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.
ICICI Bank was one of the first private sector banks to bring a variety of loan products to the doorstep of Indians. Personal loan is one of the most popular products of ICICI Bank. It helps you tide over urgent and unplanned financial requirements like medical emergencies, holidays, additional wedding expenses, additional home renovation expenses etc. With no collateral or guarantor needed, an ICICI Bank personal loan is a convenient, fast and cost effective way to fulfil a financial requirement.
You are eligible for an ICICI Bank personal loan if your age is between 23 and 58 years of age. This is applicable if you are a salaried person. In case you are self-employed, the age at which you are eligible for personal is between 28 and 65 years. For income criteria of eligibility, ICICI Bank has one standard of minimum monthly income of Rs. 17500, but this is higher for certain specific cities.
For cities like Hyderabad, Pune etc., this minimum rises to Rs. 20000, whereas for two cities Mumbai and Delhi, the minimum is Rs. 25000 per month. For self-employed professional (doctor, architect etc.), their latest IT return should show a profit after tax of at least Rs. 2 lakhs. For a self-employed non-professional (businessman etc.) this minimum is at Rs. 1 lakhs. The applicant needs to show a continuity of residence as well as employment/income.
Of all the documents required for proving identity as well as address of an applicant, any one needs to be submitted. An address proof must clearly mention the complete address where the applicant is presently residing. If a bill is being submitted, then it should be less than 3 months old, and for the other documents, the document needs to be still valid (not expired). Passport, driving license, recent utility bill, bank passbook, ration card or rental agreement can be submitted as address proof.
The identity proof should have a clearly visible picture of the applicant along with correctly spelt name. As identity proof, you can submit any one of Driving License, PAN Card, Aadhaar Card, voter id card or passport. Apart from identity and address proofs, two recent passport size photographs also need to be affixed to the application. These three (identity, address, photograph) would take care of the KYC documents. Additionally, the applicant would need to show proof of monthly income.
A salaried individual can cover this requirement by submitting salary slips (latest three), but a self-employed person would need to submit last income tax return, accompanied by the proof of ownership of residence or office, proof of tenure of business and also an address proof for his office.
The interest rates of ICICI Bank personal loans are calculated on monthly reducing balances. At present the rates would range from 11.49% to 18.25%. But you need to remember that the interest rates only impact the monthly repayment amount. But there are a number of additional charges (one time) which would also impact the cost of your loan. Depending on the amount of your loan, you would need to pay a processing charge @ 2.50% of the loan amount. This is the charge which would have to be paid by default. All the other charges are for specific instructions by you, like foreclosure, prepayment, cancellation (of loan application), cheques bounce etc.
ICICI Bank offers three additional products which are very convenient. The first is iLoan, which is an easy way for an applicant to know the status of the loan. It is a mobile application which shows an applicant the last 5 transactions, current due amount, total outstanding amount, periodic loan account statement, repayment schedule and annual certificate of interest paid.
The second product is Flexicash. It is a line of credit that an applicant can use. The difference of Flexicash with a loan is that the entire amount of the line of credit is not disbursed to the applicant at once. It is only approved, and stays available for him to use as and when he needs it. Interest is charged only on the amount actually utilized, till the time it is repaid.
ICICI Bank also has a concept of ATM loans, where the pre-approved amount can be instantly withdrawn at an ATM. The rate of interest on this loan is much higher, but it is appropriate to use when there is an urgency and the money is needed immediately.
An applicant who has an ICICI Bank credit card can get a loan based on good usage of the credit card. A good credit history will ensure that the loan eligibility is increased, and the interest rate charged is lesser. But in general, credit card loans are faster but costlier, and have interest rates higher than usual personal loans.
If you have already taken a home loan from ICICI Bank then you can easily apply for a personal loan top up. The personal loan can be approved for up to the same amount as the home loan, and repayment tenure chosen can be up to 20 years. This loan comes at a much better rate of interest, and therefore charges lesser EMIs every month.
If you wish to apply for an ICICI Bank personal loan, you can use the EMI calculator to quickly find out the financial load that you will need to bear if you take the personal loan from ICICI Bank. The prevailing interest rate is preset into the tool, and you need to put in your loan amount and loan tenure. Usually the EMI would increase for longer tenures, but the EMI calculator provides an idea of the monthly outgo needed.
Based on our tie up with ICICI Bank, we can make your loan application process very smooth. You wouldn’t need to visit the branch at all, and we will help you get your documentation done from the comfort of your home. Our team of experts at One Finance will ensure that you make the correct choice for yourself, and have the most efficient process of loan selection.