Personal Loan - Compare & Apply Best Personal Loan

A Personal Loan is a form of loan availed by individuals on the basis of specific criteria, such as level of income, employment history, credit score, and scope for repayment. The loan is usually taken for the fulfillment of personal needs from a banking institution or a non-banking financial company (NBFC). Borrowers can use online tools available at neutral financial websites, such as the Personal Loan EMI Calculator, to assess the interest payout throughout the tenure before applying for a personal loan.

Why choose a Personal Loan?

A temporary financial crisis can happen to anyone irrespective of his or her overall financial status. Personal loans are a great way to offset any such temporary financial crisis as it allows the users to avail a loan without any pre conditions on the usage of funds. Personal loans have a quick approval mechanism with loans getting cleared as early as within 24-48 hours of the loan application submission.

• Easy Availability: Easy availability is one of the biggest advantages of a personal loan. Almost all banks and on banking financial companies offer personal loans for it’s customers. Personal loans are not very expensive and are available at reasonable interest rates making them a lucrative option to overcome any immediate financial need.
• Minimal Documentation: Getting a personal loan does not warrant any long process of asset verification and require minimal documentation. Personal loans are quickly disbursed due to the fact that they seek minimal documentation for loan approval.
• Quick Loan Approval: Personal loans today come with a quick loan approval mechanism. Loans are approved almost instantly for online personal loan requests. Users requesting for a personal loan can expect a loan disbursal within one or two working days making the whole loan process swift and hassle-free.

Key features of Personal Loans

• Flexibility to Use Funds: Unlike other loan options, the funds borrowed through a personal loan can be used freely as per the needs of the individual borrower. Personal loans can be used to overcome financial hardships related to marriage expenses, medical costs, house renovation expenses, etc. It can also be used to fulfill any other financial need of the borrower without any preconditions.
• No Security: Personal loans are approved based on the income details and financial history of the borrower and not over any fixed asset as security or collateral. Since personal loans do not require any collateral or security to be mortgaged with the bank for loan approval, they are easy to use for a vast majority of people.
• Flexible Quantum of Loan: Based on the borrower’s financial history and credit report, personal loans are available for expenses as low as Rs.10,000 to as high as Rs.20 lakh, depending on the bank or NBFC concerned.
• Flexible Tenure: The tenure of a personal loan is also quite broad depending on the bank and the loan amount. Personal loans are available for a tenure period ranging from 12 months to 60 months, making it an ideal financial instrument compared to other options like credit card loan or gold loan.

Top Benefits of applying for a Personal Loan

Consolidate debts

You can transfer all your credit card debts into one personal loan. This helps you manage the loan in a better way and avoid defaulting on the repayment.

Flexible

The money borrowed through a personal loan can be used by the borrower in whatever way he/she requires. The loan amount is not limited in its use like other debts such as home loan, car loan, etc.

Fixed monthly installments

The repayment of personal loans can be done in fixed monthly payments. This helps the borrower to plan his/her expenses and make loan repayments in a comfortable manner.

Quick loan approval

The approval process for personal loans is quick and the loan amount is disbursed within 2-3 working days.

Paperless

The personal loan application process is completely paperless at BankBazaar! This actually reduces the turnaround time and ensures complete safety, as there are no chances of misplacing your loan documents. You also end up saving a lot of trees through this hassle-free process!

Flexibility in tenure

Personal loans are offered in India for a period of 1 to 5 years. The borrower can choose the repayment period based on his/her convenience.

Credit score

Paying your personal loan monthly installments on time can help in improving your credit score. This will have an overall positive effect on your creditworthiness and help you in getting financial products easily in the future.

Big Ticket Purchases

A personal loan is the best answer to a cash crunch when you are looking to invest in a business venture or for repairing your vehicle. All salaried and self-employed professionals are eligible to apply for a personal loan, provided they also fulfill the other eligibility criteria.

Personal Loan Eligibility

Various banks and NBFC’s offer personal loans to all applicants fulfilling their basic eligibility criteria. While different banks have different minimum eligibility criteria, the criteria common for most banks and NBFCs for individuals requesting a personal loan include:

Why should you apply for a Personal Loan on Bankbazaar.com

BankBazaar.com, India's premier financial market place has collaborated with various public sector and private banks to offer customized personal loans for its users. An individual can apply for a personal loan online through the BankBazaar website.

