A Personal Loan is a form of loan availed by individuals on the basis of specific criteria, such as level of income, employment history, credit score, and scope for repayment. The loan is usually taken for the fulfillment of personal needs from a banking institution or a non-banking financial company (NBFC). Borrowers can use online tools available at neutral financial websites, such as the Personal Loan EMI Calculator, to assess the interest payout throughout the tenure before applying for a personal loan.
|Personal Loan Details|
|Interest Rate (Monthly reducing balance)||10.99% - 37.00%|
|Processing Fees||Varies with bank|
|Loan Tenure||1 year to 5 years|
|Pre-closure Charges||Varies with bank|
|Guarantor Requirement||Varies with bank|
Applying for a personal loan at BankBazaar.com involves three simple steps :
Step 1: In the first step, the user must fill the personal loan eligibility form available online with required personal data. Once submitted the personal loan tool automatically checks for eligibility of the applicant and provides personalized personal loan options.
Step 2: In the second step, the applicant can compare various personal loan options offered by the tool interface and apply for the most suitable loan.
Step 3: The last step involves receiving an instant e-approval from BankBazaar.com after successful submission of the personal loan application online.
The application is sent electronically to the selected bank. The loan department of the concerned bank gets in touch with the applicant directly. Users can check the status of their loan application through SMS alerts as well as emails.
Various banks and NBFC's offer personal loans to all applicants fulfilling their basic eligibility criteria. While different banks have different minimum eligibility criteria, the criteria common for most banks and NBFCs for individuals requesting a personal loan include:
|Age||21 years to 60 years||22 years to 55 years|
|Net monthly income||Rs.15,000 (Rs.20,000 in metro cities)||Rs.25,000|
|CIBIL Score||Above 750||Above 750|
|Minimum Loan Amount||Rs.50,000||Rs.50,000|
|Maximum Loan Amount||Rs.15 lakh||Rs.30 lakh|
A temporary financial crisis can happen to anyone irrespective of his or her overall financial status. Personal loans are a great way to offset any such temporary financial crisis as it allows the users to avail a loan without any pre conditions on the usage of funds. Personal loans have a quick approval mechanism with loans getting cleared as early as within 24-48 hours of the loan application submission.
BankBazaar.com, India's premier financial market place has collaborated with various public sector and private banks to offer customized personal loans for its users. An individual can apply for a personal loan online through the BankBazaar website.
Easy Eligibility Check: The loan calculator tool at BankBazaar.com checks for the user's personal loan eligibility instantly. The tool also offers customized quotes for all eligible users as per their financial credit history and eligibility criteria.
Instant Quotes: The eligible loan applicants are offered instant quotes on personal loan interest rates.
Real time Loan Comparison: BankBazaar.com also offers a simple online personal loan comparison tool allowing users to compare the loan offers of various banks. Feedback shared by previous personal loan applicants is useful for new applicants to get the best personal loan deal.
Instant e-Approval: The applicant gets an instant e-approval after successfully submitting his or her personal loan application.
Assured Privacy: All personal loan applications submitted to BankBazaar.com are sent electronically to the concerned bank department assuring complete privacy and transparency.
The personal loan offered by HDFC Bank is available for different tenures. Flexible repayment facility and attractive interest rates are other features of the loan. Pre-approved loans are provided to existing customers of the bank in under 10 seconds. Other customers can get a personal loan approved within 4 hours. The loan amount can go up to Rs.40 lakh as well.
The personal loan offered by ICICI Bank can be used for any purpose as per the needs of the customer. The tenure of the loan can be up to 60 months and the interest rate is fixed. The interest is charged in a monthly reducing manner on the loan amount. Customers can employ PDC, ESC or auto-debit for the EMI repayment on a monthly basis. The maximum loan amount offered is Rs.20 lakh.
Bajaj Finserv offers personal loans up to Rs.25 lakh with flexible payment options and minimal documentation. Loans can be repaid based on the convenience of the customer within 12 to 60 months. The Flexi Personal Loan product from the bank enables customers to borrow funds with lower EMI. The bank approves personal loan applications within 5 minutes and the funds are disbursed within 24 hours as well.
