Customers in India take personal loan when they need funds for1. Credit Card dues
Personal Loan applications received for 273,923 crores (last updated on 25 May 2015)
To get your personal loan approved, you need to submit these following documents.
A photocopy of PAN card
What to Compare?
To get the best deal at Personal loans Compare
1. Monthly emi that various bank are giving you.
Comparison has to be on same amount with same tenure for emi to judge the lowest emi. e.g
2. Processing Fee
Its onetime fee and one needs to check which is the lowest fee that one is getting. The range is between 1.50% - 2%.
3. Prepayment and Part Payment
The above tools help to close the loan early and are really helpful if you expect the cash in near future of the loan tenure. Try to pre pay or part pay and get the bank which gives you these options at no charge. You will be able to reduce Interest over the loan. Click here for Prepayment calculator.
4. Turn around Time
Who can give you the loan when you require is the key. Choose the lender base on that.
Who can get the lowest rate ?
Personal loan rate for an individual is defined by
1. The company he is working at. If it's a larger known corporate , the rates will be lower. Banks generally refuse to give loans to people working in partnership firms .
2. The higher the salary the lower is the rates. Benchmark lowest rates are for people who have more income than 75000 monthly.
3. A good credit history also ensures lowest deal.
4. Genrally Banks give special offers to customers who have salary accounts with them with lesser rates and processing fee.
Who can get it ?
Banks and NBFC give to those whose who have an income either from salary or business. Banks prefer salaried customers with income of more than 20000. As the income goes up the rates gets lower and the amount get bigger. Personal loan is at multiplier of your income which ranges between 10-18 times of your monthly income. Personal loan eligibility depends upon income mostly. Customers working with small companies are given higher rates where as to customers working in large corporate.
Most Banks give Personal loans to people who have cibil score of above 750. Anyone who has credit cards and loans and paying on time will have a cibil score of above 750.Never get scared if you are paying on time. If you have no credit cards or loan and is your first credit then your score is 0 and you need to apply with the Bank where you have your salary account. Most likely they will give you a loan on a 0 cibil score.