What’s The Difference Offered Between Metro & Non-Metro Personal Loans?

The major debate regarding the advantages that metro cities provide to you as an individual vs non-metro city is interminable. Over years, many have migrated from non-metro cities to metro cities for a better lifestyle and good job opportunities, better facilities and various other likewise benefits. Also, the needs of both cities are distinct owing to distinct parameters like facilities, infrastructure, social requirements, housing expenses, living expenditures and other such crucial factors. In the case you are looking to avail a 30000 loan or an amount higher than this or a loan without PAN card, you must ensure to know the distinction between metro personal loans vs. non-metro personal loan, then this article is for you.

Metro city 

According to the census commission, any city is called a metro when it contains a population of over 10 lakhs or a million. Cities such as Mumbai, Delhi, Kolkata, and Chennai fall into this category. Over the past few years, a lot more cities have been included owing to the migration activities of the people. Bangalore, Pune, and Hyderabad in specific are rapidly growing in reference to population, job opportunities, facilities, and infrastructure quality.

Non-metro city

Cities with a population below 10 lakhs fall in the category of non-metro.

Top parameters that impact personal loans in non-metro vs metro – 

Infrastructure – 

Usually, there’s a massive difference when it is to infrastructure in the metro and non-metro. In the scenario of the metro, you are likely to get a well-furnished home and modern infrastructure with proper amenities. However, non-metro cities have lesser amenities like proper drainage, road, electricity, and various other basic conveniences.

The home price in the metro is considerably higher than the price of homes in the non-metro. Likewise, there’s a massive difference in rent too. As housing expense is higher in the metro region, you as an individual may require financial help timely to take good care of any gaps in financing.

Also Check: Loan without PAN Card

Transportation – 

There are distinct transportation options in the metro, like suburban trains, autorickshaws, buses, metros, etc. In contrast, non-metro cities come with fewer options when it is to transportation. Other crucial parameters like distance covered and travel fare differ in both scenarios too.

Problems like time management and traffic even impact your decision as an individual to avail a personal loan. In metro cities, you may view buying 4-wheelers and a higher number of bikes than the non-metro crowd owing to the difference in income and the restricted availability of vehicle choice.

Living standards – 

There is a massive distinction in living standards when non-metro and metro cities are concerned. Expenditures linked with transportation, lifestyle, daily running expenses, food choices, basic needs, entertainment verticals, etc., lead to a massive difference in the thorough living cost in non-metro and metro regions.

A higher living standard as well as social pressure to show can even lead to an occasional imbalance in the monthly financial planning as you are an individual. Hence, metro dwellers may be highly prone to avail a personal loan to bridge the massive gap between expenses and income.

Also, the living cost has increased tremendously owing to inflation, making it difficult to cover personal expenditures. With insufficient capital to cover these expenses, raising funds via personal loan has extremely become an ideal solution. Basically, personal loans are a kind of specialised credit option provided by lenders to you as an individual who is looking to raise funds to cover the required expenditures. A loan permits you to enhance capital to make payments of distinct personal expenditures, involving education, marriage, home renovation, vacation, etc. However, the distinct terms might vary depending on the city you are residing in. Hence, it is crucial for you to know what the distinction between non-metro and metro is.

Major key distinctions between metro and non-metro cities – 

Lenders have created their own personal loan options to remain at par with the capital requirements of every loan seeker regardless of the city where the borrower is residing in. Thus, their terms and conditions and loan eligibility parameter make sure the loan option is ideal for non-metro and metro cities. In the case you are looking to place an application for a personal loan through the offline or online modes, here are some of the differences you must be well-versed with.

Monthly income 

A personal loan requires no pledging of valuable collateral or security. Thus, you as a borrower, your monthly income should be sufficient to make payments for the living cost (monthly) and loan repayment. However, the living cost in the metro is higher as compared to non-metro. Hence, lenders need the month-on-month income of you a borrower living in the metro to be much higher as compared to the non-metro. Based on the residential city, the lenders may adjust the minimum monthly income needed for you as a borrower that you must meet to avail the approval for a personal loan.

Application procedure 

Via the offline route, you as a borrower must ensure to approach the branch to fill out the form for loan application. While making use of the online channel, you as a borrower can place an application using a personal computer or mobile. In non-metro locations, lenders tend to invest higher in opening physical branches owing to the internet connectivity problems and ease of placing an application physically. While in the metro, it is simpler to place an application for a loan through online modes due to the quicker internet connectivity, which results in faster approvals too.


Lenders ensure to assess your loan application as well as documents provided physically by you as a borrower in case to make sure all personal information or data submitted are thoroughly accurate. However, when you as a borrower execute the personal loan application through the digital medium, which is the scenario for most metro, lenders tend to approve loan applications quickly as compared to the application submitted via physical channels.

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