Easy Eligibility Check: The loan calculator tool at BankBazaar.com checks for the user’s personal loan eligibility instantly. The tool also offers customized quotes for all eligible users as per their financial credit history and eligibility criteria.

Instant Quotes: The eligible loan applicants are offered instant quotes on personal loan interest rates.

Real time Loan Comparison: BankBazaar.com also offers a simple online personal loan comparison tool allowing users to compare the loan offers of various banks. Feedback shared by previous personal loan applicants is useful for new applicants to get the best personal loan deal.

Instant e-Approval: The applicant gets an instant e-approval after successfully submitting his or her personal loan application.

Assured Privacy: All personal loan applications submitted to BankBazaar.com are sent electronically to the concerned bank department assuring complete privacy and transparency.

How to apply for a Personal Loan on Bankbazaar.com?

Applying for a personal loan at BankBazaar.com involves three simple steps :

Step 1: In the first step, the user must fill the personal loan eligibility form available online with required personal data. Once submitted the personal loan tool automatically checks for eligibility of the applicant and provides personalized personal loan options.

Step 2: In the second step, the applicant can compare various personal loan options offered by the tool interface and apply for the most suitable loan.

Step 3: The last step involves receiving an instant e-approval from BankBazaar.com after successful submission of the personal loan application online.

The application is sent electronically to the selected bank. The loan department of the concerned bank gets in touch with the applicant directly. Users can check the status of their loan application through SMS alerts as well as emails.

Top Banks Providing Personal Loans in India

• HDFC Personal Loan:

  The personal loan offered by HDFC Bank is available for different tenures. Flexible repayment facility and attractive interest rates are other features of the loan. Pre-approved loans are provided to existing customers of the bank in under 10 seconds. Other customers can get a personal loan approved within 4 hours. The loan amount can go up to Rs.40 lakh as well.

• ICICI Personal Loan :

  The personal loan offered by ICICI Bank can be used for any purpose as per the needs of the customer. The tenure of the loan can be up to 60 months and the interest rate is fixed. The interest is charged in a monthly reducing manner on the loan amount. Customers can employ PDC, ESC or auto-debit for the EMI repayment on a monthly basis. The maximum loan amount offered is Rs.20 lakh.

• Bajaj Finserv (Finance) Personal Loan :

  Bajaj Finserv offers personal loans up to Rs.25 lakh with flexible payment options and minimal documentation. Loans can be repaid based on the convenience of the customer within 12 to 60 months. The Flexi Personal Loan product from the bank enables customers to borrow funds with lower EMI. The bank approves personal loan applications within 5 minutes and the funds are disbursed within 24 hours as well.

• SBI Personal Loan :

  The State Bank of India (SBI) offers three different kinds of personal loans to customers:

  • Xpress Credit Loan - This personal loan product is offered to an individual having a salary account with SBI. The loan product comes with relatively lower interest rates and low processing fees. The customer has to provide only minimal documentation for the loan approval. The minimum loan amount is Rs.25,000 for a term loan while the maximum can go up to 24 times the net monthly income of the applicant, as long as the maximum does not exceed Rs.15 lakh. The repayment period can go up to 60 months as well.
  • SBI Pension Loan - Central/State Government employees and defence pensioners who are drawing pension from one of the SBI branches can get an SBI Pension Loan. The applicant should not be more than 76 years of age. The loan has nominal processing fees and no hidden costs. The minimum loan amount is Rs.25,000 and the maximum amount varies based on several factors.
  • Xpress Power - This loan is offered to salaried individuals who do not have a salary account with the bank. The minimum loan amount is Rs.25,000 and the maximum amount is 24 times the net monthly income (NMI). Term loan or overdraft facility can be opted for.
• Axis Bank Personal Loan:

  Axis Bank offers personal loans from Rs.50,000 to Rs.15 lakh to customers. The loan approval process is speedy and only minimal documentation is required. The minimum age of the applicant should be 21 years and the age at the time of loan maturity should not be more than 60 years. The applicant should also have a net monthly income of Rs.15,000. The loan repayment tenure is between 12 and 60 months.

