It can be used for any personal financial and personal need and the bank will not monitor its use. It can be utilized for renovating your home or anything like marriage-related expenses, a family vacation, your child's education, purchasing the latest electronic gadgets or home appliances, meeting unexpected medical expenses, or any other emergencies and anything else also.
Maximum loan duration
It can be 2 to 6 years or 11 to 59 months. Shorter or longer tenures may be allowed on a case-by-case basis but it is not always the same.
Is there a minimum loan amount?
Like, though the exact amount varies from one institution to another bank. Most lenders have set their minimum personal loan principal amount at Rs 29,000.
From which bank/financial institution should one borrow?
It is good or sometimes it is not good to compare the offers of various banks before you settle on one check interest rate and all. Some key factors to consider when deciding on a loan provider include interest rates and other fees also, processing fees.
Do banks decide on the maximum loan amount?
Depending on personal loan criteria different from one bank like HDFC Personal Loan to another, some key factors determining the maximum loan amount that can be to you include your credit score and other formality also, current income level as well as liabilities. A high credit score like 800 means you have serviced your previous loans and or credit card dues properly. They will check your score, leading the lenders to feel that you are a safe borrower and you can pay it on time. If Your current income level, liabilities and EMI are not paid they will check to have a direct bearing on your repayment capacity. if you are in a lower income bracket or have a large amount of unpaid credit card bills or outstanding loan EMI then you may not take a personal loan it depends you will have a lower personal loan amount than those with a higher income or fewer financial formality. They will check all the formalities.
Lowest possible EMI when choosing a loan provider?
If there is low EMI offers can typically result from a long repayment term and another, a low interest rate, or a combination of the two factors it depends on. May sometimes, you may end up paying more interest to your lender because you have not any knowledge about personal loan use Personal Loan EMI Calculator if you choose low EMI. So use online tools like the personal loan EMI calculator or if you know everything you don’t need these calculators to find out your interest payout over the loan and your repayment capacity before taking a call.
Extra charges
Obviously, there are lots of extra charges In addition to the interest payable on the principal amount or there is a non-refundable charge on applying for a personal loan it may be difficult after some time. The lender charges processing fees and usually 2-3% of the loan principal, to take care of any paperwork or documents that need to be processed as part of the application process so check it carefully.
Reducing and flat interest rate in personal loan
In this reducing and flat interest, the borrower pays interest only on the outstanding loan balance and extra charges i.e. the balance that remains outstanding after getting reduced by the principal repayment it depends on person to person. In a flat interest rate scenario, they have separate the borrower pays interest on the entire loan balance throughout the loan term or EMI. The interest payable does not decrease EMI payment.
Conclusion:
In this balance transfer helps you benefit from the lower interest rate offered by the new lender and lots of offers in the personal loan, other than that there are a few changes such as balance transfer fee and any other, like prepayment charges, etc., that may be applicable in your personal loan.