Credit Freeze Vs. Credit Lock: Know the Difference

Are you one of those individuals who are always confused about the difference between the Credit Lock and Credit Freeze?

This is the right place to search for the answer!

In case if you are stressed over credit thefts, you can freeze or lock your credit reports at the credit authorities in India. The expressions “credit freeze” and “credit lock” are regularly utilized conversely, as the two of them safeguard your credit reports from an information break or data fraud, along these lines disposing of the chance of a fraudster opening another credit account in your name. In other words, a credit freeze and a credit lock are comparative services that keep expected loan specialists from getting the record without your permission.

So how would you conclude whether to freeze or lock? It truly relies upon your own inclination. Although the two choices are comparable as the two of them limit access to your credit report, the significant contrasts between a credit freeze and credit lock are:

  1. A credit lock is simpler to open than a credit freeze.
  2. Credit freezes are directed by law, and 
  3. While credit lock administrations are now and then free, you may need to pay a month to month charge. (Government law necessitates that the credit detailing agencies offer credit sticks to everybody for free.) 

While a credit lock may appear to be a sensible choice, a credit freeze is a superior decision from a legitimate perspective and will no doubt be more affordable.

To understand the difference more clearly, let us know more about the terms and how they work.

What is a Credit Freeze?

What is a Credit Freeze

A credit freeze is just that – It freezes your credit, so no new records can be opened in your name. A credit freeze keeps a moneylender or lender from getting your history. In case that a character cheat attempts to utilize your Social Security number and other individual data to apply for a home loan, Visa, vehicle advance, or other types of credit, the bank would turn down the application since it can’t survey your FICO assessment. (A credit freeze won’t forestall abuse of your present records, however.) 

How to freeze your credit file?

At the point when you place a security freeze on your report, you will be given a personal identification number (PIN) or secret key. Before banks can access your report, you should lift the freeze utilizing the PIN given to you. There is no fee to freeze and unfreeze your record. 

Remember that security freezes should be started at each of the three credit reporting firms – Experian, Equifax and TransUnion. Commonly, a credit freeze lasts (except if you thaw your record), however in a couple of states it terminates in seven years. 

How to thaw your credit file?

When your credit document is under a credit freeze, creditors may have the option to get to your record on the off chance that you thaw it for a particular timeframe or for a particular organization or individual. To thaw (and later refreeze) your credit document, it needs to utilize a Personal Identification Number (PIN). Under government law, the agency must eliminate the security freeze not later than: 

In the case where you make the request by complementary phone or secure electronic means, one hour subsequent to accepting the request for removal, or 

In the case where you make the request via mail, three business days after getting the request.

What is Credit Lock?

What is Credit Lock

A credit lock works in a similar way as credit freeze as far as restricting access to your report is concerned. Here, creditors can’t get access to your credit file. Once more, to secure your credit you have to lock your document with each of the three credit agencies: Equifax, Experian, and TransUnion. The significant contrasts between a credit freeze and credit lock are the methods in which you may lock and open your credit record, and the costs involved. 

How to Unlock Your Credit Online or Through an Application? 

With a credit lock, you may activate or deactivate the lock on the web or through a smartphone application on your cell phone, regularly with only a username and secret key. With a credit freeze, you need to go on the web, mail your solicitation, or call the credit agency—and utilize your PIN—to start, lift, or eliminate a freeze. 

Credit locks, at times, cost a month to month charge, however not generally. Starting in July 2019, Experian charges $4.99 for your first month and $24.99 for each extra month. This can get costly quickly. 

Why is a Credit Freeze Typically a Better Choice?

The credit authorities will, in general, acknowledge locks as quicker and more easy to understand than credit freezes, however, by and large, putting a stop on your credit at all three organizations is simply the most ideal approach to ensure. Here’s the reason. 

Credit freezes are directed by state law. Credit locks, then again, are represented by an agreement among you and the credit department. Agreements frequently have terms that aren’t good for the shopper, like arbitration clauses which prevent you from taking part in a lawsuit. Likewise, if a criminal deceitfully gets your credit record while a freeze is set up, you’ll have better assurance against obligation under state law. At last, state law will give you more grounded assurances than an agreement that the credit authority drafted. Likewise, as of September 2018, government law controls acknowledge freezes too. 

Credit freezes may be more affordable. Freezing and lifting a freeze is free, which is clearly less expensive than paying a month to month charge for a credit lock.

How to Protect Yourself from Credit Fraud?

