Personal loan with bad credit

What are Personal Loans? Personal loans are those loans which are available to an individual in times of need. The need can be of any type a shopping spree, perhaps an investment opportunity, educational loan or medical aid. Personal loans are disbursed easily with few questions asked although the rate of interest may be higher. Personal loans are given with minimum surety and are easily available. To avail personal loan is more popular because of a range of flexible payment options offered by the banks.

• How to Decide Which Bank Is Best Suited:

Personal requirement, repayment capacity and duration are the factors which can only help a person to select the bank best suited for him or her. The parameter which makes the bank decide to extend loan to a person are:

• Rate of Interest

• Years in current job / Min / Max age

• Min. / Max Loan Amount.

• Repayment Types / Processing Fee / Prepay Charges

• Bank Account / Income Eligibility

• Tenure / EMI per lac While

• ABN AMRO Bank charges 21% rate of interest,

• HDFC is 19.5(if it’s a salary account), 21% for normal account

• HSBC charges 20% ROI

• ICICI charges ROI 19.5 (listed companies), 21.5% (normal)

• Standard Chartered 19.5 (SCB credit card holders), 20.5% (other credit card holders), 21.5% (Normal)

When is the best time to apply for Personal Loan

There is actually no fixed time to apply for Personal Loans. But given the attractive offers given by the various banks during the festival season it would be best time to apply. In India the best and most attractive offers come during the Diwali season when the Banks compete fiercely for the consumer’s attention. So if you want that fridge or car or house so desperately by it in Diwali.

Zeroing in on the Bankers!

Now that the entire concept of Personal Loans has been understood and the fine prints gone through in detail the question is which banks to approach for that all important loan! There are various methods through which one can zero in on the suitable bank. It can in all likelihood happen that the concerned bank may approach you itself or you can approach it too. Nationalizes, foreign and co-operative banks offer personal loans as do financial institutions.

FAQ’s

• Lending Rates what is the difference The rates for lending depend entirely on the bank or financial institution and vary from 12 %-30% • What is the duration of the PL and the max./min amount that can be availed Max./min. duration of the loan is from 60 months to 36 months. Max./min. range of the loan is from Rs. 15000 to Rs. 10 lakhs.

• Eligibility criteria: a. Take home salary/gross monthly income of Rs. 8000 b. Age min. of 21 years c. Age not more than 60 * The criteria may differ from bank to bank

• Who is eligible Salaried individuals / Self-employed professionals / Self-employed non professionals Loan earnings depend upon the current earning of the individual.

• What is the service charge levied Charges levied are up to 3% and it varies from bank to bank.

• Pl is called an all-purpose loan why Because it’s a loan which is disbursed with no questions asked after the eligibility criteria has been met.

• Do we need a guarantor No, unless asked for by the bank

• Is my spouse’s income an additional revenue source Yes.

• What is the repayment procedure of the loan Repayment can be done by issuing post-dated cheques or By instructing the bank to deduct, at source from your salary every month.

• Is there a difference between a personal loan & credit card Yes, in a personal loan the borrower draws out the entire loan and the loan is repaid in fixed monthly installments. Whereas, credit card interests are charged on the on the amount borrowed. Personal Loans are handy in case an individual is cash strapped. Sometimes it’s used in times of speculation or for investments and helps to buy lucrative shares, IPO’s, debentures and Mutual Funds. Personal loans are convenient and are easy to avail, involve less paper work. A word of caution never be a defaulter. Enjoy the smooth ride of the Personal loan!

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