The State Bank of India (SBI) offers three different kinds of personal loans to customers:
Axis Bank offers personal loans from Rs.50,000 to Rs.15 lakh to customers. The loan approval process is speedy and only minimal documentation is required. The minimum age of the applicant should be 21 years and the age at the time of loan maturity should not be more than 60 years. The applicant should also have a net monthly income of Rs.15,000. The loan repayment tenure is between 12 and 60 months.
BankBazaar.com offers users the opportunity to choose from the best personal loan products in India as per the borrower's repayment capacity and choice of tenure. BankBazaar.com offers customized personal loan quotes from various banks and non-banking financial companies. Users can choose the most suited bank or NBFC for their personal loan requests as per the charges and other features.
Different banks and NBFCs have different minimum documentation requirement for personal loans. The common documents required by most banks and NBFCs for individuals requesting a personal loan include :
EMI calculation for personal loan is now made easy using the EMI calculator available at BankBazaar.com. The tool gives users the option of changing the loan amount and tenure while calculating the EMI for the personal loan. EMI calculator tool is a great option that allows users to see their monthly installments towards the loan. It helps them choose the most suitable loan as per their budget.
You can check out the following personal loan EMI calculator table to get an idea about how EMIs are computed for personal loans. It illustrates the different EMIs you will have to pay for different loan tenures according to the loan amount you choose.
For the following table, we have assumed that the interest rate is 10.99% and that the processing fee is 2%. The processing fee is usually a certain percentage of your personal loan amount. If you are using the BankBazaar personal loan EMI calculator, you can specify if you want to make pre-payments or not. You can accordingly select the option. If you want to make pre-payments, you will have to mention the pre-payment frequency, pre-payment fee, and pre-payment amount.
|Loan Amount||Interest Rate||EMI for 1 Year||EMI for 2 Years||EMI for 3 Years||EMI for 4 Years||EMI for 5 Years|
There are several types of personal loans available in India:
If you want to make sure that your personal loan application is accepted, here are some important guidelines to follow
Do proper research before you apply for a personal loan: Make sure you do good research regarding the various interest rates and prepayment charges implemented by the Reserve Bank of India (RBI) for multiple loans? You will also have to keep yourself updated about modifications made to these charges. Banks tend to change their decisions about fees and interest rates on a regular basis. It is important for you to be aware of these aspects so that you do not get scammed while taking a personal loan.
You will need to do relevant homework about the numerous loan amounts, loan tenures, and loan rates of different banks. When you do your homework sincerely, you will be able to grab a great loan deal that offers a low-interest rate along with meeting your other preferences.
Moreover, when you spend some time on research, you will get to know about new personal loan schemes or special offers on certain schemes. You can save a lot by making use of these offers. You may also be required to pay very low processing fees when you make use of these special loan deals.
Do read the fine print carefully: When you take a personal loan from a bank or NBFC, make sure you read the fine print of your personal loan document cautiously. You should be aware of all the terms and conditions associated with your personal loan. If you find any discrepancies with your loan details, you should immediately ask your lender for clarification. This will avoid any unnecessary confusion later. Take some additional time to read the material written in tiny fonts so that you do not have any problem in the future. If you want, you can take the help of any professional financial consultant to clearly understand your loan terms and conditions.
Do save your money carefully when you are repaying: You may typically take a few years to repay your personal loan completely. During this time, it is important that you keep aside a part of your funds for emergency purposes and other needs. If you solely focus on clearing your debt without saving anything, you may get yourself into trouble.
Do pay your loan installment promptly every single time: When you are repaying through monthly installments, you should make sure that you pay each installment amount on time. You should focus on not missing any of your payment deadlines. If you miss any of your payment deadlines, you will unnecessarily have to pay a late payment charge. You may also be treated as a borrower who has defaulted his or her loan. This can affect your credit score negatively.
In case you are struggling to repay your loan during any particular month, you can prioritize your other payments. You can forego certain expenditures to avoid unrequired additional payments. You can create a plan to first pay your loan EMI for that certain month and then your other bills. When you give first priority to your loan EMIs, you can avoid a negative mark on your credit report and credit score.
Do evaluate your credit score thoroughly: Before you even approach a bank for a personal loan, check your credit score thoroughly. When you are aware of your credit score, you can assess the probability whether your loan will get approved or not. Your credit score also plays a significant role in determining the interest rate for your personal loan. You can check your credit score by using the credit score calculator available on the web portal of BankBazaar. It offers an accurate credit score for free! You only have to key in certain relevant details and you will get your results instantly. The Credit Information Bureau (India) Limited (CIBIL) provides a credit score to an individual only if he or she has taken a credit card or a loan previously.
