How to Get the Best Personal Loan in Delhi

Delhi, being the national capital of India, is amongst the most important cities in the country. It is home to the Central Government of India with all important ministries located here. Apart from being a politically significant city, Delhi is also a crucial business hub. With numerous manufacturing and trading units, incredible markets, robust service sector, world-class hospitals and schools, proximity to Gurugram and Noida, Delhi plays a vital role in the economic progress of India with its world-class infrastructure. Boasting of an excellent infrastructure and fantastic growth opportunities, professionals and businessmen from all over the world come for work in Delhi. 

Residents of Delhi enjoy access to better facilities and infrastructure as compared to other cities in the country. As a result, the cost of living in Delhi is also amongst the highest in the country. Therefore, in order to maintain a certain lifestyle in Delhi, you need to spend more than what you will spend in most other Indian cities. 

Thus, it becomes extremely important to manage your finances wisely in a metro city like Delhi.  Living in such a huge city can sometimes require you to spend huge money on unforeseen expenses, basically more than what you can afford. In such pressing situations, rather than dipping into your hard-earned savings, you can use your credit limit or contact your bank for a Personal Loan. 

Most financial institutions, including leading banks and NBFCs, have multiple branches in Delhi, allowing you to Apply for SBI Personal Loan or HDFC Personal Loan almost effortlessly.

Being unsecured in nature, Personal Loans do not require you to offer any collateral and can be used for any financial requirements of yours. There is no need to inform the lender regarding the usage of the money. Moreover, you need not make a lump-sum payment towards the loan; you can conveniently repay the loan amount through EMIs. With competitive interest rates and extended repayment tenure, Personal Loans offer you an excellent opportunity to handle any financial contingencies that you are facing. 

photo/Gerd Altmann

Why should you avail a Personal Loan in Delhi?

Although conventional wisdom says that you should always save for a rainy day but in the present times, it might not always be the case that you have a significant amount available in your bank account. In such a situation, availing a Personal loan can save the day for you. Here are some of the major reasons that you must consider before availing a Personal Loan in Delhi for your financial requirements

• No need to dip into your savings: Personal Loans allows you to meet your liabilities in an efficient manner without exhausting your savings. Personal Loans such as SBI Personal Loan are disbursed swiftly and allow you the flexibility to take care of the urgent expenses without any worries.

• Consolidate your loans: You can use the money available as a Personal Loan to get rid of your Credit Card debts as well as to consolidate your other loans into one. This allows you to keep track of your loans and other debts easily.

• Lower interest rates: Personal Loans are offered at interest rates which are lower than what is charged by Credit Card companies or by private money lenders. It helps you from falling in a debt trap of vicious interest rates.

• No collateral required: As Personal Loans are unsecured in nature, you need not offer any collateral to the financial institution. Your application is assessed based on your credit score and credit profile. 

• Tax Benefits: If you can offer proper documentation that the Personal Loan was sued for renovation or upgradation of your home, you can claim Income Tax deduction under Sec 24B of the Income Tax Act, 1961.
• Foreclosure: In many cases, borrowers need the money only for a short period as bridge finance only. So, when you have spare funds with you, you can foreclose the Personal Loan without incurring any foreclosure or penal charges. However, you must communicate your intention with the bank and ensure that there is no foreclosure charge or capping for repayment in the agreement.

How to avail the best Personal Loan in Delhi?

With the easy availability of Personal loans in Delhi from multiple lenders, it is possible for you to get confused regarding the best option. Here are some important factors that you should consider while applying for a personal loan so that you can get the best deal. 

• Loan amount: You must ascertain your requirement accurately before applying for a Personal Loan. No matter even if your eligibility is higher, you should apply only for that much amount which you require. Remember that a Personal Loan is a borrowing which comes with an interest cost. It will be a wasteful expense if the money lays idle in your account.

• Interest rate: Interest rate levied by the financial institution against the Personal Loan in Delhi can vary in the range of 11.5 percent to 24 percent per annum. Even a slightly lower interest rate can help you save a lot of money on the repayments. Therefore, you must shop around a little, and try to find the best interest rate available against your credit profile. To get the best deal, you must compare the APR (annual percentage rate) of different financial institutions via an online loans market place for free. 

• Repayment tenure: Repayment tenure of your Personal Loan is directly linked to the EMI that you must pay, i.e., longer the repayment tenure, lower would be the EMI, and higher would be the interest cost. You can easily calculate your EMI through Personal Loan EMI Calculator. Similarly, shorter is the repayment tenure, higher would be EMI amount, and lower would be the interest cost. Therefore, you must opt for the shortest repayment tenure possible as per your financial situation. It can help you save a substantial amount of money on your repayments. 

• Charges levied: Charges levied by the respective financial institution must also be taken into account. Foreclosure charges, processing charges, penalty charges can add up to a substantial amount of money. With little prudence, you can avoid incurring such high charges on loan. 

• Add-on facilities: Some banks offer a free add-on Credit Card with a Personal Loan while others offer some financial incentives on timely repayments. Many lenders offer the facility of Top-Up loans as well. You must factor-in all these facilities before making a final decision.

Personal Loans have emerged as a boon for individuals in desperate need for money. You can also avail the benefits on offer with Personal Loans. Just exercise your due diligence before making a final decision. 

Author: Shadab Karim

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