A Personal loan is unsecured loan issued with any security or guarantees to salaried individuals with the following prominent features:
Who is eligible to apply for a Personal Loan?
All bona fide Citizens of India above the age of 23 years can apply for a Personal loan,
the maximum age till which the loan can be repaid is 60 years (or as the applicable
retirement age). Educational qualifications required are Graduation and above. The
applicant should be gainfully employed earning a regular income.
What is the amount issued as a Personal loan?
Loan amounts that can be appended as a Personal loan are from a minimum of ₹ 50k to
a maximum of ₹ 30 lakhs depending on the income of the applicant the current
obligations and the ability to repay the monthly instalment.
What is the tenure applied for a Personal loan?
A personal loan can be repaid via a flexible tenure is from 12 months to 60 months.
A suitable tenure is decided by the Lender taking into account the loan amount
granted and the income of the applicant.
What can you use your Personal loan for?
Apply for a Personal loan for all kinds of personal reasons, major usages include the following:
Outstanding payment in credit cards has the highest rate of interest it is prudent to transfer the debt to a personal loan and save expenses.
An illness or emergency arrives without asking, having enough to meet expenses will help you through this period of stress, and a personal loan is readily available when you need it most.
To pay for your child’s education, the school fees, ancillary charges make sure there are no stops to giving your child the best!
Get away from the mundane life apply for a personal loan for travel expenses or for a family holiday.
A family celebration can exhaust your finances, having the dream wedding or festivity a Personal loan is the way out to help you have the extra needed to make things go smoothly.
A personal loan can be used for renovating your home, buying the much needed gadgets or simply refurbishing to redecorate and give it a new look.
The Eligibility criteria required for a Personal Loan.
The Salary and Experience criterion
Personal loans are processed on basis of the net salary which should be a
minimum of 25K per month: the salary should be directly transferred by the
employer to the account. A minimum work experience of 1 year or more is
mandatory to apply for a personal loan.
The organisation presently employed with.
An employment with economic times listed company, Public sector, limited or
private limited company with a healthy turnover and good prospects is a
preferred customer: where as a loan seeker employed with a relatively new
organisation or a proprietorship firm may not receive a personal loan readily.
The Current Obligations and CIBIL Score
The CIBIL score of an individual establishes the capability to handle credit,
the repayment history and the total credit being used currently: the lender will
verify the same before approving the loan and finalizing the amount.
Personal loan Charges
Rate of Interest
The Rate of interest for a Personal loan ranges from 10.99% to 22.00%: charged
@ monthly reducing basis, which remains fixed for the entire tenure of the loan.
The calculation for the rate of interest applicable is calculated on the basis
of the following:
The loan amount required
The rate of interest charged for higher loan amount is the lowest. Applicants applying for a loan amount of ₹ 10 lakhs and above will be charged the lowest interest rate, whereas requirement for lesser loan amounts will be charged a higher rate.
The net salary credited
Applicants earning higher income are offered premium rates, for loan amounts, applicant earning lower salaries are charged higher rates of interest.
The company as featured in the company category list
Top listed companies are given special offers for rate of interest applicable: depending on individual policy Banks apply interest rates as per the company category in the approved list of companies.
Processing fees
The processing fee is a onetime file charge. It is levied as per the policy
of the lender from nil to 2.5% of the loan amount. The processing fee applicable is deducted from
the loan amount on approval of the request and disbursal of the loan. It is levied taking into
account the following:
The Loan amount granted
The processing fees being charged as a percentage of the loan amount discounts are offered to applicants for higher loan amounts. A standard charge is applied to loan amounts above ₹ 10 lakhs.
For employees of Premium organisations
Employees of companies featuring in preferred list of the Lender are charged minimal fees for processing of the loan request.
Applicants having an existing relationship
Existing customers of the Bank, holding a salary account, or any other credit line previously are entitled to get charged a lower fee for the processing of a Personal Loan.
