Many times there are certain exigencies that require people to spend immediately and they do not want to touch their fixed deposits of already invested amount to cover up such expenses. In such scenarios, an instant personal loan is the best options which take over the immediate expense load from your shoulder and you can repay it in small amounts in the said period.
Some such scenarios which demand a person to take a personal loan are weddings in family, repair of your four-wheeler, a gift to someone, medical conditions that need to be catered immediately, you must send your child for higher education which demands huge cost at once, you want to take your family to that unplanned leave. The best part about personal loans is they have short processing time and can be availed immediately. Moreover, a person can get the amount disbursed into his account within 24 hours in case of personal loan. apply online or just call us using the contact information available on the site.
Purpose of Personal Loan
Personal Loan can be used for the below purposes
- Marriage
- Buy Land
- Settling Debt
- For Higher Studies
- For House Renovation
- For Holidays Abroad
- For General Purpose
Eligibility of Personal Loan
You could be judged for giving personal loans based on two criteria’s that is your profession and source of income. Below are the factors considered while deciding your personal loan eligibility.
A salaried person who has attained the age of twenty-one years and is not more than fifty-eight years old.
employed with a reputed organization in the private or public sector for at least two years regularly with a minimum wage of twenty thousand rupees per month.
A person who is self-employed or a businessman between the age of 25 to 65 years with the regular running business for the past three years in the same place with an earning of at least two lakh rupees a year.
Document required for salaried individual for Personal Loan
Below is the list of documents that are required to submit with your personal loan application form.
- Government approved Identity Proof (PAN Card, Voter’s ID, Passport, Driving License)
- Address Proof (Aadhar Card, Electricity Bill, your Passport)
- Last three months bank statement.
- Last three months Salary slip.
- Passport Size Photo
- Company ID
Document required for a self-employed individual
Below is the list of documents that are required to submit with your personal loan application form.
- Government approved Identity Proof (PAN Card, Voter’s ID, Passport, Driving License)
- Address Proof (Aadhar Card, Electricity Bill, your Passport)
- Last three months bank statement.
- ITR filings for last two years which are certified by a CA..
- Educational documents of highest degree attained.
- Passport Size Photo
Personal Loan limit that one can avail
- Minimum Income – INR 20,000
- Minimum Loan Amount – INR 75,000
- Maximum Loan Amount – INR 15 lacs
- Loan Tenure – 12 to 72 months
- Minimum Income – INR 20,000
- Minimum Loan Amount – INR 300,000
- Maximum Loan Amount – INR 20 lacs
- Loan Tenure – 12 to 48 months
What is the Interest Rate applicable on Personal Loan?
The interest rate applicable to the personal loan varies for different financial institutions from 11.49 percent to 20 percent. The various factors which can affect the interest you need to pay on your personal loan may depend on various factors such as credit score, your standing in your profession or business, the length of your service in your organization, your income and if you still have any other loan.
The EMI to be paid on your loan amount may vary with the interest rate you are paying and the loan amount you have applied for and what is the tenure you have chosen to pay that amount. The personal loan tenure can vary from one year to seven years depending on different criteria’s.
The longer the tenure of your loan, the lesser the EMI you need to pay every month however the lump sum amount may increase slightly depending on the interest rate you are paying for that tenure. The EMI could be sent through auto debit or ECS facility. You may also opt for a postdated cheque payment facility.
Personal Loan Interest Rate comparison
| Private Sector Banks | Public Sector Banks | ||
|---|---|---|---|
| Bank Name | Interest Rates | Bank Name | Interest Rates |
| YES Bank | Starting at 10.75% | Bank of India | 13.45% - 14.20% |
| ICICI Bank | 10.99% - 18.49% | Central Bank of India | 10.85% - 14.35% |
| Axis Bank | 16% - 24.00% | Punjab National Bank | 10.45% - 15.00% |
| HDFC Bank | 11.25% - 21.50% | Syndicate Bank | 12.40% - 13.65% |
| Kotak Mahindra Bank | 10.99% - 20.99% | Vijaya Bank | 12.55% - 13.55% |
How your eligibility for Personal Loan is calculated?
Your eligibility for a personal loan is calculated on your capacity to repay your personal loan. Using a Personal Loan eligibility calculator, one can himself also determine the amount of loan and the period for which one can payout that loan amount to calculate the EMI he would be comfortable to pay.
Longer the tenure, shorter is your EMI. Also under personal loans, you don’t have to give any security to cover your loans, these can be available based on your credit score alone.
Factors that affect the loan amount
- Total Income / Salary
- Source of Income
- Employment History
- Loan Tenure
- Loan Amount Required
FAQs About Personal Loan
What is personal loan rate of interest?
There are many banks which offer different interest rates. We have filtered interest rates of some of the best banks in India.
| Tata Capital | 11.75% to 18% |
| Citibank | 10.99% to 17.99% |
| SBI | 12.75% to 14.75% |
| ICICI Bank | 11.25% to 22.00% |
| HDFC Bank | 11.25% to 21.50% |
| Kotak Mahindra | 11.25% to 19.99% |
| Bank of Maharashtra | 12.70% |
| Dena Bank | 13% to 14% |
| Union Bank | 14.4% |
| Yes Bank | 20% to 22% |
What is Personal Loan EMI
An equated monthly installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. Equated monthly installments are used to pay off your Personal loan each month so that over a specified number of years, the loan is paid off in full.
How to calculate Personal Loan EMI?
The mathematical formula for calculating EMIs is:EMI = [P x R x (1+R)^N]/[(1+R)^N-1], where P stands for the loan amount or principal, R is the interest rate per month [if the interest rate per annum is 11%, then the rate of interest will be 11/(12 x 100)], and N is the number of monthly installments. But you don't need to worry about those calculations, you can calculate your EMI using our EMI Calculator.
What is lowers rate of interest for personal loan?
The lowest rate of interest for a personal loan is 10.99% as of June 2019.
