A personal loan is a short to medium term unsecured loan (no collateral) that you can use to meet current financial needs. Though most commonly used to meet expenses related to debt restructuring, vacations, unexpected medical expenses and down payments, a personal loan may be used for practically any type of expense. If one looks at the benefits of personal loans, one can start with the fact that the tenure of a personal loan is shorter as compared to a mortgage. Unlike mortgage, which is for ten, twenty, perhaps thirty years, a personal loan is commonly for between one and five years.
There's no limit to the number of ways a personal loan can be put to use. It can be taken for any personal reason, such as:
Personal loans act as the best-suited option to smoothen up cash flow at times of stringency. The key reason for some to prefer a personal loan is because of minimal documentation, fast processing times and the flexibility for use of the loan. Witnessing the huge potential of this market, leading banks and NBFCs in India are offering personal loans to both salaried and self-employed individuals.
To choose from the best personal loan offers is important, but equally important are numerous other factors that should be taken to prevent personal loan becoming the burden causing a big hole in the pocket. Here are some points you must never overlook while applying for personal loan.
Types of Personal Loan
Features of the loan
Financial Institutions offering this loan
Personal Loan For Low CIBIL Score
Though it is not easy to get a personal loan with a low CIBIL score, but you will have to negotiate with banks or you can opt for a secured personal loan. Some banks may offer a personal loan to you if your income has increased by a good amount recently.
Business Startup Loan
ICICI Bank, Small Industries Development Bank of India (SIDBI) and India Finance Corporation Of India (IFCI), Kotak Mahindra, TATA Capital, Standard Chartered, Bank of Baroda, Oriental Bank, etc.
Same Day Loans
Citibank & HDFC Bank
Loans For Unemployed
Government loan plans for the unemployed, TATA Capital, India Lends, Max finance, etc.
Govt. Loans for Small Scale Businesses
State Bank of India, Bank of Baroda, Andhra Bank
Loan schemes by government- Small Industries Development Organization (SIDO), National Small Industries Corporation Limited (NSIC), SIDBI, National Bank for Agriculture and Rural Development (NABARD) and World Association for Small and Medium Enterprises (WASME)
Small Business Loans for Women
HDFC, TATA Capital, Citibank, IndusInd, Fullerton, Kotak Mahindra, ICICI, Bank of Baroda, IDBI, Punjab & Sind Bank, Dena Bank, etc.
HSBC, HDFC, TATA Capital, Kotak Mahindra, Citibank, IndusInd, Standard Chartered, ICICI, Allahabad Bank, Bank of Baroda, etc.
Home Improvement Loan
HDFC, ICICI, PNB, Canara Bank, DHFL, Bank of Baroda, etc.
SBI, TATA Capital, Arogya Finance, etc.
SBI, HDFC, ICICI, Tata Capital, Axis Bank, Citibank, IDBI, PNB, Kotak Mahindra, Bank of Baroda, etc.
Any Indian national salaried, self-employed or professional is eligible for a personal loan. However, this loan is an unsecured loan, thus lenders make sure that they are not lending money to a client with higher probability of risk involvement. To ensure the same, they consider numerous factors before providing personal loans:
Most banks have similar guidelines for documentation requirement for personal loan. The list of essential documents you need for a personal loan are:
|As on 27 Mar, 2017|
|Interest Rate||11.29% onwards|
|Processing Fees||Differ From Bank to Bank|
|Loan Tenure||Up to 5 Years|
|Pre-closure Charges||Differ From Bank to Bank|
As mentioned earlier, personal loans feature one of the highest interest rates among debt instruments only superseded by credit card interest rates. Currently personal loans are available in India from 11.29% onwards. The exact interest rate differs from bank to bank as well as on the basis of the loan amount, the loan tenure, your income level as well as your credit history.
Personal loan allows you to borrow money for almost all your requirements and to have a better experience, there are certain points you must know before availing a personal loan.
With its headquarters in Mumbai, SBI (State Bank of India) is a leading Government-owned bank in India and offers different types of exciting personal loans to the customers. The 4 different types of personal loans that SBI offers are:
Rate of Interest of SBI Personal Loan:
Some of the highlighting features of SBI Personal loans are:
With a network of 2500 branches (as on March 2016), Axis Bank is the third largest private sector bank in India and is trusted widely for its personal loan plan. With features like minimal documentation, simple procedures, and quick loan approval, Personal loan scheme is availed widely by people from all over India to fulfill their immediate financial requirements.
