Personal Loan

Personal Loan

A personal loan could be right for you if you want to fund an enormous expense or if you want to consolidate debt. Personal loans generally come with lower interest rates than credit cards, therefore funding a big expense or project with a personal loan could save you thousands of dollars on interest payments.

All regarding Personal loan interest rate, application process, necessary documents and EMI comparison.

Here you can get all information on prevailing interest rates from all banks and calculate EMI of your required or needed loan amount. You’ll check your eligibility with more than 10 banks with a single instant apply form.

We facilitate you to get in principle loan approval online in as quick as 5-10 minutes only. You can compare process fee, ROI and turnaround time for the loan approval with various banks and financial institutions instantly. We tend to help you to check the eligibility and understand the approval criteria of varied banks.

Loan for personal use is offered for maximum 4 to 5 yrs. of tenure. But, it is suggested to have it for 1 to 2 yrs. only. Because the more time you take, more interest you have to pay.

Top 5 factors that affect / impact your Personal Loan interest rates:

  1. Income:

If your Income is on top of a certain limit, Banks believe that your possibilities of not paying are lesser as you have Income to pay. Most Banks have classes according to income where they offer different rates.

As your monthly income goes higher the rate of interest on your personal loan will be lesser. Rates are defined for customers who have income 20,000 to 50,000 and 50,000 to 75,000.If you have income above 75,000 you will get lower rates.

  1. Your Company Status:

Banks define Companies / firms in 3 to 4 categories.

These are Cat A, Cat B, Cat C, Others

Anyone working in these firms / companies can take Personal loan from Banks. Better the category of your company will mean lower and lower rate of interest. Banks classifies these firms / companies on the size of company and reputation.

Banks believe working customers with better and higher category firms / companies are less likely to default so they provide lesser rates to (Cat A) firms / companies.

So if your company is new and not Categorized within the Banks you are likely possible to get a higher rate or no loan from the Banks.

So all start-up company workers expect that your Personal loan will come at a higher rate or you can be refuse.

  1. Credit and Payment History: Banks follows Cibil scores/rating before deciding giving loans. If your payments for Credit Cards and Loans is not up-to mark, you have the most likely chance of being rejected for the loan or the Bank will give you at a much higher rate.

Cibil score is in the range of 0-900. Most Banks prefer customers for Personal loan with score above 700 and if your score is above 800 you can expect a .25% basis drop on your rate for the Personal loan.

  1. Relationship with your Bank: The Bank where you have your Salary account/Savings account is likely to pass on you to some special rate for your personal Loans or Processing fee.

Banks want to retain their customers and will go all out to give lower rates for Personal loan customers who have accounts or Credit Card with them.

Banks have special schemes for rates of interest for Personal loan for all its customers. So when you are considering to take the lowest rate Personal loan you should always check with your bank who do you have your salaried account.

5.Individuals Negotiating Skills: Based on your above points you can always ask Bank to give you waivers on Rates, Fees Etc.

Factors effecting Self-Employed customer for Personal loan rates:

  1. Annual Income tax return: If your income is high and you are a large company you can expect rates to be lower for you.
  2. Type of Business: Banks are ready to give lower rates to sound business. So all Manufacturing and sound business professionals get a better rate of Interest on the personal loan.
  3. Special rates to Self-employed professionals: Banks really likely to fund Doctors/Engineers/Ca and Architects. Banks believe these set of customers very rarely default and hence there rates are better from others.

Disclaimer: Please note that the interest rates given here are based on the research. To enable the comparisons certain set of information has been reorganized / restructured / tabulated .Users are advised to recheck the same with the individual companies / firms. This web-site does not take any responsibility for any type of sudden changes in interest rates.

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