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Why Personal Loans are a Smart Choice for Mumbai Millennials?

According to a 2020 CRIF High Mark report*, young borrowers in the age group of 18 to 30 years drive the demand for Personal Loans, and their share in the Personal Loan market has considerably increased in the last few years.

Why Personal Loans are a Smart Choice for Mumbai Millennials?
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Mumbai is the financial capital of India, where people from different parts of the country come to realise their dreams. Besides, it is a major GDP contributor to the Indian economy, with high living standards and tremendous job and business opportunities. Millennials in Mumbai have changing lifestyles and spending habits to lead a tension-free and smooth life. According to a 2020 CRIF High Mark report*, young borrowers in the age group of 18 to 30 years drive the demand for Personal Loans, and their share in the Personal Loan market has considerably increased in the last few years.

Considering the high demand for Personal Loans in Mumbai, several lending institutions make this funding option available to Mumbaikars to help them cover various planned and unplanned expenses. Let’s explore the major reasons Personal Loans are a smart choice for Mumbai millennials.


Features That Make Personal Loans a Preferred Funding Option

No Collateral Requirement: Personal Loans are collateral-free loans. Applicants do not need to provide any assets as collateral for securing these loans. Their unsecured nature makes them easily accessible to everyone with a good credit history and regular income source.

Attractive Interest Rates: Most NBFCs offer competitive Personal Loan interest rates to let borrowers enjoy affordable EMIs. Generally, these loans have fixed rates, which means that once the borrower opts for a loan tenure, their EMIs remain the same throughout the loan tenure. Therefore, borrowers in Mumbai do not need to worry about changing EMI amounts.

Hassle-Free Documentation: One of the most significant reasons for the popularity of Personal Loans is their hassle-free documentation. Lending institutions offering Personal Loans online support 100% digital documentation with no paperwork involved at all. Applicants can upload the necessary documents onto the NBFC’s website during the online application process.

The only documents they must provide include their address, identity, and income proof. Some technologically-advanced NBFCs do not demand these documents either, as they have advanced procedures to verify the KYC details online.

Flexible Repayment Terms: One attractive feature that makes Personal Loans a lucrative funding option in Mumbai is its flexible repayment schedule. The loan term starts from 12 months and goes up to 48 months. Therefore, borrowers can choose a repayment plan suitable to their needs and finances. A longer-term means smaller EMIs and vice versa. So, aspiring debtors can use a Personal Loan EMI calculator to choose a term that lets them optimise their monthly outgo as per their repayment capacity.

Instant Approval and Quick Disbursal: Traditional lending institutions take 1-2 weeks to disburse Personal Loans. On the other hand, technologically-advanced NBFCs supporting 100% digital loan procedures verify details within seconds and approve a Personal Loan in Mumbai almost instantly. Once approved, the NBFC sends a loan offer to the applicant with the loan amount, interest rate, repayment term, and other loan details.

Once the applicant accepts the loan offer and signs the loan agreement, they disburse the loan amount directly into their bank account in no time. Thus, Personal Loans from NBFCs are the best funding product for covering urgent cash requirements in the city.

Versatility: Once the borrower gets loan approval and receives the loan amount, they are free to use the funds for any planned or urgent purpose. Personal Loans are highly versatile with no end-use restrictions and limitations. That is the most beneficial aspect of taking out a Personal Loan.

These days, Mumbai millennials borrow Personal Loans for various purposes to make their life better or reach their dream goals, such as a grand wedding, foreign vacation, study abroad programme, home improvement, or medical emergency. Some youngsters also borrow these loans to purchase expensive gadgets or pay off other high-interest debts. So, the versatile nature of Personal Loans makes them the best funding options among young Mumbaikars.

An Easy Opportunity to Build a Credit Score: Collateral-free loans with affordable Personal Loan interest rates are an excellent way to build a credit score. Young borrowers with limited income can obtain them at reasonable rates and select a loan term according to their repayment capacities. As they pay EMIs on time, they can see their credit score improving. However, remember to use a Personal Loan EMI calculator to calculate the EMIs and pay them timely, as missing them may negatively impact the score.

Tax Benefits: Depending on how the borrower uses the loan funds, they can claim tax exemptions on Personal Loans. For instance, if they use the loan amount for home construction or renovation, they can claim a tax deduction on the interest paid under Section 24B. However, various use cases depend on additional terms and conditions. Borrowers must know these rules and submit the relevant documentation to enjoy Personal Loan tax benefits.


Common Reasons Why Mumbaikars Use Personal Loans?

Mumbai millennials use Personal Loans for various reasons, including the following:

Personal Loan for a wedding to say their vows

Personal Loan for medical emergencies to pay off their medical bills

Personal Loan for education to pay for a study abroad program

Personal Loan for travel to satisfy their wanderlust

Personal Loan for home renovation to decorate the house in their style

Personal Loan for debt consolidation to pay off multiple debts


Choosing the Right Personal Loan Provider in Mumbai

Millennials prefer NBFCs that support 100% digital loan procedures. They want to apply for a loan right from their smartphones rather than taking off from work and visiting the NBFC’s office. However, ensure steering clear of non-registered and unregulated lending entities that might misuse the applicant’s data or scam them. Apart from exorbitant fees and rates, the hassle of taking loans from such entities is a major stress factor that youngsters want to avoid.
Instead, they usually opt for trustable lending partners offering Personal Loans with transparent pricing and favourable terms and conditions. Taking out a Personal Loan from an established institution ensures security and timely disbursal to cover the intended expense without hassle.

With such convenience and ease at their fingertips, Mumbai millennials do not worry about their immediate funding needs. They can apply for a Personal Loan in Mumbai from the comfort of their home and get the required funding when they need it the most.

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