About CompareRaja Personal Loan
CompareRaja eliminates the need to visit banks or their websites in search of the best personal loan deal. This website allows you to compare all the different types of personal loans as per your preference on a single platform to make sure that you are able to choose the best deal. You can know more about the loan you wish to consider, its terms and conditions, additional charges, etc. and even apply for the same through the website itself.
Why choose CompareRaja for Personal Loan?
Instant Comparison - By allowing potential borrowers to compare the personal loans offered by numerous leading banks, CompareRaja allows them to make an informed financial decision.
Personal Loan Tools - For enhanced convenience, we give you various personal loan tools like eligibility calculator, EMI calculator, Interest rates table. With the help of these tools, it is very convenient for you to understand and apply for a personal loan even if you are applying for a loan for the first time.
Free Quotes - CompareRaja has partnered with more than 6 leading banks & NBFCs in India to provide you with a variety of free quotes to choose from.
Personal loans are short term loans that are unsecured in nature i.e. they don’t require a collateral. The collateral is the asset that you keep with the bank, like your home, car, etc., as a security for the loan period. Banks and other financial institutions grant personal loans on the basis of the credit history of the applicant. While personal loans are generally used for a variety of reasons, like covering expenses of a wedding, paying for an exotic family vacation, clearing existing debt, etc. they can be used to cover any expense. One can avail personal loan Up To Rs. 30 Lakhs depending on the eligibility. The Minimum period for repayment of personal loan is 1 year while the maximum period of repayment is 5 years.
Personal Loan Interest Rates
The interest charged on the personal loan is higher than most other type of loans mainly due to the reason that it is an unsecured loan. As a matter of fact, only the interest charged on credit cards are higher than the interest rate on the personal loans. Maximum Annual Percentage Rate (APR), which generally includes interest rate plus fees and other costs for a year, or similar other rate calculated consistently with local law for personal loans can range from interest rates of 11.49% to 24% depending on your profile. There is a minor difference in the rate of interest charged by different banks and other factors, like the loan amount, the total tenure of the loan, credit history, and current income also plays a role in determining the interest rate.
Benefits and Features of Personal Loan
Your CIBIL score will play a major role in determining your eligibility for a personal loan and will also have an effect on the interest charged on the loan amount. If you have a good credit history, there is a high possibility that your personal loan will not only be granted by the bank, but the interest rate can also be lower than the standard rate as you will be a low-risk borrower for the bank.
There are many factors, like current income, CIBIL score, loan tenure, and loan amount that determine the interest rate that will be charged on your personal loan. Thus, there can be a difference between the interests charged on the personal loan taken by two different individuals from the same bank.
The total tenure of a personal loan is fixed and can range anywhere between 1 and 5 years.
While taking a personal loan, you’ll generally be required to pay a processing fee which can be up to 1% of the total sum borrowed. However, there are banks that do not charge the processing fee. Apart from the processing fee, other additional charges can include late payment charges, pre-payment penalty, charges for documentation, and a penalty for cheque bounce.
Personal loans do not require a lot of paperwork and is generally approved within 48 hours of submitting the application.
The total cost of the loan, including all applicable fees
If you apply for a loan of Rs.5 Lakhs for 5 years and it gets approved at 15% per annum, you’ll pay a monthly EMI of Rs.11, 895.
The total interest you pay over 5 years will be Rs.2, 13,698 and the total amount payable with interest will be Rs.7, 13,698.