Instant Loan with Low Interest Rate: Looking for a personal loan but worried about their huge interest rate. Dont despair! Now, you can apply for a personal loan with an interest rate of 1%. Yes, you read it right: interest rate of 1% against the personal loan.
We know that everyone needs funds to meet both ends. However, it’s impossible for everyone to fulfill it when needed. That’s why they seek help from personal loans that can fulfill their desire. But nowadays, finding a loan with an attractive interest rate is as difficult as finding clean air in Delhi. Some loans come with attractive interest rates, but their hidden terms and conditions make them more expensive.
But we have a loan for you that offers an interest rate of 1% and a repayment tenure of 36 months, which is not bad at all. Under the PPF Account, the bank is now offering a personal loan with a low interest rate, i.e. 1%. However, this facility is available for those who have a PPF account.
Loan with Low Interest Rate
Public Provident Fund (PPF) is long term investment for general public backed by the central goverment. Under this, the account holder will get a huge 7.1% interest that compounded yearly. But due to its you cannot withdraw amout from it before 6 years.
However, you can avail loan from the 3rd financial year. From the outstanding balance one can avail only 25% for its loan. With a PPF personal loan, you can fulfill your current financial needs. This loan is collateral-free, and the bank will not charge any processing fee. Let’s find out some other feature and benefits available under this personal loan with low interest rate.
Features of Loan with Low Interest Rate
This PPF personal loan comes with huge benefits that no other loan could offer. Here are some of its key benefits mentioned below.
- Borrowers can avail of this loan with an interest rate of 1%.
- This loan is 1% higher than the interest rate available on the balance, i.e. 7.1%. So effectively, this loan would cost people only 1%.
- You can repay this loan in 36 months, which is quite good.
- Other traditional loans are not collateral fees. It means you need to mortgage the valuable assets against the loan. But in this case, you don’t need to submit any security for this loan as it’s collateral.
- If you apply for any personal loan, your lender will charge a 2-5% processing fee, whereas, in this, you can take a sigh of relief because there is no such processing charge.
Who is Eligible for a Loan with Low Interest Rate?
Eligibility is key for every loan; if you qualify for its conditions, you can easily avail of it by just filling out its application form. However, unlike other loans with low interest rates, this loan comes with unique conditions. As this loan is available under the PPF account, you must read the below pointers.
- As the low-interest rate facility is available against the PPF account, all must have this account.
- The loan facility is available between the 3rd and 6th financial year only.
- To get this loan, the applicants must be 18 years old or older.
Other Conditions of Loan with Low Interest Rate
As per the scheme, there are some other conditions which you need to know about this loan.
- One can borrow only 25% of the balance in the account, which means if you have a 1 lakh account balance in your PPF account, you can avail a loan of 25000 only.
- During the loan period, the interest facility against your account was disabled.
- The loan amount is fixed each year, so you can apply for only one loan per year even though the last loan has been repaid.
- The maximum tenure of loan repayment is 36 months, and…
- If you cannot repay the loan within the given schedule, the interest rate will increase to 6% from 1%.
Repayment of loan and interest
You can repay the loan in one lump sum or within a prescribed tenure of 36 months, starting from the 1st day of the following month in which the loan is sanctioned.
- Once the loan principal amount is repaid, the interest charge on the loan amount shall be paid in one or two monthly installments.
- If anyone fails to repay the loan in the given tenure, the interest rate would be 6% instead of 1%.
- Until the loan is repaid, the PPF account will not earn any interest.
How to apply for Loan with Minimum Interest Rate?
One who fulfills the required loan eligibility condition ensures they follow the correct application procedure. Otherwise, the application may be rejected. Here are some steps that applicants need to follow while submitting the form.
- Visit the bank where you hold the PPC Account.
- Now, approach the bank representative for the application form.
- Under the representative guidance, fill out the loan application form.
- Affix the documents required for it or as asked by the representative.
- Submit the loan application and wait for its approval.
- You can contact the bank officials for its approval in the given time frame.
- Depending on the demand and bank, approval may take days or weeks.
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Documents required for Loan with low interest
Each loan applicant must keep a dedicated list of documents supporting their loan application. Each document has its value, so ensure you don’t miss any. Here are some important lists of documents which you need.
- PAN Card
- Aadhaar Card
- Voter ID Card
- Address Proof (Utility Bills, renal agreement, or any identity proof which have address details)
- Photograph (Latest)
- PPC Account Details or its passbook.
- In case of a minor account, the guardian with all the said documents.
For more updates, read the Official Notification and for other news follow SV University.
How can I avail a personal loan with a 1% interest rate?
Anyone with a PPF account may contact their bank to get a personal loan at 1% interest.
What is the maximum tenure to repay the loan with low interest rate?
You can repay it in one lump sum or up to 36 months.
What if I cannot repay the loan amount in the given period?
In that case, the interest rate shall be charged 6% instead of 1%.
What is the maximum loan amount I can avail of under the loan with a low interest rate?
According to the details, the borrower may take out a loan of only 25% of the account balance.
Is there any processing fee under the loan?
No processing fee is charged to the applicants.
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