Updated on 21 Feb 2020
|Interest Rate||10.99% to 24% p.a.|
|Loan Tenure||1 year to 5 years|
|Pre-closure Charges||2% - 5%|
|Guarantor Requirement||No guarantor required|
Bengaluru also called Bangalore, is a bustling city, which is the capital of Karnataka state. The state is located in the southern part of India. This city is famous as a leading information technology (IT) hub with several multinational corporations (MNCs), parks, lakes, and pubs. Bengaluru has a population of around 10 million, which makes the place a megacity.
If you are looking for financial assistance to meet your different requirements, you could take a personal loan. There are many lenders across the city of Bengaluru that provide affordable personal loans for any purpose. You do not have to furnish any collateral or security while applying for a personal loan. You can apply online or offline for these loans.
If you intend to apply online, you can check out official websites of lenders or third-party financial websites. Before you take a personal loan online, make sure you compare different interest rates online. This will assist you in getting a good loan deal.
For those looking for an extra boost, financially speaking, either to renovate their house, pay for emergency medical bills, buy a gadget that you desire or fund a holiday, there is the option of a personal loan. Top banks and NBFCs across the country offer personal loans that are unsecured - meaning that there is no requirement for collateral. Customers wishing to avail personal loans can start by visiting the financial portal - BankBazaar. On the BankBazaar website, customers can compare the interest rates offered by its partner banks and decide on a loan from a particular bank that suits their financial situation.
Some of the leading banks and NBFCs offering personal loans at the best interest rates are listed below:
When you plan to get a personal loan in Bengaluru or any other city, you can follow a few important guidelines in order to get a good rate of interest. You will also be required to do proper research before you apply for a loan. Some of the important factors that should be kept in mind for getting a low interest rate include:
Credit score - Making sure that your credit score it above par will result in you availing a loan at a fairly good interest rate. The better your CIBIL score the lower the interest rate added to the loan and vice versa.
Down payment - Making a down payment upward of 20% of the loan amount will result in you availing a loan at a better interest rate. The bigger the down payment, the better the interest rate.
Debt-to-income ratio - Always ensure that your EMIs, credit bills and other debts do not cross 40% of your annual or monthly income. Having a good debt-to-income ratio will boost your chances of availing a loan with a good interest rate.
Loan shop - Financial portals such as BankBazaar is of great help when loan shopping. On the BankBazaar website, individuals can compare loan interest rates offered by its partner banks and can narrow down on a loan with the best interest rate relative to the tenure - one that suits their budget.
Your employment and experience - This is one factor banks and NBFCs take into consideration when approving or rejecting a loan application. If you’ve had a stable income and worked for a reputed company, it’s likely that you could very well negotiate on a decent interest rate.
Make sure that you negotiate - Negotiating the interest rate on your loan is absolutely necessary. Most people just go ahead with the numbers set by banks and NBFCs, but making a negotiation will help you in the long run.
Tenure - Choosing your tenure directly reflects on the interest rate added to the loan amount. Choosing a shorter tenure will result in you having a much less interest rate - though the EMIs will be considerably low. The interest rate increases with the length of the payback period.
|Name of the Bank||Interest Rate Range||Processing Fee Range||Loan Amount||Tenure|
|ICICI Bank||11.59% - 18.49% (Fixed)||2.25% (min. Rs.1149) One time fee||Rs.20 lakh (Max)||1-5 Years|
|CitiBank||10.99% - 15.99% (Fixed)||1% to 2.5%||Rs.30 lakh (Max)||1-5 Years|
|Kotak Mahindra Bank||10.99% to 24% p.a.||Up to 2.5% of the loan amount along with GST or service tax||Rs.50,000 to Rs.15 lakh||1 to 5 Years|
|Fullerton India||11.99% to 23.99 p.a.||Information not provided.||Up to Rs.20 lakh for salaried and up to Rs.30 lakh for self-employed individuals||1 to 4 Years|
|Bank of Baroda||11.35% - 14.35%Fixed||Rs.1,000 to Rs.10,000 (One time fee)||Rs.20,000 - Rs.2 lakh||4 Years (Max)|
|State Bank of India||12.90% - 14.90% (Fixed)||1% (One time fee)||Rs.24,000 - 15 lakh||5 Years|
|Aditya Birla||11.5% - 13.25% (Fixed)||Nil||Rs.30 lakh (Max)||1-5 Years|
|Allahabad Bank||Information not provided||1.06% of loan amount||Information not provided.||1 to 5 Years|
|Yes Bank||14% p.a.||Up to 2% (One-time fee)||Rs.2 lakh to Rs.20 lakh||1 to 5 Years|
|Corporation Bank||12.75% to 13.75% p.a.||Up to 1.5% Minimum amount of Rs.500||Up to Rs.3.50 lakh||Up to 5 Years|
Every bank and NBFC have a certain salary requirement which customers have to meet to get a loan approval. Apart from looking at factors such as interest rate, processing fees, prepayment and so, make sure your cross check with the bank’s minimum salary requirement as well. As already mentioned, the salary requirement varies from bank to bank.
For salaried individuals - Depending on which bank you are availing the loan from, generally the minimum salary requirement ranges between Rs.7,500 and Rs.50,000.
Self Employed individuals - Self-employed individuals should provide proof of income of the last two financial years. Generally, the income requirement to avail a loan is between Rs.1 lakh and Rs.2 lakh (profit).
Does my CIBIL score affect the interest rate on my loan?
Yes, your CIBIL score directly reflects on the interest rate the bank or NBFC offers you on your personal loan. The higher your credit score, the lower will be the interest rate and vice versa.
Can I transfer my loan amount to another lender? What’s the process?
A balance transfer is possible. In this case, the present lender will clear the dues and transfer the amount to a new loan with the interest as well.
Is a complete foreclosure of a loan possible?
Some banks allow it whereas other banks only allow a partial foreclosure of loans. In most cases, banks charge between 1% to 2% of the outstanding amount as foreclosure charges.
What happens when all the loan dues have been cleared?
Once the loan amount has been cleared completely, the bank will issue a No Due Certificate.
Does failing to pay my EMIs affect my CIBIL score?
Yes, failing to repay your loan on time directly reflects on your credit score.
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