Personal Loan in Bangalore
Bangalore, which is currently known as Bengaluru, is the capital of Karnataka. Due to quantum jump of the information and technology sector in general and software industry in particular and Bangalore being the epicentre of such revolution, it has grown exponentially in the recent past. Due to setting up of many software companies the predominant portion of the workforce is young people. Due to the special demographic composition of the population in Bangalore, the demand of personal loan in Bangalore is ever increasing.
Personal Loan Banks in Bangalore
To cater to the need of personal loans in Bangalore major banks and other financial institutions have set up their infrastructure to cater to the ever-increasing needs in Bangalore. The major provider of personal loans in Bangalore are the financial institution like Bajaj Finserv, Tata Capital. Among the banks active in personal loans in Bangalore are ICICI Bank, State Bank of India. Kotak Mahindra Bank.
The personal loans are generally used for various purposes like buying a costly gadget, unbudgeted holidays, medical emergency etc.. Even people take personal loans for the purpose of furnishing their new house.
Personal Loan Eligibility in Bangalore
The eligibility of personal loans whether in Bangalore or anywhere else would primarily depend on the monthly net income of the applicant. In addition to the monthly income, the number of dependent family members, any existing loan being serviced, whether salaried or self-employed would affect your home loan eligibility. For availing the personal loan, the applicant needs to have a minimum monthly salary of 20,000/-. Some of the lenders even insist for a higher amount as monthly salary before they consider the application for a personal loan in Bangalore.
Personal Loan Interest Rates
Since personal loans are fully unsecured, they are priced higher as compared to other secured loans like home loans. The rate of interest for personal loans in Bangalore ranges between 11.995 to 24% depending on from whom one takes the personal loans as well as the profile of the borrower. Salaried get preferential treatments as far as rates of interest on personal loans are concerned. But the self-employed get higher personal loan amount sanctioned for the same amount of income declared on their income tax returns.
In addition to the interest payable during the tenure of the loan, the lenders generally charge an upfront processing fee for processing the personal loan which has to be paid along with the application form. The processing fee is generally not refundable.
The personal loan in Bangalore is available which are repayable over tenure between 12 months to 60 months. A few of the lenders like Tata Capital, provide personal loan even for a longer period of 72 months. Longer the personal loan tenure, higher will be your loan eligibility for the same level of income. Likewise, for the same personal loan amount and the same interest rates, the EMI will be lower for the longest tenure home loan and vice versa. However, it is not always advisable to select longer period as the lender generally charge you a penalty for prepaying whether fully or partly your personal loan. The charges would vary from lender to lender and is generally between 2% to 4% of the amount of personal loan repaid. So in case, you intend to pay the personal loan sooner, opt for shorter repayment period to avoid the prepayment penalty.