Prominent Features of a Personal Loan
A Personal Loan is an unsecured loan issued without 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 23 can
Apply for a Personal Loan. The maximum age until the loan can be repaid is 60 (or the applicable retirement age). Educational qualifications required are Graduation and above. The applicant should be gainfully employed and earn a regular income.
What is the Amount Issued as a Personal Loan?
Loan amounts that can be appended as Personal Loans range from a minimum of ₹50k to a maximum of ₹30 Lakhs, depending on the applicant's income, current obligations, and ability to repay the monthly instalment.
What is the Tenure Applied for a Personal Loan?
A Personal Loan can be repaid over a flexible tenure of 12 to 60 Months. The lender decides on a suitable tenure after considering the loan amount granted and your income in consultation with you. This flexibility empowers you to choose a repayment plan that best suits your financial situation.
Is it Possible to Apply for Instant Personal Loans?
Applicants can
Apply for Personal Loans Online by providing soft copies of documents on an authorized bank website.
HDFC Bank and
ICICI Bank are the primary banks disbursing
Online Personal Loans.
What Can You use Your Personal Loan for? Why take a Personal Loan?
Apply for a Personal Loan for all kinds of personal reasons major usages include the following:
A Personal Loan can be used to renovate your home, buy much-needed gadgets, or refurbish it to redecorate and give it a new look.
To pay for your child’s education, school fees, and ancillary charges, ensure there are no stops to giving your child the best!
Get away from the mundane life and Apply for a Personal Loan for travel expenses or a family holiday.
When an illness or emergency arrives without warning, having enough to meet expenses will help you through this period of stress. Instant Personal Loan Approval is readily available when you need it most.
A family celebration can exhaust your finances if you want to have the dream wedding or festivity, a Personal Loan can help you get the extra needed to make things go smoothly.
Outstanding
Credit Card payments have the highest interest rate, so transferring the debt and
Applying for an Instant Personal Loan Online is prudent to save expenses.
The Eligibility Criteria Required for a Personal Loan.
The Salary and Experience Criterion
Personal Loans are processed based on net salary, which should be at least 25K monthly. The employer should directly transfer the wages to the account. A minimum of one year of work experience is mandatory for
Personal Loan Eligibility.
The Organization Presently Employed With
Employees with a healthy turnover at an Economic Times-listed company, a public sector company, or a limited or private limited company are preferred customers. In contrast, a loan seeker employed with a relatively new organization or a proprietorship firm may not readily receive a Personal Loan.
The Current Obligations and CIBIL Score
The
CIBIL Score of an individual establishes the capability to handle credit, repayment history, and total credit being used currently: the lender will verify the same before approving the loan and finalizing the amount. A minimum CIBIL Score of 730 points is required to Process a
Personal Loan.
Personal Loan Charges
Interest Rates
The Personal Loan Interest Rate ranges from 10.99% to 22.00%, charged on a monthly reduction basis, which remains fixed for the entire loan tenure. The calculation for the rate of interest applicable is calculated based on the following:
The Loan Amount Required
the interest rate charged for a 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 applicants earning lower salaries are charged higher interest rates for loan amounts.
The Company as Featured in the Company Category List
Top listed companies are given special offers for the rate of interest applicable depending on the 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 lender's policy from nil to 2.5% of the loan amount. The applicable processing fee is deducted from the loan amount upon approval of the request and disbursal of the loan. It is levied taking into account the following:
The Loan Amount Granted
Processing fees are charged as a percentage of the loan amount. Discounts are offered to applicants with higher loan amounts. A standard charge is applied to loan amounts above ₹ ten lakhs..
For Employees of Premium Organisations
Employees of companies on the lender's preferred list are charged minimal fees for processing loan requests and can apply for personal loans online.
Applicants having an Existing Relationship
Existing bank customers who previously held a salary account or any other credit line are entitled to a lower fee for processing a
Personal Loan.
What are the Pre-closure and Partial Payment options for a Personal Loan?
A pre-closure or part payment is the facility to pay part or the entire loan amount before the completion of the tenure. The lender's policy may vary regarding when and what amount can be paid towards the Loan's principal balance.
| Loan Provider |
Interest Rate |
Processing Fees |
Tenure |
Loan Amount |
| HDFC Bank |
10.75% - 16% |
5600/- |
12 to 84 months |
₹ 1 lakh to 75lakhs |
| ICICI Bank |
11% - 16% |
6999/- |
12 to 72 months |
₹ 1 lakh to 50 lakhs |
| Axis Bank |
11% - 18% |
1% |
12 to 72 months |
₹ 1 lakh to 35 lakhs |
| YES Bank |
11% - 18% |
1.50% |
12 to 72 months |
₹ 1 lakh to 25 lakhs |
| Kotak Bank |
11% - 18% |
1.50% |
12 to 72 months |
₹ 1 lakh to 30 lakhs |
| Loan Provider |
Fore closure |
Part Payment |
Charges |
| HDFC Bank |
After 12 EMI |
Not Permitted |
NA |
| ICICI Bank |
After 24 EMI |
After 1 EMI |
3% |
| Axis Bank |
After 12 EMI |
After 3 EMI |
3% |
| YES Bank |
After 12 EMI |
Not Permitted |
NA |
| Kotak Bank |
After 12 EMI |
Not Permitted |
NA |
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 the 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 three months.
The bank statement from the salary account for the last three months shows three 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
Two passport-size photographs
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