Dehradun, the capital city of Uttarakhand is one of the speediest growing urban settlements in India. And that too from every aspect, making it the next booming spot for industrialization in the nation, eyed conspicuously by many A-grade companies of the current era for setting up their production units for business.
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|
A personal loan is an unsecured debt that is taken by individuals from a bank or an NBFC to fulfill their personal needs. You can avail a personal loan for buying a car or a house, for your child’s future education, or even for medical requirements. An increasing number of individuals are opting for personal loans for most of their big-ticket purchases, as the repayment can be done in easy monthly installments. The repayment of a personal loan in a timely manner also improves your credit score to a large extent.
Banks consider certain factors when granting a personal loan to applicants. Some of these include the income level of the borrower, his/her history of employment, credit score, and capacity to repay the loan.
The interest rates on personal loans are usually higher than car loans or home loans, as you are not securing the debt with a collateral. However, some banks offer secured personal loans with lower interest rates that can be availed in situations when the borrower does not have a good credit score.
Individuals can apply for personal loans at various banks and NBFCs in Dehradun. These banks also offer business loans, core banking services, commercial lending, asset management, and investment guidance. Some of the banks that offer personal loans in Dehradun are listed below:
A personal loan is taken for a personal financial need and the bank is not liable to monitor its usage. A low EMI on personal loan does not necessarily mean that you are paying a lower amount in the long run.
A low EMI usually results from a long repayment term, low interest rate, or a combination of the two. In certain instances, you may even pay a higher interest to your lender when you opt for a lower EMI. Using online tools like the personal loan EMI calculator is beneficial as it helps you understand your interest payout for the loan tenure and your capacity to repay the loan before you take it.
You can also compare loans and identify the banks that offer the lowest rates. Getting a low interest rate helps you save money over the loan tenure. The following points indicate the ways in which you can secure a loan with a low interest rate in Dehradun:
Customers will be able to check their credit scores online at any of the credit reporting bureaus, i.e., TransUnion/CIBIL, Experian, and Equifax. It is possible to get your credit score for free, in case you do not require an elaborate report. Having a high credit score (above 700) is an indicator of your creditworthiness.
|Bank||Interest Rate Range||Lowest EMI for each Rs.1 lakh||Processing Fee Range|
|HDFC Bank||10.99% to 20%||Rs.2,174||Up to 2.50%. Minimum amount is Rs.1,000 and maximum amount is Rs.25,000|
|Citibank||10.99% to 16.49%||Rs.2,174||Up to 2%|
|IndusInd Bank||11.99% to 23%||Rs.2,224||Up to 2.50%|
|RBL Bank||16% to 20%||Rs.2,432||Up to 1.25%|
|Bajaj Finserv||11.99% to 15.50%||Rs.2,224||2.25% to 3%|
|ICICI Bank||11.59% to 22%||Rs.2,204||Up to 2.25%|
The amount that an applicant can borrow largely depends on his/her income, employment type (salaried or self-employed) and credit history. Generally, banks limit the loan amount to a value that is not more than 40-50% of the applicant’s monthly income. All the existing loans that are serviced by the applicant are also taken into consideration when calculating the amount.
If the applicant is self-employed, the loan amount is determined on the basis of the profit that he/she has earned recently (as per the acknowledged profit/loss statement). The bank also takes into account the existing liabilities/loans of the business.
The EMIs are fixed for a personal loan with fixed interest rate. If the applicant opts for a floating interest rate loan, then the EMIs will decrease progressively, as the interest will be based on the reducing balance method. The latest MCLR rules suggest that floating rates may change either half-yearly or annually.
Loan approval is completely based on the discretion of the lender. The entire loan sanctioning process will be completed between 2 days to 2 weeks. After the applicant submits all relevant documents for the personal loan, the bank verifies the same and sanctions the loan. The loan will then usually be disbursed within 7 working days.
A large portion of the initial EMIs you pay are set off against the interest due on your loan. This process is referred to as front loading. Therefore, only a small portion of your principal amount is paid off in the initial loan repayment period. As you progress further on the EMI payments, the interest on the outstanding amount would have reduced to a large extent. Hence, a larger part of the EMI is used to pay off the loan principal.
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