Apply for a Personal Loan

Please Choose the best suitable personal loan as per your income and get amazing facilities with these loans.

Axis Bank Personal Loan

INTEREST RATE

11.25% onwards

PROCESS FEE

1.50% to 2.00%

TENURE

12 months to 60 months

HDFC Bank Personal Loan

INTEREST RATE

11.25% onwards

PROCESS FEE

Starting from 0.99%, Max 2.25%

TENURE

12 months to 60 months

Tata Capital Personal loan

INTEREST RATE

11.75 onwards

PROCESS FEE

Flat fee of Rs. 999*, Upto 2%

TENURE

12 months to 60 months

Kotak Personal Loan

INTEREST RATE

11.50% onwards

PROCESS FEE

Upto 2.5%

TENURE

12 months to 60 months

BankBazaar Personal Loan

INTEREST RATE

11.25% onwards

PROCESS FEE

1.50% to 2.00%

TENURE

12 months to 60 months

PaisaBazaar Personal Loan

INTEREST RATE

11.25% onwards

PROCESS FEE

Starting from 0.99%, Max 2.25%

TENURE

12 months to 60 months

Fullerton India Personal loan

INTEREST RATE

11.75 onwards

PROCESS FEE

Flat fee of Rs. 999*, Upto 2%

TENURE

12 months to 60 months

Indiabulls Personal Loan

INTEREST RATE

11.50% onwards

PROCESS FEE

Upto 2.5%

TENURE

12 months to 60 months

PERSONAL LOAN

Personal loan is a short to medium term unsecured loan granted to an individual. It is commonly used to meet such financial needs as debt consolidation, wedding expenses, unexpected medical costs, home renovation and others. Flexibility of usage, minimal documentation and quick processing make personal loan a preferred financing option. Unlike other loans, it usually has a shorter repayment tenure ranging from 1-5 years. Depending upon the individual applicant’s profile and lender, the APR (Annual Percentage Rate) of a personal loan may vary from 11.29% to 35%.

FEATURES OF PERSONAL LOAN

A personal loan is a loan taken by an individual to fund any personal expense like, for example, a wedding, to make renovations to the home or even for a vacation. Unlike many other kinds of loan, there is no restriction on how the borrowed amount is finally used – the borrower has full freedom to use the money for any purpose they want.

i. Complete flexibility of end-use. There are no restrictions on how you should spend the loan amount.  This in contrast to a  or auto loan where the loan amount can only be used to buy a property or a vehicle respectively.  A personal loan allows you the freedom to use the money in any way you want.

ii. Lack of collateral. A personal loan is an ‘unsecured loan’, meaning you are not required to provide any security to the lender in the form of cash, shares or any other assets.  This might make it more attractive to some customers who may not be able to raise the cash required as collateral.

WHAT IS THE TYPICAL AMOUNT AND LOAN PERIOD OF A PERSONAL LOAN?

There is no typical loan amount and the loans can range from a few thousands to lakhs.  While applying for a personal loan, the amount that you apply for must be commensurate with your ability to make repayments.  Of course, the final loan amount that is approved depends on the lending criteria used by the bank/NBFC and how they evaluate your ability to repay the loan.

Personal loans are relatively short-term loans and the tenure can range from 1-5 years.

WHAT FACTOR INFLUENCE APPROVAL OF PERSONAL LOAN?

a.It is generally advisable to have a credit score of 750 or above to qualify for a personal loan. The higher your score, the better are your chances of being approved.

b.Your employment is also an important factor in the loan-approval process. Since personal loan customers do not provide any collateral, lenders need to make sure that you will have a steady job over the loan period. It is probably a good idea to be with the same employer for at least a year before you apply for a personal loan.

c.Your annual income: Again, since there is no collateral, the banks want to be assured that you have a sufficient income (from salary and other sources) that will allow you to make your monthly repayments. The higher your income, the better your chances of being approved for a personal loan. d.Your EMI payment record: Lenders will look at your credit report to check if you have consistently demonstrated financial discipline and a pattern of timely EMI payments. If they see that you have regularly made payments and fulfilled your debt obligations, they will be inclined to view your loan application more favourably.

ADVANTAGE OF PERSONAL LOAN

1. Build or support your credit score

Ten percent of your credit score is based on your “credit mix,” or the different types of credit you have, such as credit cards, installment loans, and finance company accounts. You can only raise your score so far, for example, by using just credit cards — no matter how faithfully you pay them and keep your balances low. By adding another type of credit, you may improve your credit mix and potentially raise your score

2. Pay for planned expenses with a lower interest rate

Many credit cards carry relatively high interest rates, especially after any low- or no-interest introductory ends — that can cost you a lot of money in the long run.

If you need money for some purpose — like repairing your car, buying new tires, paying for a wedding or taking a trip — try to find a source of money with the lowest rate possible. Even a small savings in your interest rate can save you a substantial amount in interest expense over the life of your loan.

3. Refinance your high interest debt with a lower interest personal loan

If you have high interest debt (a car loan you got before you improved your credit score, or a high interest credit card balance, for example), consider paying off that high interest debt as quickly as you possibly can. If you can’t pay with cash, you may be able to take out a personal loan at a lower rate to .

4. Consolidate multiple debts

What if you’re spread thin with too many debts — several credit cards and a couple of medical bills, for example? Trying to pay the minimum amounts on more than a few debts can be frustrating, and it’s easy to miss one and rack up even more in interest expense and penalties.

5. Know when you will pay off your loan

If you’ve been trying to pay off a credit card or similar debt, and your balance doesn’t seem to go down — or it actually goes up — you may do better with the structured loan payment plan a personal loan can offer. With a fixed rate and loan term, your monthly payments will be predictable compared to the payments on a variable rate debt.

6. Borrow money without risking your assets

Not all personal loans are unsecured, but many are. You may prefer to take out a loan that is not attached to your house, car, or other assets. In addition, using your house as collateral is less attractive under the new tax law — starting in 2018, you can no longer deduct interest expenses on a HELOC as home mortgage expense unless you used the proceeds to buy, build, or substantially improve your home.

 

PERSONAL LOAN ELIGIBILITY CRITERIA

Banks give personal loan to individual, self-employed professionals and non-professionals,   Different banks have different criteria for giving personal loan. Following are the most commonly used criteria by banks for individuals

Minimum age: – 21 years

Maximum age: – 60 years

Minimum monthly income: – Rs 15,000 (banks may have a higher minimum income requirement)

Total years of job: – at least 2 years

Year of current residence: – 1 year