Personal Loans – Lending Rates and Repayment Period
If you are looking forward to get a personal loan then you can apply for the loan in majority of the nationalized, foreign and private banks. Apart from these, there are various Non Banking Finance companies that provide personal loans in India. The lending rate to be paid by you depends upon the sum of loan as compared to your income and the length of the repayment period chosen by you. One of the main factors is your capacity to repay the loan amount. The easy monthly instalments for personal loans are designed in such fashion that it should not exceed over 30% to 40% of your net monthly salary.
Moreover, the lending rates also depend on your profile in regards to your job and address. In case, you are being employed with a MNC and residing at a location approved by the lender then lender might provide you a low rate personal loan. However, on other hand, if you are living in a chawl and working with a proprietorship then will be charged a higher lending rate. The minimum amount that can be issued as a personal loan is Rs 10,000 and the maximum amount is Rs 10 lakhs.
The maximum repayment period varies widely. However, some lenders allow the personal loan repayment period to a maximum of 7 years. A majority of the lenders keep the repayment period to a maximum of 3 years. You can get a personal loan, in case you are employed and earn a monthly income. You can be either a salaried individual or a self-employed professional. The amount of loan eligibility varies on the basis of the current earnings of the person. The service charges or processing charges levied is 2% of the loan amount and it may vary across various lenders.
Related posts:
- Personal Loans – Alternatives to Personal Loans 2
- Personal loan – Eligibility for Self Employed Professionals
