Cheap And Easier Personal Loan In India

by

raj9369

Personal loan or personal finance has grown its importance in the recent times because of many underlying reasons. One is the increasing cost of living in India in the recent years and the next is the steady or slow increase in the salaries over a period of time. Many expenses have increased in India including some of the basic necessities such as education, food, medical expenses, etc. This has been forcing many people to opt for personal loan to fulfill such needs.

Majority of personal loan India are taken at banks. Also there are other sources such as finance companies and private money lenders. These two have a very minor penetration in the market. Banks providing personal loans include nationalized, private as well as foreign banks operating in India. As all the banks are supposes to adhere to the rules and regulations set up RBI, banks on the whole provide loans only to responsible and capable people. But, finance companies and money lenders provide personal loan India to every other person and charge very high rates of interest.

In general, the rates of interest for personal loan offered by banks can range between 12% to 16% per annum for nationalized banks, 16% to 20% by private banks and more than 20% to about 25% by foreign banks operating in India.

On the other hand, the interest for personal loan India charged by finance companies and private money lenders begins where banks have ended. The usual rates of interest range between 30% to 40% per annum. Such high rates of interest can only mean one thing. Financial companies and private money lenders only offer personal loans for the sake of making money.

This leaves us with banks as the only source for personal loan. But as mentioned earlier, not all the banks provide the best personal loans for the least rate of interest. We can observe that while some banks charge low interest rate, other banks charge high rates of interest.

A personal loan can only be regarded as best personal loans only when they have low interest rates and do not charge any kind of hidden charges and hidden fees. Only such loans will be regarded as the best personal loans.

Personal loan India are also dependent on the applicant also. The rate of interest will depend upon the credit history of the applicant or the borrower as well. This is due to the fact that if the applicant, in the past had defaulted any payment to bank, then it will be very hard for the applicant to receive loan in the first place. If at all loan is released, the rate of interest will be very high. This can also be regarded as one of the reasons for seemingly high rate of interest charged by banks for the best personal loans.

One can search for such loans on the internet through bank websites and also from aggregators such as Policy Bazaar. Policy Bazaar is one of the leading insurance aggregators which had also ventured into personal loan space. It has been offering best personal loans online from various banks for the lowest possible interest rates.

Raj Sharma is the author of this article. In this article he has discussed about the benefits of

personal loan in india

. To know more about personal loan and comparison Visit the site

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