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What are the terms and conditions of the personal loan (e.g. interest rate, repayment schedule, collateral)?

Curious about a personal loan

What are the terms and conditions of the personal loan (e.g. interest rate, repayment schedule, collateral)?

The terms and conditions of a personal loan may vary depending on the lender and the borrower's creditworthiness. Here are some common factors that affect the terms and conditions of a personal loan in India:

1. Interest rate: The interest rate on a personal loan in India can range from 10% to 24% per annum. The interest rate can be fixed or floating, and it depends on the borrower's credit score, income, and repayment capacity.

2. Repayment schedule: The repayment schedule for a personal loan can range from 12 months to 60 months. The borrower has to pay the principal amount and the interest within the agreedupon period. The repayment schedule can be monthly, quarterly, or annually.

3. Collateral: A personal loan can be secured or unsecured. A secured personal loan requires collateral such as property, gold, or shares to be pledged to the lender. An unsecured personal loan does not require collateral, but the interest rate may be higher.

4. Processing fees: The lender may charge a processing fee for processing the loan application. The processing fee can be a percentage of the loan amount or a fixed amount.

5. Prepayment charges: If the borrower wants to prepay the loan amount before the agreedupon period, the lender may charge a prepayment penalty. The prepayment penalty can range from 1% to 5% of the outstanding loan amount.

It is important to carefully read and understand the terms and conditions of the personal loan before applying for it.

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