Another alternative for safeguarding your credit information from fake use is a fraud alert. Yet again, a credit freeze is a superior method to secure yourself credit misrepresentation. (You can have both a freeze and alarm set up simultaneously.) 

Credit Fraud

Whatever data fraud insurance strategy you pick is completely up to you, however regardless of what you pick, you ought to likewise consistently get duplicates of your credit report from each of the credit agencies. Under government law, you may get a free duplicate of your credit report at regular intervals from every one of the three significant credit reporting agencies. 

Audit the reports for all potential indications of difficulty, similar to accounts you didn’t open, requests you didn’t start, and defaults and misconducts you didn’t cause. At that point, ask the credit detailing offices to erase data identified with wholesale fraud from your credit report.


To sum it all up, it’s always a better option to be aware of all the terms related to credit, if you are actively involved in taking credit or loans. The above-mentioned details about Credit Freeze and Credit Lock will surely make you understand what exactly the terms are! For more details about credit score, how to improve credit score and for any other financial assistance, you can get in touch with the professionals of Credit Triangle

The 5 Biggest Factors That Affect Your Credit Score

How to Improve Your Credit Score?

Always in doubt about what actually affects your Credit Score? No more confusion now! 5 biggest factors that affect your credit score. To know these factors, it’s important to know what exactly is a Credit Score.

A Credit Score is an extremely powerful number that depicts your creditworthiness and plays a vital role in affecting your financial life. This number ranges from 300 to 850. In other words, it is the number that determines the interest rates you pay for credit cards and help lenders to determine the risk of lending you their money. The higher your credit score is, the safer to loan the money for the potential lender as they use this number or credit score to analyze whether you can repay the loan timely or not.  

There are various types of lenders such as auto dealers, credit card companies and mortgage bankers, that will check your credit score to see how financially responsible you are. Insurance companies, landlords, and employers may also analyze the same before providing you their respective services.

Here are the 5 biggest factors that can affect your credit score:

  1. Payment History

Payment history is the most important factor in affecting your credit score which determines 35% of it. Lenders look at your credit history to analyze whether you can repay their loan or not. In other words, they confirm if you are trustworthy enough to repay their funds.

The foremost factor determined in your payment history is whether you pay your bills or make your payments timely or not. If you have paid late, how late were you in completing your payments. To maintain a good credit score, you must pay your bills timely each month as late payments can have a negative amount on your credit score.

  1. Amounts Owed at Present

The second most factor determines 30% of your credit score. The FICO score (Credit Scoring Calculation) considers the amount of debt you carry at present compared to your available credit limit  (also known as Credit Utilization ratio). 

According to the guidelines, your credit card utilization should be at 30% or less because having too much debt can have a negative impact on your credit score.

  1. Credit History

This component determines 15% of your credit score. Your credit score includes how old your oldest account is and the average age of your other accounts. Having a long credit age can be considered helpful, if there are no cases of late payments or other negative actions. This shows that you have a good credit handling experience. 

Opening new accounts and closing existing accounts consistently does not give a good impact on your credit age. This is the reason why you should keep your existing accounts open, even if you are not using them at present.

  1. Types of Credit on Report

This factor determines 10% of your credit score which observes how many types of credit do you owe in your report, such as credit cards, installment loans, etc. owning a diverse variety of loans can increase your credit score and can be considered positive as it shows that you have a good experience of managing or handling various types of credit. 

Having certain types of loans on assets such as car loans, home loan or even education loan can also have a positive effect on your credit score. As it constitutes a very less percentage of your credit score, not having any certain kind of credit may not impact so much.

  1. New Credit

This is the final factor that affects your credit score which constitutes another 10% of the same. This one considers the number of new accounts that you have recently opened and when was the last time you opened it. 

If you plan to apply for a new personal loan, lenders usually do a hard inquiry, which is completely different from the soft inquiry. Hard Inquiry is basically a process of evaluating your credit information, particularly during the underwriting procedure. Hard pulls affect your credit score, yet temporary! In case, if you have recently opened a few new accounts, and the percentage of it is a bit higher, then you would be at a greater credit risk. We understand that you must be experiencing cash flow problems in your business and searching for ways to get more debts, but you need to know that opening new accounts frequently can definitely affect your credit score. 

Therefore, try to minimize your inquiries and list of opening new accounts within a year to not to impact your credit score adversely. 

What Factors Do Not Affect Your Credit Score?

