A Personal Loan is an 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 incometo apply for a personal loan.
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 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 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, school fees, and 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 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.
What are the Methods To Apply For a Personal Loan?
An applicant can apply for a
Personal Loan Online or submit hard copies of the documents required. The documentation must be complete for an
Instant Personal Loan Online. Make sure all the copies forwarded are clear and legible for instant personal loan approval.
The Personal Loan Eligibility Criteria
A Personal Loan eligibility check is advisable before applying, though the basic policy for most Banks is similar with distinct features according to the individual target audience.
The Salary and Experience Criterion
Personal Loans are processed on the 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 employee with economic times listed company, Public sector, a 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.
A Loan seeker can conveniently calculate the loan amount that will be issued to her/him with the help of our Personal loan eligibility calculator.
Personal loan Charges
Rate of Interest
Personal Loan interest rate ranges from 10.99% to 22.00%: charged
@ monthly reduction basis, which remains fixed for the entire tenure of the loan.
The calculation for the rate of interest applicable is calculated based on the following:
The loan amount required
The
Rate of Interest charged for a higher loan amount is the lowest. Applicants applying for a loan amount of ₹ 10 Lakhs and above will be issued low interest personal loans, whereas the 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, applicants 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 the 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 one-time 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 a
Personal Loan Apply.
For Employees of Premium Organisations
Employees of companies featured in the preferred list of Lenders are charged minimal fees for processing 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 Banks
| Loan Provider |
Interest Rate |
Processing Fees |
Tenure |
Loan Amount |
| HDFC Bank
|
11.49% – 20% |
0.5%-2.5% of loan amount |
12-60 Months |
50k-30 Lakhs |
| ICICI Bank
|
11.49% – 20% |
1%-2.5% of Loan Amount |
12-60 Months |
50k-30 Lakhs |
| AXIS Bank
|
11.99% – 22% |
2% of Loan Amount |
12-60 Months |
50k-20 Lakhs |
| CITI Bank
|
11.75%-20% |
0.25-1% of Loan Amount |
12-60 Months |
1Lakh-25 Lakhs |
| Kotak
|
11.99% – 22% |
2% of Loan Amount |
12-60 Months |
50k-15 Lakhs |
| Yes Bank
|
10.75% – 18% |
0.5%-2.5% of Loan Amount |
12-60 Months |
50k-30 Lakhs |
| Bajaj Finserv
|
13% – 16% |
2% of Loan Amount |
12-60 Months |
1Lakh-25 Lakhs |
| Standard Chartered
|
11.50% – 18% |
0.5%-2% of Loan Amount |
12-60 Months |
50k-25 Lakhs |
| IDFC
|
11.50% – 18% |
0.5%-2.5% of Loan Amount |
12-60 Months |
50k-30 Lakhs |
| Capital First
|
12.5% – 22% |
2% of Loan Amount |
12-60 Months |
50k-20 Lakhs |
| Tata Capital
|
11.50% – 18% |
999/- 2% of loan Amount |
12-60 Months |
50k-20 Lakhs |
| Fullerton India
|
13.5% – 20% |
999/- 2% of Loan Amount |
12-60 Months |
50k-20 Lakhs |
| IndusInd Bank
|
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 lender's policy may vary as to when and what amount can be paid toward the Loan's principal balance.
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 |
|
HDFC Bank
|
12 EMI |
Allowed |
2% - 4% |
|
ICICI Bank
|
6 EMI |
Not Allowed |
5% |
|
CITI Bank
|
12 EMI |
25% Yearly |
3% |
|
Kotak
|
12 EMI |
Not Allowed |
6% |
|
Bajaj Finserv
|
1 EMI |
Any Time |
NIL |
|
Fullerton India
|
6 EMI |
Not Allowed |
6% |
|
Standard Chartered
|
6 EMI |
Not Allowed |
3% |
|
Capital First
|
6 EMI |
25% Yearly |
2% |
|
Tata Capital
|
6 EMI |
Not Allowed |
4% - 5% |
|
IndusInd Bank
|
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 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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