What is the tenure range of personal loans?

Most banks offer loans for a tenure of 1 to 5 years. The tenure decides the interest rate, the EMIs to be repaid to the bank monthly, etc.

What documents are required when applying for a personal loan?

You will need to submit your regular KYC documents (address and identity proof) - Passport, Aadhaar card, Voter's ID , driving licence, any government employee card, etc. Apart from that, you will have to submit your payslips, last two years IT Returns, last six months bank statements, etc.

Are there any additional charges for personal loans?

You will have to pay the processing fee upfront when availing a loan. Apart from this there are no additional charges unless a prepayment is made.

Will the loan be disbursed at once or in stages?

Once your loan application has been approved by the bank or NBFC, the loan will be disbursed all at once. There is no option of splitting the disbursal.

Can I prepay a loan after a couple of months?

Most prepayment requirement for most banks is six months from the point of disbursal. Pre closing the loan in two months would not be a possibility. You would have to pay prepayment charges on the outstanding balance.

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Chennai Personal Loan

The capital city of Tamil Nadu, Chennai is home to some of the biggest and most trusted banks and financial institutions in India, thereby making it easy for you to find the right personal loan for your unique financial needs.

With interest rates starting from just 10.00% and a multitude of banks to choose from, getting a personal loan in Chennai is relatively easy. You can avail amounts up to Rs.40 lakh with flexible repayment tenures.

Chennai, a busy city, is the capital of Tamil Nadu. It is located on the Coromandel Coast on the Bay of Bengal in the eastern part of the country. The city has a population of around 46.5 lakh people. The city attracts medical tourism on a yearly basis very successfully. It has famous financial, cultural, IT, and educational centres that have been functioning for several years.

If you are in need of reliable financial assistance for your personal needs, you can apply for a personal loan from any of the banks or non-banking financial companies (NBFCs). Personal loans are typically unsecured in nature. However, if you need a secured loan, you could take a personal loan against shares, against gold, or against mortgage.

In Chennai, there are top lenders that provide loans through online and offline methods. You can select your lender depending on your requirement and repayment capacity. If you buy online, you can enjoy paperless documentation, make comparisons of interest rates, fees, and other charges.

Chennai Personal Loan Interest Rates

Interest Rate (Monthly reducing balance)	10.00% p.a. to 32% p.a.
Processing Fees	0% -6%
Loan Tenure	1 year to 7 years
Pre-closure Charges	2% - 5%
Guarantor Requirement	No guarantor required

Documentation Required

1. Photo ID and age proof
2. Signed application form with photograph
3. Residence proof
4. Last 6 months bank statement
5. Documentation for salaried applicants:
1. Last 3 months salary - slips
2. Form 16 or Income Tax Returns
6. Documentation for self-employed applicants:

Last 3 years Income Tax Returns with computation of Income
Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account

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Personal Loans Offered by Various Lenders in Chennai

A few of the prominent banks and non-banking financial companies (NBFCs) that offer personal loans in the city include:

State Bank of India (SBI)
Aditya Birla
Tamilnad Mercantile Bank
Tata Capital
ICICI Bank
Indian Bank
Axis Bank
HDFC Bank
Kotak Mahindra Bank
Standard Chartered Bank
Citibank
Punjab National Bank
Karur Vysya Bank

How do I Get a Personal Loan with the Lowest Interest Rate in Chennai?

When availing a personal loan most people go for the bank holding their salary account as the paperwork becomes a lot more relaxed and the process faster. While for some this might work perfectly, looking out for loans offered by numerous banks and NBFCs offering loans at the best interest rates is the best way forward. Other than that, there are a few other factors that will positively affect your loan interest rate. If you're availing a loan, listed below are a few areas you need to look into or take care of if you wish to get the lowest interest rate on your loan:

Credit score - Ensuring that your credit score is optimum is imperative when availing a personal loan. Having a high credit score will result in you getting a loan at a lower interest rate and vice versa. A credit score above 750 is satisfactory when availing a personal loan.

Make a down payment - Putting down a sizeable down payment is sure to get you a better interest rate on your loan. Anything upward of 20% of your loan amount will surely positively affect the interest rate that is offered to you.

Debt-to-income ratio - Making sure that you have a stable debt-to-ratio will firstly decide whether your loan will be approved and secondly will affect the interest rate on your loan. Debt-to-ratio is the amount one earns against his/her credit bills, loans, etc.