Do apply for an affordable loan amount: You should make sure that you choose your loan amount only after careful thinking. You should check out the various loan rates and loan fees and also you're other expenses. Accordingly, you should apply for a particular loan quantum. Do not go overboard while applying for a loan because you should remember that you will only have to repay this entire loan amount. Hence, be watchful about how much you apply for.
Do have a clear picture of what you need the loan for: Do not take a loan just because you can get it easily. Before you apply for a personal loan, you should be fully clear about why you require it. Once you procure the loan from your bank or any other lender, you should stick to the purpose that you had in mind. You do not have to mention the purpose to your lender. However, you will need to stick to it when you are repaying your loan.
Do not sign your loan documents without understanding every point: You should avoid signing your loan document without comprehending each point. You must read all the terms and conditions given in your loan document before you agree to sign it. If you have any doubt regarding the features of your loan, you will have to immediately contact your bank representative for assistance. It is better to get everything clarified before you sign the document. Once you sign the loan document, the bank may not agree to make any changes even if you do face any issue later.
Do not make multiple inquiries regarding personal loans from different banks: Make sure you approach a certain bank or NBFC only after you do a good amount of research. You can shortlist different banks after checking to see what they have to offer. If you approach numerous lenders to apply for a loan, there will be a record of excessive credit inquiries in your name. This can affect your credit report poorly. Your credit score can also get impacted.
Do not take a personal loan without any serious purpose: It makes sense to apply for a personal loan for making wedding arrangements or for funding your higher education course or for renovating your living space. However, stay away from taking a personal loan for frivolous purposes such as hosting parties, having fancy dinners, or vacationing at some exotic location. When you take a personal loan for such reasons, you may end up getting into trouble. You will end up paying extremely high bills for these purposes with your personal loan and then you may struggle to repay the loan.
Do not be in a hurry to end your loan comparison process: A few lenders may force you to finalize on a particular loan product without giving you time to compare other loans or to read your loan terms and conditions. You should avoid getting pressurized by such lenders. You can take proper time to check out various loan options and compare the different features of each loan option. Accordingly, you can finalize on one. If your lender does not encourage you to compare other options, you will need to be wary about this lender. Such lenders may have a few other intentions to cheat you by taking your money.
Do not forget to pay your loan installments: This tip may seem a little too obvious. However, you should make sure that you never ever miss your payment deadline. If you are clearing your loan through EMIs, you will have to be ready with your amount every month without fail. If you miss paying even one installment, your credit score can get harmed and then your creditworthiness will come down each time you fail to pay. Moreover, you will be asked to pay a heavy penalty whenever you delay any bill payment. Apart from your regular repayments, you will be forced to pay additional heavy amounts as a fine. You can avoid this unnecessary headache by just being a little conscious to pay your EMIs promptly.
Do not accept bad personal loan products: Avoid bad decisions regarding personal loan products. There are multiple types of personal loans available in the market. Hence, you will have to be financially sensible while choosing them. The common personal loans will help you enhance your financial wealth and assist you in attaining your financial goals. However, there are a few bad personal loan options such as payday loans or title loans. These loans require you to pay heavy penalties and they also do not allow you to redeem conveniently.
You can typically stay away from short-term personal loans that will make you pay high-interest rates. You will end up incurring higher expenses compared to the original amount that you would have borrowed.
Typical personal loan amount: For a personal loan, the loan amount generally depends on your employment status, income, loan tenure, etc. Your lender will find out if you are a salaried employee or a self-employed individual. When you give your monthly income, your lender will typically make sure that your loan EMI is not above 40 to 50% of your monthly income. Your lender will also look into your existing loans or credit card dues (if any) to fix your personal loan amount.
If you are a self-employed individual, your lender will ask you for your profit or loss statement to assess the recent profits that you have earned along with the additional liabilities such as your business expenses, etc. According to this information, your lender will fix your personal loan amount.
The minimum personal loan amount varies in India. However, most banks and NBFCs have fixed Rs.30,000 as the minimum loan principal amount for personal loans.
The maximum personal loan amount will typically be fixed according to a few important aspects such as your income, your present liabilities, and your credit score.
