Can i get a Personal Loan from any Bank?

Personal loans are a great way to get the finances you need, without having to go through a bank. While banks might be your first thought when it comes to getting a loan, there are other lenders out there that can offer you a similar product.

Personal Loan Options

Whether you need funds for an immediate need or for a limited period, a personal loan is the perfect option. It can be used in every way. The lender approves the loan basis on which the applicant ‘s information such as age, wages, current liabilities and credit score, among other items, is given as an unsecured loan. Unlike a secured loan, such as the gold loan, securities loan or land loan, no time is spent reviewing the collateral. Depending on end-use, there could be various forms or styles of personal loans. Nevertheless, a personal loan is usually only of one form and can be used for any sort of necessity.

A personal loan is an unsecured loan with no end-use limitation. The loan can either be used for consumption or for production. For example, you that bought a loan for purchasing a high-end home theater system, a medical emergency if your health insurance is short, a foreign vacation with your family, etc. If you are a businessman, a personal loan can help expand your business, such as adding more inventory or making down payment for new offices, etc.

Personal Loan Features

No collateral / security Required

No collateral for a personal loan is needed, such as the house or the vehicle. The loan will only be accepted based on your creditworthiness depending on your credit score, wages, payment history, credibility of your employer, etc.

Versatile end use

Personal loans can, unlike a car loan or a home loan, be used for various purposes, such as medical emergency expenditure, travel, house renovation, debt reduction and more.

Flexible tenure

Personal loans usually range from 12 to 60 months and have flexible tenure.

Minimal paperwork

You can apply for a personal loan with minimum of documents online and even offline. Key documents which the lender usually requires to provide the applicant include identity certificates, proof of address and proof of income.

Fast Disbursal

Personal loans can be issued within a few hours after the request is accepted. Turnaround times can also be as low as a couple of minutes if a pre-approved loan offer can be used.

Flexible Loan Amount

The qualifying personal loan is dependent on the repayment history, the monthly income, the age, profession, credibility of an employer and other factors. Lenders sell personal loans as small as Rs 10,00,00 to Rs 60 lakh.

Personal Loan Interest rate

Bank Personal Loan Interest Rates Processing Fee
SBI Personal Loan 11.30% 1.00%
HDFC Bank Personal Loan 10.75% Upto 2.50% Min Rs. 1,999
ICICI Bank Personal Loan 11.25% Upto 2.25% of Loan Amount
Bajaj Finserv 12.99% Starting from 1.50%, Up to 3%
Citibank 10.50% Upto 0.5%
IDFC First Bank 10.75% Upto 1.5%
Axis Bank 10.99% Upto 1.75%
Tata Capital 10.99% Upto 2.50% of Loan Amount
Fullerton India 11.99% 2%
IndusInd Bank 11.00% Min 0.75% to Max 1.75%
Kotak Bank 10.75% Upto 2.5%
RBL Bank 13.99% Upto 2%
IIFL 12.99% 1 – 2%
HDB Financial 13.99% Upto 2% of Loan Amount
Andhra Bank 11.55% Case to Case
Yes Bank 10.99% Starting at 0.99%, Upto 2%
Muthoot 14.00% 2.5-3.5%
Standard Chartered Bank 10.99% 1.00%
Bank of Baroda 10.50% 2%, Min Rs. 250
Union Bank of India 11.00% 0.5%, Min Rs. 500
Canara Bank 13.00% 0.50%
Bank of Maharashtra 10.85% 1.00%, Min Rs. 1,000
IDBI Bank 12.00% 1.00%
Allahabad Bank 12.15% 1.06%, Min Rs. 1068
Federal Bank 11.49% 0.5%, Min Rs. 500
Karur Vysya Bank 12.00% 0.40%
Syndicate Bank 13.40% 0.5%, Min Rs. 500
Corporation Bank 12.95% 1.5%, Min Rs. 500
PNB 11.50% 1.8% + Taxes
Indian Overseas Bank 11.50% Rs. 204 Per Lakh
Indian Bank 11.05% 0.5%, Min Rs. 508

Interest Rate

Personal loans, as unsecured loans, have an interest rate higher than that on secured ‘home and vehicle’ loans. Many leading banks and NBFCs currently sell such loans at interest rates of up to 11.49%. The borrower’s rate, however, is based on key variables, including credit interest, income level, loan amount and term, existing relationship with the borrower (savings accounts, lending or credit cards), etc.

Extra fee payable

Yeah. Yeah. In addition to the interest charged on the principal amount, the application for an individual loan is subject to a non-refundable fee. The lender pays fees, generally 1-2% of the loan amount, for the handling of documents which have to be reviewed as part of the approval process. If you have a long-term relationship with him, the lender will waive this fee.

Interest rates fixed or floating

The EMIs stay set for a fixed rate personal loan. Floating rate means that the EMIs tend to decline as the balance method of estimating interest payments on personal loans has been reduced. According to the new Marginal Cost of Funds Lending Rate rules (MCLR), floating rates will adjust either semi-annually or annually.

Difference between reduction and flat rate

As the name suggests, in the former, the creditor charges interest only on the outstanding loan balance, i.e. the residual balance after the main payment has been reduced. Under the flat rate case, the borrower charges interest during the loan term on the entire loan balance. Therefore, even though the creditor makes daily EMI payments, the interest payable does not decrease.

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