The rate on the loan amount availed is the deciding factor while availing such a loan. Various banks like HDFC, Citibank, Standard Chartered, ICICI and scores of others have provided a vast range of competitive options for the consumers in the field of personal financing. And what is even more important, bad credit clients can also get the benefit of personal finance; even though they are charged a bigger rate of interest. Even in the case of choosing a credit card, the person is supposed to lookout for a company which charges the smallest rate of interest. Another effective form of personal finance management is achieved by using the debit card. In this one can spend the amount available in his/her account only. The interest outflow, but, should be at its smallest level to save some money for emergency and other expenditures.

Personal loans in India can be categorized in two ways as secured and unsecured financial schemes. The secured form of finance enables the people to obtain loan against their property at its mortgage value. This item of property acts as collateral benefiting the cause of the borrower. For the people, who do not own any property to put up as a collateral or consider putting the piece of property on the stake as risky, unsecured finance is the other choice available. This gives them freedom from the risk of repossession and auction, which is quiet common in the condition of payment default.

Of late the people’s style has seen a phenomenal rise in the expenditure pattern. Such over-expenditure, well beyond the means of income and the individual’s earning capacity normally results in the debt trap. Most of us,in fact, from the wealthiest to the needy ones, are caught up in the borrowing trend. But the problem gets aggravated due to the paucity of awareness about key aspects of personal finance loan rates.

A sound knowledge and proper application of personal financing interest rates can benefit the people in a great way in managing their finances. Both loan-availing and managing personal finance are the different facets of the same coin. They exist in parallel in a consumers life. The personal finance sector in India has followed the trend of economic boom under a globalised economy. India is accepted as the emerging Asian Tiger among the leading economies of Asia. In the recent years, it has really provided a very tough competition to China by rivaling it in the sphere of business environment. There are many key features and process in the field of personal finance system in India which make it one of the best options for economic growth in the future.

As far as the personal finance interest rates are concerned, Indian Overseas Bank competes with the best by providing such borrowings at the rates ranging between 12 to 13.75 percent for the salaried category. Canara Bank follows closely on the heels with a flat rate of 14 percent on personal loans. Central Bank of India has the interest range between 14 to 15 percent.

Most of the banks have a cluster of varying interest rates, depending upon whether the loan-taker is salaried or self employed. Personal and occupational profiles are very closely followed. Among the salaried class, the top ten companies have smaller rates of interest. Even the employees within each company will have to settle for different rates depending upon their salaries, individual profiles and credit past.

In the case of self-employed professionals like doctors, engineers and chartered accountants they are charged much lower rates of interest in comparison to self-employed non-professional persons who are required to pay a bigger rate of interest due to the assumed risk involved in giving credit to such consumers. So, one ought to negotiate to avail the lowest possible rates for the category and class he/she might fall under.



By: Addi

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Sherlock

Too Curious asked:


How much of a nest egg do we need to build? We have our home, and retirement funds but how much is enough?

Barry