Usually banks look for a good repayment capacity while providing a personal loan. This could be judged by the bank by taking cognizance of regular income and age of the applicant. The eligible age and the monthly / annual income would also depend on the type of income that the applicant gets – from a job which provides a salary or from a business that a self-employed applicant runs.
If you are salaried, then your age should be between 23 and 58 years, whereas the eligible slab for self-employed persons is between 28 and 65 years of age. The monthly income for salaried people should be Rs. 17000 per month, and higher for people living in metro cities. Since self-employed people have a variable income every month, their turnover should be at least Rs. 40 lakhs per year, and if they are self-employed professionals like doctors or architects, then the minimum eligibility of annual turnover is Rs.15 lakhs. An important parameter for personal eligibility is the CIBIL score, and banks look at a score above 750 to be a par score for a personal loan. Depending on age and income, a personal loan could be for any amount between Rs. 75000 and Rs. 20 lakhs for salaried persons, with self-employed persons being eligible for loans up to Rs. 15 lakhs.
|Providers||Interest Rate||Processing Fee|
|SBI||12.55%-17.65%||1%-3% of the loan amount + applicable Service Tax|
|Axis Bank||11.25%-24%||1.50%-2.00% of the loan amount + Service Tax, as applicable|
|ICICI Bank||11.29%-22.00%||Upto 2.50% of the loan amount + Service Tax, as applicable|
|Tata Capital Bank||11.99%||Starts at 999/-|
|PNB Bank||3.10%-6.10% + MCLR||Upfront fees: 1.80%+ST+Edu Cess|
|Upto Rs. 2 lac: Rs.270+ ST & Edu.Cess|
|Over Rs.2 lac: Rs.450+ST & Edu.Cess|
|For Defence Personnel: Only Upfront fee / No documentation charges.|
|Bajaj Finserv Bank||14.75%||2.25%-3% of the loan amount|
|Fullerton Bank||14%||Upto 6.5% of the loan amount|
|IndusInd Bank||Starting at 11.49%||Upto 2.5% of the loan amount|
|Standard Chartered Bank||Starting at 11.25%||Upto 2.25% of the loan amount|
|Citi Bank||10.99% to 17.99%||0.50% to 3%|
|HDFC Bank||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 Bank||Starting at 11.29%||Upto 2% + ST + Other levies|
|HSBC||11.99%||Upto 2.5% of the disbursed loan.|
|Bank of Baroda||11.35% to 14.35%||Rs.1,000 to Rs.10,000|
|Corporation Bank||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||14.40%||0.50% of the loan amount, Minimum of Rs. 500 plus service tax|
|Bank of India||12% to 14.5%||Rs. 1,000 to 10,000 + S.T.|
|Allahabad Bank||13.10%||1.22% (min. 1228)|
|Canara Bank||12.75% (Floating)||Rs. 1,000 to 5,000|
|IDBI||12.45% (3 months MCLR + 3.90%)||1% plus service tax|
|Bank of Maharashtra||12.75%||1.00% of the Loan Amount (Min.:Rs.1000/-)|
|Andhra Bank||13.05% to 14.30%||Nominal|
|Yes Bank||11.49%||upto 2%|
|Syndicate Bank||14.20% p.a.||0.5% with a minimum of Rs.500 + Service Tax|
|Vijaya Bank||12.5% to 13.5%||0.25% of the loan amount, Max Rs. 10000 plus service tax|
|Indian Bank||12.65% to 13.65%||Rs. 508 to 0.508%|
|Federal Bank||17.25%-35%||Upto 6.5% of the loan amount|
|Capital First||12%||upto 1.5%|
What Is A Personal Loan?
A personal loan is a simple and effective way to tide over a requirement of funds. Unlike other loans which are provided for a specific purpose, the lender of a personal does not ask you for the purpose of the money. The loan, which is unsecured (meaning it doesn’t need any collateral), depends on your credit history and repayment capacity, and its approval or approved amount doesn’t depend on what you will use it for. The approved loan amount is credited to your bank account in total, and the repayment, which begins from the next month, is of a fixed monthly amount called EMI. The two things which would affect the EMI would be the tenure of your loan (which usually is from one to five years), and the personal loan rate of interest you are charged. Whether you are salaried or self-employed, banks have personal loan products designed for you. Students, NRIs, pensioners, and senior citizens can also apply for personal loans, and each of these segments would have different eligibility criteria.
When Would You Need A Personal Loan?
There are several situations in which you could need a personal loan. There might be an impending marriage in the family, a medical emergency could have arisen, there could be substantial college tuition fees to be paid, or you might even be planning to go on a long vacation. Instead of coughing up money for all such expenses at once, you could go for a personal loan and repay over the next several months.
What Are The Pros and Cons Of A Personal Loan?