People are often confused with what can or cannot affect their credit score. Here are the components that are included in the consideration of your credit score – Demographic factors such as Race, color, religion and  national origin do not influence your credit score. Your Salary, Occupation, employment history, and employer also do not have any effect on the same. Other things that do not influence the credit score are Marital Status, the place where you live, how many children you have or whether you have participated in the credit counselling program or not.

How can you Improve your Credit Score?

If you want to improve your credit score and enhance your creditworthiness, Credit Triangle is the best option you can choose for the job. The credit triangle, with its effective services and solutions, can resolve all your financial problems including paying old dues, lending quick loans, filing ITR, and providing free credit reports with improvement plans. In addition, Credit Triangle ensures financial security to all its customers to make them feel free of all the risks. 

No more financial burdens on your shoulders when Credit Triangle has your back!

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How to Improve Your Credit Score?

How to Improve Your Credit Score?

How to improve your credit score? : Credit Score, it’s not just a three-digit number but an entire calculation based upon which your lender will decide whether you are liable for the credit or not! It’s definitely an important factor to evaluate your financial health in terms of credit or loans. The higher the credit score, the more you become qualified for quick and hassle-free loans and credits. Moreover, if your credit score is higher, then chances are you will be offered low-interest rates on your loans or credits from the financial institutions or banks. 

What’s your credit score and credit history? Is it not up to the mark? Well, you are not alone in this, especially during this pandemic situation. Everyone is trying to pay their bills and EMIs on time, but due to this crisis-like situation, it seems a bit harder! Obviously, maintaining your credit score is a hard nut to crack! However, not impossible, right? Improving your credit score takes time, but if you start addressing this issue and work upon it, then you can surely make the credit score meter go up! 

Do you want to improve your credit score as well? Then, don’t miss out on the below listed some of the vital points to improve your credit score and thereby, become eligible to get better loan opportunities in the future. In addition, you can take help from experts like Credit Triangle for credit score improvement and credit counselling services

Here is the list of steps that you can follow to improve your credit score this time! 

1. Review your Reports 

First of all, you have to understand your own credit history to analyze where you went wrong, and to check what works best in your favor and what is not! Analyzing your credit reports will help you to improve your credit score. Maybe you must have delayed your EMI payments, low balance on a credit card, old credit amounts, missed bills or payments, and so forth. Every factor contributes to lowering down your credit score and impact your credit reports in every way possible. So, the first step that you can take towards improving your credit score is through evaluating your credit reports. To get FREE credit reports with a range of improvement plans, get in touch with the experienced professionals of Credit Triangle to help you with the same!

2. Pay all your BILLS on Time

Whenever you apply for the loan or credit, lenders always check your credit reports and especially, how reliably you have paid your EMIs and bills. Usually, the payment performance every month is what matters and decide your future loan applications! 

To improve your credit score, the next step you can take is to start paying your bills on time without even a single miss or delay. On the agreed month or agreed date, you have to make sure that you pay to positively impact your credit score. Not just the credit card bills, but any other loan that you have taken, must be repaid on the agreed date. Therefore, mark the date in your calendar and don’t forget from the next time. 

3. 30% Credit Utilization Only 

Do you know what is the credit utilization ratio? Basically, it refers to the credit limit of your credit card, which is calculated by adding all your credit balances! After the payment history, credit utilization is one of the essential factors in credit score calculations. 

It’s vital to maintain the credit limit of your credit card to keep your credit score high. In case, if your credit limit exceeds, then it will surely impact your credit score! And, to improve your credit score, you have to ensure that you always pay your credit card balances to keep the ration in control. You can either ask for your credit limit increase as per your usage and requirements, or you maintain the credit utilization ratio down to 30% to improve your credit score! 

4. Limit your Credit Requests 

The next crucial point is limiting your credit requests, and yes, they do impact your credit score. First of all, there are two types of credit requests, i.e. Hard and Soft! 

A soft inquiry is basically checking your own credit or checks done by the financial institutions and they don’t impact your credit score in any way! Then comes the hard inquiries, which adversely affect your credit score. It includes applying for a new credit card, mortgage loan, auto loan, or some other new type of credit card. Occasional ones don’t affect that much but inquiries done frequently can affect your credit score negatively. 

If you are looking for ways to improve your credit score, then it is advised to not to apply for any type of new credit card, at least for a while! 

