Personal loan is one of the most important thing in the life of any middle class family. They rely a lot on personal loans for the wellbeing of their families. There are plenty of loans available in the market. Loans are mostly categorized according to the specific needs of everyone. Like, for studies you take a students loan, for house you take a mortgage loan, for car you take an auto loan, and many more. But in case of personal loan, there isn’t any barrier set on how to use it. You can do whatever you want with a personal loan.
There is an another benefit of personal loan which makes is even better than any other loan. Personal loans are without any collateral or in simple terms, personal loan is an unsecured loan, which is provided to you according to your earlier history, income and credit score. It can be used as you wish and there are no restrictions. The loan providers agree to get in deal with you at their own risk, that’s why it’s called an unsecured loan.
Personal Loan Eligibility criteria
There are certain eligibility criteria to get a personal loan, which also varies from bank to bank, or the respective loan providers. Some of the basic eligibility criteria to get a personal loan are:
- There is an age limit, which starts from 28 for self employed individuals and goes to 65 years as maximum. For doctors, the minimum age limit is 25, but the maximum limit is the same.
- You must be a self employed individual. Income depends according to the loan providers. Some companies or banks provide loan even at low salaries, but others prefers to play it safe.
- If you are a businessman or a self employed personal, then you must carry an experience of 5 years. In case of doctors, the experience required is 3 years.
Personal Loans Interest Rates
|Bank||Interest Rate (p.a.)||Processing Fee|
|State Bank of India||9.60% p.a. – 15.65% p.a.||Up to 1.50%|
|ICICI Bank||11.25% p.a. – 21% p.a.||Up to 2.25%|
|HDFC Bank||10.75% p.a. – 21.30% p.a.||Up to 2.50%|
|Yes Bank||13.99% p.a. – 16.99% p.a.||Up to 2.50%|
|Citibank||10.50% p.a. – 17.99% p.a.||Up to 3%|
|Kotak Mahindra Bank||10.50% and above||Up to 2.5%|
|Axis Bank||12% p.a. – 24% p.a.||1.5% – 2%|
|Bank of Baroda||10.50% p.a. onwards||Up to 2%|
|HSBC Bank||10.50% p.a. – 17.84% p.a.||Up to 1%|
|IDFC First Bank||15% and above||Up to 3.5%|
|Tata Capital||11.25% onwards||Up to 2.75%|
|Karnataka Bank||12% p.a. – 17% p.a.||0.5%|
|Home Credit Cash Loan||13% p.a. – 30% p.a.||0%-5%|
|Canara Bank||12.05% onwards||1%|
|Ujjivan Small Finance Bank||16.50% p.a. – 20% p.a.||At the discretion of the bank|
|Federal Bank||10.49% p.a. – 17.99% p.a.||Up to 3%|
|IndusInd Bank||11.00% p.a. – 31.50% p.a.||2.5% onwards|
|IIFL||13.49% p.a. onwards||Up to 3%|
|Bank of India||10.85% p.a. – 12.85% p.a.||Up to 2%|
|Aditya Birla Capital||11% onwards||0.5% and 1%|
|Fullerton India||11.99% p.a. – 36% p.a||Up to 6%|
|IDBI Bank||8.55% p.a. – 11.30% p.a.||Contact the bank|
|Corporation Bank||10.75% and above||1.50%|
|Karur Vysya Bank||12% onwards||0.30% onwards|
|South Indian Bank||11.55% p.a. – 14.4% p.a.||Up to 2%|
|Indian Overseas Bank||10.80% and above||Up to 0.50%|
|RBL Bank||14% p.a. – 23% p.a.||Up to 4%|
|Punjab National Bank||8.95% p.a. – 14.50% p.a.||Up to 1.80%|
|Bank of Maharashtra||9.70% p.a. – 10.70% p.a.||1%|
|Central Bank of India||9.85% and above||Rs.500|
|City Union Bank||16% p.a.||1.25%|
|Dhanalaxmi Bank||12% p.a. – 15.7% p.a.||Up to 2.5%|
|J&K Bank||11% p.a. and above||Up to Rs.500|
|Nainital Bank||10.0% p.a. – 10.50% p.a.||Up to 1%|
|Oriental Bank of Commerce||9.55% p.a. – 11.05% p.a.||Up to 1%|
Application process (Online/Offline)
First you need to know what a personal loan is before applying. Personal loan is something which you can get without any collateral or without submitting any assets to the loan provider. That’s why it is mostly referred as an unsecured loan. The loan amount depends hugely on your monthly income or annual income. Personal loan is also very easy to get as compared to any other loan. It is the best possible loan for you. It provides you the flexibility is well, as there is no restrictions on its usage. When you get your personal loan, you basically gets in deal with the lender or the loan provider.
