to repay the loan without defaulting. Therefore, you must ensure that you maintain your Debt-To-Income ratio less than or equal to 50%.
EMI:
Before applying for a loan, plan and budget your required loan amount. You can decide this by calculating the EMI you will be paying monthly and choosing the loan amount and tenure accordingly. Doing so will help you understand the actual expenses on your total loan amount.
Avoid These Mistakes When Applying For A Personal Loan
Sometimes you might make mistakes when applying for a loan without knowing it. Hence here are a few things that you should avoid doing.
- Loan Agreement: Do not sign the loan agreement form without reading the “Terms And Conditions”. Because if you sign without reading it carefully, you might unnecessarily get into legal disputes for which you might have to pay the penalty.
- Loan Amount: Plan your loan amount according to your budget and calculate the EMI before applying for the loan. By doing so, you can avoid taking loan amounts more than required and becoming a debt burden.
- Hard Inquiry: Avoid applying for loans at multiple banks or lending institutions simultaneously. The reason is that a hard inquiry is generated and reflected in your credit report each time a lender checks your credit score for creditworthiness. As a result, it will ultimately affect your credit score negatively.
- Loan Purpose: You must be clear about the purpose of taking a loan amount. If you are not clear about why you are taking a loan, you might take more than your actual budget and ultimately have a burden in repaying your loan on time.
Also Read: How Personal Loans in Amritsar Can Help You Get Ahead Financially
Conclusion
In a place like Chandigarh, financial crises can be difficult to handle, especially when you are short of cash. And it is not easy to ask your friends or relatives at that time for instant funds because the amount required may be high. In such a hectic situation, getting a personal loan is the best and safest option. You need a good credit score, qualify by simple eligibility criteria, and submit only minimum documents. Personal loans are convenient because you can get the loan amount within a few hours. Moreover, if you want to get personal loan at low-interest rates, you can choose to apply for one using Buddy Loan and get attractive offers. It is one of India’s largest loan aggregators that help you get loans from top lenders safely.
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Frequently Asked Questions
Q. How can I get my loan approved faster?
A. You can get your loan instantly approved if you have a high credit score and submit your documents with accurate information.
Q. Is there any minimum salary required to apply for a personal loan?
A. Yes, the minimum salary required is INR 21,000 per month to qualify for this loan.
Q. My credit score is bad. How can I improve it?
A. You can improve your credit score by making payments on time, repaying all your outstanding debts as soon as possible and reviewing your credit report every year to identify and rectify potential errors.
Q. Are Personal Loan Apps safe?
A. Yes, personal loan apps are safe. However, you need to verify if the lender is legit before applying using the app.
