Impact of Personal Loan Offered by Banks  and Non Banking Financial Companies in  Coimbatore City

Dr. A. Vinayagamoorthy; M.Somasundaram; C. Sankar

Volume : I, Issue : XI, August - 2012

Impact of Personal Loan Offered by Banks and Non Banking Financial Companies in Coimbatore City

Dr. A. Vinayagamoorthy, M. Somasundaram, C. Sankar

Abstract :

It is a unsecured loan as no securities are taken while availing the loan. Other form of loan like home loan, loan against shares/ securities demands collateral security while availing it. The personal loan is completely free from all the conditions and can be availed with ease. Even though a few financial institutions may ask for a guarantor based on their comfort level of the applicants profile, it is a hassle free form loan. According to the Credit Information Bureau of India (CIBIL), your credit score should be between 100 and 999. The lower your credit score, the more chances of your application being rejected. The higher the credit score, the lower will be the interest rates charged. Another factor to be considered when applying for a personal loan is if you want to opt for reduced–balance interest rate or flat interest rate. With reduced–balance interest rate, the interest on the loan keeps on reducing as it is calculated on the reduced principle amount which reduces daily, monthly, quarterly or annually.