NEWS & ADVICE : PERSONAL LOAN
Benefits and drawbacks of personal loans in India
By Ankit Sharma
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5. Simple documentation

With minimal eligibility and nil collateral requirements, the personal loans from banks in India require minimal documentation. A proof of identity, income proof and residence proof will suffice in most cases.

6. Big loan amounts

Depending on a borrower's repayment capacity, banks in India are willing to give a personal loan ranging from Rs. 25000 to Rs. 2000000. This makes a personal loan an ideal choice to meet big budget requirements.


Drawbacks of Personal Loans in India

1. High interest rates

Personal loans are unsecured loans. In most of the cases banks won't ask for a collateral, security or guarantee before issuing any personal loan, so it becomes a risky proposition for banks. To offset this risk, banks provide personal loans at higher interest rates. Secondly, personal loan interest rates also vary from person to person. How much of a risk banks consider you will determine the terms and interest rates on your personal loan. A person with good existing loan repayment record, serving in a reputed public sector, government, MNC, or blue chip company is more likely to get a low interest rate personal loan than one who deviates from the standard norms. A low risk borrower can get a personal loan at 16% interest rates while it can climb up 30% or more for others.

2. Not available to everyone

Banks enforce strict employment, income and residence criteria before issuing any personal loan. They'll only put their money where they find that the risk involved is minimal. So, a larger percentage of applicants are rejected in case of personal loans.

3. No part prepayments

Prepayment of personal loan can be done as a whole. Banks in India generally do not allow part prepayment of any personal loan. Moreover, there is a prepayment penalty of 2-5 percent on the outstanding amount, which has to be paid to the bank while making any prepayments.


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(Comments Posted : 34) Post Your Comments
1. Hello Every One,

Do You Need A Loan? Apply For Further Procedure. We Offer All Kinds Of Loans At 2% Annual Interest Rate From The Ranges.
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Info needed

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THOMPSON GARY (Posted: Mar 23, 2018)
2. a reputable, legitimate & an accredited company money Lender. we loan money out to the individuals at the rate of 3%, in need of financial assistance. Do you have a bad credit or you are in need of money to pay bills? We want to use this medium to inform you that i render Reliable beneficiary assistance as we will be glad to offer you a loan. No credit check, 100% Guaranteed.(email: {Rolandaccessloanlender@gmail.com) the applicant will start the repayment of loan 7 months after the loan has been transferred to him/her. Failure to pay back the loan at this expected date/period, legal actions will be taken against the applicant by our attorney immediately. Applicant who is unable to meet with the repayment will be given 2 weeks more as a grace period before legal actions will be taken. Particulars: The borrower must provide either one of the following:-A Driver’s License, An International passport, Or a valid Identity Card bearing his/ her name. You are required to fill the form below before we can proceed with your loan.

LOAN APPLICATION FORM:

Name Of Applicant:……………
Address:…………….
City:…………………..
State:……………………
Country:………………..
Gender:………………….
Marital Status:…………….
Age:…………………….
Occupation:……………….
Income Rate:……………….
Tell:………………………
Office Number :…………….
Mobile Number :…………………..
Amount Requested:……………
Loan Duration:………………
Loan Purpose…………………

NOTE:
A copy of your ID anyone of this driving license/national identity card................: After submitting the Loan Application, you can expect a preliminary answer less than 24 hours and funding within 72-96 hours of receiving the information we need from you contact our company email Rolandaccessloanlender@gmail.com or company website https://rolandaccessloanle.wixsite.com/website Regards Mr Roland Barry
ROLAND (Posted: Mar 20, 2018)
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Regards
Nat
Puthai Nattaradol (Posted: Mar 3, 2018)
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