Personal Loan FAQs
Personal Loan FAQs:
All the banks will have different loan product policy wise interest rates. Most of banks offer featured Personal Loans with low interest rates will also vary depending on each individual’s eligibility criteria. Generally interest rates start at 14% to 28% in yearly reducing rates.
Customer can avail personal loan as much as his repaying capacity. Normally all of the banks have some specific loan features calculation parameters to calculate of loans eligibility. Generally in India, banks trends on EMI of loan normally can go beyond 60% of net take home salary. After the certain calculation the personal loan amount you are eligible for is also dependent on some other important factors like the bank wise company category listing in the same bankers and the banking credit history in last few years.
Yes, if you require more money from your individual loan eligibility then you can add co-applicant for enhancement of your loan eligibility. But as per some banking laws, for any of unsecured loans the co-applicant can be only your spouse. It is the most preferred way by customers. This can help you increase the loan repaying capacity as well as enhance loan amount which you are eligible for as the addition of the income of the co-applicant is also taken into consideration.
The customers who have taken any kind of loan from any financial institute are provided a unique number by CIBIL. It is also called as control no. It is basically a record of your repayment history of all financial transactions done in past for any of the bank or financial company. Also, the score is provided by Credit Bureau of India Limited (CIBIL) , the body or institution which provides the credit score for every customer. In credit score, all detailed information from all the banks on existing loans, their loan repayment tenure and paying patterns of the customers are accumulated. All the banks does a credit check by pulling the bureau score from CIBIL before approving your loan.
Dealsofloan.com is one of the best online portals where you can compare quotes from multiple banks in a single platform with instant access to the best quotes from various loan providers across India.
Normally banks are lending unsecured loan for a limited period time frame for all customers which is called loan tenure. Generally any of the secured or unsecured loan tenure can be between 1 to 15 years. eg. maximum loan is provided for 5 years in case of personal loan. In case you want to clear the loan payment earlier than the agreed time frame then by nature the bank levies a prepayment penalty charge. Any of the banks that are bound by RBI takes charge on loans up to 4% to 6% of the exact principle outstanding loan amount but it can vary as per the loan features according to the bank and the credit profile of the borrower at the time on pre-closure.
So if the customer is looking to make profit on interest or want to save interest amount, customer should always compare prepayments charges as well while as getting loan. This is most important thing to keep in mind while comparing loans.
A fixed interest rate remains constant throughout the loan tenure regardless of the market conditions whereas a floating interest rate can decrease or increase depending on market fluctuations. It increases when RBI hikes up short term interest rates. Banks usually quote the floating rate loans as their index rate (prime lending rate) plus or minus x%. Banks usually increase or decrease their prime lending rate when the RBI increases or decreases short term interest rates.
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