5. Deal with Delinquencies 

Credit age matters a lot to the lenders because the older your credit age, higher chances that you might appear in the lists of lenders. If you have an old credit account that you might not be using then don’t close them at all. The credit history will remain of those accounts while you have a balance on other card would lower your available credit, and increase the credit utilization ratio. This way you will lower down your credit score. 

Moreover, if you have some delinquencies, payments to be collected, then you must resolve such issues as it can impact your credit score. Multiple accounts and late payments, if that’s in continuity, then you have to resolve this use as soon as possible to improve your credit score. Obviously, the credit history can’t be removed, but you can definitely work upon the upcoming payments to pay them on time and improve your credit score. 

6. Credit Monitoring to Track Credit Score 

Credit monitoring is of utmost importance. You have to track and monitor your credit score over a period of time and understand how it changes. Credit monitoring is not only important for credit score check but also to keep you updated about all your credit enquiries along with prevention from theft and fraud. Hence, credit monitoring is extremely beneficial in several cases to keep the track as well as making it sure that it’s safe from any type of theft and fraud. 

7. Inaccurate Information in Credit Reports 

It is crucial to check your credit reports at all the major credit reporting bureaus in case of any type of inaccuracy. Do you even know that inaccurate information can lead to an adverse impact on your credit score? If you aren’t aware of it, then you must check your credit reports to check if there’s any inaccurate information or detail mentioned. Verify that the accounts listed on your credit reports are absolutely correct, and in case of any inaccuracy or dispute in the information, get in touch with the bureau experts. Getting it corrected is very important to maintain your credit reports and thereby, improving your credit score! 

A good credit score can lead to many wonderful opportunities for you to get the best credit or loan as per your requirement along with various other benefits like low-interest rates, payment flexibility and what not. As per your credit history and current credit score, you can check whether you are eligible for the loan or not, or whether the lenders will consider your application or not! Considering how important credit score is, one thing that is for sure is to maintain your score and do good as possible. Just frequently check your credit score, track your progress, take critical steps to ensure that your credit score is improved. Do everything whatever it takes to improve your credit score and follow the above-listed best practices. 

Lastly, if you are seeking for professional help, then Credit Triangle is here to assist you with the best solution that fits within your back pocket! A highly experienced and professional team of Credit Triangle provides the best guidance to those seeking financial advisor’s help. 

How to Get Quick Business Loans?

Business loan at Credit Triangle

Know About Quick Business Loans – Are you struggling with funds to operate your small business smoothly? Well, no doubt, in this competitive and complex business scenario, it is vital to take strategic decisions when it comes to managing funds. 

Some situations demand you to be more strategic and financially strong to tackle the situations. Now, lets’ talk about the present COVID scenario. Every business owner, either running at a small scale or large scale, is highly affected. Businesses are losing out on funds because there is no cash flow in the market i.e. the extreme level of cash crunch in the market.  

Funding is essential for every business to run daily operations without causing any hassle. In this need of the hour, opting for a business loan is one of the best and ideal solutions to continue and manage the business efficiently. 

how to get quick business loans

Have you ever applied for a business loan? Or, do you know that there are different types of business loans offered by the banks and financial institutions? Well, even if you don’t know anything about business loans, then here we are, the team of Credit Triangle to help you out! 

Before you apply for business loans, you must know the fact that there are different types of business loans offered to the borrowers. Some of the most common among the business owners are mentioned below:


  • Loan against Property (LAP) – Under this business loan, the lender is usually asked for ownership documents of immovable assets like office, home or factory. A standard loan is offered to the borrower along with proper EMIs. Loan against property is commonly repayable within 3 to 5 years as a tenure period. 
  • Unsecured Loan – Under this loan, no collateral or security is required to apply. It is usually based on the financial statements of the business, and possibilities are financial institutions or banks can ask for ITR, bank statement or other similar documents during the loan proceedings. However, the interest rate charged on this loan is 1 to 2 percent higher than the secured loans. 
  • Working Capital Loan – Do you know that banks provide working capital loan? Under this loan, the banks provide working capital loan to bridge the gap between the order processing and customer payment time. As soon as you receive the payment, you can repay the loan. 
  • Loan for Capital Goods – To execute new orders and to expand the business, you need additional machinery, plant or land. If you are running out of funds, you can opt for this business loan, which can be repaid through EMIs. 
  • Loan for E-Commerce Business – Looking for financial help to expand your business on Amazon or Flipkart? Well, there are many financial institutions that provide loan along with the benefit of tenure period flexibility. 