Rate of Interest & Processing Fees Applicable from major bank
| Loan Provider |
Interest Rate |
Processing Fees |
Tenure |
Loan Amount |
 |
11.49% – 20% |
0.5%-2.5% of loan amount |
12-60 months |
50k-30 lakhs |
 |
11.49% – 20% |
1%-2.5% of loan amount |
12-60 months |
50k-30 lakhs |
 |
11.99% – 22% |
2% of loan amount |
12-60 months |
50k-20 lakhs |
 |
11.75%-20% |
0.25-1% of loan amount |
12-60 months |
1lakh-25 lakhs |
 |
11.99% – 22% |
2% of loan amount |
12-60 months |
50k-15 lakhs |
 |
10.75% – 18% |
0.5%-2.5% of loan amount |
12-60 months |
50k-30 lakhs |
 |
13% – 16% |
2% of loan amount |
12-60 months |
1lakh-25 lakhs |
 |
11.50% – 18% |
0.5%-2% of loan amount |
12-60 months |
50k-25 lakhs |
 |
11.50% – 18% |
0.5%-2.5% of loan amount |
12-60 months |
50k-30 lakhs |
 |
12.5% – 22% |
2% of loan amount |
12-60 months |
50k-20 lakhs |
 |
11.50% – 18% |
999/- 2% of loan amount |
12-60 months |
50k-20 lakhs |
 |
13.5% – 20% |
999/- 2% of loan amount |
12-60 months |
50k-20 lakhs |
 |
11.99% – 23% |
2% of loan amount |
12-60 months |
50k-20 lakhs |
What are the Pre closure and Part payment options for a Personal loan.
A pre closure or part payment is the facility to pay a part or the complete loan amount
before completion of the tenure. The policy of the lender may vary as to when and what
is the amount that can be paid towards the principle balance of the Loan.
Listed below are the Part payment and Pre closure charges as applied by major Banks
| Loan Provider |
Pre Closure After Paying |
Part Payment |
Charges Applicable on Principal Outstanding |
|
12 EMI |
Allowed |
2% - 4% |
|
6 EMI |
Not Allowed |
5% |
|
12 EMI |
25% Yearly |
3% |
|
12 EMI |
Not Allowed |
6% |
|
1 EMI |
Any Time |
NIL |
|
6 EMI |
Not Allowed |
6% |
|
6 EMI |
Not Allowed |
3% |
|
6 EMI |
25% Yearly |
2% |
|
6 EMI |
Not Allowed |
4% - 5% |
|
12 EMI |
Not Allowed |
4% |
Listed below are other charges applicable.
| Charges Applicable |
Details |
| Cheque Bounce Charges |
Rs. 500 per cheque bounce + Service Tax as applicable |
| Cheque/ Instrument Swap charges |
Rs.500 per instance + Service Tax as applicable |
| Prepayment/ Foreclosure Charges |
Nil |
| Default Interest Rate |
@24.00% per annum i.e. 2% per month on the overdue instalment |
| Duplicate Statement Issuance Charges |
Rs 250 per instance + Service Tax as applicable |
| Duplicate Amortization Schedule Charges |
Rs 250 per instance + Service Tax as applicable |
| Duplicate Interest Certificate issuance Charges |
Rs 250 per instance + Service Tax as applicable |
| CIBIL Report Issuance Charges |
Rs. 50/- per instance per set+ service tax as applicable |
| Stamp Duty Charges |
As per State Stamp Act |
| Issuance Charges for Photocopy of Loan Agreement/ Documents |
Rs 250 per instance + Service Tax as applicable |
Documents Required For Processing Your Personal Loan
Documents to be submitted as proof of Income
Salary Slips for the Last 3 months
Bank Statement from Salary account for the last 3 months showing 3 salary credits.
Form 16 for the last financial year.
Pan card copy.
KYC Documents
As a Photo Identification proof: Passport/Driving Licence/Voter I.D./Aadhaar Card/Ration Card
As a Current Address Proof: Bank Statement, Utility Bill, and Rent Agreement
The Company I.D. card
2 passport size photographs
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