A personal loan is an unsecured type of loan, which means any collateral does not back it. This can make it a bit riskier for lenders, which is why personal loans often come with higher interest rates than secured loans like home equity lines of credit or car loans.
Still, personal loans can be a good option if you need to borrow money for a specific purpose, such as consolidating debt or paying for a large unexpected expense. And if you have good credit, you may be able to qualify for lower personal loan interest rates than you could get with a credit card.
In India, a personal loan is an unsecured loan that is granted to an individual by a bank or a financial institution to meet their personal needs. Unlike secured loans, such as home loans or car loans, personal loans are not backed by any collateral.
Personal loans in India are typically granted for a variety of purposes, such as medical expenses, wedding expenses, home renovation, travel, education, debt consolidation, and so on. The loan amount, interest rate, and repayment tenure are determined by the lender based on the borrower’s creditworthiness, income, and repayment capacity.
Here are several benefits of considering NBFCs for personal loans
1. Wide range of loan products: NBFCs offer a wide range of personal loan products to cater to the needs of different kinds of borrowers. For instance, some NBFCs offer personal loans specifically for salaried individuals, while others may offer loans for self-employed professionals. Some NBFCs offer loans for specific purposes, such as travel, home renovation, etc. This gives borrowers many options to choose from and helps them select a loan product that best suits their needs.
2. Competitive interest rates: NBFCs offer competitive interest rates on personal loans, which makes them an attractive option for borrowers looking for a low-cost loan.
3. Flexible repayment terms: NBFCs offer flexible repayment terms on personal loans, giving borrowers the flexibility to repay the loan at their convenience.
4. No collateral required: Personal loans from NBFCs can be availed without pledging any collateral, making them ideal for individuals with no assets to offer as security.
5. Quick and easy approval: NBFCs have a quick and easy approval process for personal loans, which makes them ideal for borrowers who need urgent funding. So, if you want a quick personal loan go for Bajaj Finserv.
6. Wide network of branches: NBFCs have a wide network of branches across the country, which makes it convenient for borrowers to apply for and avail personal loans.
7. Personalized service: NBFCs offer personalized service to their customers, which helps build a good relationship between the lender and the borrower.
8. Access to online portals: Most NBFCs have an online presence, which makes it easy for borrowers to apply for personal loans and track their application status.
Read More: Understanding Credit Card Billing Cycles and Due Dates: A Comprehensive Guide
Things to take care of while comparing personal loan interest rates in India?
When it comes to personal loan interest rates in India, there are a few things to keep in mind.
- First, interest rates can vary significantly from one lender to the next. As a result, it’s important to compare rates from multiple lenders before making a decision.
- Second, personal loan interest rates are typically lower than credit card interest rates. However, they can still add up if you don’t make your payments on time.
- Finally, always read the fine print before taking out a personal loan. This way, you’ll know exactly what you agree to and won’t be caught off guard by any hidden fees or terms.
By following these tips, you can be sure you’re getting the best possible deal on your personal loan interest rate in India.
Overall, personal loans from NBFCs can be a good option for borrowers looking for a low-cost loan. They offer competitive interest rates and flexible repayment terms, which makes them an attractive option for borrowers.
Read Also: Everything You Need to Know About the Types of NBFC In India
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