Spend, Save and Invest Smartly
A personal loan is availed in an emergency. Banks don’t ask you the purpose of the loan .You can pretty much avail this loan for any need. Your next step is to avail a cheap personal loan. You don’t want to be paying too high an interest on this loan. A personal loan is unsecured (You don’t have to give a collateral/security) to avail this loan. This means you have to pay the bank a very high interest rate (15-24%). This makes it crucial for you to get a good bargain on your personal loan.
If you draw a good salary you can avail a personal loan at a cheaper interest rate than if your salary is less. If you draw a salary of around INR 30000-35000 you have to pay a higher interest rate on the personal loan. Your interest rate may be as high as 18-22%. If you draw a salary over INR 50000 the interest rates can be much lower at 14-16%. A salary of over a Lakh means you get to pay an interest of only 12-13%.
If you work for a reputed Company you can avail a personal loan at a lower rate of interest. Banks have a list of Companies (Reputed Companies) and if your Company name is on the list you get a loan at a lower rate of interest. Banks believe that if you work for a reputed Company you can easily repay the loan. They charge you a lower interest rate of 12-14% if you work for a reputed Company. You will be able to get cheap personal loans.
A personal loan is unsecured (without a collateral or a security).This means banks are very careful before sanctioning this loan. Banks check your Cibil trans union score before sanctioning your loan. This is a score between 300-900 and a score above 700 is considered good. If you have defaulted or fallen behind in your repayments on earlier loans then your Cibil score will be low. Repay all past loans before availing a personal loan.
If you have your own home in the area where the bank is located then the bank will easily sanction your personal loan. The interest rates on the personal loan are also lesser if you have your own house than if you stay in a rented house.
If you have a bank account or a fixed deposit with the same bank where you avail the personal loan then the bank will sanction your personal loan at a bargain interest rate. You have a relationship of trust with the bank which you are expected to honor with prompt repayments of the EMI’s on the personal loan.
If you pledge your gold , shares or a life insurance policy with the bank, you will be able to avail a personal loan at a cheap rate.