Taking a loan can pose quite a good number of challenges to the borrower. There can be ambiguity in the borrower’s minds like how to go about the process, or from where to borrow the money, banks or non-banking financial institutions. Even if you somehow decide to avail the personal loan from the banks, another confusion that can arise in your minds is that which bank you should choose – public or private?
In this article, we’ll try to clear all the ambiguities in this regard.
One of the most popular and safe options to get money from banks and other financial institutions is to take personal loans. Whether you wish to go for a vacation or want to buy a precious gift for your family, personal loans will give you the freedom to do so without any worries.
These days it is very common to see your mailbox flooded with emails which offer you the best kind of personal loans. These banks and companies offering loans make sure that the offers and deals are customized especially according to your needs and requirements. Personal loans are the easiest to avail. This ease to get the loans makes them a popular choice among the people in India. Another thing that makes personal loans most sought after is that you do not need to give any collateral or guarantee. Also, the usage of the loan amount isn’t monitored by the lender.
If you too are looking forward to avail personal loans, then it becomes imperative that you know all the eligibility criterion that is essential for any individual who wishes to take loans. Knowing the eligibility details will also make it easier and simplified for you to avail the loan and go through the entire application process.
When you have decided to apply for personal loans you should be ready with the documents that will be required in completing the formalities. If you want to apply for the personal loans successfully, you need to furnish some important documents. Let us now compare the public and private banks on the basis of the following points.
Convenience in getting the loan
If you want that a personalized agent should come to you and explain you the process step-by-step, then you should choose private banks. Also, you wouldn’t need to go to the banks and stand in long queues like in the public banks. Private banks also deliver you their loan services at your doorstep. SO it becomes easy for you to get the loan approved.
If you are ready to pay a higher amount of processing fee for the doorstep services delivered to you, then you should choose private banks over public banks. Public banks, on the other hand, charge a low processing fee and thus are quite affordable to the common people.
If you require a loan on an urgent basis, then we would suggest that you choose private banks, as they take very less time in the entire approval process. But if getting a loan is not that urgent for you, you can also avail the services of the public banks, which might take some time but will give you assurance and credibility.
There are come prepayment restrictions also depending on whether the bank is private or public. Although, both the public and private sector banks have their own pros and cons, you should decide your priority based on your needs. As a borrower, you should always try to choose that option which offers you low costs both in short and long-term. Also, try to make a wise decision based on the above-stated facts.