Is personal loan good to buy property?
“Personal loans are only recommended, when the buyer has no other option. They can elevate the financial burden on buyers with its higher interest rates and shorter repayment tenure. Lower interest on personal loans are only possible, if one has a good credit score and stable income.
Is it better to take home loan or pay cash in India?
Experts believe that even if you have the sums to purchase the property in one go, it is better to take a home loan. Instead of spending a lump sum amount on the property, it is better to go for a large amount down-payment and pay off the remaining amount in higher amount, monthly EMIs, since you can afford it.
What is the interest rate of personal loan in SBI?
9.60\%
SBI Personal Loan Interest Rate
| Particulars | Salaried/Self Employed |
|---|---|
| Interest rate | 9.60\% p.a.- 15.65\% p.a. |
| Loan Amount | Minimum: Rs.25,000 Maximum: Rs.20 lakh |
| Loan Tenure | Up to 72 months |
| Processing Fee | 1.5\% of loan amount + tax |
How is EMI calculated?
How is EMI calculated? The mathematical formula to calculate EMI is: EMI = P × r × (1 + r)n/((1 + r)n – 1) where P= Loan amount, r= interest rate, n=tenure in number of months.
What is the difference between a home loan and a personal loan?
Primarily, applicants go for a home loan when they are ready to buy a house. On the other hand, a personal loan can be very useful when some extra cash is required to pay for a down payment. The major difference between a home loan and a personal loan is the personal loan is unsecured. That means the lender does not ask for a collateral.
How much should you pay back a personal loan in India?
You should repay your personal loan within 3 to 6 months. If you take Rs. 100,000 loan for 12 months at the interest of 24\% then you would end up re-paying around Rs. 1,13,400. Personal loans help you sort out short-term financial crisis but costs you high-interest charges.
Why top-up loan is better than a personal loan?
We all know that a high interest rate is charged on personal loans as it is an unsecured loan. Whereas in top-up loans, your house acts as a collateral. As a top-up loan is offered to existing home loan customers and the bank has all the documents required, it makes it very secure.
What are the different types of personal loans available at SBI?
Three categories of personal loan- SBI Xpress Credit, SBI Pension Loan, and SBI Quick Personal Loan. The wide network of SBI branches makes service availability for people residing anywhere in the country. Loan allowed only upto Rs. 20 Lakhs.