Useful Advice Choosing The Best Low Interest Rate Personal Loan

Personal loans are taking a very significant position in our lives today, thanks to the availability of finance from banks and also because of our need for finance. Today, most of the banks ranging from nationalized banks to private banks and even foreign banks are offering personal loans options. Generally, people find personal loan easy because of the fact that it takes very less time to give out personal loan than any other loan excepting gold loan. On an average, it takes not more than 1 week to dispatch personal loan to the applicant.

One of the major features of personal loans which differentiate it from other types of loans such as housing loans, vehicle loans, education loans, etc is that it is easy to apply and obtain personal loan India within no time.

On an average, it takes about 1 month or more for home loan process to complete and dispatch. About the same time for education loan and about 2 to 3 weeks for vehicle loan to process.

Also with personal loan India in hand, one can do whatever one wishes to, unlike in the case of housing loan, education loan or vehicle loan where the beneficiary is actually the person who sells the product or provides service to the applicant and the money is directed to them.

But, in case of personal loan, the applicant himself takes the money and he can do anything that he wants. Such type of loan had to be created because of the fact that need for money certainly goes beyond, education, vehicle and housing. There can be needs such as medical expenses, a family vacation, a festival, home renovation and many such needs.

In the case of personal loan, the rate of interest is very much higher in comparison to the above mentioned loans. This is due to fact that unlike other types of loans which are guaranteed by collateral, personal loan does not have any kind of collateral or security that can be accepted. So, the rate of interest is higher for personal loan India than any other kind of loan.

As there are many banks providing personal loans, it has become a mandate to check for those banks which provide the best personal loans. The notion of best personal loans is dependant on things such as the rate of interest, the time it takes to process and give out the loan, any hidden charges, processing fees, etc on the personal loan India application, etc.

Of the above mentioned things to remember, rate of interest is perhaps one of the biggest concerns for anyone. The rate of interest for personal loans can range between 12% to 24% or more. In many cases, nationalized banks provide very low rates of personal loan India interest. On the other hand, personal loan India rates of interest charged by private banks and foreign banks is very much higher and they can range between 15% to 24% or more in many cases.

In any case, it is imperative to choose those kinds of personal loans which offer lowest possible interest rates and also with no hidden charges. It is recommended that in the search for personal loans, one can first ask for loans with the bank in which an account exists. This is because, old customers will be given preference for giving loans. Such loans can be regarded as the best personal loans.