Personal loans in Bangalore

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A personal Loan takes care of everything special and personal about you. It can be a vacation of your lifetime or your kid’s wedding or anything personal. What sets personal loan apart is that it does not require any collateral or security. To top it, it get you with the least fuss. On a normal note, a personal loan can range across Rs. 50,000 to Rs 20 Lakh. The tenure typically ranges between one to five years.

Banks charge some fees which are of two types. This fee is apart from the rate of interest banks charge for personal loans. One is when you are applying for the loan. And the other is when you are pre-closing the loan. Processing Fees, which charged at the time of processing is around 2-3% of the loan amount. Prepayment penalty paid at the time of pre-closure also varies from 2 – 3 %. Depending upon your bargaining ability, you can get both the charges reduced.

Personal Loan Eligibility Criteria:

Considering banks need to mitigate their risk, usually it is considered as fairly stringent. Salaried individuals, self-employed professionals and self-employed business people are the set of peoples banks considers.

Personal Loan Amount:

An individual can avail a personal loan as much as they can repay. In banking terms, it means, a personal loan that has an EMI that does not exceed 40% of your monthly take home income, where the EMIs for existing loans are also deducted.

Personal Loan Interest Rates

Each bank got its own policies and offers interest rates, according to that. Going by the industry norms, interest rates are between 14%-26%. But again, it depends on the policies and most importantly your profile.

How Fast Can I Get a Personal Loan? (Instant Loans)

Generally, it doesn’t take too long to process. Seven working days are what banks generally take to get you the personal loans.However, it depends on how fast you get your documents ready, especially the post-dated cheques (PDC).

Personal Loan Co-Applicants

Personal loans can also be taken with Co-Applicants. It helps you to help you increase the loan amount because the he income of the co-applicant also features in your valuation.

Personal Loan Tips

Before processing for personal loan, do a solid research project to understand the various options in the market and compare the interest rates they offer, the pre-payment charges they levy, and the terms and conditions. Your loan amount may be conservative, but your interest rates will certainly not. Banks use certain terms like flat personal loan interest rates that appear to be cheaper. But are in fact very expensive in reality.

Understand that, there is no such thing as an interest-free loan. Even if you find an offer look to back it up with credible information from credible sources. Typically, processing charges will be levied on your personal loan. This is a bargaining point for you. Get a clear idea about EMI payment. Whether to go for low interest and short period of or pay more during longer period is one major area to decide on. Make sure deals you get offered is backed by paper or documentation.

Always ask for a letter in the bank letter-head clearly mentioning the exact rate of interests, processing fees, pre-payment charges along with the interest-schedule. Before you sign any documents, make sure you recheck all the terms of the loan deal. Do not present the bank with any false information. You might end up being blacklisted or never being eligible for a loan at the very least. Even if you get away with it, eventually the establishment will come down on you harder and stronger.

Signing blank documents is absolutely inadvisable. Even if it takes you a few hours to fill-up the form, please do so and read the fine print carefully. Do not leave anything for the executive to fill-up.
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