- Want a personal loan but don’t know how you should go about it?
- No worry, read this post that tells you the steps in detail
The quick approval, fast disbursal and easy documentation make personal loans one of the best credit options for people these days. With this loan, you can meet purposes like marriage, travel, medical emergencies, and much more. But it’s the time of taking a personal loan that matters the most. It’s always better to have some time to plan your loan so that you can get the best deal. But in an emergency, you may not be in the space to choose the best deal. All your focus could be on taking the loan amount only, and that is understandable. However, if you remain calm, you could grab the best personal loan deal even then.
We are here to tell you the best way to get a personal loan at all times. Read this post to know the same.
Firstly, What is the Best Personal Loan Deal You Should Look to Get?
The best personal loan deal will have attractive interest rates, minimum processing fees, lower prepayment charges, etc. When all these become the ingredients of your loan, not only do you meet your needs but also reduce your cost. Let’s check out how you should approach a personal loan at all times.
Compare Personal Loan Interest Rates Online
It does not take much time to compare personal loan interest rates online. You can visit the website of Wishfin, a loan comparison portal where you can check the interest rates of different lenders. Make a list of lenders which are offering the lowest rates. So, look to apply for a personal loan at any of these lenders.
So How Much Interest Rates Do Lenders Charge?
You can see below the interest rate range of different lenders. Check the same and choose the lender you think will serve your purpose better.
|Lenders||Interest rates (In Per Annum)|
|HDFC Bank||10.75% - 14.50%|
|ICICI Bank||10.75% - 19.00%|
|State Bank of India (SBI)||10.75% - 19.00%|
|Bajaj Finserv||11.00% Onwards|
|Kotak Mahindra Bank||10.99% Onwards|
|Axis Bank||10.49% - 21.00%|
|YES BANK||11.05% - 20.25%|
|IDFC First Bank||10.50% - 25%|
Personal Loan Interest Rates are Based on Customer Profiles Too
Personal Loan Interest Rates are based much on the profile of customers, like the loan amount they apply for, the credit score they have, their monthly income, and the company where they work, etc. Generally, the interest rate remains lower for people having a good credit score of 750 and beyond. The rate is lower even when you are earning good and taking a higher loan amount.
For instance, HDFC offers an interest rate of 10.50% per annum to customers applying for a loan of INR 15 lakh and more. In case you are earning more than INR 50,000 a month and applying for INR 10 lakh and more, even then the bank will offer 10.50%.
Use the Personal Loan EMI Calculator to Assess the Cost
Checking the personal loan interest rate online gives you just a glimpse. It does not give you a complete picture of how the loan will pan out in the end. But you can gauge the effect of the loan using the Personal Loan EMI Calculator. Just enter the loan amount, interest rate and tenure in the calculator and see the EMI and overall interest outgo payable.
Keep experimenting with figures to find the best repayment estimate for you. For a realistic estimate, you need to know some essentials about a personal loan. You can get this loan for a maximum of 5 years. The maximum loan amount can be upto INR 50 lakh based on your eligibility. So, calculate accordingly.
Go for Low or No Processing Fee
A personal loan that comes with a low processing fee ensures greater loan disbursal. The concept of this fee is different in a personal loan compared to most other loans. Lenders deduct the processing fee from the personal loan amount you apply for. The amount left after deduction will be disbursed in your account. But the interest rate will be levied on the applied loan amount. Now, if the processing fee remains low, you will have higher disbursal and vice versa. On some occasions like the festive season, the processing fee can even be ZERO. Nonetheless, here are the processing fees of various lenders for you to check and compare.
|HDFC Bank||NIL-2.50% of the loan amount|
|ICICI Bank||INR 1,999-2.25% of the loan amount|
|SBI||NIL-1% of the loan amount|
|Kotak Mahindra Bank||0.99-2.25% of the loan amount|
|YES BANK||INR 9,999|
|Bajaj Finserv||Upto 3% of the loan amount|
|Axis Bank||1.50-2% of the loan amount|
|Standard Chartered Bank||INR 1,000|
Note – The processing fee will also include the applicable Goods and Services Tax (GST).
Check Personal Loan Prepayment Charges of Lenders Too
There’s no denying the fat bonus you could receive through your course of employment. You can use it well to prepay a personal loan and reduce your interest obligations. Prepayment means paying off the outstanding loan balance before the original tenure. However, the lender would allow this only after 6-12 months of EMI payments. Check here the prepayment charges of different lenders.
|HDFC Bank||NIL-Upto 4% of the outstanding loan balance|
|ICICI Bank||5% of the outstanding loan balance|
|SBI||NIL-1% of the loan amount|
|IDFC First Bank||Upto 5% of the outstanding loan balance|
|Standard Chartered Bank||1-5% of the outstanding loan balance|
Hunt for Attractive Pre-approved Personal Loan Loan Offers
Look for a pre-approved personal loan based on your existing relationship with the lender. If you have a salary/savings account or a credit card relationship with the lender for relatively long, you could get such a loan at attractive interest rates. The best part about this loan is no documentation as the lender would have your documents with itself. Such offers are subject to how good your relationship has been with the lender.
You will get to know about such offers on your email address or your net banking account. Lenders push such offers even via SMS. All it requires is your consent and the loan will be in your account. Someone requiring funds immediately may find this option much more suitable.