Personal Loan in India at Lowest Interest Rates - Compare & Apply Online
August 2017 deals for Unsecured Personal Loan online from Rs 50,000 to Rs 40 lakhs with interest rates starting from 11.49% given by the major banks and financial institutions according to your profile. Apply for an Online Personal Loan now.
Personal loans are unsecured loans, disbursed by most banks and NBFCs where the loan quantum could vary from Rs. 50,000 to Rs. 40,00,000. These are unsecured loans which mean you need not mortgage anything or even keep any asset as a security with the Bank. There are multiple reasons for which a personal loan is taken such as weddings, medical emergency, travel, home renovation, balance transfer, debt consolidation and so on. Read more on how to get a personal loan and an instant personal loan online approval.
The basic requirement to get a loan sanctioned is a good credit history and an adequate salary. Other factors like years of employment, company you work for, city you stay in, etc will all determine the important factors like eligible amount, tenure and lowest interest rates for personal loan. Personal Loan Interest Rates vary from around 11.49% during offers to 28% across different banks and NBFCs. To be able to offer the best deal for personal loan in your city, most banks require you to be at least 21 years with over a year of work experience. Personal loans are usually repaid monthly over a pre-decided tenure. While most banks charge you a pre-closure charge of 4% - 5% of the outstanding loan amount, some of the banks give you the flexibility to pre-close the loan without any additional charges.
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
Compare now to check the best interest rates online for your personal loan requirement
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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 rates are approximate only. Final rates will vary based on your monthly takehome salary, your current experience, your credit history and more parameters etc.
You can check our Flat Rate vs Reducing Balance Interest Rate Calculator below for more details.
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Customer Stories
Here are some stories of our customers with insights to help you make better financial decisions,
Karthik, the customer with a recent job and living alone!
When you work in the financial industry, everyday is an eye opener and a learning experience. You would think that having a salary upwards of 1lakh/month will be enough to get you a personal loan but this is not always the case. Banks/NBFCs have different criteria apart from salary and this was demonstrated in a recent case we encountered. This case study is for educational purposes only so we will not reveal the names of the exact person involved…so lets call him just Mister Karthik!!!
So Karthik was looking out for a loan to pay off some credit card debts he had incurred while buying new furniture and fittings which he had bought for his new house. Home renovation loans are quite prevalent in India today which is a better alternative to buying expensive items on a card. Anyway Karthik now wanted to avoid paying high credit card interest and convert it into a personal loan. We managed to put Karthik in touch with one of our partners which is an NBFC. We wanted to get him a Tata Capital personal loan as Karthik also wanted a part-payment facility which was available with Tata. We were confident of this going smoothly as Karthik earned over 1 lakh a month as net take home salary.
The unexpected issue we encountered was something neither us nor Karthik could anticipate. Karthik had his passport as his address proof which he had taken through a tatkal route many years ago. Since it was taken this way, and at that point in time, it did not resemble a normal passport even though it was stamped for travel to a foreign country. This necessitated the credit dept to ask for more documents including proof of work ex for 5 years which the customer did not have. The entire thing went into a tailspin and a case which was clean became complicated.
Cashkumar got all stakeholders on a single line and asked for the problem to be solved. The solution which was arrived at was to let Karthik produce which ever documents possible that were available to prove his work experience. Moreover a letter was to be produced from the HR of his current company that they had vetted him and his profile. Finally we validated that the travel document was genuine and had been stamped by a valid govt authority. This done, finally everything was found to be in place and then the loan was disbursed. Thankfully everything could be arranged to get Karthik a loan who left a happy customer pleased with Tata Capital for finding a solution.
Raghu, the highly leveraged customer
Raghu (name changed) was working with IBM for over 4 years. He had taken a loan back in 2014 where the interest rate for the personal loan was 13%. Due to a medical emergency in the family, he was looking for an additional personal loan at a better interest rate and also an option to move the existing loan to the new bank. Raghu tried in a couple of places for this loan but was declined due to the current high obligation; no bank was willing to give him a larger loan amount. A small loan would not help him meet the medical need at hand. This is when Raghu approached us for help.
