New Delhi is the capital of India and seat of the executive, legislative, and judiciary branches of the Government of India. It is also the centre of the Government of the National Capital Territory of Delhi.Delhi metropolitan region is the world's second most populous city and the largest city in India and also one of the largest in the world in terms of area. After Mumbai it is also the wealthiest city in India, and has the 2nd highest GDP of any city in South, West or Central Asia.
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.
For those looking for an extra boost, financially speaking, either to renovate their house, pay for emergency medical bills, buy a gadget that they desire or fund a holiday, there is the option of personal loans. Top banks and NBFCs (Non-Banking Financial Company) across the country offer personal loans that are unsecured - meaning that there is no requirement for collateral. Customers wishing to avail personal loans can start by visiting the financial portal - BankBazaar. On the BankBazaar website, customers can compare the interest rates offered by its partner banks and decide on a loan from a particular bank that suits their current financial situation.
|Bank||Interest Rate Range||Processing Fee Range||Loan Amount||Tenure|
|ICICI Bank||11.25% - 22% (Fixed)||2.25% (min. Rs.1149) one time fee||Rs.20 lakh (Max)||1-5 Years|
|CitiBank||10.50% -18.99 (Fixed)||Up to 3%||Rs.30 lakh (Max)||1-5 Years|
|Kotak Mahindra Bank||10.99% - 24% (Fixed)||Up to 2.5%||Rs.15 lakh (Max)||1-5 years|
|Fullerton||12.99% - 36% (Fixed)||Up to 3% of the loan amount||Rs.25 Lakh (Max)||1-4 Years|
|State Bank of India||11.50% - 14.90% (Fixed)||1% (One time fee)||Rs.24,000 - 15 lakh||5 Years|
|Aditya Birla||14% - 26% (Fixed)||Up to 2% of the loan amount||Rs.15 lakh (Max)||1-3 Years|
|Allahabad Bank||13.10% (Fixed)||1.22% (One time fee)||Rs.50,000- Rs.7.5 lakh||1-5 Years|
|Yes Bank||10.99% onwards(Fixed)||Up to 2.50% of the loan amount subject to a minimum of Rs.999 plus taxes (One time fee)||Rs.40 lakh (Max)||1-5 Years|
A lot of customers fail to do their research when availing a loan and leave it to their banks to make the decisions and bring forward the estimations. The problem with this approach is that getting the best interest rate for the loan becomes almost far-fetched. Looking into all aspects of a personal loan before availing it is absolutely necessary. If you wish to avail a loan at the lowest interest, here are a few key areas you will have to look into:
Credit score - Making sure that your credit score is above par will result in you availing a loan at a fairly good interest rate. The better your CIBIL score the lower the interest rate added to the loan and vice versa.
Down payment - Making a down payment upward of 20% of the loan amount will result in you availing a loan at a better interest rate. The bigger the down payment, the better the interest rate.
Debt-to-income ratio - Always ensure that your EMIs, credit bills and so on, do not cross 40% of your annual or monthly income. Having a good debt-to-income ratio will boost your chances of availing a loan with a good interest rate.
Loan shop - Financial portals such as BankBazaar are of great help when loan shopping. On the BankBazaar website, individuals can compare loan interest rates offered by its partner banks and can narrow down on a loan with the best interest rate relative to the tenure - one that suits their budget.
Your employment and experience - This is one factor banks and NBFCs take into consideration when approving or rejecting a loan application. If you’ve had a stable income and work for a reputed company, it’s likely that you could very well negotiate on a decent interest rate.
Make sure that you negotiate - Negotiating the interest rate on your loan is absolutely necessary. Most people just go ahead with the numbers set by banks and NBFCs, but making a negotiation will help you in the long run.
Tenure - Choosing your tenure directly reflects on the interest rate added to the loan amount. Choosing a shorted tenure will result in you having a much less interest rate.
Every bank and NBFC have a certain salary requirement which customers have to meet to get a loan approval. Apart from looking at factors such as interest rate, processing fees, prepayment and so, make sure your cross check with the bank’s minimum salary requirement for a particular loan. As already mentioned, the salary requirement varies from bank to bank.
For salaried individuals - Depending on which bank you are availing the loan from, generally the minimum salary requirement ranges roughly between Rs.7,500 and Rs.50,000.
Self Employed individuals - Self-employed individuals should provide proof of income of the last two financial years. Generally, the income requirement to avail a loan is between Rs.1 lakh and Rs.2 lakh (profit).
Yes, your CIBIL score directly reflects on the interest rate the bank or NBFC offers you on your personal loan. The higher your credit score, the lower will be the interest rate and vice versa.
A balance transfer is possible. In this case, the present lender will clear the dues and transfer the amount to a new loan with the interest as well.
Some banks allow it whereas other banks only allow a partial foreclosure of loans. In most cases, banks charge between 1% to 2% of the outstanding amount as foreclosure charges.
Once the loan amount has been cleared completely, the bank will issue a No Due Certificate.
Yes, failing to repay your loan on time directly reflects on your credit score.
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