Loans| You can prepay personal loan without any penalty charges

a close up of text on a white background: Usually a bank will not ask for additional papers after sanction of a loan.

© Provided by The Financial Express
Usually a bank will not ask for additional papers after sanction of a loan.

By Chaitali Dutta

Will the bank levy penalty if I prepay a personal loan of Rs 2 lakh?

-Rajesh Katara

No. Usually personal loans are on a floating rate basis. In such loans, you may repay the loan any time, subject to the conditions put in the sanction letter. Please read the sanction letter carefully to see if they have mentioned any upper limit for repayment or a restricted period from the loan disbursed for repayment.

My home loan was sanctioned before the lockdown. Now, the bank wants a fresh employment letter. I got a new job in August and it is not accepting that. Should I go to another bank as I have paid booking amount?

-Ajay Kaushik

This may be due to the stress on the job front

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Now Finance Secured Personal Loan Review

Main points to consider with a Now Finance personal loan

Now Finance secured personal loans feature personalised rates. Therefore, the better your credit score, the lower the rate that you could be offered. Rates vary between 5.95% p.a. and 15.45% p.a. with comparison rates varying between 7.60% p.a. and 17.07% p.a.

Now Finance also offers a personalised service, where loan customers are allocated a personal loan advisor to guide them through the loan process. These advisors can talk to you over the phone to help you understand your rate, repayment schedule, and all fees and charges associated with your personal loan application. Loan advisors are there to help borrowers from application to settlement, and even throughout their loan term.

Features of a Now Finance personal loan

Now Finance’s personal loans come with the following features:

  • Personalised rate. Rates for Now Finance loans are risk-based. So, the better your score, the
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Is your SBI home, personal loan eligible for restructuring? How to check online

SBI’s retail customers upon logging in the portal will be asked to key in their account number. After completion of OTP validation and inputting a few necessary information, the customer will come to know their eligibility and receive a reference number. This reference number will be valid for 30 days and within which time customers can visit the branch to complete the required formalities.

C.S. Setty, Managing Director (Retail & Digital Banking), SBI expressed the hope that with the launch of this portal, the customers will find it operationally convenient to check their eligibility before they go to a branch.

Under this resolution framework framed by RBI, such borrowers are eligible whose loan accounts were classified as standard and not default for equal to or more than 30 days as on 1 March, 2020, and their incomes are impacted by Covid-19.

Retail customers will be offered a simple option to

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You don’t need perfect credit to get a personal loan

A low credit score doesn’t have to stand in your way if you want to get a personal loan to cover an emergency or consolidate your debts.

Borrowers with bad credit, which is a FICO score below 630, may need to put in some extra work to qualify for a personal loan. But taking these steps can not only help you get approved, they could also get you a cheaper interest rate.

Clean up your credit, shrink your debt

Before you apply for a personal loan, get a copy of your credit report to see what the lender will see on it, says Adrienne Ross, a Washington-based certified financial planner. You can get one free copy of your report from all three major credit bureaus at

The details on your credit report can show you why your score is low and signal how to address the issues before a

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SBI’s resolution framework | FAQs about personal loan restructuring

a person standing in front of a store: SBI's resolution framework | FAQs about personal loan restructuring

© Faizan Javed
SBI’s resolution framework | FAQs about personal loan restructuring

State Bank of India (SBI), the country’s largest lender, has released some FAQs to answer customers’ queries on loan restructuring during the COVID-19 pandemic.

The bank released two sets of FAQs – one for personal loans and another for borrowings in the non-personal segment, such as corporate loans.

SBI also launched an online portal where customers can check their eligibility under the resolution framework.

Here are the the highlights from the FAQs on personal loans:

What kinds of loans are covered?

EMIs on housing and related loans, education loans, auto loans, and personal loans included in the scope of the resolution framework.

The loan should be a “Standard Account” as on the date of application for

relief under this framework and should have been “standard” and also not in default for more than 30 days as on March

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What is a Secured CD Loan?

We want to help you make more informed decisions. Some links on our site — clearly marked — will take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money.

It’s easy to see the appeal of a CD-secured loan: easy approval, fast cash, and lower interest rate than other personal loans. 

But these loans aren’t quite as simple as they might seem, so make sure you know what you’re getting into before you sign the dotted line. 

If you have a CD and are considering taking out a CD-secured loan, here’s what you need to know.

Is a CD Secured Loan Right For You?

The main reason you should consider a CD loan is to improve your credit. Banks are more likely to approve the loan because they already hold your collateral – your CD.

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ADB approves $300 million loan to finance water supply, sanitation infrastructure in Rajasthan

a large building: ADB approves $300 million loan to finance water supply, sanitation infrastructure in Rajasthan

© Akanksha Sarma
ADB approves $300 million loan to finance water supply, sanitation infrastructure in Rajasthan

The Asian Development Bank (ADB) on September 25 approved a $3 million (approx Rs 2,200 crore) loan to develop Rajasthan’s secondary towns. In a statement, ADB said the loan has been approved to finance inclusive water supply and sanitation infrastructure and services in secondary towns of Rajasthan.

“The project is expected to build citywide access for improved water supply services for around 5,70,000 people and enhanced sanitation services for about 7,20,000 people in at least 14 secondary towns. These localities have 20,000-1,00,000 residents,” it said.

“Partnership with ADB helps ensure a longer-term policy dialogue on deepening financial sustainability and institutional strengthening, particularly in local governments, and introduces new good practices,” said ADB Senior Urban Development Specialist for South Asia Na Won Kim.

Kim said that the use of smart technologies and a cost-effective system

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3 Scenarios Where You Should Be Very Cautious To Take a Personal Loan

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A loan, when managed smartly, could not just help accomplish our critical life goals but also bail us out of a financial emergency. There are many types of loans available in the market to suit different requirements, which can largely be classified into two categories: secured loans and unsecured loans. A secured loan, which can be obtained after pledging the necessary security like gold, property, eligible investments and insurance plans, could be cheaper than an unsecured loan. However, the lender reserves the right to liquidate the pledged security to recover its dues if the borrower fails to timely repay a secured loan. But on many occasions, borrowers’ lending requirements are above the value of their securities, they don’t possess or don’t want to pledge the necessary security or they look for open-ended financing facilities, and hence, prefer unsecured loans like a personal loan. In

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How Do I Apply For A Personal Loan?

If you’re thinking about applying for a personal loan, it’s important to consider your options carefully before taking the plunge.

In this guide, we explain all you need to know about the application process, including what to watch out for, to help increase your chances of getting accepted.

What is a personal loan?

A personal loan allows you to borrow a fixed amount of money over a fixed term. You can typically borrow over a term of between one and five years, although in some cases, you may be able to borrow for seven years or longer.

You will usually be given the option of borrowing a sum of between £1,000 and £15,000, with some providers offering larger loan amounts of up to £25,000.

Personal loans are also known as unsecured loans as, unlike secured loans, you do not have to use an asset such as your home as

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This Is the Average Personal Loan Balance. How Does Yours Compare?

Do you owe more on your personal loan than the typical American, or less? New research will help you find out.

Personal loans are an affordable way to borrow money, and during the COVID-19 pandemic, they’ve no doubt been a lifeline to the millions of Americans grappling with income loss.

The upside of a personal loan is that you’re not limited in how you spend it. When you take out a mortgage, you must use that loan to buy a home. With an auto loan, you’re financing a car. A personal loan lets you borrow for any reason you want. Credit cards do the same, but personal loans tend to charge much less interest, and don’t drop your credit score unless you fall behind on payments.

If you have a personal loan, you may wonder how your balance compares to that of the average borrower. According to new research by

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