Personal loans have emerged as a popular choice for individuals seeking quick access to funds for a diverse range of reasons. Many financial institutions these days offer collateral-free personal loans, at competitive interest rates, making them easily accessible for people from all walks of life. However, with the convenience of these loans comes the importance of understanding the associated fees and charges. To ensure informed decision-making, borrowers should be aware of the factors that determine the fees and charges of personal loans.
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Transparency in Personal Loan Fees and Charges
Shriram Finance, a reputed Non-Banking Financial Company (NBFC) maintains transparency in the fees and charges of Shriram Personal Loan, making it one of the top choices in the personal loan landscape.
Things to Understand About Personal Loan Fees and Charges
Discussed below are a few things that applicants must understand about the interest rates, and fees and charges of personal loans to make an informed borrowing decision:
1. Interest Rates:
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Annual Percentage Rate (APR): The APR represents the total cost of borrowing, including interest and other fees. Compare APRs from different lenders to identify the most affordable option.
2. Processing Fees:
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One-Time Charge: Processing fees are typically a one-time charge levied by lenders to cover administrative costs associated with processing the loan application.
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Percentage of Loan Amount: Depending on the financial institution’s policies, processing fees can often be expressed as a percentage of the loan amount.
3. Prepayment Charges:
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Penalty for Early Repayment: Some loan providers may impose prepayment or foreclosure charges if you decide to repay the loan before the scheduled term. Discuss with your loan provider to gain a holistic picture of these charges.
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Check for Waiver Options: Enquire about any waiver options or conditions for prepayment charges.
4. Late Payment Fees:
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Penalty for Missed Payments: Late payment fees are incurred when you fail to make a payment on the due date.
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Impact on Credit Score: Late payments can negatively impact your credit score. Enable auto-debit options to avoid late payments and therefore, negatively affecting your credit score.
5. Other Charges:
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Documentation Charges: These fees may be charged for document verification and processing.
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Stamp Duty: In some jurisdictions, stamp duty may be applicable on loan agreements.
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By understanding the various fees and charges associated with personal loans, borrowers can make informed decisions and choose the most suitable loan option for their financial needs.
Fees and Charges of Shriram Personal Loan
Besides the compelling features and competitive interest rates, one of the more important reasons for borrowers to opt for Shriram Personal Loan is its transparency in fees and charges.
The interest rate for Shriram Personal Loan starts at 12%* p.a. and could be tailored to your requirements and financial profile. Additionally, with a minimal processing fee of up to 5%* and foreclosure charges of up to 4%*, applicants can save on the total cost of the loan and manage the outflow of cash effectively.
Here are some more advantages of applying for a personal loan from Shriram Finance:
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Collateral-Free Loans: Shriram Finance offers the option of applying for collateral-free loans up to â¹10,00,000*.
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Quick Approvals: You could also be pre-approved for a Shriram Personal Loan, making loan approval quick.
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Easy Repayment Options: With loan tenures ranging from 12* to 60* months, you can choose a repayment term that eases your EMI burden.
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Fully Digital Experience: Borrowers can start their loan application journey from the comfort of their homes with the option to effortlessly upload the required documents online.
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Regular Payment Reminders: Shriram Finance sends periodical alerts about EMI payments to your registered phone number, enabling you to make timely payments and avoid late payment charges.
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Conclusion
With personal loans becoming increasingly simple to apply and be sanctioned for, understanding the fees and charges associated with them is non-negotiable. Comparing the loan products from different lenders can help you make a wise choice and apply for the loan that suits your financial profile the best.
Shriram Personal Loan, with its appealing features and benefits, can be one of the top choices while shopping around for loans. Whether you are looking to fund your dream wedding or cater to a medical emergency, Shriram Finance is here to support your needs.
*Above mentioned loan amount, rates and tenure are as per the company’s Digital Personal Loan Policy
About Shriram Finance
Shriram Finance is a leading diversified financial services company in India, offering a wide range of financial products and services across consumer, wholesale, and business finance segments. The company has a strong presence pan India with a network of 3,196 branches and an employee strength of 79,405 with an AUM of Rs. 254,469 crores. With a focus on financial inclusion and customer-centricity, Shriram Finance continues to empower individuals and businesses to achieve their financial goals.