With over 4000 branches, ICICI Bank offers multipurpose personal loan to its customers all over India. One of the biggest reasons for ICICI bank being one of the largest facilitators of personal loan is its adherence to quick loan approval processing. Without any need of security, collateral, or a guarantor, and with just nominal documentation, a person can apply for ICICI Bank personal loan and get instant approval too.
Benefits of ICICI Bank Personal Loan:
ICICI Bank offers Personal Loan for:
Punjab National Bank, also popular as PNB, is an Indian public sector bank that is known for its personal loan services along with many other core banking services. PNB offers personal loan to make available financial assistance to the public for their personal needs.
Personal Bank by Punjab National Bank is offered to:
UCO Bank, formerly United Commercial Bank, is one of the oldest and major banks in the country. UCO Bank Personal Loans or UCO Bank Cash is one of the many widely trusted services and is taken up by several individuals to meet their personal financial needs. UCO Bank offers personal loan without the need of depositing collateral security for an amount of up to Rs. 2 Lacs. For loan amount above Rs. 2 Lacs, the applicants have to offer collateral for only 40% of the loan amount.
UCO Bank Personal Loan Highlights:
Presence in India since 1959, HSBC bank is one of the world's largest banks with more than 89 million customers globally. HSBC offers a great many financial products and services to the Indian customers, of which Personal Loan is a distinctively popular product. In major cities in India, HSBC offers personal loan with features like attractive interest rates, nominal documentation, and speedy processing.
HSBC offers Personal Loan for:
Head quartered in Mumbai, India, IDBI Bank Limited (IDBI) is currently 10th largest development bank globally for its extensive reach with 1413 branches and 2413 ATM's. Personal Loan from IDBI Bank is offered to both self-employed professionals and salaried individuals. IDBI Personal Loan plans are an amazing way to meet any personal financial requirements. From buying an electronic gadget to renovation of house to a family vacation, IDBI makes sure none of your needs or wants go unfulfilled due to lack of cash.
Available variants of IDBI Bank:
IDBI Personal Loan Details:
Operating in India since 1858 with branches over 42 cities, Standard Chartered bank has always been known for its exciting schemes, friendly repayment provisions and competitive interest rates. The same are the features of personal banking offered by Standard Chartered Bank. Under its personal banking, Standard Chartered offers personal loans, home loans, loans against securities, etc.
Like other banks, Standard Charted understand the value of personal loan for every individual to meet his/her dreams of life without worrying about cash, and has thus formulated attractive features of Personal loan.
Features of Standard Charted Personal Loan:
Standard Charted Bank Personal Loan Details:
Head quartered in Andhra Pradesh, Andhra Bank is a mid-sized public sector bank and has more than 2000 branches in India. Andhra Bank offers different loans to meet monetary needs of the people; every loan plan is tailor-made to help the individual borrow for what he actually requires.
Andhra Bank Personal Loan is divided into two different categories:
Consumer Loans are the personal loans given to salaried individuals. Personal loan is offered to salaried individuals to meet their personal needs that can be purchasing consumer durables like televisions, or making wedding arrangements for a child, or sponsoring child's higher education. This scheme caters to the consumer credit requirements of persons with a regular source of income.
Clean Loans are the loans given to self-employed individuals for their personal requirements. With Clean Loans by Andhra Bank, a self-employed consumer can easily meet his person monetary requirements such as a children's education and weddings, paying off credit card debts, vacations etc.
Andhra Bank Personal Loan Details:
In terms of its assets, HDFC bank is the fifth largest bank in India. HDFC bank has won the trust of the customers with its exclusive personal loan plans which ensure triple benefits, i.e. faster loan, competitive pricing, and transparency. With a flexible loan duration ranging 12 to 60 months and a competitive interest rate, HDFC Bank offers best personal loan services in the country.
HDFC Bank Personal Loan Details
Features of HDFC Personal Loan
Personal loan EMI calculator proves to be the most valuable personal loan comparison tool. No doubt, Personal loan is one of the simplest loan types with no obligations connected regarding usage of the borrowed money, still there are several aspects to consider, which can be easily done via personal loan EMI calculator.
