Interest rate is an amount charged by the lender on the loan given to the client. These rates are compulsory for the financial institutions and thus, cannot be avoided. However, different institutions can charge different interest rates based around the standard rate. Same is the case with the Personal Loan. Know more about what affects the Annual Percentage Rate(APR) on the loan and additional charges that could be applied on the personal loan.
The excellent credit score lies between 720-850 points and the APR for the same ranges between 10.3-12.5 %.
690-719 is considered to be a good credit score and for this the average APR falls between 13.5-15.5 %.
630-689 credit score becomes the average score for which one needs to pay about 17.8-19.9% APR.
Below the line of 630 and above 300 is considered to be the bad credit score and it may cost 28.5-32% APR to the client.
NBFC or other lenders charge a one-time amount for the initial processing of the personal loan which is a must to pay and have a nominal amount.
Penal or Additional Interest is a charge that is applied on the loan after a specific amount. This charge may vary depending on the NBFC.
In case the cheque for the repayment or charges bounces, the lender may charge late payment or bouncing charge on the client.
The loan cancellation charges depend on the time of cancellation as well as on the amount. It can be anything starting from an amount of 1,000 rupees.
The Statement of Accounts is a record of the account activities including various charges, interest rates and repayment actions. The lender may charge a nominal amount in case you request to see a Statement of Accounts.