Chennai is a preferred place for many people to live and work. It is one of the populous metros in India. There are many things that make it a place of interest. It is a treat for people who love music, art and culture, especially its classical dance shows. Chennai has a lot to offer for people by way of tourist attractions as well as recreations. One of the favorite pastimes of Chennaites is going for a stroll on the popular Marina Beach. Like all metros, Chennai has its share of shopping malls and assorted shops for the shopaholics. Personal loans are increasingly becoming the answer to the immediate funding needs of many people living in Chennai. Many Banks in Chennai offer personal loans for people living there.
Personal Loan providers in Chennai
Most banks offer personal loans at competitive rates of interest. Your repayment capability and your credit history are assessed before sanctioning a loan. Some of the banks which provide personal loans in Chennai are:
Features of personal loans in Chennai
Personal loans in Chennai are available for both salaried and self-employed persons. The loan amount sanctioned usually depends upon the monthly income and credit history for salaried persons. They have to have a minimum monthly income of Rs.10,000. For self-employed individuals, profit is the benchmark that determines the loan amount. A self-employed person should have a minimum income Rs.2,50,000 per annum in order to be eligible for a personal loan.
Some of the features of Chennai personal loans are:
- Most banks offer personal loans with payback periods of one to five years.
- Some banks offer special privileges to you if you have an existing account with them.
- You will have to pay a processing fee when your loan is approved. The processing fees usually are around 1% to 3% of the loan amount.
- In case you decide to pay off your loan before the end of your tenure, you will have to pay prepayment penalties. This could be anywhere between 2% to 6% of the outstanding loan amount.
- If you have defaulted on your payment, you will have to pay 2% interest per month on the overdue installment.
Interest Rates of Personal Loans in Chennai
The interest rates applied can vary with the bank issuing the loan. Generally banks in Chennai calculate interest by monthly reducing interest on the outstanding loan amount. Interest rates charged for personal loans in Chennai starts from 13.50%. Banks offer floating or fixed interest rates options.
Loans can be repaid in equated monthly installments (EMI). Your EMI is calculated depending on your loan amount, the interest rate and the loan tenure.
Four Things to do When Going for a Personal Loan
When taking a personal loan, always:
- Compare loans offered by various banks. This way you can get a deal that would save you some money.
- Opt for a reputed personal loan provider. With the increase in private lenders in the market, it is advisable to check their credibility before getting a loan.
- Check the late payment charges and prepayment penalty charges as these could majorly impact your payback plans.
- Read the fine print carefully before signing to avoid any nasty surprises in the future.
With a personal loan in Chennai, you will be able to take care of those pressing financial obligations that were worrying you.