Blog #Syndicate Bank Personal Loan

Personal loans can be availed from banks and other financial institutions in India for any personal need. These loans are unsecured and do not require a lot of documents and effort for the application procedure. Personal Loans can be used for purposes like educational requirements, home renovations, a purchase, traveling, wedding ceremonies, etc.

Personal Loans have a higher rate of interest than other loan schemes offered by Banks and financial institutions generally starting from 8.95% per annum in India. These loans are unsecured and that is why these loans have a higher rate of interest than other loan policies offered in India. The high interest is resisted by many people as it increases the monthly EMI amount that has to be repaid by the borrower to the lending bank.

The rate of interest for some Indian Banks offering Personal Loans is given down below :

a) State Bank of India:       9.60% p.a. - 15.65% p.a. 

b) Canara Bank:                 12.05% onwards 

c) ICICI Bank:                     11.25% p.a. - 21% p.a.         

d) HDFC Bank:                    10.75% p.a. - 21.30% p.a. 

e) Bank of Baroda:             10.50% p.a. onwards 

f) Kotak Mahindra Bank:   10.50% and above 

These interest offered by Banks and financial institutions are usually higher than that of the other Loan schemes like Home loans and Car loans offered by the Banks or financial institutions. The unsecured nature of these loans makes the application procedure of these loans a bit tougher than other loans that require collateral as security from the borrower. The unsecured feature of these loans also makes the rate of interest charged for these loans by Banks and financial institutions higher than other loans. 

A personal loan EMI calculator available on several websites online can be used to estimate the repayment EMI amount to be paid back to the lending bank every month. These calculators prove to be extremely beneficial in the determination of the repayment amount to be paid each month and in creating a budget for the future. The details required to use these calculators include the Loan tenure, interest rate chargeable, and the loan amount,

The Eligibility criteria for Personal Loans in India is given down below:

1) The applicant should be a residing citizen of India then only one can apply for a personal loan in India.

2) The applicant’s age should be between 23 to 55 years to apply for a personal loan.

3) The applicant should be self-employed or employed by a government or private limited company.

4) The credit score of the applicant should be at least 750.

5) The applicant should have the required documents for the application procedure for a Personal Loan.

Documents Required

The Documents required for the processing of a Personal Loan in India include the following:

a) Proof of identity (copy of passport/voter ID card/driving license/Aadhaar) of the applicant 

b) Proof of residence/address (copy of passport/voter ID card/driving license/Aadhaar) of the applicant.

c) Bank statements of the past 3 months (Passbook of previous 6 months) of the applicant.

d) The latest salary slips/current dated salary certificates are attached with the latest Form 16 of the applicant.

e) Few Passport sized photographs of the applicants.

f) Documents of employment of the applicant.

Several banks may demand certain additional documents as per the policy of the Bank. Do check out all the requirements and the procedure of approval from various banks before applying for a Personal Loan. 

Banks have their unique criteria for eligibility for Loan schemes. The rate of interest offered by different banks also differs from each other. Some banks provide lower rates of interest for Personal Loans than other Banks. 

Such schemes that provide a good deal for a personal loan offered by banks and financial institutions in India is given below:

i) Bank of Baroda Personal Loan

ii) Fullerton India Personal Loan

iii) ICICI Bank Personal Loan

iv) Punjab National Bank Personal Loan

v) State Bank of India Personal Loan

vi) Syndicate Bank Personal Loan

vii) Bank of India Personal Loan

Also read this; HOW TO CHECK THE CREDIBILITY OF A LENDER BEFORE AVAILING A PERSONAL LOAN 

Personal loans are very user-friendly. The tenure period of the personal loan can be extended up to 6 years. Certain prerequisites will help you to know the process of applying for personal loans better. 

Some of them are listed below -

1. A good credit history : 
   Maintaining a good credit history is significant. A lower credit score implies terrible debt management, and sometimes this may result in loan rejection and high-interest implications.
   
   
2. Comparing interest rates :
   Different lenders and banks provide different interest rates. There are many financial platforms like Paisabazaar, Bankbazaar, etc., which provide proper information and comparisons of different interests of different firms using which you can find the right personal loan for you.
   
   
3. Access all costs :
   while applying for personal loans, there are different fees such as processing fees, prepayment fees, late payment fees, penalties, etc., which will affect the total loan that you are taking. It's better to access all the fee payments to manage your finances better.
   
   
4. Consider all the needs required for the right loan amount :
   You need to analyze the things that you require and for what purpose you are applying for the loan. You need to calculate all the things that you need to do with the amount that you will borrow as a loan. This will help in financial management.
   
   
5. Evaluate your abilities to repay the loan :
   It is essential to assess how much monthly repayment you have to do and whether you are financially capable of that or not. Generally, the monthly repayment is according to the monthly income that you get.
   
   
6. Avoid falling for fraudulent offers and plans :
   Some private lenders or organizations try to attract you with very high offers at very low-interest rates to get you in a trap. Don't fall for those. You might end up losing a greater amount of money.

The important thing while taking a personal loan is the Personal Loan Interest Rate. The interest rate is the principal amount charged by the lender for the use of his money. It will give you information about how much you have to pay back to the lender monthly, and from this, you will also know the total amount you have to pay over the life of the loan. Different banks have different interest rates. A personal loan can also be borrowed from any certified online lender who will charge interest of his wish. The interest rates also depend upon the tenure period. If the tenure is long, then the EMI will be higher; if it is less, then the interest will be less.

You can get lower interest rates if you have a very high credit score. Compare the lenders in the market and analyze them to see which source is giving you the best interest rates. Many financial websites help you compare different lenders to give you the best suitable personal loan for you. Look for seasonal offers if it's not an emergency case. Banks provide several discounts on loans availing those can help you save some money.

One of the best personal loans is Syndicate Bank Personal Loan. It provides interest rates from 11.25% to 13.30% up to a loan amount of 20 lakhs. They do not ask for any processing fees. If they ask, it is about 0.50% of the loan amount, which is relatively less. The maximum tenure period is up to 6 years. Any person of a minimum age of 21 can apply for a personal loan. The other requirement is the person has to be self-employed, getting regular income. He or she should earn at least the minimum amount which is required to be paid.

Conclusion -

Many banks provide meager interest rates on certain occasions. You need to look out for those and grab them. With low-interest rates, you will be able to save money. Analyzing different sources before applying is a brilliant decision.

Read More:- Myths about the Personal Loan