Multiple banks. Different interest rates. Call it a "conflict of interest".
  • Personal Loan BYTES FROM OUR KITCHEN

    6 Month Loans

    No matter how thorough your plan are, there is always the unexpected which stares you in the face. During times of emergencies and untoward incidents, there is only so much you can do to meet your financial needs. And there are limited resources you can count on in terms of meeting your requirements. Your salary and savings might come in handy but may not suffice to deal with unplanned expenses which can crop up at any time. During times of cash shortage, payday loans can come to your rescue by virtue of their easy access and availability with no stringent and tedious documentation and therefore, ease your financial burden. For people who are in urgent need of cash in a short span of time such as six months, payday loans are the best way out. Widely popular in the United States and United KIngdom, payday loans are aimed at catering to short term cash requirements of consumers. Consumers need to be aware of how much the loans will cost them. After analyzing the costs, consumers will be able to decide if they can afford payday loans.

    Eligibility criteria

    Payday loans vary widely between different countries and, even between different states in the USA. Any permanent resident of the United States with a salaried income is eligible for payday loans which meet your emergency cash requirements. Consumers should have a permanent bank account in addition to six months of work experience. Consumers need to have a steady monthly income.

    Features of short term finance

    Short term finance is defined as banks offering unsecured loans on a short term basis which has to be repaid at the consumer’s payday. US, UK and Canada among other countries provide instant payday loans in that consumers can receive cash in their account in under thirty minutes following their loan application. With the help of payday loans, consumers can apply for loans for short durations. The loan is offered to the consumer till his pay day, i.e, consumers are expected to pay loans from their monthly remunerations. Payday loans are usually offered for financial requirements that can be repaid from customers’ monthly salary.

    To avail of such loans, consumers should have a permanent bank account in addition to six months of work experience. One of the biggest advantages of payday loans is that they are sanctioned quickly and require less paperwork and documentation compared to other Loan Term Loans. If the eligibility criteria is met, payday loans are sanctioned without much hassles and consumers can see cash in their accounts in no time. Interest for payday loans are higher than other loans. In developed nations such as the US and UK, consumers pay 15 USD for every 100 USD. Consumers can also apply for payday loans online. You have to zero in on the loan provider, following which, you can apply online. An e-application format reaches the bank, following which you may get the sanction. There are several online portals which help you to get the lowest interest rates for your loan through comparative analysis.

    Short term loans and bad credit history

    An individual’s credit history is not the determining factor for banks to provide pay loans in that these loans are ideal for people who do not have a robust credit record. Payday loans differ from long term loans in that the former is offered to consumers regardless of his or her credit record. Banks usually offer payday loans to consumers with a steady income.

    Short term finance in India

    Payday loans are not provided in India. However, informal lending vis-a-vis private money lenders or non-regulated financial lenders do offer cash at high rates of interest on a short term basis. Millions of Indians continue to turn to private money lenders to meet their cash requirements, one of the reasons why India is considered under-banked compared to several developing and developed nations of the world. Nevertheless, banks in the country are increasingly coming up with various schemes and policies for greater penetration and reach. However, financial experts are not too optimistic about the payday loans in India. Payday loans will not find traction in India since there are not too many banks which offer loans to the self-employed fearing lack of stable income and therefore, defaults. In a country where banks are more forthcoming to offer loans to salaried individuals backed by securities, payday loans are not in the horizon in the near future, according to experts. Processing of loans in the country often involves a tedious process in that banks offering short term finance check the consumers’ salary slips, collateral and residence proof among many others which are make it difficult to implement the concept of payday loans in India and instant payday loans at that.

    Finally, many experts rue that high interest rates offered for payday loans will not be suitable for the average Indian salaried individual. There is also a view that people from low income backgrounds or households are the target groups of instant payday loans, which can prove to be detrimental in the Indian scenario in terms of the overall growth of the country.

