Vijayawada is a commercial city in the Krishna district of Andhra Pradesh, and the third largest after Hyderabad and Visakhapatnam. The city is also popularly known by its historic name Bezawada.It is one of the busiest railway junctions in India and the second biggest bus terminus in Asia. This City is the commercial capital of the State and is politically active, socially dominant, and agriculturally rich and is an industrial transportation hub.The GDP of Vijayawada for 2008 was estimated at INR 5526 crores, INR 18,000 (US $3 billion) crore in 2010. The GDP is projected to grow to (US $17 billion) INR 1, 02, 000 crore by the year 2025.
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|
Personal loan also known as unsecured loan is a type of loan that is availed by a borrower from a bank or a financial institution to meet their personal expenses. Customers avail personal loans to pay for wedding-related expenses, pursue further education, clear off existing debts, or to help a loved one who is in a financial crisis. Personal loans attract high interest rate as unlike a home loan or a car loan, a personal loan is not backed by a collateral. In the bank’s eyes, a personal loan is risky as the only way to collect the funds back from the customer is to expect that they pay the agreed EMI on time.
EMI stands for Equated Monthly Instalments. This is the amount that a borrower agrees to pay to the lender towards the repayment of the loan taken. The EMI amount is calculated by dividing the total loan amount taken by the borrower, plus charges if any, and the total interest payable by the number of months the loan is taken for.
There are many leading banks that offer personal loans in Vijayawada. Some of the banks and financial institutions are:
The interest rate that you pay on your personal loan is decided by the lender. Although the decision is taken by the lender, there are few things a borrowers can do to ensure they get low interest rates. Some of the steps you can take to avail a personal loan with low interest rate are:
Employer-bank relationship: When you are applying for a personal loan, please check if your employer is tied-up with any bank. Usually, employers request banks to roll out offers on a personal loan for their employees.
Display creditworthiness: Creditworthiness depends on the credit history of the borrower. If the borrower has paid their bills on time without defaulting in the past, they will be considered to be credit-worthy is the bank’s eyes. To display your creditworthiness, please pay your bills on time, do not default on your loans, and don’t use your credit card to the brim.
Shop online: Most people approach the bank they are transacting with if they are in need of a personal loan. However, if you want to avail a personal loan at the lowest interest rate, shop online. When you compare various personal loans online, you will get to know about the best deal available for you in the market. Many third-party websites like BankBazaar allows you to compare various personal loans available in the market.
Check for pre-approved loans: From time to time, banks give pre-approved personal loans to their customers. As the name suggests pre-approved loans mean that the bank has already approved the loan for you and all you have to do is to apply for it. As these kind of loans is given to selected account holders, banks give exciting discount on the interest rate.
Reduce your debts: When you submit a loan application to the bank, they check if you have any existing debts. Try to avoid huge debts when applying for a personal loan. Make sure you have a good debt-to-income ratio. Debt-to-income ratio indicates the total amount of debt you have and the income you earn. Always make sure that you have less than 10% of your income as debt. The lesser the debt, the better.
|Bank||Interest Rate Range||Type of interest rate||Processing Fee Range||Loan Amount||Tenure|
|ICICI Bank||11.59% to 18.49%||Fixed||2.25% (min of Rs.1,149)||Up to Rs.20 lakhs||Up to 5 years|
|Oriental Bank||10.85% to 11.85%||Floating||0.5%||Rs.50,000 to Rs.10 lakh||Up to 5 years|
|HDFC Bank||11.49% to 19.8%||Fixed||Up to 2.5%||Up to Rs.25 lakhs||Up to 5 years|
|IndusInd||11.99% to 19%||Fixed||Up to Rs.3,000||Up to Rs.25 lakhs||Up to 5 years|
|Fullerton||17.25% to 37%||Fixed||1.5% to 6%||Up to Rs.15 lakhs||Up to 4 years|
|Kotak Mahindra Bank||11.49% to 20.15%||Fixed||Up to 2%||Up to Rs.15 lakhs||Up to 5 years|
|Aditya Birla||11.5% to 13.25%||Fixed||Up to 2%||Up to Rs.15 lakhs||Up to 5 years|
|Allahabad Bank||13.10%||Fixed||Up to 1.22% (Min of Rs.1,228)||From Rs.50,000 to Rs.7.5 lakhs||Up to 5 years|
|Bank of Baroda||11.35% to 14.35%||Fixed||Rs.1,000 to Rs.10,000||Rs.20,000 to Rs.2 lakhs||Up to 4 years|
|Bank of India||13% to 14%||Fixed||Rs.1,000 to Rs.10,000||Rs.10,000 to Rs.5 lakhs||Up to 3 years|
|Citibank||10.99% to 15.99%||Fixed||1% to 25%||Up to Rs.30 lakhs||Up to 5 years|
|Standard Chartered Bank||11.25% to 14.49%||Fixed||Nil||Up to Rs.30 lakhs||Up to 5 years|
|Capital First||12% to 18%||Fixed||Up to 15%||Up to rs.15 lakhs||Up to 5 years|
|Tata Capital||11.99% to 19.50%||Fixed||Nil||Up to Rs.20 lakhs||Up to 6 years|
|HDBFS||13.99% to 16.99%||Fixed||1% to 2%||Rs.1 lakh to Rs.5 lakhs||Up to 5 years|
The income requirements to avail a personal loan in Vijayawada depends on the bank that you are availing the loan from. Generally, the salary requirements are as follows:
Currently, the lowest interest rate one can get on their personal loan in Vijayawada is 10.85% p.a. Please note that the interest rate keep changing from time to time. The best interest rate on a personal loan can be anywhere between 10% p.a to 12% p.a.
Banks may charge you a prepayment fee if you close the personal loan before the agreed loan term. However, the prepayment rules differ from one bank to another. Please check with your lender about prepayment options.
Usually, banks ask you to submit last 6 months bank statements and 3 months’ salary slip to approve your personal loan. You may not qualify for a personal loan if you do not have a regular source of income.
You can apply for a personal loan in any one of the following ways:
Generally, the tenure for a personal loan ranges from 12 months to 60 months.
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