Monday, September 21, 2020

Personal loan online calculator

 Personal loan online calculator

Man topic

Banks and financial institutions offer a variety of financial products.  One of these is a personal loan.  Banks offer two types of loans.  The first is secured loan and second is unsecured loan.  In secured loans, usually bank guarantee is taken.

 Home loans and auto loans fall under the category of secured loans.  Whereas no guarantee is taken in unsecured loans.  This is given by looking at the loan repayment ability of the customer.  Personal loans fall into the unsecured loan category.  Let us know some important things about it.

Click here personal loan calculator

(1) Banks and non-banking financial companies (NBFCs) provide personal loans for a variety of needs.  These needs include marriage, home repair, holiday etc.

(2) Personal loans are given without any guarantee.  This means that banks do not ask you to pledge any assets in return.  In this way, the banks are tied in their recovery.  This is the reason that they have a higher rate of interest than other secured loans.

 (3) Banks have put very strict standards in giving personal loans.  In this, the income, credit and employment history of the customer and the ability to repay the loan are seen.  The loan is approved only after reviewing all these aspects.

(4) Apart from interest, customers also have to pay loan processing fees.  The bank or NBFC can charge prepayment payment penalty if desired.  By the way, most banks do not charge prepayment penalty.  Prepayment of loan before time is called prepayment.

 (5) Many times banks offer pre-approved loans based on the financial history of the customer.  In this, not only are offered affordable interest rates, but there is not much paper written and read in giving loan.  In such a loan, money is put in the customer's account in three to four days.

 Contents of this page courtesy the Center for Investment Education and Learning (CIEL).  Contribution of Girija Gadre, Aarti Bhargava and Labdi Mehta.

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