A Personal Loan Is An Unsecured Loan, The Borrower Does Not Put Up Any Collateral Or Security To Guarantee The Repayment Of The Loan. For This Reason, Personal Loans Tend To Carry High Interest Rates. Personal Loan Rates In India Depend On Various Criteria, One Being The Income Level. Different Banks Have Different Classifications Based On Which Interest Rates Are Calculated. To Start With Whether You Are Working For An Employer (Salaried) Or You Are An Employer Yourself (Self – Employed).
Personal Loan Is Typically A Form Of Unsecured Loan With A Fixed Repayment Schedule And Equated Monthly Installments. However, There Are Secured Personal Loans As Well, Whereby The Borrower Has To Keep An Asset As Collateral, Which The Lending Institution Can Possess On The Former Declared As A Defaulter. Personal Loans Are Generally Used To Meet Temporary Cash Requirements Such As Wedding, Children's Education, Home Improvement, Luxury Holiday, Buying A Car Or An Electronic Appliance, Etc.
There Are Several Banks And Financial Institutions Providing Attractive Deals On Personal Loan Offers With Lucrative Interest Rates. Each Personal Loan Lending Institution Has Different Eligibility Criteria, Rate Of Interests And Repayment Tenure, Which Should Be Reviewed And Compared To Make An Informed And Smart Decision Before Applying. Compare Personal Loan Offers At Apnaleads.Com, And Fulfill Your Dreams With Us.
Key Benefits Of Personal Loan
Personal Loans Come With Several Benefits As Mentioned Here With:
- Get Approved For Loans Up To INR 15 Lakh, Depending On Income And Repayment Capacity.
- Personal Loans Ensure Quick Processing, Which Is Often Sanctioned Within 72 Hours, Depending On Documents Submitted To The Lending Institution.
- Personal Loans Typically Don’t Require Any Guarantor Or Security.
- It Requires Only Minimal Documentation.
- 12-60 Months Repayment Tenure.
- Multiple Repayment Methods Such As Post Dated Checks, Electronic Clearing Services, Account Debit.
- Attractive Interest Rates.
Eligibility Criteria For Personal Loan
- Should Have Indian Citizenship.
- Age Should Be Minimum 21 Years And Maximum 65 Years.
- Monthly Net Income Should Be Minimum 25,000/-.
- The Applicant Should Be A Permanent Salaried Employee With The State Or Central Government Institution, A Reputed Organization, Or A Profit Making Firm.
- Overall 2 Years Of Work Experience With A Minimum Of One Month Experience In The Current Organization
- Residence Either Company Provided, Rented Or Owned.
Personal Loan Repayment Process
The Total Loan Amount Plus The Rate Of Interest Is Payable At A Fixed Equated Monthly Installment On A Fixed Date Of Repayment, Either Via Account Debit, Post Dated Check Or Electronic Clearing Services.
You Should Keep Following Points In Mind Before Applying For Personal Loan
- Typically Personal Loans Are A Form Of Unsecured Loans, Which Don’t Require Any Security. The Default Loan Amount Goes Into The Bad Debt Account Of The Bank. However, Certain Lending Institutions Offer Secured Personal Loans In Lieu Of Any Asset, NSC Certificate, And Fixed Deposit Certificate, As Collateral. The Rate Of Interest Is Lower As Compared To Unsecured Personal Loans, With Flexible Repayment Terms.
- Most Personal Loans Are Available At Completely Fixed Rates Of Interest For The Entire Tenure. Make Sure That The Personal Loan That You Are Taking Is Also Fixed For The Entire Tenure Of The Loan.
- Majorly Personal Loans Have Processing Fees Ranging From 0.50% To 3% Of The Loan Amount . Most Personal Loans Will Also Charge You A Fee If You Wish To Pre-Pay The Loan Of Between 3-5% Of The Loan Amount Repaid. Some Lenders Will Not Allow Pre-Payment For The First 6 Months And Most Lenders Do Not Accept Partial Pre-Payment.
- Do Not Sign Blank Application Forms Or Documents And Keep A Copy Of All Documents Submitted To The Lender For Your Future Reference. Any Promise Made By The DSA Or Even An Official Of The Lender Has No Value Unless It Is In Writing Or At Least On Email.
- So If You Are Basing Your Decision On Any Such Promise Make Sure You Get It In Record In Some Form.
Personal Loan Rate Of Interest
Interest Rates Of Personal Loans • ING Vysya Special Schemes At 13.50% To 18.25% • HDFC Bank Offers Special Rates Of 13.99% To 20.00 • Kotak Mahindra Offers Loans At 13.60% To 18% • ICICI Bank Personal Loans Offered At 13.49% To 17.50% Personal Loan Rate Of Interest Depends On Following Terms
The Income Of The Borrower And Repayment Capacity – Higher The Income, Lesser You Tend To Be A Defaulter For The Bank. Hence, You Get Some Discounts When It Comes To Personal Loan Interest Rates.
The Credit Score Of The Borrower – It Goes Without Saying That Your Credit Worthiness Determines Majorly What Should Be The Interest Rate For Your Personal Loan. The Better The Score, More You Are Credit Worthy In The Bank, And Hence, Lesser Rates Of Interest. On The Other Hand, A Person With Poor Credit Score Calls For A Higher Rate Of Interests For The Lending Institution Considers The Borrower To Be Less Credit Worthy.
The Type Of Personal Loan – Secured Personal Loans Come With A Reduced Rate Of Interest Since They Have A Collateral As A Guarantee. On The Other Hand, Unsecured Loans Have Higher Rates Of Interests.
Negotiating Ability Of The Borrower – Better You Negotiate With The Lending Institution On The Basis Of Proper Documents, Income, And Credit Score, Lesser The Interest Rates That You Can Have.
Relationship With The Bank Or Lending Institution From Where The Borrower Intents To Take The Loan.
Personal Loan Repayment Terms.
The Loan Amount Applied For.
Business Loan
Business Loans Are Offered To Small And Medium Enterprises Towards Working Capital, Expansion, Or Modernization Of Existing Business. It Could Be Either Secured Or Unsecured. The Idea Is That If There Is Opportunity For Growth At Acceptable Risk Levels The Banks Will Finance. Loan Amounts Offered Could Vary Between Rs.5 Lakh To Rs.500 Lakh.
Business Loan Can Be Availed By Self-Employed Individuals, Partnership Firms, Private Limited And Limited Companies. The Funds Can Be Used For Business Expansion, Working Capital, Renovating Your Office, Buying New Property Or Equipment Or Personal Requirements Like Child's Education, Marriage Or Home Renovation Etc.
The Eligibility Criteria For Business Loan.
The Eligibility Criteria For Business Loan Professionals Vary From Bank To Bank. However, The Standard Norms Followed By Business Loan Lending Institutions In India Are:
Should Have Indian Citizenship. · Age Of Applicant: Min 21 Years & Max. 65 Years At The Time Of Loan Maturity. · Minimum Annual Income(ITR) Of INR 1.5 Lakh Per Annum · Business Must Be Profit Making For The Last 2 Years. · Should Have A Minimum Work Experience Of 3 Years In The Same Business. Self Employed Non Professionals Should Have 5 Years Of Total Work Experience With 4 Years In The Current Business.