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.
Bangalore, a city that was a retired pensioner’s haven two decades back, has transformed itself into India’s IT hub with residents from all over the country and also outside the country. Because of the huge number of professionals working here, Bangalore has seen a tremendous surge in the demand for banking products including loans that can help its residents maintain their lifestyle. The most popular loan product is the personal loan which is an unsecured loan for which the applicant doesn’t need to provide the details of end-use of the funds.
Bangalore has a large number of companies which have many employees, but the banks here offer personal loans for both salaried as well as self-employed applicants. Depending on factors like the repayment history of earlier loans, the credit score, and the tenure of the loan, the applicant can get favorable interest rates for their personal loans.
Most corporates have tie ups with banks so that their employees in Bangalore can get pre-approved personal loans. In order to increase the base of target applicants for their personal loans, most banks have now designed personal loan products for segments like employees with low salaries or low credit scores. Even if some employees of smaller companies get their salary by cash, the banks would take an undertaking from the employer and process the personal loan application.
|Age||21 - 60 years||25 - 65 years|
|Salary/Turnover||15,000/month||Rs. 15 lac Turnover|
|Job Experience/ Business Sability||2 Years||At least 5 years for individual and 3 years for doctors|
|Experience in current organisation||At least 6 months||-|
|Years in current residence||1 Year||1 Year|
|Loan amount||Rs 50,000 - 15,00,000||Rs 50,000 - 15,00,000|
|S.no||Bank Name||Interest rates|
|1||Axis Bank Personal loan||15.5%-24%|
|2||Bajaj Finance Personal Loan||12.99% onwards|
|3||Citi Bank Personal loan||10.99% to 16.49%|
|4||Fullerton India Personal loan||12.49% to 33%|
|5||HDFC Bank Personal loan||10.99% to 21.25%|
|6||ICICI Bank Personal loan||11.49% to 18.25%|
|7||India Infoline Finance Ltd||13.49% to 19.99%|
|8||Kotak Mahindra Personal Loan||10.99 to 17.99%|
|9||Standard Chartered Bank Personal loan||10.99% to 14.49%|
|10||State Bank of India Personal loan||11.75% -14.75%|
|11||Tata Capital Personal loan||11.50% to 17.25%|
|12||Yes Bank Personal loan||10.75% - 20.00%|
Bangalore has several redeeming features, but its horrendous traffic is one of its few negative points. For someone looking for a personal loan, making countless trips to several banks to understand their offerings and also complete the application formalities can be a back breaking task. One Finance allows you to do all of it without having to leave the comfort of your home. Our representative will take care of all your questions and ensure that you are able to choose the best product offering that suits your situation the best.
Most banks allow their borrowers to both repay parts of their loan amount earlier than scheduled, or even to repay the complete loan before the tenure gets over. But for both part prepayment as well as full foreclosure the borrower would need to pay the necessary charges as laid down by the bank.
Personal loans are unsecured loans, therefore no collateral would be required.