Personal Loan v/s Credit Card Withdrawals

V/S                                        
A personal loan is easy to get, but do your research on cost, term and services.
Personal loans enable you to take care of instant necessities without much hassle. You do not have to provide security or guarantor; you can utilise the amount of loan for any purpose, except speculation. But, before taking, you should plan your requirements and assign the operating expense to be met with this loan.
The amount approved will depend on your eligibility, based mostly on your income. The repayment is monthly and the tenure varies from one to five years. Since personal loans do not require any security or hypothecation of resources, the banks charge higher interest rate compared to other secured or protected loan like home loan.
On the other hand, let's say you want to take the loan money through your credit card. How does this compare?
Foremost, withdrawing cash using a credit card can be very costly if you do not repay quickly. Interest rates on credit card loan withdrawals can range from 20-40 per cent on an annual basis. For nearly all cards, the interest rate on cash withdrawals and credit outstanding for purchases made are the same. But here is the kicker - for the purchases you make through your card, you get an interest-free period to pay back. Cash withdrawals on your card have no such benefits; interest is charged from the moment you withdraw the cash.
And, do not forget the transaction charge, levied on the withdrawal at the ATM. The average interest rate charged for a personal loan is in the range of 12-22 per cent , whereas the average interest rate is 20-40 per cent for withdrawal from a credit card.
Therefore, unless in a very real emergency where you need instant cash, it is advisable to not withdraw cash on your credit card. It is always better to go for a personal loan. It is the fastest of all retail loan products and the interest rates are a lot lesser than those on credit card withdrawals.

How Personal Loan process works.

A personal loan is easy to get, but do your research on cost, term and services.
Personal loans enable you to take care of instant necessities without much hassle. You do not have to provide security or guarantor; you can utilise the amount of loan for any purpose, except speculation. But, before taking, you should plan your requirements and assign the operating expense to be met with this loan.
The amount approved will depend on your eligibility, based mostly on your income. The repayment is monthly and the tenure varies from one to five years. Since personal loans do not require any security or hypothecation of resources, the banks charge higher interest rate compared to other secured or protected loan like home loan.
The process of Apply for personal loan is explained below:
Get in contact with a lender but first check which bank is offering the best rates and services. You can compare personal loan interest rates with any other reputed price comparison site like www.deal4loans.com. After listing a handful, get in touch with as many lenders as possible and know their offers. Then, negotiate for the best rate. Check if there are any unique offers. After finalising the lender, their direct selling agent will visit and collect documents supporting proof of income, residence and identity. You may have to create copies of income tax returns, salary slip, bank statements, ration card, passport, driving licence and other relevant documents. These requirements vary from banks to banks.
Then, a field examiner will visit your home to double-check the facts provided. It is essential that you are present during this visit, else, he could report that the facts provided do not add up.
Once the lender is satisfied with the authenticity of your documents, the loan is approved. The amount is then disbursed by cheques or demand drafts (DD).

Andhra Bank profit up 29 % in Q3

Andhra Bank posted a profit of Rs. 275 crore during the third quarter ended December 31, 2009, a growth of 29.5 per cent over the previous year.
Announcing the results in the absence of Chairman R. S. Reddy at a press conference here on Monday, Executive Director Anil Girotra termed the bank’s performance in the three quarters as “stellar” with the profit zooming to Rs. 806 crore from Rs. 452 crore in the first nine months of the last financial year.
He attributed the growth in Q3 profit mainly to retail credit, which had jumped by 40.73 per cent, with major contribution from housing loans and non-agriculture gold loans.
Disbursement of housing loans was about Rs. 860 crore and gold loans had exceed Rs. 1,000 crore during the current fiscal year so far.
Another healthy achievement was the increase in total income by 14.73 per cent, but the increase in total expenditure was only 10.27 per cent. The bank had also launched India First Insurance Company jointly with Bank of Baroda and Legal and General of the U.K. and the new life insurance company had commenced operations earlier this month, Mr. Girotra said.
Click on Link For Apply Andhra bank Personal Loan

Know more about Personal Loan

Personal loan is always said as an easy way to fulfill your short term money requirement. But from last one year Banks are not focusing on Personal Loan; the way they were doing till 2008. Pre approved personal loans and loan against credit card were quite popular.

But today things has changed, there is no such facilities that banks offer. The rate of interest on personal loan has drastically increased. But still the demand of personal loan is there, this is because it is the only that takes minimum time in disbursal. For an instant requirement of loan, personal loan is the best loan.
But one should not take any decision in hurry. If you have an urgent requirement of a loan, it doesn’t mean that you should pay more interest on them. In fact, it is your responsibility to check out the latest interest rates being offered by various banks and should go for a best or at least a good deal.
Here are few tips on the basis of which you can choose a best deal for your Personal Loan
1) Rate of interest : The Personal Loan Interest Rates varies from 14% to 30%.It  depends upon customer profile and upon the bank from where you are taking this personal loan. The basis factors that determine rate of interest are customers net income, age, residential status, age, martial status, work experience and many more.
2) Fee & Charges: When every a loan is disbursed from a Bank, there are some charges that bank takes from us. At times these charges are known to us and some are hidden that get reveled at the time of disbursal. So to confirm these charges is an important task.
3) Loan Processing Charges: When a DD or funds transferred is done at the time of sanction of a loan, a percentage of amounts are charged by the bank. It is said as the processing fee. Processing fee is an upfront charge that banks takes from us at the time of disbursal. Again it varies from bank to bank.
a)Prepayment Charges: If you wish to close your loan after paying 6emi’s or thereafter, then you are liable to pay an extra charge on the outstanding amount . This charge is known as Prepayment charge.
4) Documentation: The most important part of any loan is its documentation. At times customers get pissed off with the documentation formalities. So before going for a loan you need to check that what all documentations they require for your loan application. The basic documents that banks usually ask are income proof, address proof, banks statement, passport size photograph and etc.
5) Disbursal time: Personal loan is said as a loan that fulfill your requirement of money instantly. So, the disbursal time is the most important aspect as it is very important that you get the money in the time of urgency. The time that bank usually takes in disbursing the loan is 5 to 10 working days. So do check the time taken by bank in disbursing your loan.
6) EMI deduction date: The problem that customer usually face once there loan get sanctioned, is the date on which the emi of loan will get deducted from the account. For example your emi deduction date is 1st of every month whereas your salary gets credited on 7th; there is a chance that your emi might get bounced because of insufficient balance in the account. So choose the date in such a way that there should not be any chance of cheque bounce.
So, do keep all these thing in your mind before going for a Personal Loan from any Bank. Always follow a rule of Compare & Choose to get the best deal.