- June 24, 2020
- Posted by: Ganeshcbani
- Category: Blog
When you’re in need of some quick cash, a personal loan can be the answer to your prayers – and there are plenty of options available to you. In this article, we’ll take a look at the different types of loans available to consumers, as well as the steps that you need to take in order to get approved. So don’t wait any longer – get started on your loan application today!
Personal Loan for Emergency
Do you need quick cash for an immediate financial emergency? To cover your immediate financial needs, turn to Personal Loans. We offer personal lending for a wide variety of reasons including marriage, employment, home refurbishment, travel or even medical needs. You can find all your desires within reach with interest rates starting at 10.99 percent and tenure up to 60 Months. You can obtain a personal loan of 25 lakhs by contacting our representatives, visiting a nearby branch or by applying online. We’ve made it easy and flexible to get a personal loan to get you fast access to money when you are in need.
Compare Banks to get a Personal Loan
| BANK | Interest | Loan Amount |
| Axis Bank | 12-24% | 50,000-15 lakhs |
| Bajaj | 12.99% onwards | Up to 25 lakhs |
| Citi Bank | 10.50-18.99% | 50,000-30 lakhs |
| Fullerton India | 12-36% | Up to 25 lakhs |
| Hdfc Bank | 10.75-21.30% | 50,000-40 lakhs |
| Icici Bank | 11.25% onwards | 50,000-20 lakhs |
| Idfc First Bank | 11.50% onwards | 1 lakh-25 lakhs |
| IndusInd Bank | 10.75% onwards | 50,000-15 lakhs |
| Standard Chartered Bank | 10.99% onwards | 1 lakh-30 lakhs |
| Kotak Mahindra Bank | 10.99-24% | 50,000-15 lakhs |
| Sbi Bank | 10.50% onwards | Up to 20 lakhs |
| Tata Capital | 10.99% onwards | 75,000-25 lakh |
| UCO Bank | 10.95% onwards | Up to 10 lakhs |
| Union Bank Of India | 10.10% onwards | Up to 10 lakhs |
| Yes Bank | 10.99% onwards | 1 lakh-40 lakh |
Factors impacting the rate of interest on personal loans
Credit score
A 3-digit number between 300 and 900 that is focused on the financial health and repayment capability of an entity. Through your credit scores, higher are the chances of a personal loan and a lower interest rate.
Loan Amount
When the borrower borrows an increase, certain borrowers charge a higher interest rate. Because of the increased risk of default perceived as a higher loan amount, this typically reflects a higher EMI payout.
Loan Tenure
Some lenders charge a higher or lower interest rates for longer tenure credit than the same loan for the short term. These adjustments typically depend on the internal requirements of the bank.
Repayment capacity
In some situations, lenders may be charged a higher interest rate in case of high debt. The explanation for this is that a greater fixed loan usually raises the loan’s default risk.
How to measure a total accumulated loan interest
The annual interest on a loan is determined by using the formula I = P x (R/100) Where I = interest payable, P = Principal (loan outstanding), and R = interest rate (annual percentage rate) While the formula above can be used as for a loan with 1 y personal loans The different interest amounts must then be added for each year in order to calculate the total cumulative interest on the personal loan. It is advisable to use an EMI calculator, which gives you information, including the total interest payable on your home loan, to remove the need for such complicated calculations. Tips for a low PL interest rate Typically, if you feel that the creditor is financially responsible, the interest rate for a personal loan is lower. Some forms in which you can get a low interest rate on your personal loan:
Maintain a high credit score and clean credit history
Maintain a minimum debt, i.e. a 30-per-cent or less credit usage ratio Apply to your personal loan with a lender you have a prior relationship Advance for secured personal loans (e.g. loan for bonds, NSC, KGP, LIC, etc.). Total interest payment While the lowest interest rate on your personal loan may not be available, there are 3 ways you can decrease the total interest payment on your loan
Short term alternative
Higher individual EMI, but lower overall interest payout Part pre-paid / pre-fixing – The principal loans therefore reduces interest payment – Lower loan principal is equivalent to a lower overall interest rate Loan payout.
A personal loan consumer can use an extra loan sum over his / her current loan through the additional facility. The amount of the loan will be governed by financial lenders’ terms and conditions, while the interest rate may be the same as the current loan or up to 1 percent higher than the rate of the current loan. The term of the supplementary loan shall be subject to that of existing staff.
Key characteristics and benefits
Current personal credit customers are liable for the loan extension if their EMIs have been paid regularly and no outstanding payments have been received.
Simple or immediate disbursement of the supplementary loan amount.
Minimum needed documentation.
A number of lenders pay zero processing cost.
Not required collateral.
Transfer of Personal Loan Balance
Customers may benefit from the transition of their current loan to another financial lender through the personal loan balance facility. It is likely if the other financial lender provides a better interest rate, if the term is much more flexible, if it chooses to add to its current credit, etc.
Disbursal Personal Loan
Personal loan disbursement is primarily a process by which the financial lender sends the loan amount to the customer’s bank account. The disbursement of loans is made after the borrower has obtained the necessary documentation and the financial lender has checked and approved them. In a few seconds, financial lenders will disburse their personal loans, while others will take a few hours to a few days to disburse the credit amount after approval.
