For a hassle free loan process, ensure you are up to the mark on each of these parameters
Your monthly income will be the critical factor determining your loan amount and the interest rate.
The age criteria may differ from lender to lender, but those aged between 21 and 58 years are more likely to get a loan.
Your ability to pay back a loan is judged to some extent from your monthly expense, making it an important factor for evaluation.
When it comes to Loans, it’s not more the merrier. Your chances improve if you don’t have another loan to your name.
A good credit history is like good health. Maintaining one does not hurt. And it only helps when you want a loan.
Your loan amount eligibility is likely to jump significantly, if you are employed at your current organisation for more than 2 years
A good understanding with the bank goes a long way in negotiating better terms for a loan. Being a known and trusted customer helps.
Working at a well-regarded company adds to your reputation and also your loan eligibility. A Fortune 500 Company on your visiting card helps!
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A personal loan is a non-collateral (unsecured) loan that provides funds to salaried as well as self-employed individuals. A borrower can take a personal loan for any unforeseen financial need. In today's time when everything is digitizing, getting a personal loan is quicker through online process. Whether you are salaried or self-employed, one can easily avail this loan and get the finances instantly to meet their varied personal needs. When it comes to availing this loan, you can easily avail it either online or by visiting the branch near you. However, one of the biggest advantages associated with this unsecured loan is the fact that it does not require any collateral/security. You can get the loan amount instantly at attractive interest rates and flexible tenures. Not only this, in fact a one-time processing fee is also being charged by the banks while offering you this credit facility.
A personal loan is a great way to meet up the financial needs in a temporary financial crisis. One of the main reasons why people opt for a personal loan is that it is a non- collateral loan and there are no conditions when it comes to usage of the fund. Yes, the banks/NBFc allows you to avail a personal loan without even asking the actual reason of the same. You can apply for it anytime, from anywhere so as to get the funds instantly. This credit facility comes handy for all your personal needs be it a wedding, travelling, home renovation, medical emergency, credit card debt and so on.
The process of applying for this type of loan can be understood in 3 simple steps:
In India, almost all private and public sector banks offer personal loan at attractive rates with the flexible loan amount and tenure period. Here are some of the top banks in India that provide personal loans:
HDFC Bank has special rates and offers for all the HDFC bank account holders. The bank offers instant loan approval at competitive interest rates ranging from 10.99% to 19.50% per annum depending upon the profile of the borrower and the loan repayment capacity. An individual having minimum monthly income of ₹ 12,000/- within the age of 21 years to 60 year acn easily avail this credit facility.
ICICI Bank personal loan is a multi-purpose loan with no collateral or security to salaried as well as self-employed individuals. A salaried person can take a loan up to ₹ 20 lakhs whereas a self-employed person can avail the maximum loan of ₹ 30-40 lakhs. Also, the interest rate on the loan starts from as low as 11% and goes up to 18.49% per annum with a flexible tenure facility of up to 5 years.
Bajaj Finserv provides a personal loan to all the salaried applicants of India at attractive interest rates starting from as low as 11.99%-16% per annum The maximum loan tenure and maximum funding from the noted NBFC are 1-5 years and 25 lakhs, respectively.
When it comes to taking a personal loan, Axis Bank is one of the best options available in the financial market of India. Axis Bank loan offers the maximum loan up to ₹ 15 lakhs with interest rates ranging between 15.50%-24.00% per annum. The bank provides flexible loan tenure of 12 months to 60 months.
State Bank of India (SBI) offers a personal loan without any security. The bank offers interest rates taht range between 11.90%-16.55% per annum (unsecured), 10.55%-15.65% per annum (secured). The maximum loan amount that can be availed is ₹ 15 lakhs with the flexible tenure of up to 5 year.
Kotak Mahindra Bank personal loan is available for all Indian residents who are employees of a reputed company and are between the age of 21 years and 58 years On a personal loan, the bank has attractive interest rates with minimal documentation and flexible repayment options. The maximum loan amount is ₹ 15 lakhs with the interest rates ranging from 11% to 18.85% per annum.