Choosing the right Personal Loan

BankBazaar.com offers users the opportunity to choose from the best personal loan products in India as per the borrower’s repayment capacity and choice of tenure. BankBazaar.com offers customized personal loan quotes from various banks and non-banking financial companies. Users can choose the most suited bank or NBFC for their personal loan requests as per the charges and other features.

Documentation needed to Apply for a Personal Loan

Different banks and NBFCs have different minimum documentation requirement for personal loans. The common documents required by most banks and NBFCs for individuals requesting a personal loan include :

Documents for Salaried Individuals:

• Proof of Identity: Passport, Driving License, Voters ID or PAN Card
• Proof of Residence:-Passport or utility bills
• Latest 3 months Bank Statement of Salary Account
• Salary slips for last 3 months.

Documents for Self-Employed:

• Proof of Identity: Passport, Driving License, Voters ID or PAN Card
• Proof of Residence:-Passport or utility bills
• Income proof: Audited financials for the last two years.
• Last 6 months Bank statement.
• Office address proof.

How to calculate EMI for Personal Loans?

EMI calculation for personal loan is now made easy using the EMI calculator available at BankBazaar.com. The tool gives users the option of changing the loan amount and tenure while calculating the EMI for the personal loan. EMI calculator tool is a great option that allows users to see their monthly installments towards the loan. It helps them choose the most suitable loan as per their budget.

Personal Loan EMI Calculator

You can check out the following personal loan EMI calculator table to get an idea about how EMIs are computed for personal loans. It illustrates the different EMIs you will have to pay for different loan tenures according to the loan amount you choose.

For the following table, we have assumed that the interest rate is 10.99% and that the processing fee is 2%. The processing fee is usually a certain percentage of your personal loan amount. If you are using the BankBazaar personal loan EMI calculator, you can specify if you want to make pre-payments or not. You can accordingly select the option. If you want to make pre-payments, you will have to mention the pre-payment frequency, pre-payment fee, and pre-payment amount.

Tips to Keep in Mind While Applying for a Personal Loan

• Assess the need for your personal loan: You will need to be clear about the need for your personal loan. You can take it for funding your wedding arrangements, paying your hospital bills, buying medicines, etc. Before you apply for the loan, you will need to assess if you really want the loan. If you are planning to take a personal loan for investing in shares or other financial instruments, then it may not be a great idea.
• Do proper research to get the best rate for your personal loan: You can do online research by visiting third-party financial websites or by going to the banks’ official websites to compare different interest rates for personal loans. This will help you get a proper idea about the costs that you will incur.
• Check your credit history: Before you proceed to apply for a personal loan from any bank or NBFC, you will need to assess your credit history thoroughly. This will give you an idea about the loan amount that you will receive. You need to make sure your credit history looks decent before you apply for a loan.
• Review the fine print on your loan document carefully: Make sure you read the personal loan details carefully as this will give you a clear understanding of the commitment you are making in terms of the repayment.
• Choose your personal loan tenure by assessing your repayment ability: A personal loan typically ranges from 1 to 5 years. You can fix the loan tenure according to your loan amount, your other monthly expenses, and the income that you earn on a monthly basis.
• Choose an affordable interest rate: Ensure that you choose an economical interest rate for your personal loan. With a low-interest rate, your loan expenses will be low and you can repay it without any hassle. You will also avoid any defaults on loans.
• Select your personal loan amount as per your convenience: You can choose your personal loan amount depending on your repayment capability, your income, and your expenditures.
• Check your EMIs properly: You will need to compute your EMIs before you fix your personal loan amount. This will help you plan your expenses efficiently. You can multiply this loan EMI with your loan tenure to find out your precise loan amount. You can then choose the lowest loan amount.
• Compare the processing fee: Most banks and NBFCs charge a processing fee for a personal loan. You can compare this fee and then decide which loan product you want.
• Select fixed or variable interest rate according to your preference: When you choose fixed interest rate, your loan payment will remain fixed throughout the loan tenure. When you select variable interest rate, your loan payment will depend on the rate. Hence, the loan payment will increase if the rate increases and the loan payment will reduce if the rate reduces.
• Be wary about automatic payments: If you choose standing instruction or ECS as your loan payment mode, you will need to be careful about the direct debiting of money. You should make sure that no additional amount is deducted from your account unnecessarily. You will need to monitor your loan payments on a regular basis to ensure that everything is being done properly.

