What is Personal Loan?
A personal loan is purely unsecured, short term cash loan, which means that the individual customer is not required to provide the bank with any security (ex. property, jewels) or any kind of guaranty against the personal loan.
Formally, for any urgent cash requirement we prefer personal loan. It can be taken for any general purposes like education, reconstruction of property / home renovation, a wedding expense, vacation etc. Most of the finance companies or other banks offer Personal Loan up to Rs. 20 lacs for salaried customers. Normally, it can be repaid over a period of 12 months to 60 months. Some of the banks are funding more than that.
The personal loan amount you are eligible for and the personal loan interest rate for you will depend on factors such as monthly income, customers employment history, residence history and past financial credit history along with the pattern. Banks typically have capped the monthly payment (EMI) on your loan to about approximately 50% of your monthly take home income. However a customer cannot take personal loan for any kind of bad investment or expense which is not approved by the banks or by the law.
Personal Loan offers / schemes, lowest interest rates from different financial companies.
We are here to help all our customers to get special offers from all the Banks/ NBFCs for quote on interest rates in many different ways (ex. monthly reducing rate, flat rate). Looking at the interest rate value alone might not give you a true picture of which personal loan quote is the best for you. You must check the EMI. The processing fee should also be considered when comparing loan quotes.
If you are in urgent need of Personal loan, just compare the average time taken by the banks to disburse a personal loan. Get Instant Personal Loan in Pune.
Compare the customer satisfaction ratings of each bank and choose the best, as the application process is different at each bank.
You can take help for comparing the best deal from DealsofLoan team at free of cost.
Personal Loan Interest Rates
Read below comparison sheet for Personal Loan Interest Rates. DealsofLoan has consolidated all the information regarding latest rate of interests at one place. This loan comparison will surely help you to apply for personal loan. Please keep visiting this section to remain updated.
Comparison chart for rate of interests and loan amount.
|Banks/Finance company||Min. Salary Per month in Rs||Rate of Interest Between||Loan Amount Provides Between|
|HDFC BANK||15000||11.49% – 20%||1 Lac – 15 Lac|
|ICICI BANK||17500||11.29% – 19%||1 Lac – 15 Lac|
|Yes BANK||25000||11.49% – 20%||2 Lac – 20 Lac|
|Capital First||20000||12% – 24%||1 Lac – 10 Lac|
|Fullerton India||12000||18% – 40%||25 k – 15 Lac|
|HDB Financial||20000||14% – 21%||1 Lac – 15 Lac|
|Tata Capital||20000||12% – 18%||1 Lac – 15 Lac|
|IIFL||20000||12% – 18%||1 Lac – 15 Lac|
Disclaimer : The interest rates given here are based on the market research. To enable the comparisons, certain set of data has been reorganized / restructured / tabulated. This site does not take any responsibility for any sudden / uninformed changes in interest rates.
1. What are interest rates provided by Banks for Personal Loans in India?
All the banks will have different loan products and according to policy interest rates will vary. Most of banks offer featured Personal Loans with low Interest rates. It also vary depending on each individual’s eligibility criteria. Generally interest rates start at 14% to 28% in yearly reducing rates.
2. How much loan amount can be borrowed in Personal Loan?
Customers can avail personal loan as much as his repaying capacity. Normally all of the banks has some specific loan calculation parameters. As per the parameters, banks calculate one’s loans eligibility. Generally in India banks are trending on EMI of loan. Normally it can go beyond 60% of net take home salary. The personal loan amount you are eligible for is also dependent on some other important factors like the bank wise company category listing for the same bankers and the banking credit history in last few years.
3. Can I have a co-applicant for availing more loan or enhancement of Loan?
Yes, if you require more money from your individual loan eligibility than you have to add co-applicant for enhancement your loan eligibility. But as per the banking laws, for any of unsecured loans the co-applicant can be only be your spouse. It is the most preferable way for all customers. This can help you increase the loan repaying capacity as well the enhance loan amount which you are eligible for as the addition of the income of the co-applicant is also taken into consideration.
4. What is banking credit score?
In India any of customer who has taken any of loans or credit cards from any of reputed financial institute those all customers has provided a unique no and it is called control no. introduced by CIBIL. It is basically a record of your past repayment history of all financial transactions done in past from any of banks of financial company. Also, the score provided by Credit Bureau of India Limited (CIBIL) is the body or institution which provides the credit score of every customer, where all detailed data from all the banks on existing loans and their loans repayment tenure and paying patterns of their customers are accumulated. All the banks do the credit check by pulling the bureau score from CIBIL before approving your loan.
5. How can I compare the best loans offer from multiple banks?
Dealsofloan.com is one of the best portal where you can compare quotes from multiple banks in a single platform with instant access to the best quotes from various loan providers across India.
6. What does foreclosure or prepayments charge mean for any Loans? Does it matter while selecting any of secured or unsecured loans?
Normally bank lend unsecured loan for a limited period time frame to all customers called ad loan tenure. Generally any of secured or unsecured loan tenure can be between 1 to 15 years. eg. Maximum loan provided in personal loan is for 5 years. In case you want to clear the loan payment earlier than the agreed time frame of desired loans, the bank levies a prepayment penalty charge. Any of the bank that are bound by RBI, take charge on loans up to 4% to 6 % of the exact principle outstanding loan amount. It can vary as per the loans features according to the bank and the credit profile of the borrower at the time on pre closure. So whether the customer wants to make profit on interest or want to save interest amount, customer should always compare prepayments charges while getting loan. This is most important factor to keep in mind while comparing loans.
7. What is the difference between a monthly/ yearly fixed interest rate and floating interest rate?
A fixed interest rate remains constant throughout the loan tenure regardless of the market conditions whereas a floating interest rate can decrease or increase depending on market fluctuations. For instance, it increases when RBI hikes up short term interest rates. Banks usually quote the floating rate loans as their index rate (prime lending rate) plus or minus x%. Banks usually increase or decrease their prime lending rate when the RBI increases or decreases short term interest rates.
8. Does DealsofLoan charge me any fee for its services?
Dealsofloan services come to you totally free of charge.
9. Can you ensure the security and privacy of my personal information?
Deals of Loan ensure you that we will never share your data with any third party other than the financial institution that you decide to apply to from the financial products. Our dedication and commitment level is very strong and our company’s technology practices ensure a highly secured environment for all your data.
Personal Loan Eligibility
The personal loan eligibility criteria for salaried employee is as follows.
- Minimum age of Applicant : 21 years
- Maximum age of Applicant at loan maturity : 60 years
- Minimum Net Monthly Income : Rs. 15,000 per month (minimum Rs. 15,000 – Rs. 20,000 in some banks according to their loan eligibility criteria)
Documents Required for Personal Loan
For Salaried Customers
- One valid Identity proof
- Latest six months Bank statements
- Latest Residence proof
- Latest three month Salary slip
- If required guarantors & their same set of documents
For Self Employed Customers
- Three years ITR if more than 5 yrs in same business
- Profit & Loss Account , Balance Sheets & Audit report
- If company is Pvt ltd then MOA
- Shop act / Partnership Deed & other mandatory documents etc.
- KYC of individual / company
- Six month bank statement
Processing Fees and Charges
Normally bankers charge a processing fee of 2% to 3% of the loan amount, which may vary based on credit profile.
If you repay your personal loan earlier than the agreed time frame, also other important part lenders charge with pre-closure or default penalty of about 4% of the pre-closed loan amount.
Minimum of loan seasoning is six month means you cannot foreclose your loan before six month.
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