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Get a personal loan at an attractive interest rate with Funding Bazaar.
Introduction
Personal loan is an unsecured loan facility, which can be availed by both salaried and self-employed individuals. Proceeds from the loan can be used to meet any personal and business related financial requirements without any end usage restriction. Personal loan also comes with fewer documentation requirements, which enables quicker processing and disbursal than other credit options.
Personnel Loan Details
- Interest Rate: 10.49% p.a. onwards; some PSUs may offer lower rates
- Loan Amount: Up to Rs 40 lakh; some lenders may offer higher loan amounts
- Tenure: Up to 5 years (some lenders offer repayment period till 8 years)
- Processing Fees: 0.5% to 4% of loan amount (may vary across lenders)
Types of Personal Loan
Instant Personal Loan
Instant Personal Loans are usually pre-approved loans with instant disbursals. These loans are usually offered by banks and NBFCs to their select customers on the basis of their credit profiles.
Short Term Personal Loan
Instant Personal Loans are usually pre-approved loans with instant disbursals. These loans are usually offered by banks and NBFCs to their select customers on the basis of their credit profiles.
Pre-Approved Personal Loan
Pre-approved Personal Loans are usually offered by banks and NBFCs to their existing customers on the basis of their credit history, income, employer’s profile, etc.
Instant Personal Loan
Instant Personal Loans are usually pre-approved loans with instant disbursals. These loans are usually offered by banks and NBFCs to their select customers on the basis of their credit profiles.
Short Term Personal Loan
Instant Personal Loans are usually pre-approved loans with instant disbursals. These loans are usually offered by banks and NBFCs to their select customers on the basis of their credit profiles.
Pre-Approved Personal Loan
Pre-approved Personal Loans are usually offered by banks and NBFCs to their existing customers on the basis of their credit history, income, employer’s profile, etc.
Personal Loan Balance Transfer
Its allows borrowers to transfer their outstanding personal loan to a new lender for lower interest rates or better loan terms. However, opt for this facility only when the savings made through the transfer outweighs the cost of the loan transfer.
Top Up Personal Loan
The top up is offered to existing personal loan borrowers who need additional funds to meet their financial requirements. This loan facility is usually offered to select borrowers having satisfactory loan repayment history and/or have completed a specified number of EMIs.
Personal Loan for Higher Education
Personal Loan for Education is for individuals requiring funds for pursuing higher education in India and abroad, vocational courses, etc., and are unable to get a conventional education loan.
Personal Loan Balance Transfer
Its allows borrowers to transfer their outstanding personal loan to a new lender for lower interest rates or better loan terms. However, opt for this facility only when the savings made through the transfer outweighs the cost of the loan transfer.
Top Up Personal Loan
The top up is offered to existing personal loan borrowers who need additional funds to meet their financial requirements. This loan facility is usually offered to select borrowers having satisfactory loan repayment history and/or have completed a specified number of EMIs.
Personal Loan for Higher Education
Personal Loan for Education is for individuals requiring funds for pursuing higher education in India and abroad, vocational courses, etc., and are unable to get a conventional education loan.
Comparison of Personal Loan Interest Rates offered by Various Banks/NBFCs
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Banks/NBFCs
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Interest Rates(p.a)
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|---|---|---|
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Axis Bank
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10.99% Onwards
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|
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Indusland Bank
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10.49% onwards
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|
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IDFC First Bank
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10.99% onwards
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|
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HDFC Bank
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10.50% onwards
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|
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ICICI Bank
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10.80% onwards
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|
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Kotak Mahindra Bank
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10.99% onwards
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|
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Tata Capital
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10.99% onwards
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|
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Federal Bank
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11.49% onwards
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DMI Finance
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12.00% - 40.00%
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|
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L&T Finance Limited
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12.00% onwards
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|
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Kreditbee
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16.00% - 29.95%
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Money Tap
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13.00% onwards
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|
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Piramal Finance
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12.99% onwards
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|
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Aditya Birla
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13.00% onwards
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Moneyview
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15.96% Onwards
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Cashe
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27.00% onwards
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Particulars
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Charges
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|---|---|
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Loan Processing Fees
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0.5% to 4% of loan amount
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Pre-payment/Part-payment/Foreclosure Charges
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For Floating Rate: Nil
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Loan Cancellation
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Usually around Rs 3,000
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Stamp Duty Charges
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As per actuals
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Legal Fees
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As per actuals
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Penal Charges
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Usually @ 2% per month; 24% p.a.
