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Personal Loan FAQs

What are the interest rates for personal loans?

You can borrow as much as you can repay comfortably. This in banking terms would mean a personal loan that has an EMI that does not exceed 40% of your monthly take home income, once the EMIs for existing loans have been deducted. For self-employed applicants, profit is the benchmark that determines loan value. Opting for a long tenure will lower the EMI, and therefore will enable you to be eligible for a larger loan amount. The loan amount you are eligible for is also dependent on other factors like the company you are employed with, the location of your residence and your credit history.

Can I have a co-applicant for a Personal loan?

Yes, you can opt for a co-applicant. To do so, please submit your application on SARAH FINANCE, and inform the bank’s sales manager contacts that you wish to add a co-applicant. This can help you increase the loan amount you are eligible for as the income of the co-applicant is also taken into consideration.

What is credit history? How does a financial institution check on my credit history?

A credit history is a record of your past repayments of loans and credit card bills. Credit Bureau of India Limited (CIBIL) maintains this credit history, by compiling data from all the banks on existing loans and the repayment history of their customers. Before approving your loan a financial institution always checks with CIBIL on your loan repayment track record.

How can I compare quotes from multiple banks?

Complete the short form above to find best personal loan offers that you are eligible for. Compare these personal loan offers basis EMIs, interest rates, processing fees, prepayment charge and customer ratings and apply to the lender of your choice.

What does prepayment charge mean? Does it matter while comparing loans?

A personal loan is repaid to the lender within a fixed time frame, which is usually 1 to 5 years. In case you want to clear the loan payment earlier than the agreed time frame, the bank levies a prepayment penalty charge. This could be up to 5% of the outstanding loan amount but can vary according to the bank and the credit profile of the borrower. Make sure the interest saved by pre-paying exceeds the prepayment fee paid. This is one of the factors to keep in mind while comparing loans.

What is the difference between a fixed interest rate and floating interest rate?

A fixed interest rate remains constant throughout the loan tenure regardless of the market conditions whereas a floating interest rate can decrease or increase depending on market fluctuations. Most personal loans are offered at a fixed interest rate.

How will the security and privacy of my data be ensured? will never share your data with any third party other than the financial institution that you decide to apply to. Our sound technology practices ensure a highly secure environment for all your data.

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