Planning Unplanned Expenses Made Easy With Personal Loans

Planning Unplanned Expenses Made Easy With Personal Loans

Unplanned expenses can arise anytime, whether we like it or not. Like John Mayor has said, “Life is full of surprises”. It could be anything, a medical emergency, reconstruction of home, auto repair, urgent travel, etc. You may find yourself caught up in any of the situations mentioned above. What you need to do when such situations arise is try not to get worked up thinking about it. You have various options available to you. The best option available for you is to get a personal loan.

Personal Loan

A personal loan helps people with their immediate money problems, and it is an unsecured form of debt that carries reasonable interest rates and can be paid in tranches. Money is instantly transferred to the account of the borrower. The procedure to get a personal loan is easy and quick, unlike other loan types.

Not every individual is eligible for a personal loan though, financial institutions that provide personal loans have their own set of criteria for disbursements of such loans to individuals.

A few points that institutions look for before offering Personal loans are:

  • Salaried individual or a Businessman: Salaried individuals usually get loans with low interest rates compared to businessmen, as there is an added risk with lending money to businessmen.
  • Monthly Salary (Higher Income individuals get loans easily).
  • Age (The most common age group that can avail of a personal loan is 20-60).
  • CIBIL Score (CIBIL Score plays a very important role in getting any kind of loan, if you have a low CIBIL Score, you may not get a loan).
  • Work experience (If you are a salaried individual, two years of work experience would be good to get you a personal loan of larger amounts for more time).
  • A resident of India (It is essential that the individual is a resident of India to get the loan, others may get the loan as an NRI, which may have different eligibility criteria).

Personal Loan Interest Rates

Any financial institution lending money expects to earn interest on the amount provided, and every financial institution decides its own interest rates with varied time periods of repayment. You need to find an institution that fits your needs and capabilities.

 

Name Of Institution Interest Rates Amount
HDFC Bank 10.75% to 21.30% Rs.50,000 to Rs.15 lakh
ICICI Bank 11.25% onwards Up to Rs.20 lakh
Axis Bank 12% to 24% Rs.50,000 to Rs.15 lakh
State Bank Of India 10.50% onwards Up to Rs.20 lakh
Bajaj Finserv 12.99% onwards Up to Rs.25 lakh
Punjab National Bank 11.5% to 14.5% Up to Rs.4 lakh
Canara Bank 12.55% to 14.60% At the discretion of the lender
Yes Bank 10.99% onwards Up to Rs.40 lakh

 

Interest rates for Businessmen

Name Of Institution Interest Rates Amount
Kotak Mahindra Bank 11.25% – 19.99% p.a. Rs.50,000 to Rs.15 lakh
ICICI Bank 11.25% p.a. to 17.99% p.a. Up to Rs.20 lakh
Axis Bank 15.75% – 24% p.a. Rs.50,000 to Rs.15 lakh
Yes Bank 10.75% onwards Rs.1 lakh – Rs.40 lakh
Standard Chartered Bank 10.89% p.a. Rs.1 lakh – Rs.30 lakh
Citi Bank 10.99% – 17.99% p.a. Up to Rs.30 lakh
Tata Capital 11.25% p.a. onwards Rs.75,000 – Rs.25 lakh

 

As good an option it is to get a personal loan at times of need, it is crucial to make sure that you return the money back to the lender on time, or as with any other lending type, there would be repercussions like accruing personal loan interest rates, losing credibility in the loan market, etc.

So, we’ve witnessed that taking a private loan could be a wise call to satisfy additional funding needs. However, before creating any call on a private loan, it is wise to check service charges, foreclosure charges, and hidden fees. This way, we can compare the benefits and drawbacks of different lenders and go for the most suitable and affordable scheme.

 

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