    Personal loans

    In India, consumers can avail of personal loans which have several advantages such as consumers don’t need a guarantor and can use it for their own personal financial requirements. Banks usually review the income or earnings of individuals before providing the loan. Most banks and financial institutions have a set criteria in terms of age in that for receiving a personal loan, a salaried individual must be aged between 21 and 60 years while for self-employed it is from 25 to 65 years. Most banks offer personal loans ranging from one to five years. IDBI Bank offers personal loans for four years (salaried individuals) and five years (doctors and dentists).

    • Examples

      For instance, IDBI Bank offers personal loans from a minimum of Rs. 50,000 to Rs. 10 lakh. The State Bank of India, offers a minimum loan amount of Rs. 24,000 while HDFC at Rs. 25,000. Personal loans offered by the ICICI range from a minimum of Rs. 20,000 to Rs. 15 lakh. Citibank offers the loans for up to Rs.30,00,000. The amount is credited to the customers’ bank account in 48 hours after approval of the loan. Citibank offers fixed interest rate in addition to the option of part pre-payment. UTI bank offers personal loans for both salaried and self-employed individuals in addition to special loans for chartered accountants, doctors and architects among many others. The loan amount offered by UTI bank ranges from Rs. 50,000 to Rs. 20 lakhs. with a repayment tenure ranging from 12 to 60 months.

    • Benefits

      Some of the benefits of personal loans include a free personal accident insurance cover. Most banks offer personal loans following minimal documentation. What’s more, some banks give savings bank account facility to customers availing personal loans. Personal loans are also provided against existing repayment record of auto or home loans in addition to life insurance policies or receipts of premiums.

      To attract more customers some banks offer additional benefits to those seeking personal loans from them. For example, the HDFC bank personal loan comes with a unique Personal Accident Cover insurance, this ensures that that your family is taken care of, at a nominal premium.The UTI bank also provides a free personal accident insurance cover and it gives zero balance SB account facility to its personal loan customers. The personal loan market in India is growing partly due to more employment and income generation across the country. According to experts, If customers have a robust credit history and track record of timely repayments for the past one year or so, banks will offer personal loans with added benefits at competitive interest rates.

    • Interest rates for personal loans

      The downside to personal loans is that they come with high interest rates from 16% to 22%. Several banks such as Citibank, HDFC Bank, HSBC, ABN Amro, ICICI Bank, Kotak Mahindra Bank and State Bank of India among others offer personal loans. The interest rate for personal loans are either calculated on a monthly basis or annual basis. According to experts, consumers would do well to opt for a monthly reducing rate plan. Several banks offer flexible interest rates. For instance, SBI offers an interest rate of 16% p.a for personal loans. However, if the customer opts for the flexible interest rate, they will have to pay an interest rate of 23% p.a. Some banks join hands with corporates to offer a preferential rate. Also, if customers have a salary account with the bank they are Applying for Personal Loans, they will get lower rates of interest.

    • Repayment tenure

      Customers can repay the loan through Equated Monthly Instalments or EMIs. Customers have to submit post-dated cheques to repay the loan. Customers can also look for banks with have the option of pre-payment or part pre-payment facility. Several banks impose pre-payment penalties as well. For instance, if you (pre) pay over 75% of the principal in 12 months, you will be charged 1% as penalty by UTI bank while ICICI Bank allows repayment after around six months with a penalty. ICICI bank does not allow any part prepayment. Also, HDFC bank allows prepayment after six months and has a penalty rate of 4%.

    • Processing fees

      Customers should also enquire about documentation and processing fees. For instance, SBI charges 1% processing fee while ICICI Bank charges 2% processing fee.

    • Switching facility

      Switching to another bank may not prove to be as difficult you would have imagined provided you are availing of a loan at a high rate of interest. Several banks may be open to take on the loan depending on the rate of interest. For instance, if have opted for a loan with Citibank and considering switching to IDBI,

      if the latter approves your application, they will pay the loan amount to Citibank including the pre-payment fees. You as the customer will then have to repay the loan to IDBI.

