Best Personal Loan in Mumbai
The most frequently resorted to form of borrowing prevalent in the employed class is personal loans. Personal loans in Mumbai are primarily given on the basis of the type of employer. The employers, for the purpose of personal loans, are categorized indicating the preference of the lenders in giving the loans. If the employer is a listed company and is a leading company, the process of getting personal loan in Mumbai is simpler and quicker.
As the employment with reputed employer indicates permanency of the job and thus assured ability of the borrower to service the loan.Personal loans are given normally for shorter duration than other loans like home loans. Since the personal loans are given without securing any security and thus are treated as risky by the lender and therefore the rate of interest is normally higher.
Since Mumbai is the financial capital of India, most of the listed companies are situated here, thus personal loan market in Mumbai is very huge. In Mumbai the personal loans market is dominated by Private Banks. In addition to private banks including foreign bank, a host of Non Banking Finance Companies are actively engaged in the business of providing personal loans in Mumbai.
The personal loan as a product is very useful for the person who is not able to provide any tangible security like gold, shares, and units of Mutual Funds etc but is working in a reputed company.
Moreover the personal loan product is hassle-free as the formality required to be complied with are less than for other mortgage based loans.
The eligibility to personal loan is decided on the basis of the monthly net take home salary. Normally the lenders take around 40 to 45% of the net salary as available for servicing any loan. Your existing running loan therefore will have a bearing on the quantum of loan which you are able to get.
Personal loan market is not as mature in small places as it is in Mumbai. Since the lender gets higher rate of return and the borrower is working in a reputed listed company the risk and reward ratio are working in favour of the lender as the probability of the borrower defaulting is lower in such cases.
The question whether you will get a personal loan or no will depend significantly on your past credit records. In case you do not have a good track record of servicing your loans or credit cards, the lender is not likely to give you the personal loans as this is the riskiest credit facility extended by the lender.
Personal loan is resorted to by persons even for the purpose of meeting up the margin requirement while purchasing a property. However, here also the overall eligibility will not exceed the standard 40-45% of your net take home loan as your overall EMI amount.
The personal loan market in Mumbai peaks during the boom period and takes back seat during the period of general recession as during the recession the risk of people retrenched is higher and thus probability of the default.