Personal Loan – Everything You want to know about it
Personal loans are loans granted by financial institutions strictly for personal use. The loan could be under a secured scheme or unsecured scheme. Under the unsecured scheme, the loan is granted out of the integrity of the borrower’s credit history. When it hinges on the asset of the borrower or a guarantor, it is said to be secured personal loan. It is also important that you read all the terms and conditions of each bank. Every bank has its own norm and based on that you need to make your choice. Once you are sure about the right bank then things will be much easier for you. There are lots of banks giving personal loans to only people who are doing and job and not self-employed. Very few banks prefer giving personal loans to people who are into business.
Personal loan eligibility depends on the individual’s income and ability to repay.
- Minimum age of 21 years and maximum age of 60 years.
- Has to be a salary earner, a self-employed professional or a non-professional who has an established source of regular income, or a pensioner.
- A minimum income of Rs.4, 000 – Rs.20, 000 net income per month. Although this could slightly differ from banks and locations.
Calculation of Loan eligible amount:
You can avail a loan up to Rs.15 lakh.
When it comes to personal loan, there is no need for a down payment. If you are asked for a down payment, it most certainly could be a scam.
The minimum tenure for repayment of personal loan is a year (12 months), while the possible maximum is five years (60 months).
Interest rate Bank wise:
The basic rate of interest for a personal bank loan is with a range of 15.50% to 24%. Incidentally, at present many banks are lowering their rates to as low as 11.49% to 20%. The interest rate depends on the repo rate set by RBI and based on that the rate of personal loan is also fixed. Also the rate of interest depends on your cibil score, if it is not good then you may have a problem getting this loan. You need to research and find out the best bank which is available based on your needs. Once you do that then you can submit the required documents and the loan will be processed in 2 days time.
Top five banks providing loan:
Based on rate of interest in India, they are;
- ICICI Bank this is the top bank which has got lots of people who are taking loan from here.
- HDFC Bank is on the best banks and offers it a very competitive rates.
- SBI the top bank of India, gives personal loan to individuals and you can also apply online.
- Kotak Mahindra Bank is a bank which offers personal loans at good rates.
- Axis Bank is another bank which offers, personal loan and in quick time.