| Summary: Personal finance is made available to the | | | | awareness about key aspects of personal finance |
| common man for meeting his personal, basic and | | | | loan rates. |
| sometimes even luxurious requirements. These | | | | A sound knowledge and proper application of |
| requirements can take the form of car purchase, | | | | personal financing interest rates can benefit the |
| debt consolidation schemes, home improvement | | | | people in a great way in managing their finances. Both |
| plans, educational requirements of the children and | | | | loan-availing and managing personal finance are the |
| even vocational and business trips. | | | | different facets of the same coin. They exist in |
| The rate on the loan amount availed is the deciding | | | | parallel in a consumers life. The personal finance |
| factor while availing such a loan. Various banks like | | | | sector in India has followed the trend of economic |
| HDFC, Citibank, Standard Chartered, ICICI and scores | | | | boom under a globalised economy. India is accepted |
| of others have provided a vast range of competitive | | | | as the emerging Asian Tiger among the leading |
| options for the consumers in the field of personal | | | | economies of Asia. In the recent years, it has really |
| financing. And what is even more important, bad | | | | provided a very tough competition to China by |
| credit clients can also get the benefit of personal | | | | rivaling it in the sphere of business environment. |
| finance; even though they are charged a bigger rate | | | | There are many key features and process in the |
| of interest. Even in the case of choosing a credit | | | | field of personal finance system in India which make |
| card, the person is supposed to lookout for a | | | | it one of the best options for economic growth in |
| company which charges the smallest rate of interest. | | | | the future. |
| Another effective form of personal finance | | | | As far as the personal finance interest rates are |
| management is achieved by using the debit card. In | | | | concerned, Indian Overseas Bank competes with the |
| this one can spend the amount available in his/her | | | | best by providing such borrowings at the rates |
| account only. The interest outflow, but, should be at | | | | ranging between 12 to 13.75 percent for the salaried |
| its smallest level to save some money for | | | | category. Canara Bank follows closely on the heels |
| emergency and other expenditures. | | | | with a flat rate of 14 percent on personal loans. |
| Personal loans in India can be categorized in two | | | | Central Bank of India has the interest range between |
| ways as secured and unsecured financial schemes. | | | | 14 to 15 percent. |
| The secured form of finance enables the people to | | | | Most of the banks have a cluster of varying interest |
| obtain loan against their property at its mortgage | | | | rates, depending upon whether the loan-taker is |
| value. This item of property acts as collateral | | | | salaried or self employed. Personal and occupational |
| benefiting the cause of the borrower. For the people, | | | | profiles are very closely followed. Among the salaried |
| who do not own any property to put up as a | | | | class, the top ten companies have smaller rates of |
| collateral or consider putting the piece of property on | | | | interest. Even the employees within each company |
| the stake as risky, unsecured finance is the other | | | | will have to settle for different rates depending upon |
| choice available. This gives them freedom from the | | | | their salaries, individual profiles and credit past. |
| risk of repossession and auction, which is quiet | | | | In the case of self-employed professionals like |
| common in the condition of payment default. | | | | doctors, engineers and chartered accountants they |
| Of late the people's style has seen a phenomenal rise | | | | are charged much lower rates of interest in |
| in the expenditure pattern. Such over-expenditure, | | | | comparison to self-employed non-professional |
| well beyond the means of income and the individual's | | | | persons who are required to pay a bigger rate of |
| earning capacity normally results in the debt trap. | | | | interest due to the assumed risk involved in giving |
| Most of us,in fact, from the wealthiest to the needy | | | | credit to such consumers. So, one ought to negotiate |
| ones, are caught up in the borrowing trend. But the | | | | to avail the lowest possible rates for the category |
| problem gets aggravated due to the paucity of | | | | and class he/she might fall under. |