Here’s What You Must Know About Personal Loan Offers in India
There are many reasons why you must consider taking a Personal Loan. It could be for buying a brand new gadget, or refurbishing your home, or to arrange a trip abroad.
Whatever the cause for your Personal Loan, there are many things you need to know. A knowledge of Personal Loan offers is handy, as is an understanding of the PL types.
What are the different variants of Personal Loan?
You should note that Personal Loan is an umbrella term. In fact, there are numerous types including convertible loans, installment loans, online loans, fixed-rate loans, secured and unsecured credits, payday loans, single-payment loans and variable rate Personal Loans.
Each of these types has a purpose and its own Personal Loan special offers. It is crucial to understand all the Personal Loan offers in India. Only then will you choose wisely in times of need. Here is a brief explanation of these loans:
Fixed Rate loans
Most Personal Loan offers in India are fixed-rate loans, where the rate of interest remains constant. You are required to pay the same amount of EMI at the end of each month to repay the loan. Many people prefer this type of Personal Loans. This is due to the ease of calculations, and constant rate of interest. Also, fixed rate loans offer more security than their variable rate counterparts.
This type of Personal Loan is widely used in businesses. It lets you convert the remaining part of the payment into an equity in your business. This way, it increases considerably in time.
This is the most typical form of credit. You take a specified sum of money, and pay it at regular intervals along with the applicable rate of interest over a pre-agreed term. Wondering which bank has Personal Loan offers of this kind? Almost all banks and NBFCs operating in this country provide this type of Personal Loans.
Also referred to as the cash advances, the payday loan is considered as one of the most pricey borrowings. It normally comes with comparatively high rate of interest, and a host of other fees. They are generally given in small amounts and secured against the subsequent paycheck of the borrower. Only consider this type of Personal Loan in times of emergencies.’
A payday credit is also a form of interim loan, which we talk about next.
You may have heard the terms ‘single payment’ and ‘bridge loans.’ These are just other names of interim loans. This is a form of temporary financing, where you will repay your loan as a lump sum. In place of repayments at regular intervals, you shell out one huge payment, usually near the end of the term.
Which bank has Personal Loan offers?
Obtaining a personal credit is quite easy but the trick lies in selecting the prospective lender. You can trust reliable NBFCs who offer easy repayment methods and competitive rates of interest. Applying for the personal credit is a big financial decision. Make sure you understand the nuances of the credit before saying yes to it.