There has been a steady offtake in the affordable housing segment due to government’s various incentives and efforts to stimulate the industry. Our honourable Prime Minister Narendra Modi has given a kick-start to the real estate sector with the Pradhan Mantri Awas Yojana (PMAY) scheme. It is a landmark decision as the home loan interest rates are low in this scheme. As the latent demand for affordable housing always existed but with regulatory and government support and increasing urbanization, more and more developers are finding the segment lucrative.

Personal Loans

Personal loan have a shorter repayment tenure ranging from 1-5 years. Depending upon the individual applicant’s profile and lender, the APR (Annual Percentage Rate) of a instant personal loan may vary from 11% to 35%.

Personal loan is a short to medium term loan to meet your immediate financial needs. Personal Loans are a form of unsecured loan and require no collateral. The funds can be used to meet your needs for debt restructuring, marriage, holiday expenses, home renovation etc, but the funds can be used to cover any financial need.

Interest Rates

Personal loan interest rates start from 10.75% onwards and the tenure extends from 2 years and more. The exact interest rate depends on the profile of the customer and varies with loan amount, credit history etc.

Repayment Period

The tenure for the loan starts from 2 years and can go upto 6 years

For example, if you take a loan of Rs. 3 lakhs at the rate of 13% with repayment tenure of 3 years, your EMI will be Rs. 10,108. The total payable amount at the end of 3 years would be Rs. 3,63,895. Therefore, you are paying total interest amount to the tune of Rs 63,895. This, however, excludes other applicable charges which can be quantified as under:

Loan Processing Charge – 2%

Documentation charges