Paying high interest rate on credit cards outstanding. Credit cards charge is as high as 60 % and paying the due via Personal loan saves.
Example helps you to know better how personal loan is better than credit card.
| Personal loan Repayment | Credit Card Repayment | |
| Loan Amount | 200000 | 200000 |
| ROI | 15.25% | 36.00% |
| Tenor | 48 | 48 |
| Part Payment (3rd month) | 125000 | 125000 |
| Usage (4th month) | 50000 | 50000 |
| Repayment (15th month) | 25000 | 25000 |
| Usage (20th month) | 40000 | 40000 |
| Total Interest Paid | 55470 | 145311 |
| Interest Saved (in Rs.) |
89,571 |
|
| Interest Saved (in %) |
62% |
|
Medical Emergency
Ashok Sareen, a government employee, had to undergo a major surgery but he was short of Rs 3 lakh. His son Rachit, a software engineer, pitched in with funds by availing a personal loan. He is happy to see his father recovering after surgery.
And Other Reasons
Since it’s an unsecured loan, hence can be used for any requirement be it Buying consumer durables, funding vacation or marriage functions.
Am I eligible?
Though the eligibility criterion varies from bank to bank, the basic parameters include age, income, profession, liabilities and credit history of the borrower.
Limit, tenure and Interest Rate & Best Deal.
» Personal loan Rates vary from 11.99% to 26.00%.
» Banks fund Rs 50,000 to 25 lac depending on borrower’s eligibility.
» Tenure is generally stretched from 1 to 5 years.
» Processing Fee starts from 0.5% to 2.00%.
» And Prepayment charges can be from 0 to 5%, varying from bank to bank.