Typical loan tenure or loan period: In India, a personal loan is generally provided for a period of 12 to 60 months or 1 to 5 years. If you are looking for a longer or shorter loan tenure, you can check with your lender if it will be possible.
Time taken generally for loan disbursal: When you apply for a personal loan, it will get disbursed within a period of 7 working days. After your loan application gets sanctioned, you will get an account payee cheque or draft which will be equivalent to your loan amount. Alternatively, your loan amount will be deposited into your savings account via electronic methods.
Know More About: How to Choose Right Personal Loan
When you apply for a personal loan, there is no assurance that you will receive a loan even if your credit score is high. However, it is more likely that you will get a loan if your score is 750 or above.
When your score is below 750, you may most likely not qualify for a loan. However, you can try taking alternative steps to get a loan:
Once your credit score is 750, you can stick to a good schedule of repaying all your installments on time.
When you apply for a personal loan, your lender will check other factors apart from your credit history. These factors include your income, your employment status, your previous payment records, etc.
If you show that you have a good income, your loan application will receive a positive result. If you have a regular flow of income each month, then your lender will be satisfied. The lender will check the documents regarding your employment and your income. If you have moved jobs quite regularly, your loan application may not get approved instantly. This is because your lender will assume that you will not be earning a steady income and that you may struggle to clear your debts. Hence, you should ideally apply for a personal loan only after you have been with a company for a long period.
In India, banks and NBFCs offer exclusive personal loans for non-resident Indians (NRIs) according to their specific preferences and needs. You can apply for the loan by visiting a bank branch in India or by going to the official website of the bank. Many banks offer personal loans against fixed deposits. Some banks may require the applicant to be a resident Indian and the co-applicant can be the NRI who is a close relative of the applicant.
The documentation process for NRIs is also minimal and simple. You will need to furnish certain relevant documents such as your visa, passport, salary certificate, and bank statements from both domestic and foreign banks. Generally, the personal loan tenure for NRIs is up to 36 months.
Many banks offer the personal loan balance transfer facility that help you in minimizing the burden of your current loan. You can transfer the balance of your existing loan to a new personal loan account and then get additional finances for your other needs. This facility will help you secure a low interest rate.
When you want to select your personal loan tenure, you will need to consider your interest rate and your EMI amounts. You need to remember that if you go for a longer loan tenure, your EMIs will be lesser. This way, you will incur less expenses for your personal loan. However, you also need to bear in mind that you will be paying higher interest if you choose a loan for a longer tenure.
You can calculate your EMIs by using a personal loan calculator which is available online. Many third-party websites and official websites of banks have an advanced EMI calculator. You can check out the EMI calculator offered by BankBazaar. After computing your EMIs for different loan tenures, you will get an idea about how much you will spend each year. Accordingly, you can choose your loan tenure.
You should also consider your prepayment terms. When you are sure that you will be prepaying your loan, you can enter these details in the EMI calculator. You will get accurate results accordingly. You will most likely be asked to pay a prepayment penalty when you go ahead. If you want to prepay your loan within 1 or 2 years, you can go for a longer loan period so that your monthly payments will be lesser.
A. Personal loan can be repaid in equal monthly instalments or EMI. You can provide a post-dated cheque or can give a standing order with your bank or through electronic transfer.Q. What is an EMI?
A. EMI or Equal Monthly Instalment is the amount that a borrower pays each month towards an outstanding loan to clear off the debt within a specific timeframe. EMI.includes principal and interest.Q. Is part- prepayment allowed on my personal loan?
A. Personal loans can be prepaid in parts or as a whole at any stage. Some banks may charge a prepayment penalty for the same. Some banks do not allow part-prepayment. So, check all the documents before finalising on the loan with the bank.Q. Will I need a guarantor to take a personal loan?
A. No, you will not need a guarantor to take a personal loan.Q. Can I club my income with my spouse to take a personal loan?
A. Yes, you can club the income of your spouse to boost your eligibility to avail a personal loan.Q. How will I be eligible for a relationship discount?
A. If you have been a customer for a particular bank for a while, then the bank might reduce the personal loan interest rate or other such charges. Some banks will also provide you additional services.Q. Do I need to open a bank account to service my personal loan?
A. If you do not have an account with the bank, it is not mandatory to apply for one. But, if you apply for a loan with your existing banker, then you will be eligible for a relationship discount.Q. How do I stop executives from calling me to let me know about other loans?
