Bangalore: With banks increasingly offering loans at very appealing interest rates, borrowers need to pay strict attention to the details. The processing fees and pre-payment charges among other hidden caveats make it less of an attractive offer. Do not buy into the calls you receive from banks offering attractive personal loans at 25 basis points below card rates. There is always a catch. It does not necessarily mean the banks have slashed their rates; it’s just that they have gotten smarter and their methods have evolved these days. They analyze data such as your transaction history and identify you as a potential customer before proceeding further, reports Business Standard.

 With credit seemingly not taking off in the corporate world, banks are shifting their focus to retail and personal loans, and are pushing personal loan products to the collateral free retail loan segment. Banks offer personal loans with an interest rate of 12.99 to 25 percent, and most are even willing to offer discounts that are well below their usually inflated rack rates. The catch here is that, this low interest rate is dependent on your credit history and it is not guaranteed to be available to all the borrowers.

Adhil Shetty, CEO of BankBazaar.com says, “That depends on a whole range of parameters - income, credit rating, various risk factors. The lowest rate offered often need not cover all types of borrowers”. The factors that influence the rates are the borrower’s employment status, if he/she is salaried or self-employed, the company he/she is working for and his/her professional degree, among other.

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