Chandigarh is a popular city as well as a union territory. It functions as the capital for 2 neighbouring states, viz. Punjab and Haryana. The city has a marvellous layout, which was planned and designed by Le Corbusier, a talented Swiss-French modernist architect. The city is administered by the Union Government, and not by any of the 2 states. The population in this city is 10.6 lakh as of now.
If you are interested in applying for a personal loan in the city of Chandigarh, you can choose a bank or a non-banking financial company (NBFC). You will be able to apply online by visiting your lender’s official website or by going on a neutral third-party financial web portal. You could also use the conventional method of applying for a loan by directly going to your lender’s branch.
Before you apply for a loan, make sure you calculate your prospective equated monthly installments (EMIs) by using an online EMI calculator. You should also make it a point to compare multiple rates of interest, processing fees, prepayment fees, and other charges to get a clear idea about your overall personal loan expenses.
|Interest Rate (Monthly reducing balance)||13.49% - 34%|
|Loan Tenure||1 year to 5 years|
|Pre-closure Charges||2% - 5%|
|Guarantor Requirement||No guarantor required|
A few of the prominent banks and non-banking financial companies (NBFCs) that offer personal loans in Chandigarh include:
Knowing the components of a loan that affect the interest rate is imperative when applying for a loan. Most people, blindly avail loans from the banks holding their salary account and leave all the calculations and assessments to be made by the bank. For first-timers, these are the areas you need to look into and improve if you wish to avail a personal loan at the lowest interest rate possible.
Credit score - The credit score of the individual directly influences the interest rate that the bank will offer you when availing a loan. If the credit score is good (anything above 750), the interest rate offered by the bank will be low. If the credit score is below 750, the bank will place a higher interest rate on the loan.
Down payment - Making a down payment upwards of 20% of the loan amount will result in you getting a better interest rate on the personal loan.
Debt-to-income ratio - When a bank or NBFC makes a verification of the credit profile of the loan applicant, the debt-to-income ratio is one of the first things that is taken into consideration. Having a debt-to-income ratio less than 40% of your monthly net income is ideal when availing a loan. If it is more than 40%, the bank might reject the loan application (based on your income) or might apply a higher interest rate if the application comes through.
Loan shop - Facilitating the use of financial portal such as BankBazaar has made loan shopping easy. Using the BankBazaar website, individuals can compare loan offers from different banks and NBFCs and choose one that suits their financial situation. In addition, customers can even make EMI calculations and check their CIBIL score on the website.
Experience and employer - The number of years of experience you have and the company you work for affects the bank’s decision to either give you a higher or lower interest rate. Working for a reputed company will increase the bank’s trust in you making the repayment in time.
Negotiate - One of the more important aspects when availing a loan is to negotiate with the bank executives on the interest rate of the loan you wish to take out. Making a negotiation might just get you an ideal interest rate on your loan.
|Bank||Interest Rate Range||Processing Fee Range||Loan Amount||Tenure|
|ICICI Bank||11.59% - 18.49% (Fixed)||2.25% (min. Rs.1149) One time fee||Rs.20 lakh (Max)||1-5 Years|
|Citibank||10.99% to 19.99% p.a.||Up to 2.5% of the loan amount||Up to Rs.30 lakh||1 to 5 Years|
|Kotak Mahindra Bank||11.49% - 20.15% (Fixed)||Up to 2%||Rs.15 lakh (Max)||1-5 years|
|Fullerton India||11.99% to 23.99 p.a.||Information not provided.||Up to Rs.20 lakh for salaried and up to Rs.30 lakh for self-employed individuals||1 to 4 Years|
|Bank of Baroda||11.35% - 14.35% (Fixed)||Rs.1,000 to Rs.10,000 (One time fee)||Rs.20,000 - Rs.2 lakh||4 Years (Max)|
|State Bank of India||12.90% - 14.90% (Fixed)||1% (One time fee)||Rs.24,000 - 15 lakh||5 Years|
|Aditya Birla||14% to 26% p.a.||Nil||Rs.25,000 to Rs.15 lakh||6 to 36 months|
|Allahabad Bank||Information not provided||1.06% of loan amount||Information not provided.||1 to 5 Years||Yes Bank||14% p.a.||Up to 2% (One-time fee)||Rs.2 lakh to Rs.20 lakh||1 to 5 Years|
When banks and NBFCs are verifying the application for a loan, one of the main aspects of the applicant’s details that they look into is the salary income of the individual. The salary income requirement varies between banks and NBFCs.
For salaried individuals: The salary requirement to avail a personal loan generally ranges between Rs.7,500 and Rs.50,000.
Self-employed individuals: To have their loan approved, self-employed individuals should show proof of income for the last two years. Generally, banks and NBFCs have a minimum income requirement between Rs.1 lakh and Rs.2 lakh (profit).
What is the basic eligibility criteria when applying for a personal loan?
Individuals applying for a personal loan should have a regular or stable income, should have a good credit score, and a balanced debt-to-income ratio.
What is the usual tenure of a personal loan?
Personal loans have tenures ranging between 1 and 5 years. 1 year being the minimum and 5 years being the maximum tenure of a loan.
Can I avail a joint personal loan?
Yes you can, provided that person is a close relative or a spouse. By doing so, the income will be much higher, giving you the opportunity to avail a bigger loan.
Is choosing the lowest EMI the best option?
Choosing a low EMI will result in the tenure being longer and the interest rate higher. Choosing a shorter tenure is always a better option though your debt-to-income ratio has to be taken into consideration.
I have a debt-to-income ratio of 60%. Will my loan get approved?
Chances are that your loan could be rejected. Having a debt-to-income ratio of 40% at max is ideal.
A GST rate of 18% will be applicable on banking services and products from 01 July, 2017.
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