IIFL Personal Loan


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
Documentation charges
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%
IDFC 11.50% 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.

IIFL Holdings Limited is a reputable financial services company which also offers several loan products including a convenient personal loan. A personal loan is an easy way for a borrower to get money without having to deposit any collateral. Because there is no security provided or any guarantor involved, therefore the rate of interest is slightly higher than other loans. But IIFL makes up for this by ensuring that the loan is approved and disbursed in a very short time.

Features of IIFL Personal Loan

  • The application process is made very convenient because borrowers can apply online.
  • The approval for the loan is given very promptly if eligibility criteria are met and documents are submitted in entirety.
  • One of the reasons for quick approval is that eKYC and eSignature can be availed of to expedite the validation of documents.
  • Up to Rs. 25 lakhs can be applied for in an IIFL personal loan.
  • Disbursal is often provided in just 8 hours after approval, under the Express Disbursal scheme.

IIFL Personal Loan Eligibility

The applicant for an IIFL personal loan needs to be between 25 and 60 years of age, and must be a salaried individual. There is a vintage criteria for the company where the salaried person is working. He should have been employed there for at least 6 months, and the applicant should have a work experience of at least 2 years. After deducting the prior financial commitments like insurance premiums or EMIs of earlier loans, the net monthly income of an applicant should be at least Rs. 35000 for him to be eligible for an IIFL personal loan. IIFL provides personal loans only to residents of four major cities in India – Delhi (NCR), Bengaluru, Pune and Mumbai. At a broad level, IIFL approval for a personal loan revolves around present monthly income, present financial liabilities and tenure of work with present employer.

Documentation

IIFL has put in place an eKYC mode of verification, for which the list of documents required becomes greatly reduced. If the applicant has already had the eKYC done, then only the Aadhaar number needs to be submitted to IIFL, but address proof and ID proof would not need to be submitted again. In that case only the income declarations and verifications would be needed. This would be done with the help of current monthly salary slips (of last three months) along with Form 16. This could also be accompanied by ITR (income tax returns) of last two years, if IIFL wants to collect them. Additionally, bank statements of the salary account are also requested for sometimes.

Interest Rates and Other Charges

IIFL is very popular because of its attractive interest rates for personal loans. It has one of the best interest rates for corporate employees. The other good thing is that everything about the interest rates and the other charges taken from the borrower are very transparent and clear, meaning there are no hidden charges. The interest rate would vary from 13.5% and 18% per annum.

In case you wish to have an exact idea of the monthly EMIs you need to pay for a certain loan amount, then you can use the EMI Calculator. The loan amount, tenure and other basic details of the borrower are to be submitted, and you get the EMI amount, which will help you to understand your monthly commitment required. Before the loan is sanctioned, you would also need to pay 2% processing fee of the loan amount.

There are no foreclosure charges to be paid if the loan is foreclosed at least 12 months after the disbursement of loan. IIFL doesn’t charge anything for several services which are chargeable with other lenders, like inspection charges, documentation charges, stamp duty charges etc. But you would need to pay Rs. 500 plus GST for cheque dishonor, NOC, ECS dishonor, duplicate schedule of repayment, duplicate statement etc.

IIFL Personal Loan FAQ’s

  • After taking a personal loan, I realize that some more funds would be needed. What can I do?
  • You have the option of taking a top up loan over and above the earlier loan. The earlier loan needs to have been in force for a certain number of months before an additional loan can be sanctioned.
  • What is the difference between a guarantor and a co-applicant?
  • A guarantor is someone who guarantees that the loan will be repaid on time, and in case the borrower fails to make good the EMIs, then the guarantor will submit the remaining outstanding. A co-applicant is someone who is the co-owner of the loan and can use the loan and also is responsible for repayment. The co-applicant’s income would also be considered while deciding the loan amount.
  • What should I do in advance for enrolling in the eKYC system?
  • The eKYC is a system of one time online verification of the identity and address proof. The basis for this is the Aadhaar Card of the applicant, to which the other identity proofs like PAN Card, telephone number, voter ID card etc. are linked. Once you have submitted your eKYC details, then you need not submit your KYC every time you apply for a loan. The OPT would be sent to your linked telephone number.
  • I am not aware of all banking and financial terms, where can I get help and advice?
  • You can take the help of OneFinance, who have years of experience in the BFSI sector. They have tie ups with almost all banks and NBFCs in India, and have a team of experienced professional experts and dedicated field staff. They will become your trusted partner in your attempt to take an IIFL personal loan. You will not need to visit any of the branches of IIFL. Our dedicated loan manager will visit you to understand your background and based on that he will suggest the correct loan amount for your needs. He will also help you with the documentation, and follow up with IIFL in case there are any gaps in the process. This will make the whole process easier.

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