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