Eligibility Criteria to Apply for the Business Loan  

how to get quick business loans

Every bank or financial institution has its own criteria of extending a business loan to their customers. There are some clauses that have their own. Nonetheless, there is a basic eligibility criterion that every applicant must meet to avail any type of business loan. Let’s take a look at those points. 

  • There must be a valid business registration proof. The applicant must provide the registration proofs of the business to avail the loan. 
  • The applicant’s business must be into existence from three years or more. 
  • The yearly turnover must be Rs. 50 lakhs or above to apply for the business loan. Of course, it varies a bit from lender to lender. 

Features of Credit Triangle Business Loans 

Wondering why Credit Triangle is the best place to avail Business loans? We understand that you must be a little worried about whether opting us would be a great option or not. Well, we’ll not brag about ourselves, but the business loans that we provide has got some great features that you must know before you apply! 

Check out the below-mentioned features of availing business loan from Credit Triangle! 

1. Flexible Loan Facility 

We have a flexible loan facility for all our customers! Now, you can avail the business loan as per your requirements and can repay the funds as per the cash flow of your business. You can pay the interest of your loan as EMIs and can repay the principal amount at the end of the tenure period. Moreover, the interest will be charged only on the withdrawn amount, which is further beneficial for you to lower down the EMIs. 

2. Quick and Hassle-Free Unsecured Loans 

If you are looking for a hassle-free unsecured business loan, Credit Triangle is here to provide you quick loan with easy eligibility criteria and least documentation procedures. Get the fastest and most hassle-free unsecured business loan from Credit Triangle to maintain the cash flow of your growing business! 

3. Collateral-Free 

How about a collateral-free business loan to expand your business? Well, Credit Triangle offers collateral-free loan for your business, which means that now you don’t have to put across any of your personal or business assets to avail the loan. From funding to minimal documentation, everything is easy peasy at Credit Triangle. 

4. Low-Interest Rates 

Credit Triangle offers easy and quick business loans at low-interest rates than the usual. Whether you are searching for short term business loans, intermediate or long-term business loans, we have financing solutions for all! At low-interest rates, get the quick business loan as per your requirement. 

How Business Loan is Beneficial? 

how to get quick business loans

A business loan is beneficial in several ways! If you are planning to apply for a business loan, then you must know about its benefits, isn’t it? Let’s move ahead and understand its advantages. 


  • To increase the cash flow of your business funds are a necessity. If your business doesn’t have the required funds to meet the expenses, it negatively impacts your business. So, if you avail a business loan, the first and most important advantage is you can manage the cash flow within your business again!
  • Looking for a better place or premise to expand your team? But running out of funds? No worries! Quick business loans are the best financing solution for you to get a bigger and better place to grow your business. 
  • Most of the business owners are running out of funds when it comes to renovating the office space. Does it happen with you as well? From minor to absolute revamp, funds are necessary to move ahead. Well, if you are planning to renovate your office space too, then you can choose to go for a business loan, which will help you to meet all the essential requirements for your employees or workers. 
  • A business loan is also useful in the purchase of machinery or equipment. Usually, businesses with manufacturing units are incomplete if they don’t have the right technology. Agree? To upgrade your business, you need the right machinery or equipment, and a business loan can help you in funds to buy those machineries.  
  • To meet the bulk orders on time, funds are extremely important. From purchasing raw material to timely shipment, everything requires funds. If you are not able to meet the fund’s requirement, you can get in touch with experts to avail a business loan. 
  • Do you want to take up bigger projects? But, not sure how to do it without funds? Availing business loan can help your business to scale-up the operations and expand your business to the next level.  


Conclusion of quick business loans

We hope that you must be aware that a good CIBIL score is required to get quick business loans. The closer your score is to 900, the higher is your chances of getting the loan on good terms. And, for that Credit Triangle team is here for all types of credit counseling services. As you cannot apply for loans without a credit score in India, our expert advisors will help you out to improve your credit score and apply for quick business loans.

How do I ensure that my credit history is maintained during the COVID crisis ?

How do I ensure that my credit history is maintained during the COVID crisis

COVID-19 crisis has thrown a truly unprecedented crisis on us. While protecting your physical health from Coronavirus is on top of your to-do list, the current uncertainties unleashed by the pandemic can also have a deep impact on your economic health. With layoffs, pay cuts, and closure of businesses, you may find it increasingly challenging to make your loan payments on time or discharge other financial liabilities.