The documentation process for a personal loan is easy independent of the bank. Since a personal loan is a non-collateral loan (unsecured loan), the documents required are less as compared to other loans. The general list of documents that a borrower must have if he/she is applying for a loan are as follows:
Different banks different eligibility criteria when it comes to offering a personal loan. In general, the eligibility is:
Eligibility for Salaried Individuals
Eligibility for Self-employed Individuals
To apply for a personal loan, you need to fill an application form first. If you are applying online, you can fill this form by visiting the bank’s site or you can also visit the branch near you. In this application form, you are required to fill your personal as well as professional details such as:
Not even salaried, in fact, a personal loan can also be availed by a self-employed. There are many lenders, i.e. banks/NBFCs that offer this unsecured loan to self-employed applicants as well. But, for a self-employed, the eligibility criteria and the documents required vary as compared to a salaried individual. So, the self-employed applicants need to meet that criteria in order to become eligible for a personal loan.
The personal loan interest rates vary from bank to bank depending on the eligibility criteria. The interest rates on this loan for self-employed and for salaried is different in some of the banks. Here are the personal loan interest rates of the top 5 banks in India:
|Lenders||Interest Rate (p.a)||Loan Amount (in ₹ )||Tenure (in years)||EMI per lac(in ₹ )||Processing Fees||Prepayment Charges|
|HDFC Bank||10.99%-19.50%||For Salaried-Up to ₹ 25 lakhs. For Self-employed- Up to ₹ 15 lakhs||5||2,419-2,649||Up to 2.50% of the loan amount or Minimum of ₹ 1,000/- & Maximum of ₹ 25000/- for Salaried Customers||Up to 4% of the principal outstanding + service tax|
|ICICI Bank||11%-18.49%||For Salaried- Up to ₹ 20 lakhs For Self-employed- Up to ₹ 30 lakhs||5||2,199||Up to 2.25% of loan amount + service tax||5% of principal outstanding + service tax|
|Bajaj Finserv||11.99%-16%||Upto 25 lakhs (only for salaried)||5||2,326||2.25% to 3% of the loan amount||4% on principal outstanding + applicable taxes|
|SBI||11.90%-16.55% per annum (unsecured), 10.55%-15.65% per annum (secured)||Up to ₹ 15 lakhs||5||2,247-2,461||1% of the Loan Amount + applicable Service Tax||3% of the principal outstanding + service tax|
|Kotak Mahindra Bank||11%-18.45%||Up to ₹ 15 lakhs||5||2,199-2,877||Up to 2% of the loan amount+ service tax||5% of principal outstanding + service tax|
|Axis Bank||15.50%-24.00%||Up to ₹ 15 lakhs||5||2,419||1.50% to 2.00% + service tax as applicable||NIL|
Personal Loan EMI calculator is the tool that is used to calculate the monthly installments of the loan amount according to the tenure and rate of interest offered. Since the calculator is available online, a borrower can easily calculate the EMIs in advance. In general, the rate of interest offered on personal type of loan ranges from 11% to 24% per annum. For example, a borrower takes a loan of ₹15,00,000 for the tenure of 5 years and the interest rate that he/she gets is 12.50% per annum. Now the EMIs he/she will have to pay back to the bank can be seen in the below table:
Table for EMI per month, Total Interest Outgo and Total Amount
|Amount (in ₹)||Interest Rate (p.a)||Loan Tenure (in Years)||EMI (in ₹)||Total Interest Outgo (in ₹)||Total Amount (Principal + Interest) (in ₹)|
|Year||Principal (in ₹)||Interest (in ₹)||Balance Amount (in ₹)|
The borrowers who have invested in shares, mutual funds or similar instruments, can take a personal loan against them. The rate of interest offered on personal loan against Mutual Funds or alike instruments is lower as compared to the loan rates on an unsecured loan. In general, the loan against mutual funds interest rates ranges from 10.20% to 18% per annum.
There are certain factors that are kept in mind while availing the personal loan to the borrower. Some of the common factors that affect personal loan eligibility are:
Q. What is the minimum loan limit for a Personal Loan?
A. Generally, the minimum loan amount that is offered for a personal loan is ₹50,000/-.
Q. What is the maximum loan limit for a Personal Loan?
A. In general, the maximum loan amount that a borrower can take is ₹40 lakhs.
Q. Is there any security required to take a personal loan?
A. Well,, there is no security required for a personal loan as it is an unsecured loan.
Q. Does CIBIL score matters when it comes to a Personal Loan?
A. Yes, CIBIL score and credit history are important when it comes to PL. Banks often prefer the CIBIL score of 700-750 out of 900.
Q. What is the disbursal time in case of a Personal Loan?
A. If all the documents are ready, a borrower can get a loan within 72 hours to 3-4 working days.