Personal loans today are in great demand in India. A
personal loan is many a times regarded as one of the easiest ways to obtain money for meeting different kinds of expenses ranging from holiday trips, festival expenses, personal expenses and many more. It is this advantage that is drawing many people to apply for a personal loan.
Today, personal loans are being offered by almost all banks including private banks, nationalized banks and co-operative banks. Personal loan can also be applied for at financial institutions and with private financers as well. When other types of loans such as housing loans, vehicle loans, etc cannot be utilized for any other purpose other than mentioned. But, there is a great amount of freedom with personal loan, which is that the bank is not inclined in knowing where the money is intended to be used and the person is not responsible to disclose any details.
But one of the drawbacks of personal loan is the high rate of interest that is charged on it. The rate of interest for a personal loan India generally varies among banks and is different with financial institutions and private financers. Many of the financial institutions and private financers are motivated to give personal loans because of the higher rate of interest that is charged on a personal loan. So, people who apply for personal loan are advised to check the interest rates and the total period for repayment. Generally, banks charge an interest of about 12% - 18% interest per annum on best personal loans, while financial institutions and particularly private financers charge interest rates from 24% to 36% or more per annum.
So, personal loan India applicants should be aware of the prevailing interest rates among various banks and institutions and can always prefer banks for obtaining the best personal loans. Personal loans from banks can be considered as the best personal loans, because banks are not motivated by high interest rates but with customer satisfaction and they follow the norms set by the Reserve Bank of India.
However, banks look for eligibilty among loan applicants. Generally
personal loan India applicants are salaried employees and business people. For them the eligibility varies according to their earnings. Here preference is given to salaried employees as they earn a steady income every month unlike business people whose earnings may not be constant every month. The minimum eligibility for salaried employees is an age of 21 years, a minimum salary of Rs. 200000 per annum, with atleast 3 years of employment in private limited company or a multinational company. On the other hand for business or self-employed people the eligibility differs from salaried employees. The minimum age should be 23 or 25 years and the income per annum must be atleast 2.5 to 3 lakhs with a minimum of 3 years experience in the line of business.
