Srinagar is the capital of Jammu and Kashmir State in India. Situated in the heart of the Kashmir valley, this beautiful place is rightly known as the “Heaven on Earth”.The city is also famous for fresh fruits, dry fruits and spices. The city is considered to the hub from where handicrafts, woolen clothing and fruits are delivered to different parts of the country.There are a number of educational institutes in the city of Srinagar. The National Institute of Technology, Srinagar, is one of the oldest NIT in the country. There are a large number of retail shops in Srinagar which display some of the most exquisite collections of carpets, shawls, handicrafts and many more. The city also exports spices such as cardamom, cloves, saffron, cinnamon and so forth
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|
Srinagar, the largest city in Jammu and Kashmir, has a number of leading banks and NBFCs which offer personal loans to customers who reside in Srinagar so that their financial needs and requirements are met. In addition to personal loans, banking institutions offer other services such as asset management, core banking facilities, alternate forms of commercial lending, and investment advice.
Some of the prominent financial institutions that are located in Srinagar that offer personal loans at attractive interest rates are listed below:
When you apply for a personal loan in Srinagar, there are a few factors that play an important role in securing your loan. The format and information provided in your application letter plays a vital role in having a personal loan sanctioned as well as the interest rate offered on the loan amount. The interest rate that is offered by the lender who sanctions the loan to you. Though a personal loan is easy to apply for, you should be cautious when applying for one. A good credit score plays a vital role in applying for a loan. A credit score of 750 and above is considered as a good credit score to have and this plays a big role in getting your application for a personal loan approved. The interest rate is also dependent on this criteria. A credit score that is higher than the benchmark that has been set by banks and lenders will fetch a lower interest rate for your loan and vice-versa. If you have a bad credit score, you should do what you can to increase it. Paying off any unpaid premiums or loans is a good way to increase your score.
You should also make sure that you do an ample amount of research before you apply for a loan amount with a bank. You have to have a clear idea about the banking institution that you want to apply for a loan to as well as the amount that you need to borrow from the bank. If you end up borrowing an amount that exceeds the amount that you really require to meet your needs, you will end up paying an extra amount to the banking institution as interest. If you borrow an amount that falls short of meeting your needs, you might end up applying for another loan amount. This can become a hassle as managing two loans can be quite risky. You could end up missing out on a payment which would lead to a drastic drop in your credit score.
There are a number of major public and private sector banking institutions that offer personal loans to the residents of Srinagar. Listed below are some of the banks in Srinagar and their interest rates:
|Bank||Processing Fee||Interest Rate||Loan Amount||Tenure|
|Citibank||1% to 2.5%||11.49%-15.99% (Fixed)||Rs.30 lakhs||1-5 years|
|Capital First||Up to 1.5% (OTF*)||12%-18% (Fixed)||Rs.15 lakhs||1-5 years|
|Standard Chartered||Nil||10.99%-14.49%||Rs.30 lakhs||1-5 years|
|HDBFS||1%-2% (OTF)||13.99%-16.99%||Rs.30 lakhs||1-5 years|
|TATA Capital||Nil||11.99%-19.50%||Rs.20 lakhs||1-6 years|
|ICICI Bank||2.25% (Min. Rs.1,149)||11%-17.99%||Rs.20 lakhs||1-5 years|
|IndusInd Bank||Up to Rs.3,000 (OTF)||11.99%-19% (Fixed)||Rs.25 lakhs||1-5 years|
|Oriental Bank||0.5% (OTF)||10.85%-11.85%||Rs.50,000-Rs.10 lakhs||1-5 years|
