Opting for a personal loan is standard requirement for middle class family (especially salaried segment people ) to meet any of their planned or unplanned expenditure. Ranging from 50k to 30 lakhs every one comes across a situation like marriage in family, jewellery, other family functions unexpected medical expense, holiday trip etc.
Most of the banks are providing personal loans at a very competitive rate that eligible profiles some time opt for a personal loan instead of other loan specified for that purpose for instance home loan top up or a used car loan this is because of easy and quicker process
Personal loan some times are the only option when other specific loans might not consider our requirement as eligible due to their criteria for example some universities might not be eligible for the education loan or purchasing vacant plot/ land which is otherwise not eligible for home loan or a specified used car might not be eligible for providing car loan .
Apart from the interest rate other factors that one must think about while deciding the bank or nbfc from which personal loan has to be availed is the tenure and quickest disbursement time.
Personal Loans are usually of two types which are Secured personal loan and unsecured personal loan. Secured personal loan is secured against the mortgage of securities, gold, high surrender value insurance policies etc.
In unsecured personal loan, you no need to mortgage anything. You no need to provide any collateral security through some Public Sector Banks (PSU) may insist on a 3rd party guarantee. Unsecured personal loan can be taken to finance any short-term requirement like oversea trips, marriage, medical emergencies, etc. Personal loans didn't used for speculative purpose.
Personal loan is a simple hassle free process of funding your personal requirement with minimal documentation and within quick time. In India, Banks as well as NBFC (Non Banking Finance Corporation) finance personal loan.
Some banks offer special rates of interest to its customers on the basis of income, profile, company, and residential status. Banks offer lowest rates to only CAT A based company employees. So, check out the major bank's personal loan interest rates below:
|Personal loan Banks||Interest Rates||Processing Fee|
|Axis Bank Personal Loan||11.25%||1.50% to 2.00%|
|Kotak Mahindra Bank Personal Loan||11.50%||Upto 2.5%|
|HDFC Bank Personal Loan||11.25%||Min 0.99%, Max 2.50% Up to Rs. 10,000|
|Muthoot Finance Personal Loan||10.75%||Upto 2.5%|
|Bank Of Baroda Personal Loan||11.60%||2%, Min Rs. 250|
|Bank of Maharashtra Personal Loan||15.10%||1%, Min Rs. 1,000|
|Canara Bank Personal Loan||13.00%||0.50%|
|Central Bank of India Personal Loan||11.3%||Rs. 500 + applicable tax|
|Corporation Bank Personal Loan||12.95%||1.5%, Min Rs. 500|
|ICICI Bank Personal Loan||11.25%||0.99%, Up to 2.25%|
|IDBI Bank Personal Loan||13.20%||1%|
|Indian Bank Personal Loan||11.05%||0.5%, Min - Rs. 508|
|Union Bank Of India Personal Loan||12.70%||0.5%, Min Rs. 500|
|Oriental Bank of Commerce Personal Loan||10.65%||0.5%|
|Punjab National Bank Personal Loan||12.00%||1.8% + taxes|
|State Bank of India Personal Loan||12.50%||In the range of 2% to 3%|
|Uco Bank Personal Loan||12.30%||1%|
|Bank of India Personal Loan||12.90% - 13.90%||1,000 to ₹10,000 + applicable tax|
|United Bank of India Personal Loan||12.70% to 13.70%||0.5%|
|Syndicate Bank Personal Loan||13.40%||0.5%, Min Rs. 500|
|Dena Bank Personal Loan||13.00%||1%|
If you are applying for a personal loan, you need to consider different aspects to get a personal loan at lowest interest rate. For comparing the interest of various banks, non banking finance company is the best one. Below are the important areas to consider before applying for a personal loan.
Down Payment: Choose a specific down payment to get a loan at lower interest rate. Above 20% of the loan amount will be positively affect on your offered rate of interest.
Credit Score: Having a good credit score will positively affect on your interest rate. A good credit score is 750. If you are maintaining a good credit score, the interest rates will be reduced.
