When there are so many banks and financial institutions offering personal loans, it does get difficult for the customers to decide which one they should go with. One such lender is Canara Bank that looks to tap into every need an individual can have. But can you call a Canara Bank Personal Loan best given the competition it faces in the market? Well, that will depend on the comparative analysis taking its competitors into consideration. But before that, it will be good if you get a clue of how to decide which is the best personal loan, isn’t it? So let’s read this article that will guide you in your decision-making process.
Points to Consider Before Calling a Personal Loan Best A personal loan is best or not will be decided primarily on the following factors. Interest Rate - The first thing you need to consider is the burden that the loan will put on your budget. You can assess the impact by checking the interest rate of several lenders including Canara Bank. The rate of interest will decide greatly the interest you’ll end up paying to the lender by the time the loan closes out. Greater the interest rate, greater will be the outflow of interest and vice-versa. Yes, the interest rate will play a major role in ascertaining the extent of interest outgo, but it’s not the sole factor. Even the loan amount and tenure affect your loan repayment. You can thus use the Personal Loan EMI Calculator online to check the overall effects. All you need to do is enter the loan amount, tenure and rate of interest in the calculator and see the repayment estimates on your screen. Quantum of Loan - It is also important to know how much loan you can get from a lender. All comes to no use if the loan amount falls short of meeting your needs. So you should go online and check the loan amount different lenders offer. See which offers you the maximum at least interest rate and apply for the same. Processing Fee - When you apply for a personal loan, a processing fee at around 1%-2% of the loan amount plus 18% Goods and Services Tax (GST) is deducted. So, if you apply for 5 lakh and the lender charges a processing fee of 2% plus GST, the total fee will come as ₹11,800 Accessibility - It’s a point that not many consider and curse later on for the selection they make. Doesn’t matter how attractive the loan may sound, if you can’t access it easily, it’s of no use. Now that you know the factors, it’s time you compare Canara Bank Personal Loan with that of others. How Attractive Canara Bank Personal Loan is? Canara Bank Personal Loans are available at varied interest rates ranging from 12.40%-15.05% per annum. It charges a processing fee accounting for 0.5% of the loan amount. The minimum and maximum fee amount to ₹1,000 and ₹5,000, respectively. It can offer a maximum loan equalling the gross salary of the last 6 months or ₹3 lakh, whichever is less. You can get the loan sanctioned in 7 days subject to successful verification. How Do Others Stack Up? The country’s largest lender State Bank of India (SBI) provides the loan at interest rates ranging from 10.50%-14.75% per annum. The processing fee is on the lower amount, although it’s not revealed by the lender. You can get a maximum loan of ₹20 lakh if your income permits. On the other hand, HDFC Bank and ICICI Bank charge interest rates of 10.75%-21.30% and 11.25%-22% per annum, respectively. HDFC Bank charges a processing fee at 2.50% of the loan amount plus GST. The minimum and maximum fee are ₹2,999 and ₹25,000, respectively. On the other hand, ICICI personal loan processing fee goes up to 2.25% of the loan amount plus GST.
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Anika Sharma
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