There is no doubting that personal loans can bail you out of a financial crisis. Additionally, they are also easy to get. But before applying for a personal loan, take a moment to think things through carefully. You need to be aware of the many requirements and eligibility norms that come with these loans. Did you know that your city of residence plays a role when you apply for a personal loan? Yes, that is right. The eligibility criteria for borrowers can differ based on whether they live in metro or non-metro cities.
Personal Loan in Metros and Non-metros
There are various factors that make living in a metro and a non-metro different. Let us take a closer look.
- Housing Expenses: Life in a metro is tough. On an average, a two-bedroom apartment rents out for Rs. 30,000 in Mumbai. The cost of buying a three-bedroom house is close to Rs. 1 crore in Chennai. Meanwhile, the rent and real estate prices are comparatively lower in a smaller city like Agra, where you can rent a three-bedroom home for Rs 10,000.
- Living Expenses: The average salary of full-time domestic help is Rs. 15,000 in Bangalore. A complete meal for two people in a high-end restaurant is rarely lower than Rs. 2,000 in Delhi. A higher standard of living also means that it is difficult to arrange for funds for emergencies. In comparison, the expenses in Tier 2 cities as are not as high as those in metro cities. Lower living expenses can also dictate how expensive a personal loan can be or can influence certain criteria.
- Social Needs: There are other factors that affect the lives of people in Tier 1 and Tier 2 cities. For instance, when it comes to transportation, more people use private cars for travel in cities like Kolkata and Delhi. Whereas, a larger percentage of population in cities such as Nasik and Mangalore ride around on two-wheelers.
- Eligibility Criteria: The expenses of living in a metro are higher, which also means that salaries are higher in comparison as well. All these factors result in different eligibility criteria for personal loans in metros and non-metros. For instance, your monthly income would need to be at least Rs. 15,000 to get a personal loan in a metro, as opposed to a non-metro city, where the monthly salary should be at least Rs. 10,000.
Social Aspects of a Personal Loan
People in Tier 2 cities have now also started investing in consumer durables. An increase of malls and other infrastructure in these areas has encouraged people to spend more. Additionally, with more people being offered internet connectivity at lower rates, which has made it easy to avail personal loans from online providers. Personal loan lenders are offering loans to people in these cities so that they are at par with their metro counterparts.
The Bottom Line
Personal loans are available to both, metro and the non-metro customers. It does not matter why you need the money; whether it is for a sudden expense like a medical emergency or a well-planned educational course. Whatever the case, you can easily apply and get a personal loan, regardless of the type of city you live in. Explore the loan options available to you. An ideal way to do so will be to research options online. Before applying for a particular loan, ensure it meets your requirements so that it fulfils your needs.