A Personal Loan Calculator helps you to:
Before you apply for a personal loan, it is important that you have a budget in mind as well as an EMI amount that you are comfortable with. The EMI calculation helps you ensure that your monthly budget is not stretched and you minimize the chances of default on your personal loan. Use the Paisabazaar Personal Loan EMI calculator to get the EMI amount based on your inputs such as loan amount, interest rate and loan tenure.
At Paisabazaar.com, you are saved from the hassle of visiting individual sites of banks and other lenders to compare personal loan options available to you. Our platform allows you to review and compare personal loans of different types based on key criteria specified by you. Find the loan that meets all your terms and conditions and apply for it on the same website. Our personal loan EMI calculator helps you assess your EMI for the personal loan before applying. If you have already decided on an EMI amount, you are better prepared to manage your finances.
Our expertise in identifying the right deal is a benefit for those looking to take personal loan. With the ultimate feature of comparing different personal loans, we handpick personal loan offers from several banks so that intended borrowers can take well-informed decisions. To make sure that you take a well-informed decision, we have simply broken down different aspects that decide how best the loan type would match your requirement. To help you skip the fine print terror, we have segregated the sections - EMIs, eligibility, maximum amount that can be borrowed, fees, and hidden charges, so that you choose only what you need.
Be it for higher education, marriage, shopping needs, a personal emergency, or just need of extra cash, you can anytime get instant cash with personal loans. And to help you in emergency situation, we offer 24*7 services.
No doubt, online services save time as well as money. We further ease the experience of online personal loan application by offering our super friendly customer service to answer all your concerns while you are applying.
Yes, we have a platform where you can compare schemes by companies offering personal loans, but that's not all at Paisabazaar's platter. Our experts assist every customer in applying for a personal loan in the bank of his choice to the stage you get your loan amount.
Paisabazaar's customer support team help the interested borrowers understand the complete process of availing personal loan or personal loan against mutual funds and clear all their doubts regarding eligibility, offers, procedures, documentation, and repayment options. Not just that, they even coordinate with the banks and follow up on your behalf.
Q. How is the maximum EMI Amount calculated?
Ans: Banks mostly based their loan amount based on the maximum EMI amount that the individual can afford. This EMI usually capped at 30% to 40% of the applicant's net take home salary. If you have any existing loans, the maximum personal loan EMI will drop accordingly.
Q. Does my credit history and score affect my chances of a successful application?
Ans: A personal loan is usually based on criteria such as your monthly net income and your previous credit history including score. Hence, credit score plays a key role in both ensuring the success of the application as well as in determining the interest rate of the loan.
Q. Is there a prepayment penalty on personal loan?
Ans: Yes. Most banks and NBFCs charge a prepayment penalty of 1% to 3% on the outstanding principal amount of a personal loan.
Q: Can I get a personal loan for pensioner if I have a pension account with one of the leading private banks in India?
Ans: There are several private as well as public sector banks, which offer personal loan to pensioners. However, there is certain age cap with every bank, which you must not exceed at the time of repayment period. You can get a personal loan of up to 10-20 times (depending upon banks' T&C) of your monthly pension amount.
Q: I want to buy a car for commercial purpose. Should I take Car Loan or Personal Loan?
Ans: To buy a car for commercial purpose you would either have to apply for personal loan or Commercial Vehicle loan. Commercial vehicle loan are comparatively cheaper than personal loan, however there are some specific eligibility criteria that you need to fulfill. In case, it is difficult to meet the eligibility criteria of commercial vehicle loan, you can avail a personal loan.
Q: What are some of the pros & cons of personal loan?
Ans: Personal Loans can help you manage all kinds of money troubles; however they come with certain pros & cons, which you must know. Here are disadvantages and advantages of personal loan
Q: How can I bargain for better rate of interest for personal loan?
Ans: Yes, there are certain points that can help in getting lower interest rates for the borrowed personal loan amount.
