Living in India’s capital, though convenient, can be an expensive affair. Rent for a 1BHK flat in the city’s center is over Rs.15,000 and you may need to spend over Rs.4,000 towards utility bills. With regular expenses eating into your earnings, you may find yourself not having enough for other spends. For example, you may need additional funding to plan your parent’s 50th-anniversary celebrations or renovate your home. A convenient financial solution in such a situation is a personal loan.

When availing this loan, you can ensure a cost-effective and comfortable borrowing experience by making the right loan decisions. Simply follow these 5 tips when applying for a personal loan in Delhi to get started on the right foot.

Save On Interest By Opting For a Shorter Repayment Tenor

When checking your EMIs you may be tempted to reduce the amount by opting for a longer tenor. While this may help you make smaller monthly payments, overall, you will pay a higher amount of interest. Thus, use the calculator to determine what is the shortest timeframe within which you can repay the amount comfortably for maximum savings.

Secure Low Interest Rate by Displaying a Strong Financial Profile

It’s important to note that your lender may not offer the same rate of interest to every borrower. You can secure a lower rate by assuring your lender of timely repayment. When repayment is a sure thing, the lender is likely to be more lenient.

Though personal loan eligibility terms require you to possess a monthly income of around Rs.35,000 to get the loan, an enhanced salary can make your loan more affordable. In fact, high monthly income coupled with a low debt-to-income ratio and a credit score of at least 750 will help you fetch a competitive personal loan interest rate.

Determine Your Loan Amount in Relation to Your Debt-to-Income Ratio

When applying for a loan it’s important for you to not borrow more than you can handle. This means that your principal should be enough to cover your needs, but also be an amount that you can comfortably repay. To ascertain this, it’s best to use a loan calculator. On the whole, work towards keeping your debt-to-income ratio around 30% to 40% to ensure that your finances don’t suffer undue stress.

Make Your Loan Affordable by Utilising Flexible Terms

Some lenders like Bajaj Finserv go above and beyond to make repayment convenient. One way in which it does this is through the flexible loan facility. To illustrate, when you opt for Bajaj Finserv Personal Loan in Delhi, you can lower EMIs by up to 45% by making use of this feature. It reduces your instalments by letting you pay interest-only EMIs through the tenor and the principal at the end of the term.

Further, you get the freedom to borrow from your sanction on the go, without requiring making fresh application each time you need money. Best of all, you only incur interest only on the net amount that you use and not on the entire sanction.

Get an Instant Personal Loan by Applying Through a Pre-Approved Offer

You need not stand in long queues or wait for hours to submit your personal loan application. You can do so quickly via your lender’s website. In fact, you can expedite the process further and get access to instant personal loan financing when you check your pre-approved personal loan offer before you apply. By sharing a few basic details you get access to customised loan deals of up to Rs.25 lakh and instant approval as well.

By adhering to these five tips, you can enjoy affordable personal financing in Delhi.