In case you default on the payment of existing loans, your credit score will plummet. If you need to apply for a new loan to tide over these difficult times, the banks will look up your credit score. That’s why maintaining a good credit score has become even more important during times like this. Credit score, usually provided by the TransUnion Credit Information Bureau of India Limited or CIBIL, indicates the creditworthiness of the borrower and the probability of default by a borrower. That’s why it serves as the first port of call for any lender before extending financial assistance.

Here are some tips that can help you to maintain your credit score until the Coronavirus emergency prevails:

Make it a habit to read through your credit report

Start with reviewing your credit report thoroughly so that you can identify any mistakes in reporting that may adversely impact your CIBIL score. While the score is calculated based on information furnished by lending institutions to CIBIL, one cannot be complacent about the authenticity of the records as credit reporting mistakes are extremely common. So make it a point to go through the credit report thoroughly to ensure that the information is accurate.

Reach out to the creditors

It is possible that your financial situation may make it difficult to ensure loan repayments as per schedule. Instead of allowing your credit score to suffer on account of the defaults, contact your bank or financial institution at the earliest. As per the directions of RBI, banks and NBFCs will allow you to postpone the repayment of the EMIs for loans until August 31, 2020. The good news is that rescheduling the payments will not adversely impact your credit score.

Make a minimum payment for your credit cards

While the RBI has allowed moratorium on credit card dues until August 31, 2020 which exempts you from making payments without impacting the credit score, it is advisable to at least pay the minimum amount due. The interest charges will continue to apply on outstanding amounts. Post August 31, 2020, if you are unable to clear off the dues, your CIBIL score will be impacted. So if you have the cash flow, it is better to make the payments, even if it only towards minimum amount due. Always remember that late payments or defaults will adversely impact the credit score even after the COVID crisis is over.

Be mindful of your spending

Given the uncertainties, it is a wise decision to assess your existing financial commitments before you incur any new expenditure. If you have bad debts lurking in your books, use available liquidity to pay them off and improve your credit score, before making any non-essential purchases.


Following a few simple strategies to protect your financial health can immensely benefit your credit score, even if there is no looming crisis. So it’s time to get proactive and practice good credit habits.

Which is the best way to avail a personal loan – public or a private sector?

personal loan at credittriangle

If you are facing a sudden liquidity crunch and need a substantial amount of funds for an upcoming commitment, personal loans are a great option.

The tenure of these loans is shorter (between 1 to 5 years), but the interest rates are slightly higher. For example, the lowest interest rate offered by banks for a personal loan is 11%. Additionally, these loans are collateral-free, making it easier for financial institutions to approve the loan application at the earliest.

Salient features of a personal loan

A personal loan applicant should be between 21 to 60 years old. The applicant should also have a minimum monthly income as stipulated by the lender.

 Wondering how much can you borrow through a personal loan? The exact loan amount depends on various factors, including your existing loans and the ability to service a new EMI.  A high credit score also improves your chances of availing a higher loan amount.

Typically, you will be able to borrow at least INR 30,000. In case you have too many ongoing EMIs, lower annual income, and a low credit score, you will not be able to get a very high amount of personal loan or get a higher amount at a much higher interest rate.

You can apply for a personal loan along with a co-applicant. However, the credit history and the outstanding financial obligations of your co-applicant will also have a bearing on your loan application.

Who should I approach for a personal loan – a private bank or a public sector bank?

Since both private and public banks offer personal loans, which should become your lender? There are several factors to be taken into account before deciding as there is no black and white answer.

Loan application and disbursal process can be a time-consuming affair when you approach a public bank. Whereas, a private bank may be able to process it in just a few working days as they operate through direct selling agents. However, the conveniences offered by private banks come at a premium — they often end up charging a very high processing fee, which is negligible for a public bank.

Private banks may also levy a very high foreclosure charge for prepayments. Usually, public banks do not have any such penalty for prepayments. When it comes to interest rates, a lot of private banks offer competitive rates compared with public sector banks, making them a top choice for many customers.

Lastly, public sector banks seldom grant any relaxations on the eligibility criteria decided by the board. Private banks may allow certain relaxations on a case-to-case basis.


Personal loans offer several advantages over other forms of financing. Therefore, when choosing a lender for your loan application, make sure to do your diligence before you decide to zero-down on one. Never miss reading the fine print – comparing interest rates, processing fees, EMI amount, repayment options, prepayment penalty, etc., will help you choose the ideal lender.

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