Personal Loan Details
|Interest Rate||10.15% p.a. onwards|
|Loan Amount||Up to Rs.40 lakh|
|Loan Tenure||Up to 6 years|
|Processing Fee||0% - 6% of the loan amount + GST|
Table of Contents
Updated on - 27 Jan 2023
You can either visit the official website of the bank to directly apply for a personal loan or visit the BankBazaar.com website to compare different loans and then apply for one which suits you best.
|Bank||Best For||Key Highlights|
|Citibank Personal Loan||Low Interest Rate||
|HDFC Personal Loan||Self-Employed Professional||
|Kotak Mahindra Personal Loan||Quick Turnaround Time||
|Tata Capital Personal Loan||Flexible Interest Rates||
|Standard Chartered Personal Loan||Short-term Requirement||
|IDFC First Personal Loan||Top-Up Loans||
|Fullerton India Personal Loan||Quick Approval||
|IIFL Personal Loan||Easy Eligibility Checks||
|HDBFS Personal Loan||Special Offers||
|SBI Personal Loan||Different Income Categories||
|PNB Personal Loan||Affordable Interest Rates||
The personal loan interest rates vary between 10.15% p.a. and 36% p.a. Depending on the loan amount availed by you, your credit score, and repayment tenure, the interest rate charged on your loan is decided. If you maintain a high credit score and have a good relationship with the bank, then the interest rate on your personal loan can be lowered.
What can you use a personal loan for? Since it is an unsecured loan without the need for any collateral, there are very few limitations on how you can use a personal loan. It can broadly be used for consolidating your debt (from other loans or credit cards), making high-value purchases for which you do not have cash in hand, or for emergency situations. It cannot be used for speculative purposes or for making investments in the stock market. Some of the common reasons that people take out personal loans for includes meeting sudden business or educational expenses, paying for a vacation, buying high-end electronic gadgets or household appliances, wedding expenses, emergency medical expenses, home renovations, etc. It can also be used for buying a vehicle if the rate of interest on the personal loan is lower than that of a vehicle loan. Thus, a personal loan has a wide variety of uses and can come in handy for meeting either planned or emergency expenditure.
The following factors are taken into consideration when a lender goes through your loan application. If you meet these criteria, you are eligible for a personal loan:
|Age||21 years to 60 years||22 years to 55 years|
|Net Monthly Income||Rs.15,000||Rs.25,000|
|CIBIL Score||Above 750||Above 750|
|Minimum Loan Amount||Rs.50,000||Rs.50,000|
|Maximum Loan Amount||Rs.25 lakh||Rs.50 lakh|
Use BankBazaar Personal loan EMI calculator to calculate your EMI beforehand to plan and manage your finances in a better way. Personal Loan calculator lets you check your loan eligibility and helps you compare loans offered by different banks.
All you need to do is enter the loan details, including your preferred loan amount, interest rate, tenure, and processing fee. Hit "Calculate" to check your EMI. The lowest applicable EMI per lakh for a tenure of 6 years at minimum applicable interest rate is Rs.1,860.The minimum applicable interest rate in this case is 10.15% p.a.
The result is followed by an amortisation table, which will give you a detailed break-up of your repayment schedule.
You must submit a set of documents that lenders require when approving a personal loan application. Here are the details for the documents needed for a personal loan.
|Requirements||Salaried Individuals||Self Employed|
|Proof of Identity||Passport, Voter’s ID, Driving License or PAN Card||Passport, Voter’s ID, Driving License or PAN Card|
|Proof of Residence||Passport or utility bills||Passport or utility bills|
|Proof of Income||Bank statement of salary account for the past two years||Audited financial statement of the past two years|
If you are an NRI looking to borrow a personal loan, these are the documents that you will need to submit to the lender:
The following are the charges and fees of the personal loans available from various institutions.
In addition to these, the lenders might also levy charges for documentation, stamping, credit administration, collection, and so on. The levy and the rates of these fees and charges differ from lender to lender. However, you can check the fees and charges which are levied by the top lenders in India before you apply for a personal loan.
A personal loan is given for a stipulated time period. This period is known as the loan repayment tenure. After you have taken a loan, you are expected to pay the debt off by the end of the loan repayment tenure through EMIs. However, after availing a loan, if you decide to pay off your debt before the end of the loan repayment period, it is called pre-payment or foreclosure.
There are 2 types of pre-payment. They are full pre-payment and part pre-payment and part payment.
If you are paying off the whole outstanding loan amount before the end of the loan repayment tenure, it is known as full pre-payment.
If you are paying off a part of the outstanding loan amount before the end of the loan repayment tenure, it is known as part pre-payment.
