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Payday Loan in Mumbai
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Payday Loan in Mumbai

Located on the Konkan coast on the west coast of India, Mumbai, also known as Bombay, is Maharashtra’s capital. From beaches to Bollywood, the ‘City of Dreams’ or the ‘Entertainment Capital of India’ lives up to its name and continues to enchant tourists with places like Marine Drive, Juhu Beach, Bandra-Worli Sea Link, Gateway of India, and Chhatrapati Shivaji Terminus.

Apart from the major entertainment industry, Mumbai serves as the financial and commercial capital of India. The ever-increasing opportunities of Mumbai attract a lot of migrants from different parts of the country. A recent survey marks Mumbai as the most expensive city of India in terms of cost of living. No wonder why people here often resort to instant financial solutions like a payday loan in Mumbai. When faced with an urgent financial crisis in the middle or end of the month and salary is due just a few days, payday loans work like charms for Mumbaikars.

Overview Of Payday Loan In Mumbai

Also known as an instant loan or early salary loan, it is a short-term, unsecured borrowing facility. Typically, these instant cash loans are provided to salaried individuals and repaid as soon as the borrower receives the next paycheque. 

The amount of loan sanctioned for short-term loans in Mumbai usually depends on how much an individual earns. Thus, they have to provide a paystub while applying for the loan.

Currently, financiers in India that offer a payday loan mainly through dedicated mobile apps. Individuals can also obtain the loan by visiting the nearest branch of the lending institution.

However, before availing a payday loan in Mumbai, individuals must possess a clear understanding of the features of this type of instant funding.

  • Collateral-free Loans – Payday loans are unsecured funding, meaning individuals can avail the loan without pledging any collateral.
  • Credit Score Is Not Required - While offering a payday loan, lending institutions do not inquire about the applicant’s credit score or credit profile. Therefore, individuals can avail a payday loan with bad credit.
  • Minimal Documentation - Unlike traditional loan options, payday loans do not require extensive documentation. However, lending institutions verify some necessary financial, employment, and personal documents, including salary slips, bank statement of the previous three months, and identity proof and address proof.
  • Short Tenure - Payday loans feature short tenure. Individuals need to repay the loan amount from within 15-30 days from the specific day of a payday loan application.
  • No End-use Restriction - Payday loans do not impose any end-use restriction on borrowers. Thus, individuals can cover their planned and unplanned expenses by availing a cash advance loan.
  • Faster Approval & Processing - Payday loan guarantees instant financing. Once the lending institution verifies the employment and other related documents, individuals can get access to the instant cash loan in 1 hour. Subsequently, individuals can avail an emergency same day loan to cover urgent financial expenses.
  • Eligibility - The eligibility factors of a payday loan in Mumbai vary with each lending institution. However, the basic parameters considered include the applicant’s age, whether the applicant has full-time employment and an active bank account.

Pitfalls Of Payday Loan In Mumbai

Payday loans efficiently fill the gap of cash flow from one paycheque to the next. However, this instant funding is not wholly void of setbacks. These include –

  • Excessive Interest Rate: The interest rate charged on these quick financing options come at a high annual percentage rate (APR). Since a payday loan in Mumbai is unsecured, an individual might end up paying high interest rate, making this loan an expensive one. Starting from 36%, the interest rate can go up to 360% per annum. For example, if an individual takes a loan for Rs. 15000 for 15 days, he/she has to repay Rs. 16,125 on the 16th In short, that individual has to pay 0.5% a day or 180% annually.
  • Smaller Loan Amount: The loan amount offered through this financing option generally ranges between Rs. 10k to Rs. 1 lakh. Therefore, individuals cannot satisfy their urgent financial crisis if they need a higher loan amount.
  • Not For All Employment Type: Applicants of payday loans must have a regular income source with full-time employment. Since these are provided to mostly salaried individuals, self-employed persons, part-timers face difficulties while availing emergency cash immediately offered through this means.

If Mumbai individuals want to avoid the cons of payday loans but still wish to enjoy the pros of this instant funding facility, they can opt for the secured gold loan.

Gold Loan – A Wise Alternative Financing Option

Since gold loans are secured, they come with multitudinous beneficial features that make these financing an affordable and consumer-friendly borrowing option.

The lesser paperwork involved with gold loans makes the processing faster, similar to cash loans online. Most importantly, the secured nature ensures a low interest rate, which reduces the cost of borrowing. Like payday loans, individuals can utilise the amount as per requirement. But unlike a payday loan, the cost of borrowing is less in gold loans.

Hence, individuals can end their search for ‘Payday loan providers near me’ and opt for a gold loan instead. Like instant doorstep service and highest per gram rate, individuals can go with Rupeek’s gold loan to enjoy further benefits.

