The PM Business Loan Yojana in Hindi is a prime example of how not to do business loans. This is a loan that has very high interest and it is not easy to pay the monthly installments on time. The PM Business Loan has a very high rate of interest and this is a problem for all borrowers of such loans.
There are various reasons that increase the interest of a loan. This is what makes the interest rate more than twenty percent. This becomes worse for a person who is very busy earning and he or she has very few resources to manage. Then again, a borrower can go in for the refinancing of the loan. However, he or she will have to pay a lot of extra costs for this.
Repayment period is very short in case of a PM Loan. If the loaner is in dire need of money, then he may end up spending a lot of money before repaying the loan amount. So, the repayment of the loan would be very much delayed. In such cases, a borrower would end up losing a lot of money. It has happened many times that people have paid back their loans on time but at the end they were in real trouble and had to bear the entire loss.
The PM Loans has a very high rate of interest because of the bad credit rating of a borrower. Even if a person has a good credit rating then it is very difficult to get these loans approved. Banks do not consider loans from those borrowers who have a bad credit history. The lenders do not like the risk involved in it and they are likely to reject the application of a person who has a low credit score.
Interest rates for a PM Business Loan Yojana in Hindi are higher than the other type of loans. This is because a lender has to pay a very high amount of interest to the bank on the capital and the repayment of which he can hardly afford to make. Even though a loan reduction is offered to the borrower, the repayment does not come down because of the high rate of interest charged on the PM Loans. It is because of this reason that people with a bad credit history need not apply for these loans.
The loan amount for a PM Loan Yojana in Hindi is comparatively higher than other loan amounts. This is mainly because the amount is relatively high. Since the loan amount is high, the interest rate charged on the PM Loans is also higher. So, a person who wants to avail a loan of this kind must ensure that he has some amount of savings ready to use as a down payment. The reason for high interest is that the lender expects a high repayment capacity from the borrower.
The loan period for a PM Loan Yojana in Hindi is three to four years. The repayment starts from the month after the completion of the course. A good credit score is mandatory for the applicant. If the applicant has a good credit score then the repayment of the loan amount will come down too.
A borrower can also . . . . . . avail this loan under the Flexible Repayment Date scheme. Under this scheme, the interest rate on the PM Loans is reduced after a certain period of time and the loan amount can be repaid in a lump sum or in easy instalments. The advantage of the borrower is that he does not have to keep paying the PM Loans interests on the period when he is paying the instalments. If the person is able to repay the loan amount then he can benefit from the lowered interest rates and thus can avoid making high monthly repayment payments. Thus, if you are planning to avail this loan scheme, then it is better to keep your credit history in good order so that you can avail a good rate of interest on the loan.