Bangalore in Karnataka was once called the garden city. Now it is more often called the Silicon Valley of India. With an increase in the number of IT companies setting up offices in Bangalore, it has come to be known as the IT capital of India. It is one of the fastest growing metro cities in India. Many prefer to settle in Bangalore as its cosmopolitan style is a major attraction.
Bangalore can be an expensive place for people who have smaller incomes. Many a time, these people end up without sufficient money to meet any contingencies. In such situations, a personal loan can be a very helpful aid.
You can get personal loans from various agencies in Bangalore like financial institutions, banks, private lenders, etc. Person loan amounts in Bangalore start from around Rs.24,000 and go up to Rs.15,00,000 with payback tenures of 1 to 5 years.
Some of the major banks offering personal loans in Bangalore are:
Features of a personal loan in Bangalore
Banks are the major providers of personal loans. Personal loans in Bangalore are available for salaried employees, business individuals and self-employed professionals like doctors, engineers, etc. Generally most banks offer personal loans without the need of placing any security, though the interest rates of loans given against some security can be lower. If you are an existing customer of the bank that you are applying for a personal loan, the bank could give you some special privileges.
Following are some of the salient features of a personal loan in Bangalore.
- To be eligible for a personal loan in Bangalore, you have to have a steady income of at least Rs.20,000 per month and be a resident of India working within Bangalore. If you are a self-employed person, you must have an income of at least Rs.2,50,000 per annum.
- With most banks in Bangalore, applying and getting a personal loan processed does not involve extensive paperwork.
- Banks charge a processing fee. These usually vary from 1% to 3% of the loan amount, depending on the bank.
- Some banks also charge a prepayment penalty fee if you pay the loan before the end of the loan tenure. This can be anywhere from 2% to 6%.
Interest rates for personal loans in Bangalore
The rate of interest is calculated either on a fixed or a reducing balance basis. In the fixed rate, the interest is calculated over the entire loan period and remains the same. In a reducing balance rate, the interest is calculated on the reduced principle amount which gets reduced daily, monthly, quarterly or annually. The Bangalore personal loan interest rates vary from 14% to 25% depending on whether you are salaried or self-employed and your repayment ability.
You can repay the loan through Monthly Equated installments or EMI. EMI is calculated depending on loan amount, interest rate and loan duration. If you have defaulted on a payment, you will be charged a percentage per month on the overdue installment.
With a personal loan Bangalore, you can use the money to meet your immediate monetary requirements and rest easy.