Multiple banks. Different interest rates. Call it a "conflict of interest".
  • Signature Loans is Rated as "Great!" by 98245 Users

    Fees & Charges

    Promised Interest Rate

    Customer Service

    Responsiveness

    Personal Loan BYTES FROM OUR KITCHEN

    Signature Loans

    A signature loan is a kind of personal loan or unsecured loan that is provided by lenders when the loan applicant gives his or her signature as an assurance that they will repay the loan without fail within a specific timeline. This signature of the loan applicant will serve as the sole collateral for the loan application. The borrower does not have to give any other form of security or collateral in order to procure this loan. The advantage of a signature loan is that one can apply for it for any reason. As a borrower, you will not have to specify the reason for taking a loan to your lender.

    A signature loan is sometimes called as a character loan or a good faith loan as it is offered solely on the basis of the borrower’s reliability and creditworthiness. The characteristics of signature loans are very similar to that of personal loans. You can get a signature loan from a bank or a non-banking financial corporation (NBFC) only if you prove to them that you will be able to repay the loan.

    Some lenders allow even e-signatures or digital signatures or online signatures for signature loan approvals. This is more common in countries like the United States. In India, signature loans are not too commonly available. You might find lenders after doing proper research.

    How does a Lender Approve a Signature Loan Application?

    When you approach a lender for a signature loan, the lender will check and evaluate your income, your employment status, your credit history, your bankruptcy history, and your credit score provided by CIBIL. If you have a high credit score, an impressive credit history, and a good monthly income, then a lender will accept your signature loan application.

    There are some lenders who may ask the borrower to make arrangements for a co-signer. This co-signer will be required to sign a promissory note and nothing else. In case the actual borrower misses any installment deadline or goes on to default the loan payment, then the lender will get in touch with the co-signer, where the co-signer will also be held responsible.

    Features of Signature Loans

    • You do not have to furnish any collateral or asset while applying for a signature loan. You only need to give your signature while applying for this loan. The signature is used as a promise from you.
    • The interest rates for signature loans are typically high as you do not have to submit any collateral. Signature loans are more expensive than secured loans as they are not secured by any collateral. Hence, lenders face more risk with signature loans. Therefore, lenders tend to charge higher interest rates for signature loans.
    • One should have high creditworthiness in order to apply for a signature loan.
    • You should not have missed any loan installments or declared bankruptcy at least for 2 years before you apply for a signature loan.
    • If you are a credit card user, you will need to keep a low due amount in your card so that your chances of getting the signature loan is higher.
    • The lender will check your debt-to-income ratio to decide if your signature loan application should be approved or not. With your income, you should be able to pay your existing debts and a new signature loan. If this is proven, then your lender will accept your application.
    • Signature loans are very helpful during financial emergencies as the application process is very short. If you meet the required eligibility criteria, your loan application will get approved in a jiffy. Even the documentation process is minimal and simple.
    • Signature loans typically follow fixed interest rates, wherein your interest rate will remain fixed throughout your loan tenure. This is very beneficial as your loan expenses will remain the same and you can plan your overall monthly expenses accurately.
    • The financing provided by signature loans will differ. Most often, signature loans offer up to 100% financing to take care of your financial requirements.
    • The processing fee for signature loans is similar to the processing fee for personal loans. In India, it typically ranges from 2% to 3% of the loan amount.

    Eligibility Criteria for Signature Loans

    • The age criteria can differ from lender to lender. Typically, the minimum age to apply for a signature loan is 21 years and the maximum age is 55 years. For some lenders, the maximum age requirement is 60 years. You can check with your bank or NBFC before applying for the loan.
    • The income criterion can also change from bank to bank. Ideally, your monthly income should be at least Rs.20,000 while applying for a signature loan.
    • To get a signature loan, your credit score from CIBIL should be at least 750. Some lenders may also accept scores above 625. Do check with your bank before you apply.

    Documents Required for Signature Loans

    To apply for a signature loan in India, you should mandatorily submit certain documents for providing proof.

    • Proof of address
    • Proof of identity and age
    • Proof of income
    • Aadhaar
    • PAN card
    • Latest bank statements
    • Latest salary slips
    • Passport-sized photographs

    Fees and Charges Associated with Signature Loans

    When you take a signature loan, you will need to pay certain fees and charges for enjoying the benefits of the loan. The common fees include processing fee, late payment fee, special service request fee, cheque bounce fee, etc.

    Uses of Taking Signature Loans

    You can apply for a signature loan and use it for numerous purposes and some of them include:

    • For wedding expenses
    • For your or your child’s higher education expenses
    • For debt consolidation
    • For home renovation or redecoration
    • For vacation expenses
    • For paying credit card dues
    • For purchasing a two-wheeler, etc.

    Consequences of not Paying Signature Loans on Time

    • Charges: One of the most important terms and conditions of a signature loan is that you have to pay the loan entirely before the payment deadline expires. In case you fail to pay any equated monthly installment (EMI) for your loan or in case you struggle to repay the full loan, you will be asked to pay certain penalty fees or charges. Whether you make a partial payment, a late payment or a non-payment, you will have to pay certain charges that will be quoted by your lender. You can also check your loan policy document before you make the payment to avoid payment of unnecessary fees.
    • Impact on credit score: Apart from having to pay several charges, even your credit score will get affected negatively when you fail to pay your signature loan on time. Your credit score will be given by credit bureaus. In India, CIBIL prepares a credit report according to your debt habits and credit payment behaviour. This credit report information will give you your credit score. To avoid any negative effects on your credit score, you should make certain that you pay your signature loan installments on time.

    You can apply for signature loans offline or online. To apply offline, you can visit the branch of any bank or NBFC and meet a branch representative for assistance. You can submit the required documents in person and complete your loan application. To apply online, you can visit official websites of lenders or third-party lenders. Do compare fees and interest rates associated with each of the loan options. You can make comparisons and then pick the most suitable one.

    Since there is no need for submitting a collateral and since the documentation process is so simple, a signature loan is a great idea for multiple financial needs. Moreover, it is provided by a lender if you show yourself as a financially responsible and trustworthy borrower.

    Personal Loan 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? 3
      , 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? 3
      , 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? 2
      , 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? 2
      , 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? 2
      , 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? 2
      , 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? 2
      , 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? 2
      , 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? 2
      , 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? 2
      , 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? 2
      , 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? 3
      , 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? 2
      , 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? 2
      , 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? 3
      , 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? 2
      , chennai
      Reviewed on Jan 18, 2019
    Common Loader Icon

    Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

    reTH65gcmBgCJ7k
    This Page is BLOCKED as it is using Iframes.