Tag: India

There are various types of loans that cater to the different requirements of a person. There are various people who do not possess any collateral and therefore does not get qualified for secured loans. For such people, a loan scheme has been designed that does not require any asset to pledge. This loan is known as -Personal Loan-. It is a convenient option for the people who do not want to risk their valuable assets.

A Personal Loan is tailored to meet the personal requirements of the people. It is an all purpose loan that can be availed to meet a variety of personal works. Usually a person applies for this loan for the following purposes:

Going for an expensive and luxurious occasion.

Wedding in the family.

Paying medical bills or electricity bills.

Purchasing a new vehicle.

Home renovations or improvements.

Higher studies.

Expanding the existing business and many more.

There are many financial firms that offer personal loan to the people at an attractive rate of interest. The major banks in India that provide unsecured loan are HDFC, SBI, PNB, Fullerton, Citibank and so on. So, there are various options that come up to a person. The person should have a good plan to get the best Loan in the market. One should check and compare the various deals and make a wise decision.

As a personal loan is unsecured in nature, the lender has nothing to authenticate in case of non repayment of the loan. Therefore, it is offered at a high rate of interest as compared to secured loans. In case, the person does not refund the loan in time the lender can easily avail the money through interest rates. But, it is a better opportunity for the people who are unable to provide collateral.

The basic requirements to apply for a personal loan are income and credit score of the person. The loan is sanctioned on the basis of the repayment capability of the person. A person with poor credit and low income cannot apply for this loan. The minimum credit rating required to avail this loan is 650. The tenure of the loan ranges from 5 to 10 years. This tenure can be extended by some lenders in case of a big loan amount. The person should always go through the details of the loan before applying for it. This is because it is the person who has to pay the loan in the future.

An unsecured personal loan is a loan on which particular borrowers do not require a form of security such as a house or car that being used to secure the loans. Instead the borrower”s entire personal credit history is measured through a credit check which is further used to decide when the particular loan will be offered to an individual.

Personal loan rates in the country generally vary on diverse criteria which purely depend on the income level. In the country, there are n numbers of banks and each of the banks has different classifications that based on diverse interest rate.

There are numerous important factors which usually determine particular personal loan interest rate which includes income, your company status, credit and payment history, relationship with the bank you intend to take loan from, individual”s negotiating ability and many others. Generally most of the personal loans in India have both good and bad points which give extra benefits to the people with their standard interest rate.

Without searching, you cannot find best deals for you. To get beneficial and advances solutions, it is important to get best deals which are offered by various companies in the country. Each company has its own rules and regulations which offer unsecured personal loans.

All these policies have both pros and cons but to understand them better, you need to compare these loans with each other to get beneficial results in the end. ICICI Bank, HDFC Bank, Bajaj Finserv, ING Vysya, Standard Chartered Bank, Citibank, Andra Bank, Bank of Baroda, United Bank of India and many others are some famous and renowned banks which provide personal loans in India.

Unsecured loans are generally for lower amounts as compare to the secured loans. Lenders usually have rigid requirements for borrowers which are concerned with the unsecured loans. Lenders usually prefer higher credit scores which will further considered as verifying income and comparing the debt to income ratio of the borrower.

The best way to get beneficial deals is by doing comparison between several unsecured personal loans in the country. Policy Bazaar compares these personal loan rates by using criteria and creates list of the unsecured personal loans that may be best deals for your personal circumstances. There are numbers of banks which offer personal loans in India. To get loan from these banks, you can easily apply for these loans to get beneficial results in the end.