Personal loan is an unsecured form of loan which can be taken by an individual for any purpose without any collateral security. The expenditures may range from marriage, children education, buying consumer durables, or for a holiday. The most important advantage of getting a personal loan is that it can be obtained with minimal paper work and documentation with a very short turnaround time. The personal loan rates in India vary with bank to bank but one can do personal loan comparison to get the best deal available in the market. The most important benefit of a personal loan is the tenure which can be as short or long as the borrower prefers.
Personal loan rates in India for an individual are determined by several factors. The eligibility criteria include several factors which are critically evaluated while approving loan for the applicant. Banks offer loan to borrowers considering several factors such as income, employment and their future business perspective so as to make sure that borrower pays the loan back with interest as well. Age, work experience, existing relationship with the bank are the other factors considered by financial institutions while approving and analyzing loan for a borrower.
There are various insurance aggregators that provide online calculator to check personal loan eligibility criteria. Personal loan comparison can also be made using comparison tools provided online by these insurance aggregators. Banks check credit score as provided by Credit Information Bureau India limited which affect borrower’s loan application and personal loan rates in India as well. If you have any other liability in form of loan pending against you will also affect personal loan rates for the borrower.
An individual seeking a personal loan from the banks must compare various options before finally availing a loan. Insurance aggregators provide you various comparison tools to compare loans on a single platform provided by various companies. There are some factors that must be considered by an individual to compare loans. The first and foremost is the interest rates charged by the banks. You must check if bank is charging reducing rate or fixed rate of interest.
Processing fees, prepayment fees and any other kind of documentation fees must be checked and compared as these factors increase the cost of a loan and vary widely across the banks. Personal loan comparison is never complete without checking EMI and tenure of loan repayments. Comparison of interest rates from all banks and financial institutes are available in Policybazaar. Few clicks and you know the best personal loan available in India.
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