Personal Loan in India at Lowest Interest Rates - Compare & Apply Online
November 2018 deals for Unsecured Personal Loan online from Rs 20,000 to Rs 20 lakhs with interest rates starting from 10.99% given by individual lenders, major banks and financial institutions according to your profile. Apply for an Online Personal Loan now.
A personal loan is unsecured credit advanced by institutions and/or individuals without requiring a security or an asset guarantee. The loan is given based on an individual’s credit and financial analysis with expectation of a return within a fixed tenure. While not necessary a personal loan application is qualified for approval based on a variety of purposes including travel, marriage/weddings, medical, home renovation, goods purchases, debt consolidation and others.
The basic requirement to get a loan sanctioned is a good credit history, adequate salary and a balanced bank record. Other factors like years of employment, company you work for, city you stay in, etc will also determine important factors like eligible amount, tenure and interest rate. These interest rates vary from around 10.99% to 28% across different banks and NBFCs. While interest rates for most formal financial institutions are calculated on a reducing balance methodology, other type of loans have a fixed and flat rate based on the amount and tenure.
Loans are approved in the range of Rs. 20,000 to Rs. 20,00,000 depending on the type of requirement and eligibility. To be eligible for a loan, a person must be of 21 years age and have a stable source of income. Financial institutions provide loans to salaried professionals, businessmen as well as self-employed professionals.
Basic Documents Required for Personal Loan
- Three passport size photographs
- ID proof – Passport/Voter ID/Aadhar or Drivers Licence
- Residence Proof – Passport/ Landline Bill/ Post-paid Mobile Bill/ Rental agreement or Bank Statement
- Pan Card copy
- Age Proof – Passport/ Drivers Licence/ School Certificate or Pan Card copy
- Income Proof - Latest 3 months salary slips
- Banking Statement - 6 months bank statements
- Job Stability & Continuity – Offer Letter, Relieving Letter and Form 16
Basic Eligibility Criteria for Personal Loans
- Age of the applicant should be between 21-60 Years
- Salaried individual with minimum income of Rs 15,000. Salary bracket would again depend on the city you live in and the company you work for. Eg. If you are in a Metro the salary requirement will be higher than non-metro and again if you are working in a top MNC the salary requirement would be lesser than one working with a startup.
- Should be staying in the city for at least 1 Year
- Total work experience should be at least 2 Years
- You would require basic documentation such as your address proof, identity proof, latest bank statements etc
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There are multiple banks which offer a personal loan such as HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, Citibank, RBL Bank and NBFCs such as Bajaj Finserv, Tata Capital, Fullerton and many more which offer personal loans which are all unsecured loans. So if you are wondering how to get a personal loan or are looking for instant personal loan online approval then read more and either call us or leave your details using our simple form.
Also the interest rates for your Personal Loan depends on a lot of factors according to your profile. They vary from your salary to your credit history and includes many other important parameters.
Personal Loan Interest Rates Explained
Personal loan interest rates is one of the first parameters that one considers along with other value adds like pre-closure options, part payments etc. Interest rates are the rate at which the bank is willing to lend money to you which in turn is their source of income. Let us have a basic understanding of how personal loan interest rates are calculated.
The Bank has deposits from customers like you in the form of Fixed Deposits, balance in the savings account and so on. The bank has a certain payout for these deposits. This payout is considered as the cost of capital for the banks and they lend at an interest higher than their cost of capital accounting for the risk involved with the customer who they are lending to.
To elaborate this further with numbers, consider a bank giving you 8% for the fixed deposit that you have with them. The bank would ideally like to make an addition of 6% to 8% on this fixed deposit. Having an interest rate of 16% for all customers again is not justified as the bank is not accounting for the company where the borrower is working, the borrower's salary, their past credit history and so on. Therefore the interest rates for personal loan vary based on multiple criteria and different categories.
To take this further, different banks have interest rate offers for different profiles. Personal loan interest rates are usually fixed for a tenure which varies from 1 year to 5 years. Also, the interest is calculated on the principal outstanding and not the on the initial loan amount. This form of interest rate is termed as fixed and reducing. Different banks have offers on a monthly basis to attract the cream of customers. This could be as offer for companies, for loan amount taken, for a certain salary or even for a transfer of a loan from one bank to another.
Personal Loans Interest Rates
The above Personal Loan interest rates are approximate only. Final interest rates will vary based on your monthly takehome salary, your current experience, your credit history and more parameters etc.
Some simple tips while applying for a Personal Loan
While personal loans look exciting there are a few points that one should keep in mind before proceeding with one,
Explore multiple options – Do not go ahead with the first personal loan offer that comes your way. Using our platform you can explore different options based on your eligibility which will help you make an informed decision. Apply for personal loan online now.
Do not focus only on the interest rate – While the interest rate is important please do note the processing fee as well as the pre-closure charges that would be applicable with each transaction. In case you propose to pre-close your loan, choosing a bank which has no pre-closure charges would make more sense even though the interest rate might be a little higher. Currently Axis Bank does not have any pre-closure charges, provided the loan has been serviced for a certain tenure.
Do not hide key information, as the banks will find out and that would result in a lot of mental trauma as well as financial overheads.
Do not borrow personal loan for investments as this could backfire.
Calculate your repayment potential before taking a loan. Though you might be eligible for a higher loan amount but you are not sure if you could pay the existing projected EMI’s please reconsider taking a smaller amount. A default or delayed EMI payment could result in effecting your CIBIL Score which will hamper the possibility of you getting loans in the future. You can always check on the EMI’s that you would pay using our EMI calculator. You will also find a lot of information on EMI at https://cashkumar.com/flat-interest-rate-vs-reducing-balance-interest-rate-calculator
There are multiple signatures that you would need to sign on the Bank agreement. Please ensure that you read all the Terms & Conditions before signing the document. In case of any queries, please do the check with the bank officials who would be more than happy to help you.
The final and most important suggestion is not to approach and apply for a loan with multiple banks/NBFCs. If your applications are rejected, it could affect your credit rating in a major way. Instead, visit an aggregator site like Cashkumar and we can suggest which banks/NBFCs will accept or reject your application and also the best options among them. It will save you credibility, physical trouble and mental distress along with providing you the best deal available.
We also help you get personal loans in India from private finance through the vast network of lenders that have been aggregated on this platform. So whatever your need whether it be to check the best personal loan companies in India or get in touch with personal loan lenders in India of the individual capacity, we will be able to help you with the request. It is also prudent as a loan seeker to be cautious of personal loan agents in India or any other city. While most are honest and try to get you a loan, they might not be able to compare and get you the best deal at all times. Also when you search for personal loan agents Bengaluru, you might not get in touch with the best of them.
Cashkumar is a platform which helps you get in touch with every kind of lender on a single platform without the hassle of contacting and going through an agent. What is more is that our services of free of charge and you do not have to pay us anything in terms of a fee or a percentage. So for all your needs and requirements and to get a good deal for a personal loan in India, contact us through our site of call us on the numbers provided. We will help fulfil your requirement whether through a bank, NBFC, peer-to peer lending, private lenders or private loan companies in India.