Personal loans as a commodity possess the following features which can be classified as benefits and drawbacks of personal loans
- Possesses flexibility and versatility.
- Has Lower interest rates and higher borrowing limits.
- No collateral requirement.
- Easier to manage as compared to other loans.
- Fees and penalties can be high.
- Interest rates can be higher than alternatives.
- Higher payments than credit cards.
- Can cause an increase in debt.
All the above-stated features are inherent in every personal loan no matter its use. Modern times have brought about a change, personal loan apply online has become a trend in developed cities as well as some developing rural areas.
In India, the banking and finance industry does not operate as in world-leading nations. Our economical structure is referred to as a mixed economy in which the market witnesses an active contribution from public as well as private undertakings.
Some examples of these are:
Public sector banks:-
- State bank of India
- Punjab National bank
- Bank of Baroda
- Bank of Maharashtra
- Oriental Bank of Commerce, etc.
Private sector banks:-
- HDFC bank
- ICICI bank
- Axis bank
- Kotak Mahindra bank
- Yes bank, etc.
After the mergers in public sector banks in 2020, The oriental bank personal loan is now the same as that offered by PNB
- The offered rates to various customers such as Salaried, Self-employed, Pensioners are 9.95% p.a. to 14.50% p.a.
- Processing Fee Up to1.8% of the loan quantity
- Loan Tenure Up to eighty-four months
- Loan Amount Up to Rs.15 lakh