Kochi or Cochin is an important port city located on the western coastline of India, along the fringes of the Arabian Sea.On the same note, it is often informally called the ‘Gateway to Kerala’ and taken to be the point to begin the exploration of the deep and profound beauty of the state.
A personal loan is a kind of unsecured loan which can be used for any purpose that the borrower deems necessary. An unsecured loan is an umbrella term used for loans which do not require collateral. Banks, credit unions, and other financial institutions offer personal loans on an ongoing basis.
|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|
One of Kerala’s biggest port cities, Cochin has a population of over two million people. A large number of people who live in Cochin form part of the salaried class, and as a result, tend to take personal loans to meet their personal requirements which they otherwise would not be able to afford through their salaries and savings. Some of the most common reasons for the people of Cochin to avail personal loans include the purchase of vehicles and/or home appliances, home renovation, to pay for their weddings and other major ceremonies, etc. The reasons for the people to avail personal loans are aplenty, and due to their need for credit, personal loans have become not only popular, but also the most easily accessible financial product in the city.
A large number of private and public sector banks as well as non-banking institutions in Cochin are ready to entertain individuals who seek personal credit. Some of the leading institutions in the city include Citibank, South Indian Bank, Tata Capital, Allahabad Bank, Kotak Mahindra, HDFC Bank, IDBI Bank, Canara Bank, Tamilnad Mercantile Bank, Indian Overseas Bank, Vijaya Bank, Bank of Baroda, Standard Chartered, IndusInd, State Bank of India, Oriental Bank, Fullerton, Aditya Birla, Capital First, Bank of India, ICICI Bank, Central Bank, Dena Bank, Indian Bank, Union Bank, Karur Vysya, UCO Bank, Yes Bank, etc. If you’re seeking personal loans in Cochin, the aforementioned institutions are worth considering as they offer the best terms and conditions in the city.
A few factors require consideration when drafting an application for a personal loan in a manner such that you have access to competitive interest rates. The interest rate applicable to your credit will depend upon the lender from whom you choose to borrow. However, before you try to apply for a personal loan, it is very important to check your creditworthiness. Your credit score is directly proportional to your interest rate in the sense that the higher you’re score, the lower your interest rate and vice-versa. A good credit rating can help you not only avail the amount you require, but will also open the door to availing a relatively low and affordable interest rate. Credit scores that exceed 750 will make it considerably easy for you to get a high amount at a relatively low interest rate. It is also instrumental to carefully assess your financial requirements before drafting an application for a personal loan as borrowing a high amount that you don’t fully need will mean that you will have to deal with paying extra interest. Similarly, borrowing a lower amount and utilising it without meeting your personal requirements will mean that you may end up taking another loan to meet your requirements, thereby paying interest on the second loan as well. Make sure that you have assessed how much money you need as it will help in avoiding unnecessary expenditure towards interest payments.
Several major public and private sector banks in Cochin offer personal loans to its residents. Following are the interest rates offered by the top banks for personal loans in Cochin:
|Citibank||10.99% to 15.99% (Fixed)|
|Standard Chartered||11.25% to 14.49% (Fixed)|
|Capital First||12% to 18% (Fixed)|
|Tata Capital||11.99% to 19.50% (Fixed)|
|ICICI Bank||11.59% to 18.49% (Fixed)|
|Oriental Bank||10.85% to 11.85% (Floating)|
|HDFC Bank||11.49% to 19.8% (Fixed)|
|IndusInd Bank||11.99% to 19% (Fixed)|
|Fullerton||17.25% to 37% (Fixed)|
|Kotak Mahindra||11.49% to 20.15% (Fixed)|
|Aditya Birla||11.5% to 13.25% (Fixed)|
|Allahabad Bank||13.10% (Fixed)|
|Bank of Baroda||11.35% to 14.35% (Fixed)|
|Bank of Maharashtra||12.75% (Fixed)|
|Bank of India||13% to 14% (Fixed)|
|Canara Bank||12.75% (Floating)|
|Central Bank||11.4% (Floating)|
|Dena Bank||13% to 14% (Fixed)|
|IDBI Bank||12.45% (Floating)|
|Indian Bank||12.65% to 13.65% (Floating)|
|Indian Overseas Bank||13.65% (Fixed)|
|Karur Vysya||13.35% to 15.85% (Floating)|
|South Indian Bank||13% (Fixed)|
|State Bank of India||12.90% to 14.90% (Fixed)|
|Tamilnad Mercantile Bank||14.30% to 16.30% (Floating)|
|UCO Bank||11.35% to 11.60% (Fixed)|
|Union Bank||14.4% (Floating)|
|Vijaya Bank||13.50% (Fixed)|
|Yes Bank||14% (Fixed)|
Every lender has certain requirements that must be met by individuals who wish to avail a personal loan. Applicants must be either salaried applicants or self-employed individuals and must provide the bank with a proof of income so that the bank can determine whether or not to consider their application. The salaried employees in Cochin are required to earn a monthly salary ranging from Rs.7,500 to Rs.50,000 at least if they wish to take a personal loan. Self-employed individuals on the other hand are expected to provide proof that they earn an income of at least Rs.1 lakh per annum if they are to avail credit.
How long will the bank take to approve my application for a personal loan?
The time taken to approve an application for a personal loan will depend from bank to bank. While some banks approve loan applications with 48 hours, some banks take at least a week. Usually a loan application is approved between two and seven working days.
How much money can I borrow through a personal loan?
The lender will determine the limit you have when it comes to taking a personal loan. A number of factors will be considered before the bank approves your application, but loans up to Rs.5 lakhs are disbursed by most banks.
How do I repay my personal loan?
The repayment of personal loans can be done in Equated Monthly Instalments (EMIs) via post-dated cheques favouring the bank from which you have availed the loan. You could also link your debit account to your loan in case you borrow from a bank with which you hold a savings bank account and the amount will be deducted automatically.
Are there any additional charges associated with a personal loan?
Yes. Almost all banks charge a processing fee ranging from 2% to 2.5% of the amount you wish to borrow, and the fee is generally deducted from the amount disbursed to you.
Can I get the balance transfer facility in my personal loan?
It depends on the bank. Some banks offer the balance transfer facility if the customer has paid 12 EMIs. Check with your bank before applying for the loan if they offer the same.
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