The amount of funds applied for as a personal loan is as per the requirement of the customer, but the amount of loan the Bank is willing to sanction depends on the net income of the customer & the tenure for which the loan is taken. A personal loan is issued by the Bank for a maximum period of 60 months. The longer the Tenure for which the Loan is taken, the lesser the Emi.
Rate of Interest – The rate of interest for a Personal loan is calculated at a monthly reducing balance. The total loan amount & the interest amount are divided equally over the tenure, or the number of months the loan is sanctioned for. This is known as the Emi.
The Processing fees – The processing fees is a onetime charge taken by the Bank to process the Loan. Discounts are normally offered in the processing fees if the loan amount is above 5 lacs.
Lock in period & pre closure charges- Most Banks have a Lock in period for the Persona Loan.
This is the period for which it is mandatory for the customer to pay the interest on the loan amount taken.
After the pre closure period the Applicant is allowed to pay back the Principal amount along with pre closure charges levied by the Bank.
For the convenience of our customers we have provided a Rate chart giving the Charges of all the Leading Banks for a Personal Loan.