July 25, 2024

Personal Loan in Chennai—Interest Rates, Eligibility, Mandatory Documents

Chennai has always been an important city in India, attracting people from all walks of life. A major administrative centre and cultural hub, Chennai is home to several businesses and service-related opportunities. This boosts the demand for personal loans in Chennai. If you too are looking for a personal loan in Chennai, then consider applying for one using an instant loan app instead of approaching traditional financial and lending institutions that are known to be slow and laden with tiresome regulatory practices; in fact, by the time you secure a loan from a traditional lender, your need for funds may have passed with unsatisfactory results.

Instant cash loan apps provide the perfect alternative

The advancement of smartphones and the introduction of digital identity verification technologies have made it possible for people looking to get loans to benefit from the emergence of new-age fintech companies. If you are also looking for a personal loan, these apps will be able to get you very good deals with very attractive interest rates, simple application procedures, and a fast approval process. 

Interest rates with the instant cash loan app

One key advantage of app-based loans is that interest rates will be among the most attractive. You can get interest rates as low as 2.08% per month. This makes it much lower than the interest rates of most traditional lenders. The app-based lenders have very low business cost overheads because of simplified digital processes that require less staff and lesser operational costs. Remember, the interest rates are not fixed and can vary from customer to customer. Also, because of prevailing market conditions, the interest rates may be defined by the regulators, if any.

Eligibility for an app-based loan

One big advantage of the instant cash loan app is that they have wide eligibility criteria for who can borrow money from the lenders. The key factor is to reach as many potential borrowers as possible and at the same time, to provide easy access to credit for people who need it. Let us look at the criteria for self-employed people:

  • The applicant should be aged between 21 years and 58 years. 
  • The applicant should be earning a minimum of Rs 15,000 per month. 
  • The applicant should be able to present his/her bank account statement for the last six months with the maximum number of transactions.
  • The applicant should hold a valid PAN number.

Now, let us look at the eligibility criteria for salaried individuals. These can be both first-time borrowers and repeat borrowers. 

  • The applicant should be aged between 21 years and 58 years. 
  • The applicant should be earning a minimum of Rs 15,000 per month. 
  • The applicant should be able to present his/her salary account bank statement for the last six months.
  • The applicant should hold a valid PAN number.

Mandatory documentation for app-based loans

Since most KYC systems have gone digital in the last few years, one big advantage of the instant cash loan app is that the level of documentation required has become very simple. Let us look at the mandatory documents that you will need to get a loan from a fintech lender. Keep in mind that there is no need for a physical document or printed copy of any of these documents to be submitted for loan application. The entire process can be done on a smartphone app, so photos/scans of documents shared through the app are generally considered acceptable.

  • Aadhaar Card is the primary identity proof used by most apps for confirming the identity of the borrower. Since this is a robust system that has been designed from the ground up to be integrated with digital systems, Aadhaar based online KYC is done for the loan application process. 
  • Since not everyone may yet have an Aadhaar Card, the apps also allow applicants to use a Smart Card Driving Licence as an alternative option for identity proof document.
  • PAN number is the basic financial and taxation tracking system that is used in India, so a valid PAN number/PAN Card is a mandatory document for applying to get a loan from an app. 
  • In addition to this, the applicant must submit a six months’ bank statement to confirm their income and financial health. Further details of the bank may be needed to confirm the bank account in which the loan amount is to be sent and to set up repayment auto-debit standing instructions.

Gone are the days when you had to queue up in front of the office of lenders or financial institutions in the peak humid Chennai weather. Now, you can get a loan instantly and from the comfort of your home or office in a matter of seconds and without having to worry about unnecessary bureaucratic paperwork and the resultant delays.

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