Personal loan – availability of tenures

To understand financial terms and conditions for a normal people is very difficult these days. Although one way or other we all want to take benefits given by banks and financial institutes. There are plenty of schemes and discounts offered on loans and on mortgages that we cannot resist ourselves from buying. Second aspect is our current lifestyle is also like that in which we have to borrow money from banks or financial institutes otherwise we would not able to manage home finance. It is never easy to invest our own money in all needs.

These days’ banks are offering many types of loans and financial helps which can be used in our daily need. One can pay money easily by EMI option depending on amount they have borrowed and depending on tenure for which loan has been taken.

Personal loans are having more interest rate compared with home loan. Generally it depends on banks but in India RBI has now made very friendly rules which applied for all banks. End users or customers can get more benefits out of such institutes.

For personal loans tenure has been decided for all banks. Minimum tenure is one year and maximum tenure is 5 years for all types of personal loans. EMI of the bank of financial institute would be depended on three parameters. One is loan amount, second is tenure for which loan has been taken and third is interest rate on which loan is taken.

Principal (loan amount):

This factor has two sides one is personal need and second is how much fund bank can give with valuation of mortgage. Consideration of both these factor personal loan has been released. It is very important to understand principal amount and how interest will be calculated on that amount. Person should understand all criteria carefully otherwise there is a chance he/she will suffer in future.

Interest rate:

Interest rate is generally fixed for the type of loan and which has been monitored by Reserve bank of India. For personal loan interest rate is 13 % to 18 % depending on different conditions and depending on banks. Interest rate will decide what EMI person will be paying for the loan taken.

Tenure:

Tenure for the personal loan has been fixed for lower and upper limits. Minimum tenure for personal loan is 1 year and for maximum side it is 5 years. EMI calculation for the loan amount would be done from how many years or months loan will last. Generally when repayments are fast EMI amount would be high but tenure will be less. Payment of loan will be faster but EMI will be higher. Similarly if someone wants to lower EMI then tenure will be higher but total amount given as interest will be also high. Extra money as interest will be high when loan tenure is large.

One needs to understand and decide EMI such that he/she can pay that easily with available monthly payments. If we are going for longer period then money will be paid as interest will be higher.

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Personal loan – availability of tenures
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To understand financial terms and conditions for a normal people is very difficult these days. Although one way or other we all want to take benefits given by banks and financial institutes.
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4 Responses

  1. Corinne says:

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  2. Chandru says:

    Hi, I am actively looking for a loan of 1,00,000 due to personal issues. I have a active car loan & my monthly EMI is 15,816. My net take home is Rs.21,800 but including incentives & shift allowance, it leads to >= 28,000 but why none of the banks are not giving me a loan, I have paid all my interests & EMI accurately. Looking for an answer for this.

    • santhu says:

      Hi Chandru,

      Your loan is rejecting because of Eligibility problem, you are already paying more EMI. Our suggestion is to clear your existing loan and then apply.

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