The biggest advantage of a personal loan is that there is no security involved, which also results in the approval process being much faster. It is a much better (read cheaper) option than taking an advance on your credit card, and if used for the purpose of home renovation, it can also offer you tax deductions for the interest repayment. On the flip side, the personal loan is unsecured and hence carries a much higher rate of interest than car or home loans.
What Are The Things To Consider While Selecting A Personal Loan?
The documentation required for a personal loan is not too detailed, and the approval process too takes a few days only. What you should rather spend time on is in comparing the various rates of interest, the amount you are eligible for, and the other charges that will be levied at the time of application or prepayment (foreclosing the loan earlier than its tenure).
How Can One Finance Help You?
What you need is an experienced and unbiased advisor who can help you with the correct selection of lender and also help with the actual application process when you are not sure how to apply for a personal loan. We will fulfil that role for you end to end, using our deep relationships with all major banks, which gives us visibility to the best personal loan offers. We will help you decide which bank is best for personal loan, we will collect your documents and submit them online or in person, and we will also follow up with the bank. In short, we would be a complete loan consultant to you till the amount is disbursed into your account.
Over the last few years, Axis Bank has grown in popularity and emerged as the bank of choice because it offers the best combination of speed and flexibility of private sector banks and trust and dependability of public sector banks. If you have an urgent and unplanned financial requirement, you can apply for the personal loans of Axis Bank which are convenient and hassle free yet offer the best features compared to competitor banks.
Axis Bank has designed its products in such a way that the interests of both the client as well as the bank are served. Here are a few advantages of going for an Axis Bank personal loan:
The personal loan offered by Axis Bank can be availed of only by a certain category of customers. The applicant must be a salaried individual who is working with a select list of multinational corporations, central government departments or state government departments. The usual category of self-employed individuals like doctors or architects would be eligible only if they are employed on a salaried basis in any of these companies. The applicant needs to be between 21 and 60 years of age to satisfy the eligibility criteria.
Axis Bank also imposes a net income criteria for personal loan applicants. The net income of an applicant is calculated by deducting from his monthly salary all the fixed financial commitments like insurance premium, household expenses, earlier loan EMIs etc. As per the loan eligibility criteria, applicants for Axis Bank personal loan must have a net monthly income of at least Rs. 15000.
The documents required for an Axis Bank personal loan are primarily to determine the identity, address, and age of the applicant, and to assess his creditworthiness and income level. The process starts with the filling up of the application form with all necessary details. For the identity, any document which carries the picture and the name of the applicant clearly can be submitted.
Axis Bank accepts Pan Card, Aadhaar Card, Passport, Driving License or Government ID card (for central and state government employees) as identity proof. Similarly, the residential address of the applicant can be verified with the help of the address proof submitted, like current utility bill, driving license, passport, Aadhaar Card etc. Moving on to the income proof, the bank asks for a salary slip and the latest bank statement. The salary slip would show the monthly income, while the banking statement would show the financial transactions and history of the applicant.
These documents are enough for submitting the loan application. After the loan is actually sanctioned, there are some pre-disbursement documents that need to be submitted before the loan can actually be disbursed.
The confirmation of how the loan would be repaid (by a standing instruction or electronic debit mandate, or with the help of post dated cheques) is to be submitted. In case the applicant is a professional who is working in a corporate for a salary, the proof of registration and enlistment needs to be submitted. Some examples of such professions are engineers, architects, doctors, MBAs, chartered accountants, cost accountants etc.
Axis Bank benchmarks the interest rates of its personal loans against the Marginal Cost of funds based Lending Rate (MCLR). They revise the MCLR every month, and the rate of interest for personal loan (as well as other loan products) are also modified accordingly. The MCLR rates fixed by the bank range from almost 9% for overnight tenure and going up to 95% for a three year tenure. At any point of time, the MCLR linked rate would be conveyed to the applicant by the bank officials. But the applicant also has the option of going for the Benchmark Prime Lending Rate (BPLR).
If you have an existing loan with Axis Bank, you can increase the loan amount of the existing loan or you can take an additional loan and add on the repayment amount of the second loan to the earlier EMI. This option of taking a top up loan is available for clients who have an existing loan, provided they fulfil the following criteria:
Before applying for an Axis Bank personal loan, the applicant can make an assessment of the monthly repayment amount that he would need to commit. The EMI Calculator is available on the website and can be used to get an idea of different EMIs for different loan amounts and tenures.
We will be your trusted partner starting from the time you are trying to shortlist the best banks to apply for personal loans to. Once you have selected Axis Bank, we will allocate a dedicated loan manager to you, who will help you with the application process without you having to go to the bank at all. In case your application gets stuck somewhere due to some reason, we will help you resolve the issue.