You either choose to pay the amount on monthly basis via easy installments or by any other method which suits you and the lender both. You can choose to repay the loan is short time and also in long. The tenure is from 12 months to 60 months. Remember that the loans taken with shorter tenure demands much more EMI and their interest rate is also very high, but in case of loans with longer tenure, the whole thing is completely opposite.
Step by Step Guide
Apply for Personal Loan Offline
Now we will discuss the steps by which you can apply for the personal loan offline:
- Step I – first you need to visit the lender, who is providing you loan.
- Step II – you need to fill the form which the lender will provide you. You need to fill the form with utmost care.
- Step III – in step III, you need to add your address, income proof and all the relevant documents, so that the process goes smoothly.
- Step IV – this step doesn’t require you to do anything. The lender will check your documents and he will approve, whether all the details are correct or not. Once everything is verified your loan will be issued.
Apply for Personal Loan online
- Step I – first of all, you need to visit the website of the lender form whom you are willing to take loan.
- Step II – you need to fill the application with utmost care, were you will be asked to submit all the important details regarding your business, age proof, income proof, and many more.
- Step III – you need to choose the tenure and loan amount according to your comfort and need.
- Step IV – submit all the documents to the companies representative who will get in touch with you by himself. Once your documents are approved, money will be credited within 24 hours.
The generic list of documents required for personal loan is:
- Any identify proof like, pan card, Aadhaar card, voter ID card or any other.
- Address proof, for which you can use any of your identity proof, which has your address written over it.
- Income proof – for salaried individuals, bank statement/ salary slip: for self employed, bank account statement/ P&L statement.
- Business proof – certificate of practice/ GST registration and filling documents.
|CIBIL Ratings||Credit Score||Chances of being approved for a Personal Loan|
|Poor||Less than 600||You may not qualify for a personal loan|
|Average||Between 600 and 750||Loan may be approved, but at a high interest rate|
|Good||Over 750||Loan is likely to be approved with a lower interest rate|
|Excellent||Between 800 and 900||Loan with a low interest rate, faster approval, larger loan amount|
Frequently Asked Questions
How to check if I am eligible for personal loan?
The answer is pretty simple, you just need to check the eligibility criteria which most of the banks and lenders provide in their brochure. Also you can check that on internet.
What are the things that I should look for before applying for a personal loan?
One of the most important thought which comes in everyone’s mind. Things you should look for are: • Interest rate • Repayment flexibility • Documents required • Customer service
Where can a personal loan be used?
It can help you meet a wide range of financial requirements, such as: 1. Medical emergency, 2. Home renovation, 3. Higher education, 4. Debt consolidation, 5. Travel, 6. Wedding
Which bank is best for a personal loan?
As per current interest rates State Bank of India (SBI) is best for personal loan
How much CIBIL score is required?
The ideal Best CIBIL score to get instant paperless approval of Personal Loans is 750 and above.
What is the minimum salary to get a loan?
The minimum salary required to avail of Personal Loan depends on your city of residence. For instance, if you reside in Mumbai, Pune, Bangalore, or Delhi, you must have a minimum monthly salary of Rs. 36,000.