What are the Different Types of Personal Loans?

There are several types of personal loans available in India:

• Based on interest rate - Fixed rate loans and variable-rate loans
• Based on asset requirements - Line of credit
• Based on need - Debt consolidation loans and payday loans

How to Improve Your Chances of Getting a Personal Loan?

If you want to make sure that your personal loan application is accepted, here are some important guidelines to follow

• Be aware of your credit score: When you plan to apply for a personal loan, you need to be fully aware of your credit score. You should decide your lender and your loan amount as per your credit score. If your credit score is low, you can work on improving it within a specific period of time and then apply for the loan. This will increase the chances of your loan getting approved. If you have made any late payment for your previous loans or credit card bills, then you should ideally wait for a few months before submitting a loan application.
• Select your lender as per your credit score: Lenders respond to credit scores in different ways. Conventional banks and NBFCs may not offer personal loans if you have a low credit score. In such cases, you can approach the new-age lenders who may agree to provide you with a loan with certain terms and conditions.
• Make sure you check your debt-to-income ratio properly: The loan amount that you apply for and the income that you earn on a monthly or annual basis should be proportionate. If you apply for a personal loan amount which is much higher than your repayment capability on a monthly basis, then your application may not get accepted.

Do’s and Don’ts While Taking a Personal Loan

Do’s:

Do proper research before you apply for a personal loan: Make sure you do good research regarding the various interest rates and prepayment charges implemented by the Reserve Bank of India (RBI) for multiple loans? You will also have to keep yourself updated about modifications made to these charges. Banks tend to change their decisions about fees and interest rates on a regular basis. It is important for you to be aware of these aspects so that you do not get scammed while taking a personal loan.

You will need to do relevant homework about the numerous loan amounts, loan tenures, and loan rates of different banks. When you do your homework sincerely, you will be able to grab a great loan deal that offers a low-interest rate along with meeting your other preferences.

Moreover, when you spend some time on research, you will get to know about new personal loan schemes or special offers on certain schemes. You can save a lot by making use of these offers. You may also be required to pay very low processing fees when you make use of these special loan deals.

Do read the fine print carefully: When you take a personal loan from a bank or NBFC, make sure you read the fine print of your personal loan document cautiously. You should be aware of all the terms and conditions associated with your personal loan. If you find any discrepancies with your loan details, you should immediately ask your lender for clarification. This will avoid any unnecessary confusion later. Take some additional time to read the material written in tiny fonts so that you do not have any problem in the future. If you want, you can take the help of any professional financial consultant to clearly understand your loan terms and conditions.

Do save your money carefully when you are repaying: You may typically take a few years to repay your personal loan completely. During this time, it is important that you keep aside a part of your funds for emergency purposes and other needs. If you solely focus on clearing your debt without saving anything, you may get yourself into trouble.

Do pay your loan installment promptly every single time: When you are repaying through monthly installments, you should make sure that you pay each installment amount on time. You should focus on not missing any of your payment deadlines. If you miss any of your payment deadlines, you will unnecessarily have to pay a late payment charge. You may also be treated as a borrower who has defaulted his or her loan. This can affect your credit score negatively.

In case you are struggling to repay your loan during any particular month, you can prioritize your other payments. You can forego certain expenditures to avoid unrequired additional payments. You can create a plan to first pay your loan EMI for that certain month and then your other bills. When you give first priority to your loan EMIs, you can avoid a negative mark on your credit report and credit score.

Do evaluate your credit score thoroughly: Before you even approach a bank for a personal loan, check your credit score thoroughly. When you are aware of your credit score, you can assess the probability whether your loan will get approved or not. Your credit score also plays a significant role in determining the interest rate for your personal loan. You can check your credit score by using the credit score calculator available on the web portal of BankBazaar. It offers an accurate credit score for free! You only have to key in certain relevant details and you will get your results instantly. The Credit Information Bureau (India) Limited (CIBIL) provides a credit score to an individual only if he or she has taken a credit card or a loan previously.

Do apply for an affordable loan amount: You should make sure that you choose your loan amount only after careful thinking. You should check out the various loan rates and loan fees and also you’re other expenses. Accordingly, you should apply for a particular loan quantum. Do not go overboard while applying for a loan because you should remember that you will only have to repay this entire loan amount. Hence, be watchful about how much you apply for.

