Personal loans are an extremely important driver and indicator of economic growth. They are the easiest to obtain since banks and NBFCs issue loans to applicants without any collaterals. The consumption story is substantially dependent on personal loans and it is evident from the growth of this category of credit at 21% in FY23 and 27.5% in FY24.
Whether you take personal loans during festive times or not, whether banks or other lending institutions depends on a host of factors. You have to be mindful of them, else you chance of securing a loan when you need it might dim. Usually, these loans range from Rs 30,000 to Rs 40-50 lakh and the repayment tenure starts from 12 months.
Which bank will provide a personal loan easily
Many people ask this question: Which bank will provide a personal loan easily? However, there is no easy answer. All banks are eager to sell loans to consumers and if they find you creditworthy, they will rush to you with money. The most important factor that will determine whether you are eligible for a loan is the credit score. Credit score determines the bank’s decision the most. It will also determine the interest rate offered to you – in other words, how low will the interest rate be.
Have you taken a loan recently?
If you have taken a loan in the past several years and have repaid the EMI without delaying, your credit score should be upwards of 700 or 750 upwards of 900, which will be considered favourable to secure a loan. But if you have never taken any loan, the lender will have no data to assess you and your repayment record.
What is the interest on personal loans
The ease of securing a personal loan is balanced by the high interest these loans charge. Usually, it is seen that the minimum interest rates charged by the big banks start from 10.5-11% annually. However, for the smaller banks, the minimum interest rates can be higher – about 11.5-12%. But you should be aware of the fact that the interest rates on personal loans can go up to as high as 25-30% annually. It follows as a corollary that you should not strike a dela with the first bank you are rushing to – you must enquire about the interest rates from a few banks before finalising one.