Loan Tenure: Tenure is directly affect on the rate of interest. If you are choosing a longer tenure, you need to pay high interest rate and less EMIs. So, choose a right tenure option to avail a loan at lowest interest interest rate.
Rate of Interest: The banks offers different interest rates for getting a personal loan. At LoanOnMind, one can compare the interest rates of various banks to make a better decision.
Debt to Income Ratio: If you have stable debt to interest ratio, the bank will approve the loan quickly and rate of interest is also decreased. Debt to income ratio is the money that one can gets on a monthly basis.
Your Employment Stability and Working Company: Your number of work experience in a company is a main factor to consider by the banks for loan approval. Secondly, the banks considers your working company. If you are working in reputed company, then the banks will trust your repaying capacity.
Age should be 21 to 60 years old but no more than 60 years at the time of loan maturity.
Have a good credit score of 625 or more.
Salaried and self employed individuals are eligible to get a loan.
Minimum salary should be Rs. 20,000 per month.
Age: Applicant's age should be 21 to 60 years old.
Loan Amount: The loan amount is ranging from Rs. 50k to Rs. 50 lakhs.
Loan Rate of Interest: The rate of interest rates are starting from 10.75%.
Loan Tenure: Ranging from 1 to 5 years.
Work Experience: Up to 3 years work experience in the same organization.
Loan EMI: Lowest EMI of personal is Rs. 2,162 per one lakh.
Many lenders are offering different types of personal loans.
Wedding Loan: This is a loan given for marriage or wedding purpose. We offer loan amount up to Rs. 20,00,000.
Festival Loan: Many lenders are offering the festival loans at low interest rates.
Travel Loan: It is taken for a travel purpose. These loans interest rates comes at attractive rate of interest.
Consumer Durable: If you want to upgrade your house with latest household item, then apply for this loan to get 0% interest rate with minimal documentation.
Home Renovation: This loan will give for home renovation purpose. Take this loan to make your home more beautiful.
Unsecured Business Loan: Apply online for unsecured business loans to fulfill your financial needs.
1. HDFC Bank
2. Axis Bank
3. Muthoot Finance
4. Bank Of Baroda
5. Kotak Mahindra Bank
6. Canara Bank
7. Corporation Bank
8. Central Bank of India
9. ICICI Bank
10. Punjab National Bank
11. State Bank of India
12. Indian Bank
13. Oriental Bank
14. United Bank of India
15. Dena Bank
16. Syndicate Bank
17. Bank of Maharashtra
18. Bank Of Baroda
19. Union Bank Of India
20. Uco Bank
21. Bajaj Finserv
Easy loan repayment options
Hassle free loan process
Attractive interest rates
Bad CIBIL/ Credit score
Default in Credit card/ Previous loan
Incorrect/ Incomplete information
Didn't meet the eligibility criteria
Compare with Different Lenders: It is better to compare the loans with various lenders to get the best deal. Consider various factors such as interest rate, tenure range to avail the best deals on loans.
Do not send multiple Applications: Don't send the multiple application to different lenders which affect on your credit score and creates a negative impression.
Read Fine Print Carefully: Need to read the agreement carefully, before going to sign in a loan agreement.
Know the Fees and charges: Need to know the additional fees and charges of bank before going to apply for a loan.
Take Limited Amount: Need to estimate your loan eligibility before applying for a loan. Take the loan amount that you are willing to pay.
Ensure the monthly EMIs: It is good to calculate the EMIs and choose the best one.
1. What is the maximum tenure of personal loans?
The maximum tenure of personal loan is 5 years.
2. What are the Documents Required for personal loans?
For loan application process, the banks consider the following documents:
Last 2 years Income Tax returns for self employed individuals
Last 6 months bank statement for salaried employees
3. What are the steps involved in avail a loan?
Step 1: Application submission
Step 2: Loan processing
Step 3: Documentation
strp 4: Disbursement
4. Can I use personal loans for commercial usage?