First, the minimum term for a residential mortgage is five years, and second, lenders are increasingly wary of lending on an interest-only basis. A personal loan secured on property isn’t an option either as the minimum term on these is typically three years.

What is the minimum personal loan amount?

Banks ask for a minimum income of ₹ 25,000 for a personal loan. However, some banks give loans for a salary less than ₹ 25,000. Your loan eligibility is calculated based on the ratio of your fixed obligations to your monthly income.

Can you get a unsecured loan with a low interest rate?

If the credit score of the aspiring borrower is poor, he might not be eligible for an unsecured loan, and even when he does, the applicable interest rate is likely to be much higher than something that is offered to an applicant with a stellar credit score.

What kind of loans have high interest rates?

Personal loans and credit cards come with high interest rates but do not require collateral. Home-equity loans have low interest rates, but the borrower’s home serves as collateral. Cash advances typically have very high interest rates plus transaction fees.

What should I know about different types of loans?

Regardless of type, every loan – and its conditions for repayment – is governed by state and federal guidelines to protect consumersfrom unsavory practices like excessive interest rates. In addition, loan length and default terms should be clearly detailed to avoid confusion or potential legal action.

Which is the best bank to get a personal loan from?

It is a good practice to compare interest rates offered by various banks and NBFCs on a personal loan and then go for the lender offering the lowest interest rate. At Paisabazaar.com, you can compare the interest rates offered by various banks under one roof and can choose the desired one.