Look around for the best loan interest rates on offer - Facilitating the use of financial portals such as BankBazaar will help you when shopping around for loans offering the best interest rates. The BankBazaar website compares the loan interest rates of all its partner banks and makes it easier for customers to make a decision.

Tenure - Choosing your tenure directly reflects on the interest rate added to the loan amount. Choosing a shorted tenure will result in you having a much less interest rate - though the EMIs will considerably low. The interest rate increases with the length of the payback period.

Employee stability and the company you work for - The number of years of experience and the company you work for plays a vital role whether firstly your loan will be approved and secondly the interest rate on the loan. Working for an established company only increases the bank's trust of you repaying the loan.

Always negotiate - While most people readily agree to the interest rate on the loan offered by the bank, negotiating on the interest rate is a necessity. If you're a customer availing a loan from the bank holding your salary, you have a better chance of making a negotiation.

Personal Loan Interest Rates in Chennai 2025

Name of the Bank	Interest Rate Range	Processing Fee Range	Loan Amount	Tenure
ICICI Bank	10.85% p.a. - 16.65% p.a. (Fixed)	up to 2.00% of the loan amount plus applicable taxes	Rs.50 lakh (Max)	up to 6 Years
CitiBank	10.75% p.a. - 16.49% p.a.	up to 3.00% of the loan amount	Rs.30 lakh (Max)	1-5 Years
Kotak Mahindra Bank	10.99% p.a. onwards	Up to 3% of the loan amount along with GST or service tax	Up to Rs.35 lakh	1 to 5 Years
Fullerton India	13.00% p.a. onwards	Up to 5% of the loan amount + GST	Up to Rs.30 lakh	1 to 5 Years
Bank of Baroda	11.15% p.a. - 18.50% p.a.	2% of the loan amount subject to a minimum of up to Rs.1,000 and maximum of up to Rs.10,000 (One time fee)	Rs.50,000 - Rs.20 lakh	5 Years (Max)
State Bank of India	11.45 p.a. onwards	Up to 1.50%	Up to Rs.20 lakh	1- 6 Years
Aditya Birla	10.00% p.a. - 32% p.a.	Up to 3%	Up to Rs.40 lakh (Max	1-7 Years
Yes Bank	11.25% p.a. onwards	Up to 2.50% of the loan amount (One time fee)	Rs.50,000 to Rs.50 lakh	1-6 Years
Union Bank of India	11.50% p.a. - 12.75% p.a.	At the discretion of the bank	Up to Rs.15 lakh	Up to 5 Years

Salary Requirements to Avail Personal Loans in Chennai

When availing a personal loan in Chennai, the salary requirements change from bank to bank. When looking for the bank offering the best interest rates, make sure to look out for the minimum salary requirement of the bank as well.

For salaried individuals - Banks have a minimum salary requirement between Rs.7,500 and Rs.50,000 for salaried individuals.
Self-employed individuals - Those having their own business should provide proof of income and most banks have an income requirement of Rs.1 lakh to Rs.2 lakh (profit) annually.

A good credit score can help you secure lower interest rates on loans and credit cards.

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FAQs on Personal Loan in Chennai

What is the tenure range of personal loans?
Most banks offer loans for a tenure of 1 to 5 years. The tenure decides the interest rate, the EMIs to be repaid to the bank monthly, etc.
What documents are required when applying for a personal loan?
You will need to submit your regular KYC documents (address and identity proof) - Passport, Aadhaar card, Voter's ID, driving licence, any government employee card, etc. Apart from that, you will have to submit your payslips, last two years IT Returns, last six months bank statements, etc.
Are there any additional charges for personal loans?
You will have to pay the processing fee upfront when availing a loan. Apart from this there are no additional charges unless a prepayment is made.
Will the loan be disbursed at once or in stages?
Once your loan application has been approved by the bank or NBFC, the loan will be disbursed all at once. There is no option of splitting the disbursal.
Can I prepay a loan after a couple of months?
Most prepayment requirement for most banks is six months from the point of disbursal. Pre closing the loan in two months would not be a possibility. You would have to pay prepayment charges on the outstanding balance.

Important Personal Loan Pages

Personal Loan Eligibility by Banks

Personal Loan Interest Rates by Bank

Personal Loan EMI Calculator by Bank

Personal Loan Customer Care by Bank

Personal Loan Status Track by Bank

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