Reasons To Choose Rupeek’s Financial Services

Rupeek offers 100% transparent gold loan process and hassle-free repayment schemes, ensuring greater convenience and enhanced affordability. Prospective borrowers can enjoy the following features from Rupeek.

  • Doorstep Loan In Less Than An Hour

With Rupeek, individuals can enjoy instant doorstep gold loan services. After online application and subsequent scheduling, the loan manager reaches to the client-specific location within 30 minutes. After verifying the KYC documents and completing the gold valuation process, individuals can access the loan amount at the comfort of their home within just 45 - 60 minutes.

  • Highest LTV & Access To Bigger Amount

Unlike a payday loan in Mumbai that provides small to mid-ticket funding, Rupeek’s gold loan services guarantee loan amount ranging from Rs. 15000 – Rs. 1.5 crores. With such a diverse range, individuals can leverage our services to meet a variety of financial requirements.

Also, we offer maximum LTV up to 80% against pledged gold. Mumbaikars can even use the consumer-friendly gold loan calculator to assess the loan amount beforehand and plan their expenditure accordingly.

  • Reduced Interest Rate

One of the most significant differences between a payday loan and gold loan is the cost of borrowing, which is primarily determined by the rate of interest. At Rupeek, individuals can avail gold loan at a starting rate of 0.79% per month, unlike the high interest rate of 0.5% - 2% per day. Thus, individuals can repay the loan amount efficiently. 

  • Convenient Repayment Options

Unlike a payday loan in Mumbai, which demands to be repaid in full within 15 – 30 days, clients of Rupeek enjoy the advantage of repaying as per their economic suitability. Borrowers can opt for repayment in EMIs or per convenience anytime during 6 months, which can be extended to 1 year.

The benefits of availing a gold loan with Rupeek do not end here. Individuals can also get an overdraft loan against gold, Rupeek Quick.

About Gold Overdraft Facility

Forget worries of applying for a fresh payday loan in Mumbai every time you face a cash crunch. As our existing customer, you can secure a credit line against gold. Withdraw cash as per your requirement from the sanctioned limit anytime. Also, save substantially on interest as it’s charged only on the funds you use.

To ensure instant funding in Mumbai, we have stretched our financial network to all the significant locations.

Rupeek’s Availability In Mumbai

Get doorstep loan up to Rs. 1.5 crores in the following locations in Mumbai.

  • Santacruz
  • Trombay
  • Dharavi
  • Nagpada
  • Nariman
  • Bandra
  • Borivali
  • Chembur
  • Lala Lajpat rai marg
  • Mumbai central
  • Andheri
  • Dadar
  • Malabar hill Point
  • Shivaji park
  • Churchgate
  • Malad

Why service the high interest rate of a payday loan in Mumbai when you can save with interest rates as low as 0.79% per month with us!

To unlock all the benefits of Rupeek, click apply now!

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Benefits of Gold Loan over Payday Loan.
  • <1 lakh
  • 2 lakh
  • 3 lakh
  • 5 lakh
  • 10 lakh
  • 20 lakh
Comparision Parameters Payday Loan Gold Loan
Interest Rate 2.39% 0.79%
Monthly Interest Amount
Eligibility & Documentation More Documents Needed Only KYC Needed
Processing Time & Disbursement 2 days to 1 week Within a day
Required Gold Weight -
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Frequently asked questions

  1. Do I need active savings account to apply for a payday loan in Mumbai?

Yes, you need to have active savings account if you want to secure a payday loan. The loan amount will be transferred to that account.

  1. Do payday loans impact credit score?

No, payday loans do not impact your credit score. Unlike traditional loans, these do not form a part of your credit mix.

  1. Why payday loans are called ‘No Credit Check Loans’?

Payday loans are often called no credit check loans because individuals need not have a credit score or even credit history to be eligible for this financing option.

  1. Do I need to present a guarantor to get a payday loan?

You do not need to present a guarantor while applying for a payday loan.

  1. Why are payday loans called predatory lending?

Predatory lending levies unfair and deceptive loan term on borrowers. Payday loans are often considered predatory loans because they come with a high interest rate and hidden provisions that demand borrowers to pay additional fees. 

  1. What factors does one need to keep in mind for a gold loan?

While applying for a gold loan, one needs to consider the Loan-to-Value ratio, interest rate, additional fees, repayment schemes, and safety protocols for the pledged gold.

  1. Does Rupeek allow part release?

Yes, Rupeek allows part release. Willing gold loan clients must note that the individual jewels being part released must weigh approximately 10 grams or above.

  1. Can I get a gold loan against gold coins?

No, you cannot get a gold loan against gold coins. Rupeek’s partner bank accepts gold jewellery of 18 carats or above.

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