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.
India has a number of non-banking financial companies (NBFCs) which are the same as banks in the matter of offering loans, but they cannot take term deposits like banks do. Bajaj Finserv is one of the leading NBFCs of the country, and its personal loans have become very popular because of its attractive features. Some of the personal loan variants / products offered by Bajaj Finserv are Flexi, Durable Finance, Lifestyle Finance, Digital Product Finance etc.
The first category is called a flexi personal loan, which is not a loan per se, but a way of repaying an existing personal loan. So it acts more like a line of credit than a term loan, where the borrower can use only the amount he needs, and pay interest on that part which he uses, till the time he repays that part. The next category is the Durable Finance, which can be used by the borrower when he needs to buy a consumer durable product like TV, washing machine, air conditioner, smartphone etc. The next type of personal loan offered by Bajaj Finserv is Lifestyle Finance. This type of personal loan can be utilized by the borrower to indulge in a lifestyle expense like a vacation, a cruise, a vehicle etc. The final category of personal loan available is the Digital Product Finance, which enables the borrower to purchase any digital product like a tablet, a smartphone etc.
There are primarily three eligibility criteria for a Bajaj Finserv personal loan. Only salaried individuals in the age group of 25 to 58 are eligible to apply. There are certain income conditions required, which depend on which city of India the applicant stays in. This minimum monthly income ranges from Rs. 25000 for the smallest cities and goes up to Rs. 40000 for metropolitan cities and a few other cities. The eligibility criteria varies slightly for the other variants of the Bajaj Finserv personal loans.
The documents required for availing a Bajaj Finserv personal loan are quite straightforward. The identity of the applicant must first be established with the help of Aadhaar / PAN / Voter Id Card, or a passport or drivers’ license. As per usual banking norms, the identity proof submitted should have a clear picture of the applicant and also the correct spelling of his name. Next is the address proof, for which a current utility bill can be submitted. The passport and Aadhaar Card can also be submitted as proof of address.
Once these two elements of KYC have been submitted along with two photographs, the other things for which documents are required are proof of income, proof of employment, age proof, signature proof etc. Salaried individuals can provide monthly salary slips, or the ITR (income tax returns) can also be submitted. Any of the identity proofs submitted can also serve as signature proof as well as age proof.
The personal loan of Bajaj Finserv comes to you at attractive interest rates of 12.99% onwards. Bajaj Finserv actually offers the best interest rates for corporate employees. The monthly repayment amount can easily be determined in advance by using the EMI Calculator. Apart from the interest rates, there are some more charges to be paid by the borrowers.
The first is the processing fee which can be up to 3% of the loan amount. In case the borrower has applied for the personal loan online, then an additional Secure Fee is to be paid. This is usually a flat fee of Rs. 999. Part Prepayment would attract charges, and the applicant would also need to pay foreclosure charges to Bajaj Finserv. This is charged at 4% of the outstanding amount, whereas part prepayment is charged at the rate of 2% plus taxes. In each calendar year, a maximum of 6 prepayments are permitted by Bajaj Finserv. Also, the prepayment amount needs to be at least thrice the monthly EMI.
Like the EMI Calculator, there are tools which can help do the calculations for prepayments as well as foreclosures.