✅ Which bank is best for personal loan?
SBI, HDFC Bank, Axis Bank, Kotak Bank, Yes Bank, Bank of Baroda, PNB are the best banks for taking a personal loan based on their current personal loan rates as they offer interest rate in the range of 10.45% to 10.7%.
✅ What is the current interest rate for personal loans?
The present personal loan interest rates ranges from 10.45% to 22.00%.
✅ What is the average interest rate on personal loans?
The average interest on personal loan ranged between 10.45% to 22.00%. The personal loan interest rates vary from one lender to another.
✅ Which bank has the lowest interest rate for a personal loan?
Amongst a number of personal loan providers in the market, currently, Yes Bank offer the lowest personal loan rates of 10.45%.
✅ How does balance transfer help you get a lower interest rate?
Personal loan balance transfer facility can help you get a lower interest rate, as you can conveniently switch to a lender who is offering a lower interest rate in comparison to the current lender. The balance transfer facility can be availed without closing the loan; however, some banks may charge the foreclosure or balance transfer fee while balance transferring of a loan.
✅ How does Repo Rate affect the interest rate of personal loans?
A Repo rate is the rate at which the Reserve Bank of India (RBI) offers the credit to the commercial banks. This is similar to how banks lend loans to the general public. RBI, however, offers the lending to commercial banks, against securities such as the government securities. A rate cut in the repo rate will lower the borrowing costs for commercial banks and thereby for the general public. Thus the interest rates are reduced as well.
✅ What are the charges for personal loan?
In addition to rate of interest, banks charge the following two fees on personal loans.
- Processing fee: This fees is charged when you apply for a loan. The processing fee can range between 2 – 3% of the loan amount and can be negotiated down, if you bargain. It also helps, if you approach the bank through an online market place like ₹ upee Bazaar.in, as we negotiate with the bank on your behalf and also, offer attractive cash backs on sanctioned loans. Sometimes, we also get to offer exclusive loan schemes on behalf of the banks such as nil processing fees for our valued customers.
- Pre-closure fee: This fees is charged when you decide to close your loan before the completion of loan tenure. Banks imposes this penalty to cover the loss it can incur due to premature closing of a fixed rate loan. Prepayment penalty can range up to 5% of the loan amount. You need to read the terms and conditions of your loan agreement carefully to check on the prepayment clause and ensure that it is not too strict compared to market benchmarks. Banks are also open to revise the prepayment clauses if negotiated and discussed by the borrower or his loan care representative.
✅ What is the CIBIL score for personal loan?
CIBIL score ranges from 300 to 900. A score of 750 and above is considered as good score to get personal loan. Higher the credit score, higher the chances to get loan application approved.
✅ Do I need to open a bank account to service my personal loan?
Yes, you need to have at least one functional bank account in your name. It is even better if you have an account with the same bank from which you would like to get a loan.
✅ Can I apply for personal loan jointly with my spouse?
Yes, you can apply jointly with a co-applicant (either be your spouse or your parents). This helps you to increase your eligibility and you can also avail for a higher amount of loan as your co-applicant’s income also gets added to your income and that total is taken into consideration for calculating the loan amount you will be eligible for.
✅ Does it affect my co-applicant if I default in personal loan?
Yes, if you fail to pay the loan on time then it will also affect your co-applicant as default in loan will affect his/her CIBIL rating as well.
✅ What are the main factors that affect interest rate of personal loan?
As these are unsecured loans, they have higher rate of interest. Personal loan interest rates vary for different loan amount, company category and net income. High income and good company profile can lend you high loan amount at low interest rate. Personal loan rates for government employee and defence personnel may be different from that for private salaried employees.
✅ Do lending institutions change interest rates after sanction of loan?
Usually, personal loans are given at fixed interest rates and hence banks do not change these rates after sanction. However, if you have opted for a floating interest rate, the rate of interest will be reset at regular intervals by the bank in response to fluctuations in market interest rates.