|HDFC Bank||Up to 2.5% (OTF)||10.99%-19.8% (Fixed)||Rs.25 lakhs||1-5 years|
|Aditya Birla||Nil||11.5% to 13.25% (Fixed)||Rs.30 lakhs||1-5 years|
|Fullerton||1.5% to 6% (OTF)||17.25% to 37% (Fixed)||Rs.15 lakhs||1-4 years|
|Kotak Business Loan||0.99% to 2%||12.99% to 14.50%||Rs.45 lakhs||1-5 years|
|HDBFS Business Loan||2% (OTF)||15.95%-18.95% (Fixed)||Rs.20 lakhs||1-3 years|
|Kotak Mahindra||Up to 2%||11.49% - 20.15%Fixed||Rs.15 lakhs||1-5 years|
|Allahabad Bank||1.22% (Min. Rs.1,228)||13.10% (Fixed)||Rs.50,000 to Rs.7.5 lakhs||1-5 years|
|Bank of India||Rs.1,000 to Rs.10,000 (GST not included)||13%-14% (Fixed)||Rs.10,000-Rs.5 lakhs||1-3 years|
|Bank of Baroda||1% (Min. Rs.1,000) OTF||11.35%-14.35% (Fixed)||Rs.20,000 to Rs.2 lakhs||4 years|
|BOM||1% (Min. Rs.1,000)||12.75% (Fixed)||Rs.1.5 lakhs||1-3 years|
|Canara Bank||Rs.1,000 to Rs.5,000 (OTF)||12.75% (Floating)||Rs.3 lakhs||5 years|
|Dena Bank||1% (OTF)||13%-14% (Fixed)||Rs.15,000 to Rs.1 lakh||1-3 years|
|Central Bank||Rs.500 (OTF)||11.4% (Floating)||Rs.10 lakhs||4 years|
|Indian Bank||Rs.508 to 0.508% (OTF)||12.65% to 13.65% (Floating)||Rs.50,000 Max.||3 years|
|IDBI Bank||1%+S.T. (OTF)||12.20% (Floating)||Rs.50,000 to Rs.10 lakhs||1-5 years|
|IOB||1.01% to 1.10% (OTF)||13.65% (Fixed)||Rs.1 lakhs to Rs.15 lakhs||1-5 years|
|South Indian Bank||0.50% (OTF)||13% (Fixed)||Rs.3 lakhs||1-4 years|
|Karur Vysya||0.4% (OTF)||13.35% to 15.85%||Rs.1 crore Max.||1-3 years|
|SBI||1% (OTF)||12.90% to 14.90%||Rs.24,000 to Rs.15 lakhs||5 years|
|Vijaya Bank||Nil||13.50% (Fixed)||Rs.10 lakhs||1-5 years|
|Tamilnad Mercantile||1% (OTF)||14.30% to 16.30% (Floating)||Rs.2 lakhs Max.||1-5 years|
|Union Bank||0.5% (Min. Rs.500) OTF||14.4% (Floating)||Rs.5 lakhs Max.||1-5 years|
|UCO Bank||1% (Min. Rs.750) OTF||11.35% to 11.60% (Fixed)||Rs.10 lakhs||5 years|
|Yes Bank||Up to 2% (OTF)||14% (Fixed)||Rs.20 lakhs||1-5 years|
*OTF – One Time Fee
There are a few factors that a banking institution has to consider when they receive a loan application. One criteria that they look for is your capability to repay the loan amount that you have borrowed. The salary requirements needed to repay a loan amount has been listed below:
Are there any additional charges that are associated with a personal loan?
Yes, there are additional charges. Most banks charge from 2% to 2.5% of the total amount that you wish to borrow. The fee is deducted from the amount that has to be disbursed to you.
How long will the bank take to approve my application for a personal loan?
The time taken to approve and sanction a personal loan will vary from bank to bank. While some banks approve loan applications within 48 hours, there are some banks that take at least a week. Usually a loan application is approved between two and seven working days.
How do I repay my personal loan?
The repayment of a personal loan can be done in the form of Equated Monthly Instalments (EMIs) via post-dated cheques in favour of the bank from which you have availed the loan. You could even link your debit account to your loan if you have taken a loan from a bank where you have a savings bank account. The amount that you need to pay as EMI will automatically get deducted from your savings account.
Can I get the balance transfer facility in my personal loan?
It depends on the bank. There are some banks that offer the balance transfer facility if the customer has made at least 12 EMI payments. You can check with your bank before you apply for the loan.
Can I receive Tax Benefits on my personal loan?
Unless the personal loan is used for a home renovation project, tax benefits are not associated with personal loans. You can, however, avail tax benefits under Section 24 of the Income Tax Act on the interest that is paid on the loan but not on the principal amount that is paid.
A GST rate of 18% will be applicable on banking services and products from 01 July, 2017.
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