There is never-ending discussion concerning the advantages that metro areas have over non-metro areas for people. People have moved from non-metropolitan areas to metro areas over the years in search of improved career prospects, higher living standards, better amenities, and other comparable advantages. Additionally, because of many elements like infrastructure, facilities, social needs, living expenses, housing expenses, and other similar factors, the requirements for both of these cities are different. This article is for you if you’re interested in learning the differences between personal loans in metro areas and non-metro areas.
What are Metro Cities
As per the census commission, a city qualifies as a metro city when it has a population of more than 10 Lakhs or one million. Cities like Delhi, Mumbai, Chennai, and Kolkata fall under this category. Over the last few years, more cities have been added to the list of metro cities majorly due to the migration of people. Pune, Bangalore, and Hyderabad, in particular, are growing rapidly in terms of population, facilities, job opportunities, and infrastructure quality.
What are Non-Metro Cities?
Non-metro cities refer to urban areas that are not classified as major metropolitan cities. Non-metro cities are also known as Tier 2 and Tier 3 cities. These cities typically have smaller populations, less developed infrastructure, and limited economic and cultural amenities compared to metros cities. Examples of some of the non-metro cities are Jaipur, Lucknow, Bhopal, Indore, Nagpur, etc.
Factors that Influence Personal Loans in Metros Vs Non-Metro Cities
Infrastructure
Generally, there is a huge difference when it comes to infrastructure in metro cities and non-metro cities. In the case of metro cities, you are more likely to find well-furnished houses and modern infrastructure with all the amenities. Whereas non-metro cities have fewer amenities, such as proper roads, drainage, electricity, and other basic conveniences. This directly influences the expenses of these cities, especially housing expenses.
The price of a house in a metro city is significantly higher compared to the price of a house in a non-metro city. Similarly, there is a huge difference in rent. Since housing cost (rented or owned) is higher in a metro area, an individual might need financial assistance from time to time to take care of any gaps in funding.
Transportation
There are various transportation options available in metro cities, such as buses, autorickshaws, suburban trains, metros, etc. On the other hand, non-metro cities have few options for transportation. Other factors like travel fare and the distance covered with the transportation also vary in both cases.
Issues like traffic and time management also influence the individual’s decision to take a Personal Loan. In metro cities, you can see people opting for cars and more high-end bikes as compared to non-metro cities due to income differences and the limited availability of choice in vehicles.
Living Standards
There is a huge difference in the living standards of metro and non-metro cities. Expenses related to lifestyle, transportation, daily running cost, basic requirements, food choices, entertainment avenues, etc. result in a huge difference in the overall cost of living in the metro and non-metro areas.
A higher living standard and social pressure to “demonstrate” can create an occasional imbalance in the individual’s monthly financial planning. Hence, a metro dweller might be more prone to availing of a Personal Loan to bridge the gap between income and expenses.
Also Read: What are the Benefits of Using a Business Loan Calculator?
Eligibility Criteria of Personal Loan for Metro Cities and Non-Metro Cities
The eligibility criteria for a Personal Loan slightly differs between metro and non-metro cities. But generally, lenders consider several common criteria to determine an applicant’s eligibility. Here are some typical eligibility criteria of Personal Loans for both metro cities and non-metro cities
Age: Applicants should be between 24 to 57 years old.
Citizenship: Borrowers must be Indian citizen.
Income: The minimum monthly income requirement may be higher for metro cities, given the higher cost of living. Usually, lenders require Rs.30,000 per month income to be eligible for a Personal Loan in metro cities.
Employment: Applicants should have a full-time job with a minimum of work experience of 1 year with at least 1 month’s job stability with the current employer.
Credit Score: Lenders prefer applicants with a good credit score (generally 650 or above). A higher credit score improves the loan approval chances and may lead to attractive interest rates.
Eligibility Criteria for Personal Loans in Non-Metro Cities
The eligibility criteria for Personal Loans in non-metro cities are similar to those in metro cities, but there might be some relaxation in income requirements and credit scores. For example
Lower Minimum Income: The minimum monthly income requirement might be lower for borrowers residing in non-metro cities than those in metro cities.
Flexible Credit Score: Some lenders may be more lenient with credit scores and consider applicants with slightly lower scores (around 600 or above).
How to Apply for a Personal Loan with creditsuccess?
You can apply for a Personal Loan with creditsuccess by following the steps mentioned below
Step 1: Visit the official website of creditsuccess
Step 2: Click on the ‘Personal Loan’ section
Step 3: Click on ‘Apply Now’ under the ‘Personal Loan’ section
Step 4: Upload the required documents and fill out the form
Step 5: After verification of the provided details, your loan will be approved
Bottom Line
Irrespective of the city or town you live in, you must take a loan only when necessary. There are different needs and requirements when it comes to metro and non-metro cities. Owing to creditsuccess online presence, availing of a Personal Loan from creditsuccess is always easy. You can apply for a Personal Loan by visiting our website as mentioned above. It is advisable that you take a loan as per your requirement and financial condition as there are chances that you might fall into a debt trap or overburden yourself with interest and EMIs. Before taking any loan you must always plan your loan and budget or take advice from someone who understands finance such as a financial planner.
