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.
HDFC 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 loan 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. HDFC Bank offers personal loans which need minimal documentation and have a fast approval time, with complete transparency during the approval process.
You can apply for an HDFC Bank personal loan if you are a salaried individual or you are self-employed. There is guarantor required for taking an HDFC Bank personal loan. The purpose for which you use the funds could be a wedding, a vacation, sudden medical expenses, home renovation or any other sudden requirement. The eligibility does not depend on the end use of the funds. The minimum age for availing of this loan is 21 years, but the maximum age for a salaried individual is 60 years, compared to a maximum age of 65 years for a self-employed person. For personal loan the monthly income should be at least Rs. 15000, and you should be able to document this income with a salary slip or an income tax return. The income level will be used to calculate your ratio of fixed obligations (household expenses, existing loans, insurance premiums and other fixed financial commitments) and your income. Similarly, for a self-employed person, the bank will assess your monthly income against your fixed monthly expenses like office rent/lease, running expenses, employee salaries etc. Finally, your credit history must be good, and the bank would check your CIBIL score.
At a high level, the documents required for an HDFC Bank personal loan are the KYC documents and income documents. KYC documents consist of identity proof, address proof and photographs. PAN Card, Aadhaar Card, Driving License, passport or Voter ID Card can be submitted as proof of identity, while the address proof could be your passport, driving license, rental agreement, telephone or utility bill or your ration card. For income proof, you can submit your salary certificate or your income tax return, along with latest Form 16.
The interest rate charged for your loan would determine the monthly repayment amount (EMI) for you. The attractive interest rates of HDFC personal loans are one of the big reasons for their popularity. At present, HDFC Bank personal loan interest rates start from 10.99% on monthly reducing balance basis. This rate is offered for both salaries as well as self-employed individuals. This rate could go up based on some additional factors. The ratio of expense and income is one important factor in determining interest rates. The stability of your job or the tenure of the business you are running would also influence the interest rate charged to you. The longer tenure of loan you take, the lower your interest rate can be expected to be. The maximum interest rate is 21.25%. Apart from the interest rate, a one-time processing fee of 2.5% is also charged. Additionally, another kind of charge you need to pay is if you plan to prepay some part of your loan or if you want to close your loan earlier than the tenure that was approved.
One of the strengths of HDFC Bank is the quick turnaround of HDFC personal loan application. The loan would be approved within a maximum of 48 hours after application with all necessary documents. The approved loan amount would be disbursed within 7 working days. If you already have an HDFC Bank account which has substantial balance and regular transactions, then you could be offered pre-approved personal loans, which would be disbursed instantly as soon as you submit the application along with documents. Similar facilities are offered to salary account holders.
HDFC Bank offers the convenience of letting you calculate your monthly EMI commitment. You will find this on the website of the bank. You need to key in your basic details into the EMI calculator, like your income, your loan amount requirement, and the tenure for which you propose to take the loan. The calculator will let you know the monthly repayment amount. The EMI Calculator can also be used for getting a quote in case you have an existing personal loan and want to transfer it to HDFC Bank. The calculator does not take into account the flat processing fee that needs to be paid.
We have a tie up with HDFC Bank for all their loan offerings. When you log on to our website, we will ask for your requirements and your basic details, after which a dedicated loan manager will be allocated to you who will help you complete all documentation and also coordinate with HDFC Bank. We will guide you regarding the best tenure and loan amount that can get you the optimal interest rate and lowest EMI. In case there is a gap in your documentation or your credit rating, our representative will help you overcome them quickly. All your queries will be patiently and comprehensively answered, without you having to visit HDFC Bank.