There are a number of personal loan choices available today and this ensures that loan rates are kept low and it is indeed a good option to apply for a personal loan. Increase in the number of choices also implies confusion and indecisiveness while choosing the best personal loan.

Attractive options: Due to increased demand and massive competition among various lenders, personal loans come with attractive options like low interest rates, flexible repayment terms etc. Any purpose loans: The greatest advantage of a personal loan is that it can be used for any purpose.

HDFC may cut home loan rates, awaits RBI cue

MUMBAI: The country's largest mortgage finance company, HDFC, may reduce lending rates if the central bank does not tighten rates or resort to a monetary squeeze by hiking the cash reserve ratio (CRR). The company has already seen a decline in borrowing costs in July and is waiting to see whether the decline in rates will be sustained before reducing lending rates. Although interest rates have gone up during the first quarter of 2006-07, liquidity generated by forex inflows has helped bring down rates in the money markets. Towards July, interest rates have eased and borrowing costs have come down for institutional borrowers. Some banks, which had hiked their lending rates in the fourth quarter of last year, said they would bring down home loan rates. "We have seen a reduction in borrowing costs in July.

Monetary policy: Most bankers see interest rates softening

Mumbai, July 27 (PTI): Ahead of the Reserve Bank's quarterly review of monetary policy on July 31, many bankers feel moderate inflation may put a pause on rate hikes, brightening the prospects of a cut in home and personal loan rates. With many bankers asserting that interest rates have more or less peaked in the country, there are indications that the central bank might not be hawkish in its stance, particularly with inflation falling to 4.27 per cent for the week ended July 7 from over six per cent in April. Though the central bank's efforts to suck out excess liquidity in the busy season credit policy in April had borne fruit, there is still some liquidity overhang which may result in the RBI's tweaking the cash reserve ratio (CRR), some bankers feel. "There might be some action to suck out liquidity - a hike in the cash reserve ratio (CRR) is a possibility," Development Credit Bank's Head, Treasury, K Harihar, said here.

PERSONAL LOAN RATES GETTING MORE EXPENSIVE

"Although not directly linked to base rate, a trend has emerged that loan rates are being tweaked quite quickly following base rate rises. However, the size of the rate rises do not always correlate with the increase in base rate, take the examples below, where the loan increases are anything up to one per cent for certain loan amounts. So with that said there must also be other factors contributing towards these rises. Perhaps it's a combined effect of rising costs and bad debt provisions.

"However smaller loans are becoming far more expensive, with rates of 20% now commonplace - almost 3.5 times the level of base rate.

Getting The Best Used Car Loan Rates

Finally, finding a middle ground between the term of the loan and the interest per month is key to getting the best used car loan rates. Longer terms result in lower interest rates, which can create an ideal situation for people don't mind being in debt a little longer or people who adhere to a strict budget. On the other hand, shorter terms means larger interest payments, which are good for people who want to completely own the vehicle as soon as possible. Shorter terms are also considered advisable for people who have more financial resources on hand.

The process of obtaining the best possible used car loan rates can be as complex a task as getting the smallest possible price for a used auto, but the potential benefits are worth the effort. The average dealership normally tries to keep the rates as close to their original numbers as possible, to maximize their profit margins.

Private banks hope to cut home loan rates

High liquidity and inflation remaining below 5 per cent for six weeks in a row have raised banks' hopes for a cut in home loan rates after the credit policy review on July 31. But it is unlikely to be broad-based cut with public sector banks preferring to remain away from slashing rates. Private banks, which effected severe hikes over the last few months, however, may slash them.

“Public sector banks have been quite considerate of home loan borrowers. We did not hike rates twice when private banks did so.