All You Need to Know About Personal Loan Interest Rates
Looking forward to gathering more information about personal loans? Want to know everything about personal loans, personal loan rates and their benefits? Eager to buy your dream house or take your family on a vacation but don’t know how to apply for a personal loan?
If you answered yes to all of these questions, then buckle up to learn more. We are going to learn everything about personal loans and the rate of interest, eligibility, application prospects, and some of the benefits associated with them.
What exactly is a personal loan and what is it applied for?
A personal loan, like every other form of loan, is a scheme in which you borrow a specific amount of money from the lender, and in return, the lender charges you an interest rate. It is an unsecured form of loan where you have to pay the borrowed money in small installments in a set period of time.
You don’t have to show collateral or security funds to the banks to get a personal loan. It gives you a lump sum of money to cover your needs, like paying off your debts, buying a car, or paying for your child’s foreign trip, and you pay that off eventually. Personal loan rates have been very low in recent times, and more and more people are giving them a try.
What are some of the benefits of applying for a personal loan in India?
There are many benefits to going for a personal loan:
- Quick approval:
If you apply for a personal loan right now, you will almost certainly be approved within two days. Especially, if you have a good credit score, you might even get it sanctioned within 24 hours.
- No collateral:
Unlike other loans, you don’t need any collateral or security deposit to get a personal loan. You can apply for it without putting any of your properties at stake.
- Low personal loan rates:
In most cities in India, personal loan rates are quite low. So this ensures that you can easily pay off your debts according to your convenience.
- Easily payable:
Banks charge a very low rate of interest in the form of EMIs so that you can get away with it.
- High flexibility:
There is a high degree of flexibility that banks provide you, especially to help you repay the borrowed money. You are usually given 5 years of repayment time, in installments.
What are the recent personal loan rates in India?
The rate of interest varies from place to place, bank to bank, and depends more on the individual who is going to apply.
According to recent statistics, most banks in India charge a comparatively low rate of interest. The personal loan rates in India start at 8.5% interest and go up to 35% interest. In many cities like Mumbai, Hyderabad, Nashik, etc., banks charge between 9 percent and 20 percent interest on average.
However, banks also provide certain offers at different times to their customers, which you should keep an eye on. You should know about personal loans and rates of interest in detail before you opt for them.
If you have a healthy credit score, it will be easier for you to get handsome offers and low-interest rates. A credit score of 750 or more, will get you a very good offer from the bank.
What is the eligibility to apply for a personal loan?
These are the minimum requirements to apply for a personal loan in India:
- AGE LIMIT:
You should belong to the age group of 21 to 65 years old to be able to apply for a personal loan. This might vary in numbers; sometimes the upper limit might be 60 years only.
You should be earning a monthly income of a minimum of 25,000 rupees if you are employed by an institution. In case you are a business person or you are self-employed, your annual income should be at least 5 lakhs.
- WORK EXPERIENCE:
You should have work experience ranging from one to three years if you are a salaried individual and from two to four years if you are self-employed.
- CREDIT SCORE:
A credit score of 750 or more is ideal for getting a good personal loan rate in India. A good credit score will help you land a better deal, and your loan will be approved very quickly.
How do I get a decent personal loan rate interest?
- You should focus on improving your credit score because you know a good credit score means a good personal loan rate.
- You should compare all the interest rates of different banks and then make an informed decision before applying.
- You should keep an eye on offers so that if banks provide you with some really good deals, you don’t miss out.
- You should make sure that your loan history is ideal for you to get a good interest rate from the banks.
- Another good way to get decent personal loan rates is to negotiate with your banks. This might seem ineffective initially when you talk to bank officials, but it works well.
There isn’t an exact number on the personal loan rates that banks charge you. But a range of 10 percent to 20 percent is average, and if you have a good credit score, then everything becomes easier for you.
Talk to your advisor, and bank executives and assess the dos and don’ts before you decide to apply for a loan. Use a personal loan interest calculator to check different values and see what suits you the most.
Piramal Finance helps you out with all the things that are related to personal loans and personal loans and rates of interest. Make sure you visit their page, see their services, and go through their engaging content regarding this.
Also Read: Easiest Way to Get an Instant Personal Loan in India
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