    6 Month Loans Reviews

    • Bank Bazaar Personal Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      The helpline number was not easily approachable whenever I call the bank bazaar customer service, it does not connect with the representative. I have been using it for 6months. Earlier I took my credit, the process was simple. The mobile app is convenient to check the credit score and have no issues.
      Was this review helpful? 2
      , hyderabad
      Reviewed on Jan 18, 2019
    • HDFC Bank Personal Loan
      "Better"
      0.5 4.5/5 "Excellent!"
      There was delay in the loan process and HDFC have taken around one month. The rate of interest and charges are little bit high compared to others. I have submitted the documents online and also to the executive. I can do pre closure with extra charges and part payment can be done after one year. The loan duration is 2 years.
      Was this review helpful? 2
      , hyderabad
      Reviewed on Jan 18, 2019
    • ICICI Bank Personal Loan
      "Its Good"
      0.5 4.0/5 "Great!"
      I approached ICICI personal loan through online channel, ICICI taken care and disbursed the amount within two to three weeks of time, But I felt interest rate is good in Tata capital as compared to ICICI. But still I recommend ICICI bank its good.
      Was this review helpful? 1
      , bangalore
      Reviewed on Jan 18, 2019
    • Axis Bank Personal Loan
      "Very Good Service"
      0.5 5.0/5 "Blown Away!"
      I had taken this loan some time back and i had foreclosed this loan a long time back. The overall experience with them has been quite good where the interest rate with them has been nominal when compared with the market rate and there has not been any foreclosure charges with them.
      Was this review helpful? 1
      , bangalore
      Reviewed on Jan 18, 2019
    • HDFC Bank Personal Loan
      "Very Good Service"
      0.5 5.0/5 "Blown Away!"
      It has been quite a good experience i had with this loan and the loan amount which they had provided has been sufficient as well. The interest rate which they where offering has been nominal with the market rate, and there is some pre closure charges with them and there has also been some processing fee with them.
      Was this review helpful? 1
      , bangalore
      Reviewed on Jan 18, 2019
    • Bank Bazaar Personal Loan
      "Quick Wind for the financial products"
      0.5 5.0/5 "Blown Away!"
      I never seen such kind of support any where like Bank Bazaar, whenever I update any request I get reply through msg or mail. Its a right path or helping source for the people to take the banking products on the time schedule. The customer support is very nice and helpful.
      Was this review helpful? 1
      , bangalore
      Reviewed on Jan 18, 2019
    • Tata capital Personal Loan
      "Good Professional Service"
      0.5 5.0/5 "Blown Away!"
      When I browsed the online channel, Tata capital is the one having less interest with zero processing fee. That is the reason I took this personal loan from them. The loan process was quite good, the processing time is less. The interaction between me and executive was professional.
      Was this review helpful? 1
      , bangalore
      Reviewed on Jan 18, 2019
    • Bank Bazaar Personal Loan
      "Better"
      0.5 4.0/5 "Great!"
      Although I am not a frequent user of the site, Whenever I need any loans or card that time have visit their website. The website is fine enough. The customer service and response was better. Am using it approx for 6 months. Once have checked the credit score and loan process was simple.
      Was this review helpful? 1
      , bangalore
      Reviewed on Jan 18, 2019
    • Early Salary Personal Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I took my personal loan from Early Salary through online portal. Everything was fine but executive said will come and collect the documents but nobody turned up . They said if I have refer my friend and will get discount but have not got any discounts. The rate of interest and charges are nominal.
      Was this review helpful? 1
      , bangalore
      Reviewed on Jan 18, 2019
    • HSBC Bank Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have been holding my personal loan with HSBC bank, ,they have given me sufficient loan amount was sufficient for me, and the rate of interest is very nominal compare to other in the market . There are no hidden charges they have charged me apart from EMI.
      Was this review helpful? 1