Do have a clear picture of what you need the loan for: Do not take a loan just because you can get it easily. Before you apply for a personal loan, you should be fully clear about why you require it. Once you procure the loan from your bank or any other lender, you should stick to the purpose that you had in mind. You do not have to mention the purpose to your lender. However, you will need to stick to it when you are repaying your loan.

Don’ts:

Do not sign your loan documents without understanding every point: You should avoid signing your loan document without comprehending each point. You must read all the terms and conditions given in your loan document before you agree to sign it. If you have any doubt regarding the features of your loan, you will have to immediately contact your bank representative for assistance. It is better to get everything clarified before you sign the document. Once you sign the loan document, the bank may not agree to make any changes even if you do face any issue later.

Do not make multiple inquiries regarding personal loans from different banks: Make sure you approach a certain bank or NBFC only after you do a good amount of research. You can shortlist different banks after checking to see what they have to offer. If you approach numerous lenders to apply for a loan, there will be a record of excessive credit inquiries in your name. This can affect your credit report poorly. Your credit score can also get impacted.

Do not take a personal loan without any serious purpose: It makes sense to apply for a personal loan for making wedding arrangements or for funding your higher education course or for renovating your living space. However, stay away from taking a personal loan for frivolous purposes such as hosting parties, having fancy dinners, or vacationing at some exotic location. When you take a personal loan for such reasons, you may end up getting into trouble. You will end up paying extremely high bills for these purposes with your personal loan and then you may struggle to repay the loan.

Do not be in a hurry to end your loan comparison process: A few lenders may force you to finalize on a particular loan product without giving you time to compare other loans or to read your loan terms and conditions. You should avoid getting pressurized by such lenders. You can take proper time to check out various loan options and compare the different features of each loan option. Accordingly, you can finalize on one. If your lender does not encourage you to compare other options, you will need to be wary about this lender. Such lenders may have a few other intentions to cheat you by taking your money.

Do not forget to pay your loan installments: This tip may seem a little too obvious. However, you should make sure that you never ever miss your payment deadline. If you are clearing your loan through EMIs, you will have to be ready with your amount every month without fail. If you miss paying even one installment, your credit score can get harmed and then your creditworthiness will come down each time you fail to pay. Moreover, you will be asked to pay a heavy penalty whenever you delay any bill payment. Apart from your regular repayments, you will be forced to pay additional heavy amounts as a fine. You can avoid this unnecessary headache by just being a little conscious to pay your EMIs promptly.

Do not accept bad personal loan products: Avoid bad decisions regarding personal loan products. There are multiple types of personal loans available in the market. Hence, you will have to be financially sensible while choosing them. The common personal loans will help you enhance your financial wealth and assist you in attaining your financial goals. However, there are a few bad personal loan options such as payday loans or title loans. These loans require you to pay heavy penalties and they also do not allow you to redeem conveniently.

You can typically stay away from short-term personal loans that will make you pay high-interest rates. You will end up incurring higher expenses compared to the original amount that you would have borrowed.

What is the Typical Amount and Period of a Personal Loan?

Typical personal loan amount: For a personal loan, the loan amount generally depends on your employment status, income, loan tenure, etc. Your lender will find out if you are a salaried employee or a self-employed individual. When you give your monthly income, your lender will typically make sure that your loan EMI is not above 40 to 50% of your monthly income. Your lender will also look into your existing loans or credit card dues (if any) to fix your personal loan amount.

If you are a self-employed individual, your lender will ask you for your profit or loss statement to assess the recent profits that you have earned along with the additional liabilities such as your business expenses, etc. According to this information, your lender will fix your personal loan amount.

The minimum personal loan amount varies in India. However, most banks and NBFCs have fixed Rs.30,000 as the minimum loan principal amount for personal loans.

The maximum personal loan amount will typically be fixed according to a few important aspects such as your income, your present liabilities, and your credit score.

Typical loan tenure or loan period: In India, a personal loan is generally provided for a period of 12 to 60 months or 1 to 5 years. If you are looking for a longer or shorter loan tenure, you can check with your lender if it will be possible.

