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4 April 2018

How to Get a Personal Loan in India

There could be a number of reasons why you need to get money immediately. You may be having someone in your family who needs hospitalization or you have other contingencies to gather for. For any such reason you may want to apply for a personal. A loan is taken to meet a personal need. This type of loan doesn't require any collateral. If you want to apply for a loan in India, you will find that there are a number of banks which provide you with this facility.

What are the advantages of personal loan?

If you have big cash requirement for your personal purpose then it is best to go for personal. There are several advantages of loan in India.

  • The best advantage of personal is that you do not need to put your assets like gold, vehicle or house as collateral to avail the loan.
  • The process of availing personal loan is pretty fast and if you have submitted all the documents that are required your money will reach you within a week.
  • You can avail large amount of money as loan if you choose for applying personal loan in India.
  • You are not answerable to the bank about the end use of the money when you are applying for personal.

How to choose a bank for your personal loan requirement

If you want to apply for a personal in India, you should make some effort to choose the bank which can provide you with the best option. Here are some tips for you to find out the best bank for personal loan in India.

  • Personal loan is a financial product. Hence, you need to do the same kind of research for availing in India as you will do for any other financial product like insurance or mutual fund. Go for a detailed survey, and find out different products offered by different banks.
  • Compare each personal loan offer. Check their interest rates, prepayment fees and terms and conditions.
  • The most important feature of a personal loan is the interest rate. Apply to the bank which offers cheapest interest rate on in India. There are two types of interest rates; flat interest rate and reducing balance interest rate. Though at the first look flat interest rate will look cheaper than the reducing balance rate, but in the long term reducing balance interest rate is cheaper than the flat interest rate.
  • Check the disbursement fees of the loan. Different banks charge different disbursement fees for personal in India. Hence, the bank which is charging the lowest fees is the best option for you.
  • If you want to pay your loan in a lump sum amount, compare the prepayment fees of different banks which provide personal loan in India. The best option in this case is the bank which allows you zero percent prepayment fees.