BUYERS BEWARE
 
This Section ALERTS the Investor against malpractices in the financial services industry  
Avoid Personal Loans
Which is the Costliest Loan that you can avail from any bank in India? The answer is PERSONAL LOAN. The main reason why personal loan are so costly is because there are in the nature of unsecured loans and the banks do not have any security to fall back on in case of a default. Presently most banks /FIs are charging interest in the range of 14 to 28% per annum on personal loans. This interest rates is the highest amongst all types of loans may it be Home Loans, Car Loans, Education loans, Business Loans etc. Have a look at the graphic below:

Type of Loan Interest Rate (% )
Home Loans 8.75 to 9.00 % pa
Car Loans 12.00 to 15.00% pa
Education Loans 10.50 to 14.00 % pa
Personal Loans 14.00 to 28.00 % pa

So avoid personal loans unless in case of an emergency and in that case ensure that you pay it off at the earliest.
 
 
Mr. Nirav Panchmatia, the founder CEO & Chief Strategist of "AUM Financial Advisors" is a Mutual Fund Expert, Financial Planner & Wealth Manager. He is a CA & MBA Finance from Narsee Monjee (NMIMS), Mumbai having spent last 8 years in Mumbai working in leading financial institutions like Citigroup, ICICI Bank, IRIS, Quantum Group etc. A keen observer of events and trends, he writes in a lucid yet readable style and takes up issues on behalf of the Indian Individual Investor. He also regularly conducts financial literacy seminar. The above article is meant for general reading only)


Disclaimer:

The views mentioned above are of the author only. Data and charts, if used, in the article have been sourced from available information and have not been authenticated by any statutory authority. The author and AUM Financial Advisors do not claim it to be accurate nor accept any responsibility for the same. The views constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the reader. Please read the detailed Terms of Use of the web site. © AUM Financial Advisors
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