Visit Personal Loan FAQs page for more questions.
|Provider||Interest Rate||Processing Fee|
|SBI Personal Loan||12.55%-17.65%||1%-3% of the loan amount + applicable Service Tax|
|Axis Bank Personal Loan||11.25%-24%||1.50%-2.00% of the loan amount + Service Tax, as applicable|
|ICICI Personal Loan||11.29%-22.00%||Upto 2.50% of the loan amount + Service Tax, as applicable|
|Tata Capital Personal Loan||11.99%||Starts at 999/-|
|PNB Personal Loan||3.10%-6.10% + MCLR||
|Bajaj Finserv Personal Loan||14.75%||2.25%-3% of the loan amount|
|Fullerton Personal Loan||14%||Upto 6.5% of the loan amount|
|IndusInd Personal Loan||Starting at 11.49%||Upto 2.5% of the loan amount|
|Standard Chartered Personal Loan||Starting at 11.25%||Upto 2.25% of the loan amount|
|Citibank Personal Loan||Starting at 11.49%||Upto 2.50% of the loan amount|
|HDFC Personal Loan||11.29%-20%||Upto 2.5% of the loan amount, subject to a maximum of 25,000 INR and a minimum of 1,000 INR|
|Kotak Personal Loan||Starting at 11.29%||Upto 2% + ST + Other levies|
|HSBC Personal Loan||11.99%||Upto 2.5% of the disbursed loan.|
|Bank of Baroda Personal Loan||11.35% to 14.35%||Rs.1,000 to Rs.10,000|
|Central Bank Personal Loan||11.50%||Min Rs. 500/-|
|Dena Bank Personal Loan||13.00% - 14.00%||1.00% of loan amount|
|Corporation Bank Personal Loan||12.75% to 13.75%||1.50% of the loan amount subject to a minimum of Rs.500/-|
|UCO Bank Personal Loan||11.35% - 11.60%||1% (min. Rs. 750)|
|Union Bank Personal Loan||14.40%||0.50% of the loan amount, Minimum of Rs. 500 plus service tax|
|Bank of India Personal Loan||12% to 14.5%||Rs. 1,000 to 10,000 + S.T.|
|RBL Personal Loan||14%||3% of loan amount|
|Allahabad Bank Personal Loan||13.10%||1.22% (min. 1228)|
|Canara Bank Personal Loan||12.75% (Floating)||Rs. 1,000 to 5,000|
|IDBI Personal Loan||12.45% (3 months MCLR + 3.90%)||1% plus service tax|
|Bank of Maharashtra Personal Loan||12.75%||1.00% of the Loan Amount (Min.:Rs.1000/-)|
|Andhra Bank Personal Loan||13.05% to 14.30%||Nominal|
|Yes Bank Personal Loan||11.49%||upto 2%|
|Syndicate Bank Personal Loan||14.20% p.a.||0.5% with a minimum of Rs.500 + Service Tax|
|Vijaya Bank Personal Loan||12.5% to 13.5%||0.25% of the loan amount, Max Rs. 10000 plus service tax|
|Indian Bank Personal Loan||12.65% to 13.65%||Rs. 508 to 0.508%|
|Federal Bank Personal Loan||17.25%-35%||Upto 6.5% of the loan amount|
|Capital First Personal Loan||12%||upto 1.5%|
|IDFC Personal Loan||11.50%||upto 1.5%|
Note: The figures provided in the table are indicative subject to change from time.
Well done team .. :)
In Jan 2017, Prashant from Paisabazaar helped me in getting a Personal Loan from Bajaj Finserv. The loan process was well explained and handled by him. However, once the loan was disbursed, I got to know Bajaj Finance Sales guy had hidden some facts from me. I immediately contacted Prashant who helped me transfer my loan to HDFC at a lower interest rate. I am very happy with the way Prashant has handled my profile and given his timely suggestions. Really appreciate his services.
I was very confused before I checked the website of Paisabazaar. All my confusions got sorted once I checked the website. The website gave me all the important information about the loan schemes as per my requirements. It became really simple for me to understand all the Personal Loan schemes from various banks. I simply selected few loan offers and compared them based on interest rates, EMIs, additional charges, processing fee etc.
Great services by Paisabazaar. I applied for my loan in just 2 minutes. I simply entered my details and their website showed me the best loan schemes as per my needs. It was easier to compare my loan schemes on the site as I simply seleted a few schemes and compared them as per my needs. I selected HDFC personal loan as it had the lowest interest rate of 11.49% and it also gave me insurance covers.