We mapped his eligibility to a couple of banks where he had not approached before and spoke to the respective bank teams about the case. ICICI Bank was offering a personal loan at an interest rate of 11.49% in case of a balance transfer from another bank. However, ICICI too had a constraint on the loan amount that they would disburse. This is when we got into the fray and spoke to the credit and the sales team to understand alternatives to help Raghu. We proposed to get his wife in as a co-applicant but the challenge there was that she was already running a home loan as a co-applicant with her mother. The bank was not comfortable with this. We took this up to understand the repayment schedule and found that her mother was paying the full EMI for the home loan. This is when we approached ICICI Bank again asking them to reconsider the case since the entire home loan EMI was paid by Raghu’s mother-in-law. ICICI bank reconsidered the case and gave an approval for 18 lakhs including a balance transfer of the previous loan. This is how Raghu got a personal loan at a great interest rate in quick time.
Vinay, the guy who got the lowest interest rates for his personal loan
Have you ever wondered if the loan you get is at the best interest rate? This is what most of our customers wonder when they talk to us. So how do we ensure the best interest rates? Pretty simple, we work with most of the lending institutions to ensure that a customer gets the best interest rate for every personal loan that we disburse. We also ensure some aggressive interest rates for personal loans taken via the p2p lending network. So let us highlight a case of a customer who had an offer at 14% from a Bank and approached us post that. Let us call this customer Vinay. He had got a call from an offline bank agent who had proposed a loan from Bank A. The agent got a higher commission payout from Bank A and hence was pushing Vinay to take a loan from there. In fact, the agent insisted on the documents being processed immediately as the offer was for a limited time. The customer succumbed to the same and gave the documents. Fortunately, the customer got this hunch to check if there were better interest rates for his personal loan requirement.
That is when he applied on Cashkumar where the team got in touch with him in less than a few minutes of applying online. In course of the discussion, the team understood that Vinay had already applied to Bank A but could get a far better deal from HDFC bank as there was an offer on personal loan interest rates for the customer. We quickly got the HDFC team to pick up the documents and process the same. The loan was disbursed in 4 days of applying. The irony was the customer saved 1.5% interest and also got a loan much quicker than Bank A. While Bank A is a very reputed bank and offers good personal loan interest rates, in Vinay’s case HDFC bank was the clear winner. So please do always validate the best interest rates for personal loans with our team.
Suven, the customer who asked "Kithna deti hai!"
Do you guys remember that advertisement for a car which goes "Kithna deti hai" where an engineer is highlighting the amazing features of a space shuttle but the customer wants to know much mileage does the rocket give indicating the pragmatism of all Indians. This is the case in most of our purchases including a case where one wants to take a personal loan where interest rates are for us most important. This made it very evident that one inherent need of every individual is to get the maximum from each transaction. Let us tell you a case of Suven (name changed) who was working at CTS and had a need for a personal loan. He had approached the bank where he had a salary account and got an offer of a personal loan at an interest of 12.5%. He had decided to go ahead with this bank but this is when one of his friend's told Suven to check Cashkumar. On applying with us, he got an offer of 12.5% itself from Standard Chartered Bank. He did not seem keen on taking this as he already was getting the same interest rate for his personal loan. We had a quick chat with Standard Chartered bank and got the processing fee down to 0.5% and also gave him a zero pre-closure option after 12 months. The customer was very happy with this and grabbed this offer. In this case, the customer did not look at the fine print where he had the best personal loan interest rate offer but the processing fee and pre-closure options were not exciting. We are glad we could help Suven get a great deal.
Dhiren Makhija
Co-Founder, Cashkumar
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 http://emicalculator.io
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.