There are a number of repayment modes which are offered by lenders. Although these modes might differ from lender to lender, the most common modes of repayment can be summed up as follows:
One can use your loan for any purpose as long as it is legal. However, there are certain lenders who provide different loan products on the basis of the purpose which is mentioned by the borrower in the loan application. On the basis of utilization, these are the different types of personal loans that can be availed in India:
|Personal Loan for Wedding||As the name suggests, a loan which is offered particularly for the purpose of meeting the expenses of a wedding is a wedding loan.|
|Personal Loan for Home Renovation||A home renovation loan allows you to pay for repairs or renovations to your home.|
|Personal Loan for Vacations||A holiday loan is specially designed for vacations. You can avail a holiday loan and pay off the expenses on a later day through easy EMI payments.|
|Personal Loan for Pensioners||A loan which is specifically offered to pensioners is known as a pension loan.|
|Personal Loan for Festivals||Certain lenders offer a personal loan exclusively for festivals. If you are looking for a loan to make arrangements for a festival, you can apply for a festival loan.|
|Medical Emergency Personal loans||Medical loans are basically loans taken out for the purpose of financing medical care.|
Note:Do not forget to check the eligibility criteria for the different types of personal loans before you apply for one.
Several retailers and banks are offering the Buy Now Pay Later (BNPL)scheme, where borrowers who do not have a credit history can avail a short-term credit. The credit-worthiness of the borrower is done with the help of analytics
Some of the main tips that must be considered when you opt for BNPL are mentioned below:
A personal loan customer can avail an additional loan amount through the top-up facility over his/her existing loan. The loan amount will be subject to the terms and conditions set by the financial lender, while the interest rate may be the same as the existing loan or could be up to 1% more than the interest rate of the current loan. The tenure of the top-up personal loan will be subject to that of the existing personal.
The personal loan balance transfer facility gives customers the benefit of transferring their existing loan to another financial lender. This can be done if the other financial lender is offering a better interest rate, the tenure is a lot more flexible, they wish for a top up on their existing loan, etc.
The approval of a personal loan application depends on many factors. When you apply for a loan, you should make sure that you are fulfilling all the factors to ensure the approval of your loan application. The eligibility criteria for personal loans may vary from lender to lender. However, there are some common criteria which include the age of the applicant, his or her income, credit score, the status of employment, and so on. Before you apply for a loan, make sure that all the eligibility criteria are being fulfilled. This will help you avoid the rejection of your loan application. Although there are other options that you can resort to in case your loan application gets rejected, it is recommended to double-check before applying to avoid the chances of rejection of loan application.
There are two main modes of checking the status of your loan application. Most lenders offer both online and offline modes through which you can keep tracking your loan status.
Most lenders offer the option of logging in to their official portal to help you track the status of your loan application. You can use the application number or reference number which is issued by the lender for this purpose. On the other hand, if you have applied for a loan through a third-party aggregator website such as BankBazaar, you can just log in to its web portal and track the status of your loan application directly.
If you are not comfortable using the online platform, you can also track the status of your personal loan application through offline means. You can visit the branch office of your loan provider and check the status of your loan application. On the other hand, you can also connect with your lender over the telephone through their helpline or customer care number.
For both these methods, you would be required to provide a few basic details such as your name and the application number or reference number. Head to BankBazaar to know more about how to track your personal loan status.
You can easily get in touch with your lender either through their online web portal or in person and request your loan statement. On most lender websites, you can just log in using your online credentials and provide your loan account number. Once you have tracked your account, you can request a statement which is either sent to your registered email ID or provided in the form of a PDF file which can be downloaded. Similarly, you can also visit the branch office of the lender from where you have availed the loan and place a request for a statement. In addition to that, you can raise a request for your personal loan statement through phone banking as well.
There are a few important things to keep in mind when searching for a personal loan. Check out list of most helpful tips that will certainly help you with your personal loans.
|Do proper research before you apply for a loan||Do not sign your loan documents without understanding every point|
|Do read the fine print carefully||Do not make multiple inquiries regarding loans from different banks|
|Do save your money carefully when you are repaying||Do not take a personal loan without any serious purpose|
|Do pay your loan instalment promptly every single time||Do not be in a hurry to end your loan comparison process|
|Do evaluate your credit score thoroughly||Do not forget to pay your loan instalments|
|Do apply for an affordable loan amount||Do not accept bad loan products|
If you have recently paid off your personal loan (either repaid or foreclosed), you might have the idea that your obligation towards the loan is over. However, that is not the case. There are certain things that you should do after paying off your personal loan.
Personal loan disbursal is basically the process of the financial lender remitting the loan amount in the bank account of the customer. The loan disbursal takes place after the submission of relevant documents of the customer and the verification and approval of the financial lender. Financial lenders offer personal loan disbursals in a few seconds, while other take a few hours to a few days to disburse the loan amount following approval.
There are a number of ways by which you can repay your loan. These include:
A Personal loan is a type of unsecured loan that you can borrow from a bank or financial institution if you require funds to pay for your financial needs.
You borrow a loan when you require credit. Once you submit your loan application to a lender for a personal loan, the lender verifies and approves it. Post this, the loan amount is disbursed into your bank account. Once you receive the loan amount, you will need to repay the lender via EMIs for the loan repayment tenure.
The maximum amount of loan depends on your monthly income. In India, there are lenders who offer up to Rs.40 lakh.
If you happen to get some extra money, you can pay it towards your loan even before the EMIs are due. This is called a prepayment. Every prepayment you make goes towards reducing the outstanding principal component of your loan. And since the principal reduces, your interest cost will also reduce. Also, your tenure gets shortened this way, helping you pay off the loan ahead of time.
