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.
Yes Bank is one the newest private sector banks to have started operations, and in the matter of a few years has managed to carve its own niche in the banking and financial services segment in India. Yes Bank has increased its branch network very quickly over the last few years and is therefore well positioned to service a large customer base. Axis Bank has the complete range of liability (deposit) and asset (loan) products, and one of its most popular offerings is its personal loan. This product enables the applicant to easily tide over any urgent financial requirement which is not covered by the other loans like home loan, commercial loan, loan against property or loan against deposits.
There are five factors that decide the eligibility of an applicant for a Yes Bank personal loan. They are – age, residential stability, income, income stability and work tenure. Let us look at these one by one. The minimum age for applying for a Yes Bank personal loan is 23 years, and the applicant should not be more than 58 years old. The applicant should have been staying at the same address (for which he would provide address proof) for at least two years.
The net monthly income for assessing income eligibility is calculated by subtracting all monthly financial commitments from the monthly income. For Yes Bank personal loan, this net monthly income is benchmarked at Rs. 25000. Not only the income, but also the tenure of the current business or job, which must be at least six months. The overall work experience or tenure of business must be 2 years.
The documents required for a Yes Bank personal loan are the usual set required by all bankers, and are not difficult to fulfil. The first and foremost is the identity proof which can be Aadhaar or Pan Card, or passport / driving license. The document should have the correct spelling of the applicant’s name and a clearly visible picture as well. The next requirement is a proof of the residential address of the applicant. This can be fulfilled by submitting a utility bill, Aadhaar Card or passport.
An applicant also needs to provide a proof his stated age. This could be fulfilled by a PAN Card or passport, both of which provide the address. Yes Bank also asks for a proof of the signature of the applicant. This can be fulfilled by submitting any document which carries a clear and legible signature, so that it can be compared against the signature submitted inside the application form. The financials of the applicant are very important because they determine the loan amount, interest rates and the tenure. The three latest salary slips provide the basic view of the monthly income.
Additionally those three years’ income tax return would also be needed. To get a view of the financial discipline of the applicant, the bank might also ask for six months’ bank statement of their salary account. Apart from these documents, the applicant would also need to submit the fully completed application form, which also need to be accompanied by three latest photographs of the applicant.
The interest rates of Yes Bank are one of the biggest attractions for its loan products. At present, a personal loan would charge interest at around 11.49%, which is much lower than the interest rates of all other banks. Apart from the interest, an applicant would also need to pay some or all of the following charges :
A processing fee of up to 2% of the loan amount sanctioned. This needs to be paid upfront through a separate cheques included in the post-approval documents.
The loan applicant can repay a part of the loan once 6 months of the loan are over. At any stage, an amount of 4% of the outstanding principal amount is charged as prepayment fees. But in case the applicant wants to repay the full outstanding and foreclose the loan, then there is no charge involved.
In case the loan applicant misses out on any monthly repayments, then a late fee is charged @ 24% per annum on the instalment amount which wasn’t paid on time.
Sometimes loan applicants need to produce an NOC (no objection certificate) of their loan. Axis Bank doesn’t charge anything for the NOC, but if another one is needed and a duplicate is issued, then every duplicate issued would cost Rs. 250 to the applicant.
In case a PDC (postdated cheque) or any EMI cheques bounces, a flat fee of Rs. 750 is charged for each bounce.
Sometimes the financial plans of a loan applicant get changed, and he decides not to take the loan even after the loan is sanctioned. If such a cancellation takes place after sanction but before disbursement, then a charge of Rs. 1000 plus accrued interest is levied on the applicant.
In case an applicant needs a statement of the loan, or a duplicate copy of the repayment schedule that was provided at the time of sanction of the loan, then these would be provided by Yes Bank at a charge of Rs. 750 each.
At OneFinance we have a tie up with all branches of Yes Bank, which will ensure that you do not need to visit any Yes Bank when you have applied for a personal loan with them. As soon as our loan manager understands your exact financial situation and goals, he would suggest to you the optimal loan amount and tenure you should opt for.