Availing for a Personal Loan can be easy, provided you meet the specific financial needs. Once you meet the eligibility criteria of the lender, you will be good to go. This, in turn, affects your interest rate. Whether you need to fund your child’s further studies or you need to buy a car, a Personal Loan can cater to needs that are urgent and relevant. With the disbursal process being quick, the loan is unsecured. People can get the loan at a lowest personal loan interest rate which is very helpful.
Similar to Home Loans, the rates are higher. While you seek approval for the loan, there are certain terms and conditions that you need to go through. If the interest is high, the amount that you repay for automatically increases. It fluctuates and varies on the candidate’s profile. You must take certain factors into consideration.
1. Credit history
Your CIBIL score is highly looked upon before your loan goes for approval. The Credit Rating Agency sets a three-digit numeric rank, depending on the credit history of the candidate. If you have a good credit score and report, your loan will receive the earliest approval, along with added benefits.
If you have a fixed income, the banking entity will charge you with a lower rate. If you have a higher income, job security is a beneficial factor.
3. Employment type
In order to be eligible for a rate that you are likely to find attractive, you need to have a secured job. Personal Loans are open for Salaried and Self-employed individuals.
4. Relationship with the lender
The beneficial factor that comes along is your relationship with the banking entity. If and when you need a Personal Loan, you can vouch for the relationship that you share with the institution.
Avoid defaulting your payments, as they will create a bad reputation and you will not receive loan approvals.
If you are looking out for a low-interest rate, the ICICI Bank’s Personal Loan rate begins from 10.75% p.a. Post-approval, the loan gets deposited into your account within 3 seconds.
Following are the banks that provide Personal Loans,
|IDFC First Bank||11.00%||1.5%|
|Bajaj Finserv||12.99%||From 1.50% to 3%|
|Kotak Bank||10.40%||From INR 999|
|Yes Bank||10.40%||INR 2020|
|Karur Vysya Bank||12.00%||0.40%|
|Union Bank of India||11.00||0.5%|
|Bank of Maharashtra||10.85%||1.00%|
Having provided you with a set of interest rates and an insight into Personal Loans, you will get some amount of clarity on the same. Before going in for the application, make sure that you brief yourself upon the terms and conditions. Once you have done that, go ahead and make the decision. Take a wise choice and do not hurry up with making decisions that you will end up regretting.