Personal loans are one set of loans that you should not be taking. This is because the interest rates on them is much higher than any loans including auto loans, home loans and gold loans.
However, in case you wish to bridge the gap through a temporary loan, the best you can do is do adequate research and than a personal loan.
Why personal loans from Bajaj Finserv remains the best bet?
1) No pre payment charges
Most banks charge a pre-payment charge of 4 per cent. Now, let us say that you borrow a sum of Rs 5 lakhs as personal loan. If you have completed 1 year and need to pay back the outstanding amount of say Rs 4 lakhs, you would need to pay Rs 16,000 extra to the bank.
Bajaj Finserv does not have any pre-payment charges on its personal loans, which makes the loans a much better proposition in case you are looking to pre-pay the amount.
Standard Chartered Bank is another bank that does not have pre-payment charges, but, its interest rates are higher than that of Bajaj Finserv.
2) Pre Paid Card
In case you take a loan of Rs 4 lakhs you get a pre-paid cad of Rs 5000 and if you take a loan amount of Rs 6 lakhs, you get a pre-paid card of Rs 15,000.
This is of course for a select period only and is not available perpetually.
3) Competitive interest rates
Most of the banks and institutions we called for interest rates, showed an interest rate band of 12-16 per cent. This again would depend on your credit worthiness and existing relation ship with the institution.
Bajaj Finserv worked out at around 13 per cent, which is the lower end of the price band.
If you have had a loan and have successfully completed the same, you could end-up getting a competitive interest rate. It would also depend on your credit score and past track record.
We once again wish to emphasize that personal loans are the most expensive set of loans that one would see. It is best to consider other options before investing.