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EMI/Cheque Bounce
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Around Rs 400 per bounce
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Other fees and charges levied by the lenders include documentation charges, verification charges, duplicate statement charges and NOC certificate charges.
Eligibility for Personal Loan
Personal loan eligibility criteria can vary from one lender to another due to their varying credit risk policies. The eligibility criteria can also vary as per the loan variant and the occupation profile of the applicant. Here are some of personal loan eligibility criteria used by most lenders:
- Age: 18-60 Years
- Salary: At least Rs 15,000 per month for salaried customers
- Income: At least Rs 5 lakh p.a. for self-employed customers
- Credit Score: Preferably 750 and above as having higher credit scores improve chances of loan approval
- Employment Stability: Usually 1 year with some lenders requiring longer work experience
- Business Continuity: Usually 3 years of business continuity with some lenders requiring longer period of business continuity
- Employment Type: Salaried employees working with reputed organizations, MNCs, Private and Public Limited Companies, Govt. organizations, PSUs, and large enterprises
Documents Required for Personal Loan
Personal loan lenders require documents from their applicants to establish their identity, income, loan repayment capacity and place of residence. These documents are more or less the same across lenders. Here are the few common set of documents that you will need to submit when applying for a personal loan:
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Requirements
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Salaried Individuals
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Self Employed
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|---|---|---|
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Proof of Identity
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Passport, Voter’s ID, Driving License, Aadhaar Card or PAN Card
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Passport, Voter’s ID, Driving License, Aadhaar Card or PAN Card
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Proof of Residence
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Aadhaar Card, Passport or utility bills
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Aadhaar Card, Passport or utility bills
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Proof of Income
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Salary Slips, Bank Account Statement, Form 16
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Previous Years’ ITR, P&L Statement and Balance Sheet, Bank Account Statement
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EMI Calculator
Monthly EMI: ₹0.00
FAQ's on Personal loan
Your existing personal loan lender will provide you with a no-dues certificate after the complete repayment of your personal loan.
You can make personal loan EMI overdue payments online through the bank’s internet banking platform, mobile application, UPI app or other digital payment systems such as NEFT/RTGS, digital wallets (e-Wallets) and payments apps. You can also visit the lender’s branch to make overdue payments through offline modes like cash, cheque and demand draft (DD).
Yes, you may avail personal loans from two different lenders at the same time, provided the lender of your second personal loan is satisfied with your repayment capacity. However, it is better to take a single loan of a larger amount from the lender providing lower interest rates and/or better terms and conditions.
Yes, you can get a personal loan without providing salary slips. You can submit your bank account statement/ a copy of Form 16/ employee certificate from the employer, etc. as proof of income to fulfill the eligibility criteria. However, it is always recommended to confirm the list of required documents with the lender as it may vary from one bank to another.
The minimum monthly salary required to avail a personal loan varies from lender to lender. However, for large lenders like private and public sector banks, the minimum income eligibility is Rs 15,000 per month and above.
Applicants having credit scores of 750 and above usually have higher chances of availing personal loans. However, many banks and NBFCs offer personal loans to individuals with low CIBIL score/credit score but charge higher interest rates to compensate for the higher credit risk associated with those lenders.
The tenure of a regular personal loan usually ranges from 1 year to 5 years. However, some lenders offer maximum personal loan tenure for 6 to 8 years.