Time taken generally for loan disbursal: When you apply for a personal loan, it will get disbursed within a period of 7 working days. After your loan application gets sanctioned, you will get an account payee cheque or draft which will be equivalent to your loan amount. Alternatively, your loan amount will be deposited into your savings account via electronic methods.

Know More About: How to Choose Right Personal Loan

My Credit Score is Below 750. Will I Get a Personal Loan?

When you apply for a personal loan, there is no assurance that you will receive a loan even if your credit score is high. However, it is more likely that you will get a loan if your score is 750 or above.

When your score is below 750, you may most likely not qualify for a loan. However, you can try taking alternative steps to get a loan:

1. Show income proofs to your lender: If you have recently got a salary increment or a better job offer with a good pay hike, then you can show relevant documents to your lender. When your lender is aware that you are earning better now and that you will not struggle to repay, your application is more likely to be approved. Meanwhile, you can work on improving your credit score by following stringent measures to clear all your debts quickly.
2. Check out peer-to-peer lending: Peer-to-peer lending is not a mainstream form of lending. However, when banks and leading NBFCs are not ready to offer a loan to you due to your CIBIL score, you can consider borrowing from peer-to-peer lenders. However, you may have to pay very high interest rates for such loans.
3. Take help from your spouse or family member: If your spouse or any other close family member has a better credit score than you, you can take his or her support to apply for a personal loan. You may also apply for a personal loan with your spouse as a joint applicant.
4. Take a secured personal loan: Personal loans are usually unsecured loans. However, if you have a low CIBIL score, you can discuss with your lender and decide to go for a secured personal loan. You can offer any valuable asset as a collateral. In this case, your lender may be ready to ignore your credit report. You can give FDs, assets, shares, or gold as your collateral.
5. Find out about NBFCs that offer personal loans in spite of low credit score: Most banks are very strict about applicants meeting eligibility criteria related to credit score. Hence, you should do proper research to find a reliable NBFC that will agree to offer you a personal loan in spite of your low credit score. You may be required to pay a high interest rate though.
6. Improve your credit score: You could also discuss with your lender that you are implementing appropriate steps in order to bring up your credit score. You could take some time to enhance your credit score and then apply for a personal loan. This will prevent any form of loan rejection and it will also help you avoid too many credit inquiries.

Once your credit score is 750, you can stick to a good schedule of repaying all your installments on time.

What are the Other Factors That Influence Approval for a Personal Loan, Apart from Credit History?

When you apply for a personal loan, your lender will check other factors apart from your credit history. These factors include your income, your employment status, your previous payment records, etc.

If you show that you have a good income, your loan application will receive a positive result. If you have a regular flow of income each month, then your lender will be satisfied. The lender will check the documents regarding your employment and your income. If you have moved jobs quite regularly, your loan application may not get approved instantly. This is because your lender will assume that you will not be earning a steady income and that you may struggle to clear your debts. Hence, you should ideally apply for a personal loan only after you have been with a company for a long period.

Personal Loans for NRI

In India, banks and NBFCs offer exclusive personal loans for non-resident Indians (NRIs) according to their specific preferences and needs. You can apply for the loan by visiting a bank branch in India or by going to the official website of the bank. Many banks offer personal loans against fixed deposits. Some banks may require the applicant to be a resident Indian and the co-applicant can be the NRI who is a close relative of the applicant.

The documentation process for NRIs is also minimal and simple. You will need to furnish certain relevant documents such as your visa, passport, salary certificate, and bank statements from both domestic and foreign banks. Generally, the personal loan tenure for NRIs is up to 36 months.

Personal Loan Balance Transfer

Many banks offer the personal loan balance transfer facility that help you in minimizing the burden of your current loan. You can transfer the balance of your existing loan to a new personal loan account and then get additional finances for your other needs. This facility will help you secure a low interest rate.

