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India's First Financial HelpLine |
Personal loan today has
become popular among all the people. Several persons have their needs, but for
the shortage of funds, person would not be able to get all things. In that
case, personal loan helps the needy persons to fulfill their needs. Several banks
have their own interest rates. Personal loan is the best loans as compare to
the other loans. Personal loan is an unsecured loan which means person does not
need to deposit any security as collateral to the bank. There are mainly two
types of personal loan: one is secured loan and other is an unsecured loan.
Secured loan means the person has to deposit any collateral to the bank as a
security. The interest rates on secured loan are higher than the unsecured
loan.
Person has to go
through online, before applying for a personal loan. Person can
compare the interest rates of different banks and choose the best bank among
all the banks. Research helps the person to take the right decision. Person can
also examine the terms and conditions of the bank. Every bank has own interest
rates for personal loans. Following are the factors which help the lenders to
decide your interest rate.
Salary: Person salary
plays a vital role for taking personal loan. If a person is earning regular
salary then, person can easily get a loan at the best rates. Banks check the
repayment capacity of the person, before approving the loan. Person has to
repay the loan in EMIs.
Employment Status: The
Company also gives beneficial impact on your Employment status. If a person is
working with the reputed company then, person rate of interest
may be less as compare to other persons. Banks check the stability of the
person in the company. Banks also check their credit history.
Payment History: Banks
always check the person credit score. Person having decent credit score can
easily get a loan at the cheapest interest rates. Person having poor credit
score can get a loan at the highest rate of interest. Bank also checks your past record,
before approving the personal loan.
Negotiating Skills: Persons
negotiating skills also helps the personal to reduce the interest rates on the
total amount.
Other than the rate of
interest bank also charge a processing fee, prepayment penalty fee, EMIs and
additional fees. Banks require documents such as Employment proof, Income
proof, Age proof, Salary slips and Bank statement. Person should know all
documents are relevant, before submitting to the bank.
