Human wants are insatiable and this tends to drive the desire for money in order to satisfy these needs whether they are pressing or not. This is why loans are made available on various scales to cater to the needs of borrowers. One of such loan provisions is the Personal Loan which is an unsecured loan provided to salary earners and self-employed individuals. Personal Loans meet urgent and pressing needs without the need of security or collateral. It is, therefore, easily dispensed to borrowers without stress.
Everyone wants to buy something, which they cannot afford; It may be to buy a product, like buying the new iPhone. A person may also avail a Personal Loan for a service like getting his daughter married.
Choosing the right lender while applying for a Personal Loan plays an important role during the repayment. Some lenders may offer less EMI amount but more installments. Some lenders may offer more EMI amount but fewer installments. It is necessary to decide which one works for you.
While choosing a lender, it is a good practice to compare the lenders who offer the same services in order to find the ideal one. You can compare different banks or lenders using websites available online.
Personal Loan Interest Rates are alarmingly high when compared to secured loans due to the fact they are unsecured. So, borrowers tend to opt for Personal Loans only when they are in the midst of pressing financial challenges. Considering the charges, there must be a pressing need to take Personal Loans. However, there are still numerous Personal Loan Providers in India whose rates are quite cheap and affordable. Apart from the high-interest rate, Personal Loans are beneficial in some ways. Personal Loans are easily dispensed without the long process associated with secured loans. You do not need collateral to get it and banks now offer Personal Loans as well.
All you need to do is look out for the loan with the best interest rate to avoid overbearing. The Lowest Personal Loan Interest Rate of 10.75% is offered by several banks in India. It also depends on the company you work with, loan amount and repayment capacity. All these factors contribute to your chance of getting a Personal Loan at a cheap rate. You should also note that the higher your loan amount, the lower the interest rate. IIFL Tata Capital Personal Loan, HDFC Bank, ICICI Bank, Citibank, RBL Bank etc. is best for moderate Personal Loan charges in India. With these banks, you are sure to get an interest rate of 10.75% onwards, a processing fee up to 2% of loan amount, loan tenure of up to 5 years, and prepayment charges from nil to about 5%.
In choosing a bank for your Personal Loan, you need to compare the rates offered by these banks. This is to guide you in making the best and right choice. Carry out a research on the Personal Loan interest rate of these banks and picks the one that suits you. Apart from the loan charges, you also need to consider the processing fees, insurance premium, prepayment, and foreclosure. All these should be done so as to be sure you are making the right decision about your Personal Loan application.
The best Personal Loan charges in India provided by banks have been compiled here to guide you and help you make comparisons.
|Name of the Bank||Interest Rate||Processing Fee|
|Tata Capital||11.75%||Rs. 999|
|Fullerton India||17.25%||Upto 2%|
|Kotak Bank||11.50%||Upto 2.5%|
|Standard Chartered Bank||10.99%||1%|
|Syndicate Bank||13.40%||0.5%, Rs. 500 minimum|
|Union Bank of India||12.70%||0.5%, Rs. 500 minimum|
|Vijaya Bank||12.50%||0.25, Rs. 1000+ST|
|Punjab National Bank||12%||1.8% plus taxes|
|Karur Vyasya Bank||13.9%||0.4%|
|Indian Overseas Bank||12.70%||Rs. 210 per Lakh|
|Indian Bank||11.05%||0.5%, min of Rs. 508|
|Allahabad Bank||13.15%||1.06%, minimum of Rs. 1068|
These entire Personal Loan charges in India vary in order to cater to the varying needs of borrowers. So, an individual gets a Personal Loan no matter the level of income or financial stability. It is also important to note that these banks have stipulated purposes for granting Personal Loans. You might want to find out these purposes for your benefit. They include higher education, vacation, wedding, medical treatment, among others.
There are several other specific purposes why banks grant Personal Loans. You should find out these reasons so that your loan application is granted. There is also an age limit for borrowers stipulated between 21 and 60 years. Your loan amount should also stay within Rs. 50,000 to Rs. 50 Lakhs. There are also specially customized interest rates for government workers, workers in private companies as well as pensioners.
Credit score or CIBIL score
CIBIL score plays a vital role in the loan approvals. It is always wise to have a high CIBIL score. You can get a high CIBIL score by settling existing loans and credit cards.
Go for the maximum possible down payment
Individuals at their 40s will have a considerable amount of money saved. If you opt for the maximum possible down payment, in turn, it will reduce the amount of loan to be paid and will also reduce the EMI amount.
Go for the longest or the shortest tenure
If you are financially sound and have capital coming from multiple sources, it is always wise to go for the shortest tenure available. With this option, the amount to be paid each month will be high but because of the high income, it should not create any problems.
On the other hand, if you have to pay any recurring payments each month and you have a small amount of free cash remaining in hand after all payments, it is advised to go for the longest tenure available. But it will also pose the risk of your application being rejected.
Explore the special offers provided by banks
Some banks provide special offers on availing Personal Loans. Be on the lookout for such offers.