Personal Loan: Personal loan is the most popular means to meet the need of money in case of any emergency. It remains the preferred medium due to the speedy loan application process and the availability of unsecured loans. Apart from this, various banks compete to attract customers by keeping personal loan rates attractive. Because of this also the attraction towards personal loans remains. Personal loan proves to be a better option not only for emergency needs but also in times of need of more capital. Banks or financial institutions offer personal loans up to Rs 25 lakh or more. Apart from this, personal loans are available for tenures up to 5 years and some banks also offer personal loans for tenures of 7 years.
Rate of interest depends on credit score and income
The rate at which you will get a personal loan from the bank, it depends on your income and credit score. Generally those with regular income and better credit score get interest at lower rates. This means that even if the credit score is low, then it may happen that personal loan may not be available and even if it is available, according to the bank market, the loan will be available at a higher rate than those with a credit score of 750-800 credit score.
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Collect these information before taking a personal loan
The personal loan interest rate and loan amount depend on the bank borrower’s age, income, credit score, loan amount requirement, type of profession, stability of employment, etc. Apart from this, the documentation requirements are different for salaried and self-employed loan applicants. In such a situation, first look at all the options for personal loan for yourself and compare the personal loans offered by different banks / financial institutions. Be sure to take complete information about the documentation requirements so that any kind of adverse situation can be avoided in future. Collect complete information about processing fees and charges like pre-closure and part prepayment penalties.
Here are the banks giving loans at the cheapest rates
Also check your eligibility for a pre-approved personal loan. This type of loan requires minimum documentation and in this the loan is cleared at the earliest. If you have decided to take a personal loan from a bank, then definitely make sure that you will not face any problem in paying its EMI because if you do not pay the EMI on time, you may have to pay an additional penalty. This can also affect the credit score. In such a situation, if you have decided to take a personal loan, then here is a list of banks offering personal loans at the cheapest rates. The interest rates offered here can be high.
Disclaimer: The data given here has been collected from the respective bank’s website as on 17th June 2021 and compiled by online marketplace bankbazaar.com for loans, credit cards etc. (Article: Sanjeev Sinha)