Introduction
It is quite obvious that before applying for a personal loan we should know what it is exactly. Because without having a basic idea about it, it will not be possible to apply for it. So, here you can get some basic ideas about what a personal loan is.
What is a personal loan?
This personal loan is always a fixed amount of money borrowed at a fixed rate and repaid over a fixed amount of time.
These personal loans can either be Secured or Unsecured.
Unsecured personal loans: These personal loans are always unsecured, meaning it does not require collateral. Because of this, many lenders heavily weigh factors like your credit, income, and outstanding debt whenever evaluating you as a good potential borrower. Getting this type of personal loan with very bad credit can be more difficult, or outright expensive.
Secured personal loans: This kind of requires you to always up collateral to back your loan. If you fail to make payments, many lenders can seize your collateral. Since this collateral always reduces the lender’s risk, you will typically find secured personal loans that can be very easy to qualify for and offer many favorable terms.
The rate of Interest is subject to periodic change as per bank and NBFC policies.
Rate of Interest is one of the good key factors that always determine the cost of borrowing. A very lower rate of interest is preferable as it decreases the rate of interest payout for the borrower over the full loan tenure. Following is the list of the current personal loan rate of interest offered by very major banks and Non-Banking Financial Companies in India:
Fixed interest rate: In this case, the interest rate always remains constant throughout the loan tenure. Mostly, monthly EMI amounts always remain fixed throughout this loan repayment period. It may always help you plan your monthly expenditure in the very long term.
Floating interest rate: It depends on either the full benchmark set by many lenders or as current market conditions. As a result, this floating rate of interest is liable to change periodically; this always leads to an increase or decrease in loan tenure or monthly EMI.
This Allahabad Bank always offers customized personal loan schemes to many segments of society. These schemes always help an individual to fulfill both personal and business needs without any inconvenience. This loan amount, tenure, and rate of interest are always offered under these schemes, many from individual to individual. This process to apply for these Allahabad Bank personal loan schemes is most easy and offers a fast disbursal of the loan amount.
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