      , mumbai
      Reviewed on Jan 18, 2019
    • Kotak Personal Loan
      "Average"
      0.5 1.0/5 "Really Bad"
      I have taken a personal loan from Kotak Mahindra Bank and it was closed in the year of 2018. My experience is not good, have not received NOC on time. They need to improve the customer service. The rate of interest is more compared to others. The documentation process was easy but foreclosure is very difficult.
      Was this review helpful? 1
      , pune
      Reviewed on Jan 18, 2019
    • Bank Bazaar Personal Loan
      "Good"
      0.5 5.0/5 "Blown Away!"
      The customer service and response was good. I have been using bankbazaar.com for the first time and it was recommended by friend. The process was simple and faster. The mobile application is convenient and easy to compare with the banks. I have checked the credit score.
      Was this review helpful? 1
      , pune
      Reviewed on Jan 18, 2019
    • Tata capital Personal Loan
      "Good"
      0.5 5.0/5 "Blown Away!"
      I have applied my personal loan in Tata Capital through online. The rate of interest and charges are nominal. I have received 2.7L excluding processing fee. The loan duration is 5 years. The documents are collected by executive as well as submitted online. They took max 8 to 9 days to deliver the loan.
      Was this review helpful? 1
      , pune
      Reviewed on Jan 18, 2019
    • Bank Bazaar Personal Loan
      "Its Convenient"
      0.5 5.0/5 "Blown Away!"
      Its a good experience I had with Bank Bazaar, the entire loan process was smooth I don't want to anywhere. I got the door step service from the bank, the customer support guided well and helped me out through the process. The information is useful to compare the products.
      Was this review helpful? 1
      , bangalore
      Reviewed on Jan 18, 2019
    • Tata capital Personal Loan
      "Good Experience with Tata Capital"
      0.5 5.0/5 "Blown Away!"
      I got best deal from Tata Capital, the customer support is proactive to process the loan application. But the loan disbursement got delay it should be faster. I got the better interest rate and its zero processing fee from the Tata Capital disbursement.
      Was this review helpful? 1
      , bangalore
      Reviewed on Jan 18, 2019
    • HDFC Bank Personal Loan
      "Interest rate should be standard"
      0.5 4.0/5 "Great!"
      I am not happy with HDFC, comparatively the rates are bit high. Its okay for me, the processing fee is also higher in HDFC, They told some interest but I got some other interest rate. I want to discuss with them and after august it will be one year then I close it.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Jan 18, 2019
    • ICICI Bank Personal Loan
      "Good Experience"
      0.5 5.0/5 "Blown Away!"
      That was better experience, interms of rate of interest. ICICI bank agents are proactive they came to my place and collected the documents and done the process. Then I didn't interact with them. I got the better deal from ICICI on the personal loan.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Jan 18, 2019
    • Bank Bazaar Personal Loan
      "Good customer support and satisfactory"
      0.5 5.0/5 "Blown Away!"
      The quick on their work, whatever I approached they helped me out. I could check all the information based on the requirement. Its a good customer support I can view all the banking options. I am getting promotional mails through the link I have raised the request for the credit card.
      Was this review helpful? 2
      , hyderabad
      Reviewed on Jan 18, 2019
    • Citibank Personal Loan
      "Rate of interest should be reduced"
      0.5 4.0/5 "Great!"
      Citi bank rate of interest is too high for the amount of Rs. 3 lakhs, they have taken some processing fee from the disbursement but it was quite nominal. The documentation process was smooth, on the expected time I got the loan amount from the bank.
      Was this review helpful? 2
      , hyderabad
      Reviewed on Jan 18, 2019
    • Early Salary Personal Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      The rate of interest and charges are nominal. I like the process which was much easier to proceed the personal loan. They did not required any documents and executive came for verification then loan amount was processed. I took 10K and it was paid through online.
      Was this review helpful? 1
      , chennai
      Reviewed on Jan 18, 2019
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