Personal loan fees and charges
To get a personal loan the borrower has to pay certain fees and charges to the issuing banks. The processing fees and administrative charges on personal loans vary between 1% to 5% of the loan amount. Banks pay special attention to their existing customers and waive or reduce this processing fees as a relationship benefit. Personal loans from banks in India usually do not require any security, guarantor or collateral and are issued keeping in mind the repayment capacity and regular income of the borrower.
Prepayment of personal loans
If you want to prepay your personal loan the banks will charge you a prepayment penalty for the same. This prepayment penalty is usually up to 5% of the outstanding loan amount. However, there are no prepayment penalties with the SBI Saral Personal Loan and they charge you just 1% of the loan amount should you want to repay the loan before 6 months. With the SBI Saral Personal Loan one can pay more than the EMI, without attracting any prepayment penalty whatsoever.
Additional benefits with personal loans
To attract more customers some banks offer additional benefits to those seeking personal loans from them. For example, the HDFC bank personal loan comes with a unique Personal Accident Cover insurance, this ensures that that your family is taken care of, at a nominal premium.The UTI bank also provides a free personal accident insurance cover and it gives zero balance SB account facility to its personal loan customers.
The personal loan market in India is growing by leaps and bounds. If you have a good credit history and have a satisfactory track record of any previous loan repayment or have a credit card in good standing for past 12 months, you can bargain for the best rates on your personal loan.