IndusInd Personal Loan Interest Rates

IndusInd Bank Instant Personal loan

IndusInd Bank is one of the prominent private sector banks in the country and offers an array of products to its customers. One of the products offered by IndusInd Bank is a personal loan which is a convenient way to meet your financial needs, whether it is for a wedding, medical emergency, travel, or debt consolidation. The bank offers loans with minimal documentation, quick approvals, and at a competitive interest rate. The loan comes with flexible repayment tenures, making it easier to manage your monthly outflow while achieving your goals without delay. 

Eligibility Criteria to Apply for the IndusInd Bank Personal Loan for Salaried Employees

The below listed are the eligibility criteria to apply for the IndusInd Bank Personal Loan for Salaried Employees: 

1. The applicant should be at least minimum 21 years of age up to 60 years of age. 

1. The applicant's minimum monthly income should be Rs.25,000. 

1. The applicant should have completed at least two years of employment and at least one year in the current organisation. 

1. The applicant should have completed at least one year at the present address, if staying on rent. 

1. Th applicant should have a good CIBIL score, above 730 is preferred. 

Eligibility Criteria to Apply for the IndusInd Bank Personal Loan for Self Employed Professionals

The below listed are the eligibility criteria to apply for the IndusInd Bank Personal Loan for Self Employed Professionals: 

1. The applicant should be at least minimum 25 years of age up to 65 years of age. 

1. The applicant's minimum annual income should be at least Rs.4.8 lakhs. 

1. The applicant should have completed at least four years of post-qualification experience. 

Eligibility Criteria to Apply for the IndusInd Bank Personal Loan for Self Employed Individuals

The below listed are the eligibility criteria to apply for the IndusInd Bank Personal Loan for Self Employed Individuals: 

1. The applicant should be at least minimum 25 years of age up to 65 years of age. 

1. The applicant's minimum annual income should be at least Rs.4.8 lakhs. 

1. The applicant should have completed at least five years of post-qualification experience. 

Documents Required to Apply for IndusInd Bank Personal Loan: 

The documents required to apply for IndusInd bank personal loan are as follows: 

1. PAN Card 

1. Aadhaar Card 

1. Valid Address Proof: Electricity bill, Water bill, Bank Passbooks, etc. 

1. Valid Identity Proof: Aadhaar card, PAN card, Passport, etc. 

1. Valid Income Proof: Bank statements, ITR, etc. 

Note: If you are applying online, no physical documentation will be required. If you are applying offline, you will have to submit a physical copy of the above-listed documents. 

Fees and Charges of the IndusInd Bank Personal Loan

The fees and charges of the IndusInd Bank Personal Loan are as follows: 

How to Apply for the IndusInd Bank Instant Personal Loan? 

Follow the steps given below to apply for the IndusInd Bank Instant Personal Loan: 

Step 1: Visit the official website or mobile app of the IndusInd Bank. 

Step 2: Register or log in using your mobile number and basic details. 

Step 3: You need to check your loan eligibility by providing income, employment, and credit information. 

Step 4: Select the loan amount and tenure as per your requirements. 

Step 5: You need to upload necessary documents like PAN, Aadhaar, salary slips, or bank statements as required. 

Step 6: Review and submit the application. 

Step 7: Get instant approval, and upon verification, the loan amount is disbursed directly to your bank account. 

Common Mistakes to Avoid when Applying for an IndusInd Bank Personal Loan

The below-listed are some of the common mistakes to avoid when applying for an IndusInd Bank personal loan: 

1. Not checking the eligibility criteria: This is one of the most common mistakes which you should avoid when applying for an IndusInd bank personal loan. It is important to always verify the eligibility criteria before applying for a personal loan to avoid immediate rejection. 

1. Applying with a low credit score: A CIBIL score below 730 may reduce your chances of approval or result in higher interest rates. It is important to ensure that your CIBIL score is at par with the bank's requirements. 

1. Choosing long repayment tenure: Though choosing a longer repayment tenure can lower your EMI, it can increase your overall interest costs of the loan. It is important to assess your loan and rate of interest charged before opting for a repayment tenure. 

1. Applying for multiple loans at the same time: Submitting multiple loan applications at the same time projects you as credit hungry and has a negative effect on your credit score. It leads to multiple hard inquiries on your credit report.  

Factors affecting IndusInd Bank Personal loan interest rates

Some of the factors that can affect the interest rate are as follows:

1. Credit score: Your credit score reflects your creditworthiness. It determines how responsible you are/have been as a borrower. You have a great chance of getting attractive interest rates on your personal loans if your credit score is good.
2. Nature of employment: Your employment history will play a key role in determining the interest rate. You may get reduced rates if you fall under the high-income bracket and/or have completed 3 years or more in your present organisation. However, any rate offered is at the discretion of the bank.
3. Loan Tenure: Longer loan tenures generally come with lower interest rates, while shorter tenures may attract higher rates. However, with long-term loans, the total interest paid overtime tends to be higher due to the extended repayment period.
4. Existing loans: Most banks consider your existing loans before issuing you with additional loans. This is mainly to ensure that you have adequate income for your livelihood after paying for all loan EMIs. If you already have too many loans, it could be grounds for rejection of your personal loan application.
5. Repayment capacity: The bank will check your repayment history before deciding on the interest rate. This is done to ensure that you will be able to adequately repay the loan. The bank may offer you reduced rates if you have a high annual income.
6. Relationship with IndusInd: Like most banks, IndusInd gives preference to its existing and valued customers. If you hold a salary account or have a long-standing relationship with the bank, you may be eligible for preferential interest rates. However, the final offer will still depend on the bank’s standard eligibility checks and credit assessment. 

Other fees and charges IndusInd Bank Personal loan

The following charges may be applicable for customers who take personal loans from IndusInd Bank:

1. The bank charges Rs.450 for payment dishonour charges in case of missed payments.
   
2. Loan cancellation charges are Rs.1,000 per event.
   

Illustration

1. Mr. Agarwal works for a private concern and earns Rs.25,000 per month. He has a credit score of 700. He takes a personal loan of Rs.2 lakh from IndusInd Bank. The bank charges an interest of 20% on his loan owing to his low earnings and credit score.

For a loan tenure of 1 year, his repayment schedule is provided in the following amortisation table.

For salary of Rs.25,000 per month

2. Ms. Rao runs her own business and earns Rs.50,000 per month. She has a credit score of 850 as she pays her dues on time without fail. She has applied for a personal loan from IndusInd Bank for Rs.2 lakh. Due to her great credit score, the bank charges an interest of 12% p.a.

For a loan tenure of 1 year, her repayment schedule is provided in the following amortisation table.

For salary of Rs.50,000 per month

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