Personal Loan Lenders and Rates in 2018
Sometimes, you need an extra helping hand to enable you in fulfilling your wants. Whether it’s renovating your old house or planning your dream wedding, a cheap personal loan is an option worth exploring. However, searching for the loan aligned with your needs and requirements can seem like a daunting task. Starting off, there are few things you need to consider when applying for a personal loan:
- Your source of income: Salaried individuals are more likely to get better loan deals than self-employed business owners. Since the best personal loans are one which require no collateral, the best candidate is one with a steady source of income. However, there are options for business owners such as the Silkbank Ready Line which caters to self-employed individuals. This brings us to the second point.
- The type of loan: Personal loans are of different types.
- One type is running finance; this provides you a credit limit and the borrower can withdraw as much as they wish to use but must pay mark-up on the utilized amount. This is beneficial when the bank only charges mark-up only on utilized amount
- Floating Rate loan; this type of loan does not have fixed interest rate and is linked to KIBOR. The advantage is that floating rates are usually 2-3% lower than fixed rates so saving over the long term can be significant.
- Fixed Rate Loan; this type of loan has a fixed interest rate that the borrower pays over the principal amount. So, if you borrow a loan of PKR 50,000 and the interest is 30% it will be applied to the entire loan amount and as you repay the loan the interest amount will decrease in absolute terms but not the percentage.
- Your current income: High salaried individuals usually get a lower interest rate than low salaried individuals. Interest rates are usually given as a range and will vary with individuals. Standard Chartered offer special interest rates to borrowers who have a previous credit history with the bank bringing us to the last point.
- Your credit score: This is extremely important as not only the success of the loan application depends on it but the individual interest rate offered by the bank will also depend on it. Lower the credit score higher the interest rate.
Now that you have a fair idea of what to expect in a personal loan, we have compiled a list of the banks offering the widest range of personal loan options as well as cheap personal loans. You can apply online for all these personal loans.
- Standard Chartered Bank: Standard Chartered offers convenience above all whether through it’s client service or products. For a loan from PKR 30,000 to PKR 2M, the bank is best for salaried individuals as it offers cheap personal loan options which require no collateral and have flexible payment options, e.g. no partial or full pre-payment fees. Moreover, if your have had a previous relationship with the bank, you can get some nice offers as well.
- SILKBANK: Providing options for both salaried and self-employed individuals, the bank is good for the variety of customized facilities is offered. The bank also easy offers partial and full pre-payment facilities as well as balance fund transfer facilities (transfer debt to a lower-interest debt facility).
- Habib Bank: Habib Bank is the oldest and one of the most reliable banks in the country. Like Standard Chartered, it offers better rates to individuals with previous banking history in the bank. A special feature of is the offer for free life insurance with the personal loan as well as free top-up facility.
- Bank Alfalah: Bank Alfalah offers loans for both salaried and self-employed individuals. You can also combine your sources of income to avail a higher loan amount. The convenience of multiple repayment methods ranging from mobile banking to drop box , the options for both fixed and variable pricing and the availability of balance transfer facility make Bank Alfalah one of the top banks for your personal finance needs. You can apply online and get your loan within 10 working days.
- Soneri Bank: Soneri Bank leads in cheap personal loans with the lowest mark up rates as well as free-of-cost life insurance up to the amount of the loan. Moreover, the bank offers early and partial repayment facilities as well
All these banks offer the facility of minimum documentation and hassle-free processing. So go on ahead and fulfil your wish with some peace of mind!