Personal loan is very useful and are often called multipurpose loans. A person can use it for any purpose whether it's a medical emergency, marriage, travel, to buy a new gadget, etc. A Personal loan is unsecured loans, which means that one does not have to give any guarantee or security to get it. This is one reason why a personal loan has a high rate of interest compared to other guaranteed loan options. Most of us are hesitant about using personal loans. We might need it, but only because of the higher rate of interest for personal loan we tend to take a step back and look for other alternatives.
You can get current and lowest personal loan interest rates ranging from 10% to 24%, p.a. in India. Compare personal loan interest rate in India among banks and submit instant online personal loan. In addition to the interest rate, lenders also charge processing fees, which can increase up to 6.5% of the loan amount borrowed. Other costs involved include documentation fees, pre-payment fees, pre-closing fees, late payment fees, etc. When borrowing a personal loan, you can choose a loan period of between 1 and 5 years. Factors that affect the interest rate of a personal loan include your income, loan amount, employment status, credit score, payment capacity, loan period, and relationship with the lender.
What are the benefits of a Personal Loan?
Unsecured Personal Loans:
Personal loans are not guaranteed, meaning that they do not need any guarantee to submit the same application. However, banks or financial institutions may request approval before they can proceed with the loan application.
Get funds in just a few hours:
With Internet Banking facilities, one can easily apply for a personal loan. You can expect a decision from the lender within a few hours, and the amount of loan you want will go directly into your bank account. Some NBFCs never require visits from applicants to approve their loans because their process is entirely digital. In most of the online portals there are personal loan EMI calculator which can show you the actual breakdown on your sum in no time.
The entire documentation process in the banking sector has been simplified to a large extent. Now, to apply for a personal loan, one does not need to carry a bundle of documents with the doubt that the lender can ask for anything. Banks and NBFC clearly state on their website the necessary documents that are required to apply for a personal loan.
When choosing a personal loan with low interest rates, there are several other things that you must consider:
Processing Costs: Loan providers charge a one-time fee known as processing fees, which can increase borrowing costs. Even if you are charged a low rate of interest for personal loan, it is important to check and compare the processing fees charged by different lenders.
For YES BANK Personal Loan Charges: Refer https://www.yesbank.in/pdf/personalloan_pdf
Pre-Closing Costs: Certain banks may charge a pre-closing fee even if they have a low personal loan interest rates (Also, if you repay the loan balance before the completion of the loan repayment period. Be sure to check whether the bank / financial institution that you are applying for charges a pre-closing fee.
Customer Service: To have a good borrowing experience, it is necessary to apply to the lender who offers good customer service. Before submitting your loan application, you should check the available customer service channels, and how quickly the lender provides you assistance when needed.
Eligibility Criteria: Even though a bank or financial institution can offer a personal loan with a low interest rate, you must ensure that you meet the eligibility criteria determined by the lender. For this purpose, you must ensure that you check whether your income meets the prescribed limits and if you meet the specified age requirements.
Loan Disbursement Time: If you are looking to take out a personal loan because of an emergency, it is important to consider the time of disbursing the loan. Several leading banks and financial institutions channel loans in seconds.
Other Costs: Although creditors may charge a slightly higher interest rate to you, you may be able to save the overall cost of the loan if processing fees, default fees, pre-payment fees, Loan Cancellation Fees, Bounce Fees / EMI bounces, Instrument return costs, Fees Stamp Duty, duplicate statement issuance fees, swap fees, costs for issuing duplicate amortization schedules, etc. Low. So, make sure you compare the various fees charged by lenders before applying for a personal loan.
Discounts: Although banks / financial institutions may have set high personal loan interest rates, you can try negotiating with banks for the lowest interest rates. Often, lenders will give discounts to existing customers, and those who have maintained a healthy relationship with them.
Special Offers: Certain lenders may burden you with lower interest rates during festive events. But before opting for one check all the personal loan interest rates in India.
For more information on Personal loans click on https://www.yesbank.in/personal-banking/yes-individual/loans/personal-loans