Personal loan rates in India are different for the secured and unsecured loans. Personal loans can be borrowed for any kind of individual requirement in India. With the growing demand of personal loans in India, the number of personal loan providers is increasing in India and also in the global financial market.
Personal loans in India are generally paid back within a fixed time period. The time period allotted for the repayment of loan amount is termed as loan term. The loan amounts for personal loan in India may depend upon the factors like loan period, repayment term and the rate of interest.
In case of unsecured personal loans, the loan rates are high in India. The unsecured personal loan rates are high because of a number of reasons.
Whenever any lender grants a loan to the borrower, some sort of tangible or intangible security like land, house, car, currency or valuable asset is asked to pledge. In case of non-payment of the loan, the lender takes away the pledged security. But in case of the unsecured personal loan, the loan is not secured against any security asset. The lender generally grants the personal loan to an individual depending on his or her income.
In India secured personal loans are also called the fixed interest rate personal loans. The secured personal loans require collateral or the security of stocks, bonds, certificates or savings account.In India The personal loan rates for the secured ones are comparatively lower than that of the unsecured ones.
There are different types of personal loans in India depending on the nature of the loan rate is asked. Both variable and fixed rate of interests are charged for personal loans in India. In case of the fixed rate personal loans, the rate charged remains the same throughout the loan period irrespective of the ups and downs in the loan market.
