Personal loan is an individual get the loan amount from any lender or from the bank for their personal needs. This lending loan needs a clear agreement to repay the amount by the borrower in the monthly installments and on the due dates. If you decide to get a personal loan, you should make sure before choosing the plan for the payment on the specified dates or you can lose the property. This type of loan has short-term loan with high-interest rate but it apt for the individual to repay the amount.
Needs of personal loan:-
The purpose of the personal loan depends on the usage of money. If the individual already got a huge amount of money from other lending organization or from other persons and he fails to repay the amount. So, the individual needs to go for a personal loan to settle the amount to the lender with less interest rate.
Types of personal loan:-
There are two types of personal loans. They are secured loan and unsecured personal loan.
- Secured personal loan: if the individual borrows some amount from the mortgage with a guarantee that contains the car, home or other property. The security that you declare when you taking a loan for the home with the security to the lender, to recover the money when the individual does not repay it. The secured loan suggests with the fewer amount of interest rates. If you choose the secured you can get the benefit of low-interest rates and security.
- Unsecured personal loan: in this type of loan, while the user borrows some amount of money from the mortgage; it does not contain any guarantee. Without security, it is known as an unsecured loan. There are various conditions of different lenders to provide the loans. Generally, the unsecured loans include the high-interest rate. But, the lender achieves high risks since the lender does not have any security or guarantee.
Bank wise interest rates of personal loan:-
Here, some bank provides the personal loan with fewer interest rates.
- Union Bank of India- this bank gives the personal loan start from 12.00% to 14.75%.
- Bank of India– this bank gives the allowance for senior citizens and women starts from 13.20% to 15.20%.
- Allahabad Bank– this bank gives the best interest rates of 14.95%.
- IDBI Bank- here, this bank provides the personal loan to the borrower at 13.00% to 14.00%.
- ICICI Bank– the ICICI bank gives the opportunity of least interest rates as 12.99% to 20.00%.
All the interest rates may differ and based on the borrowers amount from the bank or other lending organization. If you enter to the online, there are offers are waiting for you to get the personal loan with incredible interest rates to you. With full collateral is applicable to your agreement with no any sudden change in the interest rates or other reduction in the duration of payment. Get the personal loan from these banks with the pledged low interest to repay the amount to the lender.