A. Some banks let you register yourself for ‘Do Not Disturb'. If you opt for this, the executives will not disturb you with cold sales calls.Q: What is the best way to apply for personal Loan?
A: The best way to apply for an personal loan is by using the online loan application tool at BankBazaar.com The tool can be accessed on this page allowing users to choose personal loan from various banks and NBFCS as per their selection.Q: Can I Track my Loan Application?
A: BankBazaar.com offers it's loan applicants an active tracking tool through both email and SMS allowing them to track daily updates of their loan application.Q: Is my Data Safe with BankBazaar.com?
A: BankBazaar.com is India's premier financial marketplace and takes utmost care in ensuring that all data is sent in electronic form with high level of encryption. BankBazaar.com does not share data with any third party other than the financial institution.Q: Is BankBazaar.com Personal Loan Tool Free?
A: Yes BankBazaar.com personal loan calculator tool is totally free and the portal does not charge any fee for its services from users.
Personal Loan for IIM Students
Did you get admission for a top-notch academic course at the Indian Institute of Management (IIM)? In case you are wondering how to pay the various fees for your world-class course, you need not fret. You can apply for a premium education loan offered by leading financial institutions in India. No matter which institute of IIM you have secured a seat in, you can apply for a personal loan from any of the listed financial institutions. The website of IIM has a certain list that gives the names of different institutions that provide loans for management courses. The loan quantum ranges from Rs.20 lakh to Rs.30 lakh. You do not need any collateral to apply for this loan. Click here to know more about these loans.
Personal Loans that Give You Tax Benefits
A personal loan is typically taken for emergencies or for other types of personal requirements. However, these personal loans do not provide tax benefits, deductions, or exemptions. Loans like home loans come with tax benefits. However, you could enjoy get tax benefits for a personal loan application by trying out some interesting financial strategies. If you use a personal loan to buy a house, then you will be able to claim tax deductions that are generally offered for a home loan. You can claim tax benefits under Section 24 or Section 80C by proving that you utilised the loan specifically for purchasing your house. Click here to find out more about how you can claim tax exemptions or benefits with personal loans.
Microfinance is described as microcredit or micro-loans. It is provided by banks or financial institutions to those who are economically underprivileged in the society. This form of financing is offered commonly to small and middle-sized enterprises. The main purpose of microfinance is to help out those who live in remote areas where they do not have proper access to mainstream banking services. Microfinance includes offering loans, savings deposits, credit, insurance, etc. There are several microfinance institutions in the country that are exclusively dedicated to building and providing microfinance. Microfinance can be taken by poor people who are unemployed, who deal in contract labour, and who live below poverty line (BPL). Learn everything about microfinance by clicking here.
Should I Take A Personal Loan To Pay Off My Credit Card Dues?
Have you been struggling to pay your credit card bills? You can find a solution to this problem that recurs on a monthly basis by applying for a personal loan. Credit card interest rates are very high and hence, you will end up spending a lot on your card payments. You can stop your credit card transactions and start focussing on clearing your previous bills. This can be done with a personal loan that comes with a low interest rate. You could go for debt consolidation with the help of balance transfer options. You may also choose to transform your credit card dues into EMIs. Click here to learn more ways to clear your dues with a personal loan.
Struck by a financial emergency and are looking for a Personal Loan? You can borrow a minimum of Rs. 10,000 and a maximum of Rs. 30 Lakhs, depending on your bank and eligibility. The loan tenure ranges between 12 to 60 months. If you are a salaried applicant, you need to be at least 21 years of age and no older than 58 years at loan maturity, with at least 1 year of service with the current employer and earning at least Rs. 17,500 per month. Self-employed individuals have to be at least 24 years of age and no older than 65 years at loan maturity, with at least 3 years of experience in your current profession, earning at least Rs. 17,500 per month. Keep these documents handy: Proof of Identity (Passport, Pan Card, and Voter ID), Proof of Residence (Passport or utility bills), Bank Statement for the last 6 months, Salary Slip for the last 3 months and Form 16 or proof of Income Tax Returns. If you're self-employed, you will need: Proof of IT Returns for the last 3 years and Audited balance/income sheet from the last 3 years. Now that you're a Personal Loan Ninja, compare multiple offers and apply!
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