Rate Of Interest Comparison Personal Loans
Indian financial market is moving ahead with rapid pace
. This pace has been achieved due to the availability of credit from different sources, especially from banks. Many types of loans are being issued by banks. Different types of loans that are advanced include home loans, automobile loans, educational loans, mortgage loans, gold loans and personal loans. Of these loans, gold loans and personal loans are advanced in a very short time. Gold loan can be taken in a matter of hours. Personal loan requires not more than 2-3 days.Personal loan is taken to meet expenses that are not very high to worry and yet, not too small to ignore. These loans are usually repaid in short term range between one year to 5 years depending upon the amount that has been taken.
One of the biggest advantages under this loan is that there is no need to pledge collateral as security for loan. This advantage is perhaps what attracts most borrowers. But borrowers need to be careful while applying for personal loan. Interest rate for this loan is much higher in comparison with other types of loans, usually between 14-24% depending upon concerned banks.
Lack of collateral is an advantage, but that very feature of personal loan increases the interest rate for this loan. Without any collateral security, these loans are categorized as high risk loans. For example, if one bank advances personal loans to ten people and one person is unable to repay the loan. In such condition, the loss from one person is shifted to remaining nine people. Hence, high interest rates for these loans.
Almost all people are eligible for personal loans. Especially salaried people, businessmen/ professionals are eligible for these loans. Salaried person, business person, professional with steady income can repay the loan in stipulated time.
One of the best ways to know about best personal loan is with the help of internet. Today, one can obtain lot of information about finance and financial services. One can arrive at best personal loan by calling banks to obtain information and by searching online. The information should include the eligible amount, interest rate for loan amount, EMI options, pre-payment penalty, percentage of processing charge, etc. One should also look for any hidden charges. Hidden charges can increase the interest rate burden drastically.
While obtaining information, borrower should ask for discount on interest rate. Small difference in 1% can also make lot of difference in EMIs. Borrowers should also look for special personal loan drives in banks. Under such schemes, loans are offered at discounted rates of interest compared to regular schemes.
Bank portals, these days have come up with online personal loan EMI calculators which will determine eligible amount of loan, rate of interest as well as EMIs and number of EMIs. Borrowers can also apply for online personal loan. Applying for online personal loan is very easy. It requires no paperwork at all. Time required to process such loan applications is also very less.
With above factors one can deduce the best personal loan by gathering required information through banks and online resources to arrive at loan plans which offer low interest rates, low processing charges and very little pre-payment penalty.
by: Andy Smith