Usually, banks will require your CIBIL score to be above 720 to provide a personal loan. In case your credit score is less, your application may be rejected or the personal loan will be provided with high interest rates.
If your personal loan application is rejected, then it is mostly either due to your low credit score or you not meet the eligibility criteria. If you meet the eligibility criteria and improve your credit score, your personal loan application will not be rejected.
Yes, you can, but it depends on your income and your ability to pay the EMIs of both the home loan and the personal loan.
A personal loan can be used for holidays, to start a small business, purchasing consumer goods, to purchase a vehicle, to pay friends and family, to pay medical bills, and debt consolidation.
A pre-approved loan is one where the customer can apply for a loan and possibly doesn’t need to submit documents or go through the verification process as he/she shares a healthy relationship with the bank as an existing customer and has a clean repayment record.
Standing instructions are basic instructions given by a bank customer to the bank to make a payment to another bank account or the bank at regular intervals or as a one-time payment, as per the requirement. As per the instructions, the money in the bank account of the customer will be debited and remitted to another account as per the specified time of the customer.
Personal loans only offer tax exemptions if you are using the loan amount for renovation of your house, to pay for educational expenses, or to expand your business.
Yes, some of the leading banks in India are offering COVID-19 personal loans. If you wish to apply for a personal loan, you can do so by applying for it online on the bank’s official website. Applying online is recommended since the process is fast and hassle-free and allows you to maintain the social distancing norm laid down by the Government of India. The interest rates offered will vary from bank to bank and hence it is recommended you compare various personal loans and then avail the one which you feel will be suitable for you.
This depends on your lender. Some lenders charge you a fixed fee for each prepayment. Others may charge you a percentage of the amount outstanding or a percentage of the amount prepaid.
Yes, financial lenders have their terms and conditions when it comes to personal loan foreclosures. Usually, financial lenders allow loan pre-closures only after the payment of 12 EMIs and charge a foreclosure charge + GST on the outstanding loan amount.
You can change your address of residence linked to your Personal loan account via your net banking account or by visiting the bank branch. At the bank branch, you will have to fill in the address-change form and submit relevant address proof documents that are authorised or attested by the State or Central Government.
The minimum salary requirement will vary from lender to lender. Most lenders, however, will require you to earn at least Rs.15,000. If you reside in a metropolitan city, you may have to earn between Rs.20,000 and Rs.25,000.
Most lenders will allow you to make pre-payments or pre-close your loan during the loan repayment term. You will, however, have to pay a nominal charge to the lender for doing the same. Keep in mind that most lenders will only allow you to prepay or pre-close your loan after 1 year of borrowing the loan. If you want to prepay/pre-close your loan, ensure that you inform your lender of the same.
You can cancel your loan application before the loan amount is disbursed into your account by submitting a written application for the same. You will also need to pay the loan cancellation fee to the lender. Once the loan amount has been disbursed into your account, most lenders will not allow you to cancel it. You can, however, pre-close the loan. If you are thinking of cancelling your loan because you pay a high interest rate on your loan, you can consider transferring your outstanding loan balance to another bank or financial institution.
This depends on the lender you choose. Normally, every personal loan repayment is calculated on the basis of a monthly repayment pattern. It includes the principal and interest components that you’re expected to repay each month.
Some lenders may ask you to pay a fee if you want to prepay a part of your loan. Others may either waive the fee or may not have prepayment charges at all.
A bank can reject your personal loan application if you apply for a loan for which you are not eligible. It can also reject your application if you fail to submit the documents it requires.
BankBazaar.com offers its loan applicants an active tracking tool through both email and SMS allowing them to track daily updates of their loan application.
You can request the bank for a personal loan duplicate repayment schedule either via your net banking account or by calling the customer care unit or by writing to them via your registered email ID.
If the borrower fails to pay the EMI, the bank charges a penal interest on the overdue amount. Financial lenders usually charge a penal interest of 2%-3% per month of the overdue amount.
It could be hard to get a traditional personal loan from a bank with a poor credit score and no checking account. However, certain lenders offer types of personal loans such as payday loans for those with a poor credit score. That said, the interest charged will be quite high.
Over your EMI, after a certain period following the disbursement of the loan, you can make a part-payment towards the loan. The part payment will further deduct the outstanding principal amount of the loan.
Compare and apply online for personal loans at BankBazaar and get an instant assistant from them.
For personal loans, most lenders fix the minimum monthly income requirement between Rs.15,000 and Rs.25,000. Thus, if you have a monthly income of Rs.60,000, you can be fairly certain that you won’t find it difficult to borrow a loan. The exact amount that you will be offered will, however, vary based on your repayment capacity, debt-to-income ratio, the lender’s terms and conditions, etc.
With a monthly salary of Rs.25,000, you are likely to be eligible to borrow a loan. However, the lender will also check if you have any other outstanding loans, your credit score, repayment capacity, etc. before deciding how much you can borrow. You can use a personal loan eligibility calculator tool to know how much you are eligible to borrow with a monthly salary of Rs.25,000.
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