Vijayawada is the third largest city in Andhra Pradesh, after Hyderabad and Visakhapatnam. It is located in the Krishna district. The city is also known historically as Bezawada. It is one of India's busiest railway junctions and Asia's second busiest bus terminal. This city is the state's commercial centre, and it is also the state's political, social, and agricultural capital, as well as an industrial transportation hub. Vijayawada's GDP was predicted to be Rs.5526 crores in 2008, and Rs.18,000 (US $3 billion) crore in 2010. By 2025, the GDP is expected to reach (US $17 billion) INR 1, 02, 000 crore.
A personal loan is considered to be an unsecured loan that the borrower uses for any kind of purpose. These kinds of loans do not require any kind of collaterals and are provided by banks, credit unions, and other financial institutions.
|Interest Rate (Monthly reducing balance)||10.99% - 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:Please check if your employer is affiliated with any bank when applying for a personal loan. Employers frequently ask banks to make personal loan offers to their employees.
Display creditworthiness: The borrower's creditworthiness is determined by his or her credit history. In the perspective of the bank, a borrower will be considered credit-worthy if they have paid their debts on time without defaulting in the past. Do pay your bills on time, don't default on your loans, and don't overuse your credit card to demonstrate your creditworthiness.
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 apply for a loan, the bank checks to see if you have any outstanding debts. When asking for a personal loan, try to stay away from large debts. Make sure your debt-to-income ratio is in good shape. The debt-to-income ratio shows how much debt you have compared to how much money you make. Always make sure that your debt is less than 10% of your gross revenue. The less debt you have, the better.
|Bank||Processing Fee||Interest Rate||Loan Amount||Tenure|
|Citibank||1% to 2.5%||9.99% - 16.49% (Fixed)||Rs.30 lakh||1-5 years|
|IDFC FIRST Capital||Up to 3.5% (OTF*)||10.49%-22%||Rs.40 lakh||1-5 years|
|Standard Chartered||Nil||11.49% p.a. onwards||Rs.50 lakh||1-5 years|
|HDBFS||At the discretion of the lender||Up to 36% p.a.||Rs.20 lakh||1-5 years|
|TATA Capital||2.75%||10.99% onwards||Rs.25 lakh||1-6 years|
|IndusInd Bank||2.5% of the loan amount||11.00% onwards||Rs.15 lakh||1-5 years|
|HDFC Bank||Up to 2.5% (OTF)||10.5%-21% (Fixed)||Rs.40 lakh||1-5 years|
|Aditya Birla||Up to 2% of the loan amount||14% to 26% (Fixed)||Rs.15 lakh||1-3 years|
|Fullerton||0% to 6% (OTF)||11.99% - 36%||Rs.25 lakh||1-5 years|
|HDBFS Business Loan||2% (OTF)||10.5% p.a. onwards||Rs.30 lakh||1-4 years|
|Kotak Mahindra||Up to 2.5%||10.25% onwards||Rs.20 lakh||1-5 years|
|Bank of India||2% of the loan amount subject to Rs.1,000 to Rs.10,000 (GST not included)||10.35% - 12.35%||Rs.2 lakh||1-3 years|
|Bank of Baroda||2% of the loan amount subject to Rs.1,000 to Rs.10,000 (GST not included||10.50% - 12.50%||Rs.50,000 to Rs.15 lakh||1-5 Years (Max)|
|BOM||1% (Min. Rs.1,000)||9.45% p.a. -12.80% p.a.||Rs.20 lakh||1-7 years|
|Central Bank||1% of the loan amount||9.85% -10.05% p.a.||Rs.10 lakh||4 years|
|IDBI Bank||1%+S.T. (OTF)||Up to 10.90% (Floating)||Rs.50,000 to Rs.5 lakh||1-5 years|
|IOB||Up to 0.5% of the loan amount||10.50% p.a.||Up to Rs.5 lakh||1-5 years|
|Karur Vysya||1.5% (OTF)||11.00% to 19%||Up to Rs.10 lakh||1-5 years|
|SBI||1.5% (OTF)||9.60% - 15.65%||Up to Rs.20 lakh||Up to 72 months|
|Union Bank||At the discretion of the bank||9.30% p.a. onwards||Rs.15 lakh Max.||1-5 years|
|UCO Bank||1% (Min. Rs.750) OTF||10.05% to 10.30%||Rs.15 lakh||5 years|
|RBL Bank||Up to 3.5% of the loan value||14% p.a. - 23% p.a.||Up to Rs.20 lakh||1-5 years|
|Yes Bank||Up to 2.5% (OTF)||10.99% onwards (Fixed)||Rs.40 lakh (Max)||1-5 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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