Understanding Personal Loan
A loan is an amount sanctioned by banks according to your creditworthiness. There are different types of loans available on the market. If you are someone looking for a loan that fulfils your one-time needs, a personal loan is the best answer. A personal loan is a loan that requires fewer documents and no collateral. You can use a personal loan to plan a wedding, buy a gadget, pay your child’s fees, fund house renovations, etc.
Do you know the importance of a CIBIL score for a personal loan? The higher the CIBIL score, the higher the chances of getting a personal loan. Know how?
CIBIL Score Required For A Personal Loan
The CIBIL Score, or “credit score,” is a three-digit number showing a borrower’s ability to repay the loan amount. A CIBIL score for a personal loan is created every time you borrow a loan and repay it with timely EMIs and interest. The CIBIL score ranges between 300 and 900. The ideal CIBIL score for a personal loan is 750 and above.
Impact of CIBIL Score on Personal Loan Interest Rate
There is a relationship between the CIBIL score and the personal loan interest rate. The higher the CIBIL score, the higher the chances of getting the loan approved. With a good CIBIL score, there are higher chances of getting the lowest interest rate. The current personal loan interest rate varies between 11% and 28%. With a credit score of 750 and above, there is a lesser chance of loan rejection.
Current Personal Loan Interest Rates and Charges at Piramal Finance
- Interest rates: The interest rate depends on your CIBIL score. The higher the CIBIL score, the higher the chances of getting a low interest rate. The current personal loan interest rates at Piramal Finance start at 12.99%* PA. The current personal loan interest rate may vary at the time you apply for a personal loan.
- Default interest: You may also have to pay default interest if you fail to pay the EMI on the default date. This is also subject to change. There is a default interest rate of 2% per month levied on the default of PEMI or EMI from the date of default until the date of actual payment.
- Prepayment and foreclosure fees: When you apply for a personal loan at Piramal Finance, there are no prepayment or foreclosure fees.
- Other charges: The following charges may apply while applying for a personal loan at Piramal Finance.
|Schedule of Fees & Other Charges||Details|
|Processing Fees||Up to 4 % of the Loan amount + applicable taxes (payable before disbursement of Loan).|
|Default Interest||2% p.m. on default of PEMII/EMI from the date of default till the date of actual payment.|
|Documentation Charges||Up to 0.5% of loan amount + applicable taxes.|
|Pre-payment charges||Up to 5% of the Principal amount + applicable taxes.|
|Part Payment Charges||Up to 5% of the Principal amount + applicable taxes.|
|Cheque Bounce Charges||Rs. 500/- + applicable taxes.|
|Collection Pickup Charges||Rs. 250 per visit + applicable taxes.|
|Any Legal Costs/Charges||At actuals + applicable takes recovery.|
|Recovery-related Charges||At actuals + applicable taxes stamps.|
|Stamp Duty Charges||At actuals + applicable tax statutory.|
|Statutory Charges||At actuals + applicable taxes|
|Loan Repayment Schedule (only applicable for a physical copy of the statement)||500/- + applicable taxes|
|Change of Loan Repayment Mode||500/- + applicable takes duplicate.|
|Duplicate No Due Certificate Issuance Charges||500/- + applicable taxes.|
|Statement Of Account||500/- + applicable taxes cash.|
|Cash Collection Charges||1% of collection amount of Rs.50000 and above in cash + applicable GST.|
Why Should You Apply For A Personal Loan With Piramal Finance?
Primal Finance offers you the following benefits if you wish to apply for a personal loan:
- There are no fees for early repayment or foreclosure.
- Loans start from 1 lakh to 10 lakh.
- Minimal documentation.
- Quick sanctioning and disbursals.
- Easy monthly EMIs.
- Flexible tenure of repayment from 1 year to 5 years.
- Combining the incomes of family members to increase the loan amount
How Do I Apply For A Personal Loan At Piramal Finance?
Follow these steps to apply for a personal loan at Piramal Finance:
- Visit the official website of Piramal Finance.
- Click on the “Personal Loan” tab at the top of the home page.
- Scroll down the page till you find the “How to Apply” heading.
- Select the “Click here” option.
- Press the “Submit” option present at the bottom of the form.
- A relationship manager at Piramal Finance will contact you.
- The relationship manager will guide you through the whole application procedure.
A personal loan is an ideal loan to fulfil your financial needs. Piramal Finance offers you a personal loan with a simple application procedure and prompt disbursals. The current personal loan interest rates start at 12.99% PA and vary according to the loan amount and tenure. Check the extra charges when applying for a personal loan to avoid unexpected future expenses. Apply for a personal loan right away, or call 1800 266 644 to learn more.