Personal Loans In Metro Cities vs Non-Metro Cities
Do you know that personal loan eligibility depends on the city you live in? Read to know the differences in taking loan in metro vs non-metro cities here!
The cost of living has been rising due to inflation, making it tough to cover personal expenses. With inadequate capital to cover such costs, raising funds through a personal loan has become ideal.Personal loans are specialised credit products offered by lenders to individuals who want to raise funds to cover necessary expenses. A loan allows you to raise immediate capital to pay for various personal expenses, including marriage, education, vacation, home renovation, etc.
However, the terms and conditions may differ based on the city of residence. Hence, it is essential to know the differences between the loans offered to residents of metro and non-metro cities.
Key Differences Between Personal Loans In Metro Cities Vs. Non-Metro CitiesLenders have designed their personal loan products to be at par with the capital needs of every borrower, irrespective of the city of residence. Thus, their loan eligibility criteria and other terms and conditions ensure the loan product is ideal for metro and non-metro cities.
If you are looking to apply for personal loans online or offline, here are the key differences between personal loans in metro and non-metro cities.
1. Monthly IncomePersonal loans do not require pledging a valuable asset as collateral. Thus, the borrower’s monthly income must be adequate to pay for the monthly cost of living and the loan repayment. However, the cost of living in metro cities is higher than in non-metro cities. Hence, the lenders require that the monthly income of the borrowers residing in metro cities be higher than those in non-metro cities.
Depending on the city of residence, the lenders adjust the minimum monthly income requirement for borrowers to fulfil to get their personal loans approved.
2. Application ProcessThrough the offline route, borrowers must visit the branch to fill out the loan application form. While using the online channel, borrowers can apply using a mobile or a PC. In non-metro cities, lenders invest more in opening physical branches due to internet connectivity issues and ease of physically applying. While in metro cities, it’s easier to apply for a loan via online channels owing to faster internet connectivity, resulting in quicker approvals.
3. ApprovalLenders have to review the loan application and documents submitted physically by the borrowers in the cases to ensure the personal data submitted is accurate. However, when borrowers execute personal loan applications digitally, which is the case in most metro cities, lenders approve the loan application faster than the application submitted through physical channels.
4. Loan AmountMost lenders have a cap on the maximum amount they can offer through personal loans online or offline. Most lenders provide up to Rs 5 lakh as the personal loan amount. However, the offer amount varies by the city of residence and how much the borrower may need to cover the average expenses incurred.
For example, lenders may offer lower than Rs 5 lakh to residents of a non-metro city as the cost of living is lower than in metro cities. On the other hand, lenders may offer a loan amount closer to or equal to Rs 5 lakh as the need for capital is higher in metro cities based on the higher cost of living.
Eligibility For Taking A Loan For Personal ExpensesThe eligibility criteria set by the lenders are almost the same, with minor changes, especially to the minimum monthly income. Here is the eligibility criterion to apply for personal loans online:
• Age:The age of the applicant should be between 21 years-65 years.
• Employment:The applicant should be a salaried employee or a self-employed individual with a regular source of income.
• CIBIL Score:The applicant should have a CIBIL or credit score of 750 or higher.
• Monthly Salary:The monthly salary or income of the applicant must start from Rs 22,000, depending on the city of residence. For metro cities, it may go up to Rs 25,000 per month.
Avail Of An Ideal Personal Loan From IIFL FinanceIIFL Finance provides comprehensive and customised personal loans to fulfil your capital requirement. You can also use the personal loan calculator to determine your repayment obligations. The personal loan offers instant funds up to Rs 5 lakh with a quick disbursal process. You can apply for the loan online or offline by visiting IIFL Finance nearest branch and verifying your KYC details.
Q.1: What is the interest rate on IIFL Finance personal loan?
Ans: The interest rate on IIFL Finance personal loan starts at 11.75%.
Q.2: What are the minimum and maximum loan tenure for IIFL Finance personal loan?
Ans: The minimum loan tenure is 03 months, and the maximum is 42 months for IIFL Finance personal loan.
Q.3: Do I need collateral for a personal loan from IIFL Finance?
Ans: No, you do not need to pledge any asset as collateral to take a personal loan from IIFL Finance.