• Under this facility, the unpaid principal amount is transferred to another account. This facility is easily accessible if you have not defaulted on any of your EMIs.
• Apart from reduced interest rates, you can also enjoy longer loan tenures. You may have to pay a small amount as a balance transfer fee to your lender. This depends on the bank or the NBFC that you have chosen.
• You may also go for a loan balance transfer if your current lender is not offering satisfactory services.
• When you go for a balance transfer, you should make certain that you go for a loan that costs lesser than your current one.
• Also, if your present bank fails to meet certain conditions that were negotiated earlier, then you can go for a loan transfer.
• Moreover, you can get a top-up loan facility to get more funds for your other requirements.
• While comparing balance transfer options, you should take into account the change in EMIs. The new financial institution may offer lower EMIs when you go for the balance transfer. However, in such cases, the interest may increase very drastically. Hence, you should be very cautious when you choose your new lender.
• Next, you should consider the processing fee for your new balance transfer facility. Ideally it should be lesser than what you are paying for your present loan product. You should also check the legal fees, technical fees, administrative fees, valuation fees, etc. when you pick a balance transfer option.
• You should be wary about the special offers provided for loan balance transfers. Nowadays, lenders offer exclusive discounts on loan transfers. Before you go for any of these offers, make sure you read the details regarding the offer very carefully.
• You will also need to read the terms and conditions regarding your new personal loan balance transfer programme.
• You will have to make sure you collect all the documents that you had given to your present lender and give them to your new lender.
• If you are asked to give a collateral for your loan transfer, make sure that you give a collateral with a lower value than your original collateral.

How to Choose Personal Loan Tenure Wisely

When you want to select your personal loan tenure, you will need to consider your interest rate and your EMI amounts. You need to remember that if you go for a longer loan tenure, your EMIs will be lesser. This way, you will incur less expenses for your personal loan. However, you also need to bear in mind that you will be paying higher interest if you choose a loan for a longer tenure.

You can calculate your EMIs by using a personal loan calculator which is available online. Many third-party websites and official websites of banks have an advanced EMI calculator. You can check out the EMI calculator offered by BankBazaar. After computing your EMIs for different loan tenures, you will get an idea about how much you will spend each year. Accordingly, you can choose your loan tenure.

You should also consider your prepayment terms. When you are sure that you will be prepaying your loan, you can enter these details in the EMI calculator. You will get accurate results accordingly. You will most likely be asked to pay a prepayment penalty when you go ahead. If you want to prepay your loan within 1 or 2 years, you can go for a longer loan period so that your monthly payments will be lesser.

Diwali Bonus Wali November’18 : Apply for Personal Loan from BankBazaar & Get Rs.750 Amazon Gift Voucher

BankBazaar is offering you an attractive deal on Personal Loan that you simply should not miss! Select any one of the Personal Loan products from participating banks on the BankBazaar.com website and win an Amazon gift voucher worth Rs.750.

How to participate in the deal

• The customer will have to apply for a Personal Loan (marked with the badge Rs.750 Amazon voucher) through the website BankBazaar.com, between 1st November, 2018 to 30th November, 2018.
• If the Personal Loan product is disbursed on or before 15th January, 2019, the customer receives an Amazon gift voucher worth Rs.750.
• The voucher will be sent to the email ID provided by the customer at the time of purchase of the Personal Loan.
• Customers can visit the amazon website or use the Amazon app for redemption of the gift voucher.

How to use the gift voucher at the Amazon website

• The customer can log in to the Amazon website or use the Amazon app in order to redeem the voucher.
• The user selects the merchandise that he/she would like to redeem and applies the coupon code on the voucher at the time of billing.
• It is important to check the coupon e-mailer for the validity of the code.
• The customer can visit the website www.amazon.com for detailed terms and conditions.

Important points to note

• The redemption process and directions for use of the voucher are solely governed by the terms and conditions set by the merchant.
• The shipment and tracking options for the redeemed product are also based on the terms and conditions of the merchant company. BankBazaar is not liable for the same.
• Voucher requests for Personal Loan products that are disbursed after the expiry of the suggested timelines will not be honoured.
• The gift voucher is applicable only to Personal Loan products offered by select partners.
• The customer should be 18 years of age or more to be eligible for this offer.
• Disbursal of the Personal Loan will be at the sole discretion of the partner bank.
• If the voucher is lost or damaged after issuance, BankBazaar will not be liable for the same. Vouchers cannot be cancelled or replaced after issuance.
• The offer is valid for 1 order for Personal Loan per participant, during the program period of 1st November, 2018 to 30th November, 2018.
• The voucher cannot be exchanged for credit or cash alternative.
• Resale, reproduction, trade, or alteration of the voucher is not allowed.
• The voucher cannot be reused after the first usage.

Happy Shopping!

Most Recent Articles on Personal Loan

Products you might be Interested