The rate of interest in relation to personal loans is relatively higher. The Indian economy is growing at a fast pace at present. To understand the interest rate in relation to personal loans, an individual needs to understand the criteria for availing the loan facility. This pace has been achieved because of the highly available finances and loans from different sources; one of the most preferred sources is through banks.
Talking about loans or credit from banks, we get sufficient information about the various types of loans that are facilitated for the customers for future benefits. Advanced loans are inclusive of educational loans, home loans, gold loans, mortgage loans, automobile loans, and personal loans.
Although, the most preferred loans for a general customer are either gold or a personal loan. If you wish to acquire a loan quickly you can select a gold loan, on the other hand, personal loans require 2 or 3 days for a transaction.
A personal loan can be appropriate for those who are willing to meet their daily or monthly expenses. These loans are granted for a tenure of about 1 to 5 years, and the exact period depends upon the funds you have loaned.
The most remarkable point in a personal loan is that there is no security against loans like in the case of a gold loan. This is what attracts most of the loaners or borrowers. But the customers need to be careful regarding the interest rates and should compare the interest rates with maximum banks and move forward making the best deal with the bank that provides the least personal loan interest rate. Usually, the interest rate lies between 15%-19%.
Although, you get an advantage of a no security personal loan, this feature thus increases the interest rates. Also, this kind of loan is referred to as a high-risk loan. E.g. If a bank provides a personal loan to 10 people and if one of them fails to pay the amount, it automatically shifts to the balance 9 customers. The loss of one person’s amount has to be covered with the remaining 9. Hence, there can be a high-interest rate for such loans.
The eligibility criteria for personal loans are not specific. But mostly the preferred segment for such loans is a salaried person or businessmen. A person with a satisfactory monthly income who can repay the amount on time shall be eligible for such loans.
To know all the advantages and disadvantages of such loans you can use the online manuals provided by banks. All information related to every finance, loans types, personal loan eligibility criteria, EMI value, the interest rate for different loans, etc. is made available at your fingertips through online portals like www.dialabank.com.
The borrower should be alert and gather all possible information before advancing for any such kind of loan. Even a 1% variance in the loan rate can make a lot of difference. Go in for banks that are reputed and well known and which provide you with a discounted rate of interest. The online application for loans has made loan applications more convenient with minimal paperwork.
Considering the above facts, the borrowers can easily figure out the most convenient deal and select the best loan with available online information and resources. So go in for low-interest rates, best and well-recognized banks, lowest processing charges, and minimal pre-payment procedures.
Read Other Related Articles:
