Pros and Cons of Personal Loans

Personal loans as a commodity possess the following features which can be classified as benefits and drawbacks of personal loans

Benefits:

• Possesses flexibility and versatility.
• Has Lower interest rates and higher borrowing limits.
• No collateral requirement.
• Easier to manage as compared to other loans.

Drawbacks:

• Fees and penalties can be high.
• Interest rates can be higher than alternatives.
• Higher payments than credit cards.
• Can cause an increase in debt.

All the above-stated features are inherent in every personal loan no matter its use. Modern times have brought about a change, personal loan apply online has become a trend in developed cities as well as some developing rural areas.

In India, the banking and finance industry does not operate as in world-leading nations. Our economical structure is referred to as a mixed economy in which the market witnesses an active contribution from public as well as private undertakings.

Some examples of these are:

Public sector banks:-

• State bank of India 
• Punjab National bank 
• Bank of Baroda 
• Bank of  Maharashtra 
• Oriental Bank of Commerce, etc.

 Private sector banks:-

• HDFC bank
• ICICI bank
• Axis bank
• Kotak Mahindra bank
• Yes bank, etc.

After the mergers in public sector banks in 2020, The oriental bank personal loan is now the same as that offered by PNB 

• The offered rates to various customers such as Salaried, Self-employed, Pensioners are 9.95% p.a. to 14.50% p.a.
• Processing Fee Up to1.8% of the loan quantity
• Loan Tenure Up to eighty-four months
• Loan Amount Up to Rs.15 lakh
• Salary/Income As per the terms and conditions set down by the bank Employment Status Salaried/Self-Employed/Retired employees/Doctors Credit Score 750

Personal Loan Schemes:

• Personal Loan Scheme Best For Interest RatePersonal loan theme for public {governmental jobs} salaried individuals 11.50% to 14.50%

• Personal loan for doctors Doctors 9.95% forwards
• Personal loan for pensioners Retired individuals 10.75% forwards
  
  

1. Consumer loan theme for the Public: 

• Any salaried individual will avail this consumer loan theme to require care of their numerous desires like fulfilling their children’s education, repairing of house, taking a vacation, wedding of self or your kids, etc.
• Any salaried individual World Health Organization has worked for a central or regime body, university, autonomous body, etc. will apply for this consumer loan theme.
• The reimbursement amount is one year to five years.

The minimum loan quantity that you simply will avail of underneath this theme is Rs.50,000. the utmost loan quantity will vary between Rs.4 large integer and Rs.10 large integer betting on your occupation, annual wage, and also the terms and conditions set down by the bank.

 2. Consumer loan theme for Doctors:

• Doctors with wages of Rs.5 large integer and higher than, and World Health Organization have paid taxes for 2 years square measure eligible for this consumer loan theme.
• The minimum loan quantity a doctor will avail is Rs.2 large integer and also the most loan quantity that he/she will avail is Rs.15 lakh.
• Repayment tenure will vary from one year to seven years.
• A doctor will avail this consumer loan to satisfy each his/her personal and skilled desires.

3. Consumer loan theme for Pensioners:

• This consumer loan theme is availed by those that have retired from their jobs and maybe a client of PNB.
• The minimum loan quantity that one will avail is Rs.25,000. the utmost loan quantity which will be availed underneath this consumer loan theme is Rs.10 large integer betting on the age of the pensionary.
• Repayment tenure will vary between one year to five years. Just in case the pensionary is higher than the age of seventy-five years, the reimbursement tenure is a pair of years.
• The purpose of availing this consumer loan is to permit the pensionary to require care of their personal desires together with the medical expenses.