subject: Best Personal Loans In India [print this page] Personal loans have come a long way from being a luxury which only few rich people could afford to something which many people are able to afford. Generally, a personal loan is taken to fulfill many of these needs which either need constant attention or which are also not so big and not so small. They have the potential to fulfill our dreams, ambitions, goals and large urgent needs if they are used properly. Some of the most common personal needs for which personal loans are taken include home renovations, buying appliances, buying furniture, family vacation expenses, festival expenses and wedding expenses. These are some of the most common types of reasons or needs for which personal finance or loans are taken.
A personal loan can be taken from a variety of sources which include banks, private financial concerns and money lenders. As India, is a growing country, there are many banks and private financial concerns which are coming forward to offer personal finance. In most cases, personal finance taken by banks and these financial concerns will not have any collateral attached to them.
The loans are granted only on the basis of the income earned by the borrower. The disposable income earned by the borrower is the largest parameter for the personal finance or loan being offered. As there are no collaterals or security attached to the loan, this loan is highly dependant on the payment of principal amount and the interest on the amount to the bank or the private concern or from the money lender. This type of loan is called unsecured loan, which is very popular.
On the other hand, one can also choose secured personal loans. In secured loans, collateral is generally submitted as protection for the loan amount. As we know, unless and until the loan amount is paid fully, the collateral security asset is not handed over to the borrower.
There are other types of loans as well which are offered mostly by banks. These include, wedding loans, pension loans, personal computer loans, festival loans, etc. These loans also come under the category of personal finance itself, but due to the nature of the needs, they are called in different names.
One of the best personal loan is issued from banks when compared to the various sources available in the market today. Banks are deemed ideal because, private financial concerns and money lenders sole intention is to earn higher profits and thats why their interest rates are pretty high when compared to the loans offered by banks. On the other hand, banks offer personal loans at reasonable rates of interest making the best personal loan.
Apart from low interest rates, taking loans from banks is very much advantageous with many features that banks offer. For example, it is easy to approach banks to apply for loans. Depending upon the bank, one can close the personal loan account by repaying the loan in advance after a certain period of time. The EMIs or Equated Monthly Installments are highly transparent and can be verified for no hidden charges, etc. All these factors make up for the best personal loan from banks. One can also consult online financial retailers such as Policy Bazaar.com for more assistance regarding how to apply for personal loans.
