Personal Loan

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A personal loan is a non-collateral (unsecured) loan that provides funds to salaried as well as self-employed individuals. A borrower can take this unsecured credit for any unforeseen financial need. In today’s time when everything is digitizing, getting a personal loan is quicker through an online process. Whether you are salaried or self-employed, you can easily avail this loan and get the finances instantly to meet your varied personal needs. When it comes to applying for this loan, you can easily avail it either online or by visiting your nearest branch. However, one of the biggest advantages associated with this unsecured loan is the fact that it does not require any collateral/security. You can get the loan amount instantly at attractive interest rates and flexible tenures. Not only this, in fact, a one-time processing fee is also being charged by the banks while offering you this credit facility. However, one thing that needs to be mentioned here is the fact that post GST availing thisshooting an elephant rhetorical devices loan is going to be slightly costly as 15% service tax is now be replaced with a standard 18% rate. Yes, talking about the GST impact on the same, the charges such as processing fee and prepayment charges would jump a little. Reasons to avail this loan could be:

  • Marriage
  • Child Education
  • Travel
  • Credit Card Debt
  • Medical Expenses
  • Home Renovation, etc

Types of Personal Loan

There are various types of personal loan offered by many lenders. Let’s just take a look at all of them below.

  • Wedding Loan: This loan can also be taken for a marriage/wedding purpose. There are various lenders who offer this loan for an amount of up to ₹20 Lakhs
  • Travel Loan: Looking for funds to meet your travel needs? If yes, look no further as travel loans are here. Availing this loan is absolutely easy as it comes at an attractive interest rate without any collateral.
  • Festival Loan: Now enjoy all the festivals without bothering about the related expenses as there are a plethora of lenders that offer you the festival loans at the lowest interest rates and charges.
  • Home Renovation: Be it internal repairs or external repairs, renovating your home is not a hassle anymore. Go for a home renovation loan, which is being offered by many lenders so that you can easily get the required funds to make your home look beautiful.
  • Consumer Durable: Upgrade your home with the latest household items by availing the consumer durable loan at 0% Interest and minimal documentation.
  • Unsecured Business Loan: Let finance should never be a hurdle in your progress. Go for an unsecured business loan to fulfill your financial desires which comes with no security/collateral.

Why to Choose a Personal Loan?

Collateral Free: Being an unsecured loan it comes easily to you without any hassle. Yes, an individual doesn’t need to give any security or collateral to the bank as far as availing this loan is concerned. Thus, which makes it a hassle-free process.

Instant Approval: When it comes to availing this loan, it would not be wrong to say that lenders usually give the approval instantly as there is not much of a hassle involved in the process. Without much of the legal formalities, you can easily get the approval for this loan.

Minimal Documentation: The documentation process involved in the personal is simple and hassle-free. To avail, this loan minimal documentation is required which you need to submit to the lender.

Attractive Interest Rates: You would be glad to know that this unsecured credit comes to you at an attractive interest rate, which further helps in reducing your EMI and Interest Outgo burden.

Multi-purpose Loan: One of the biggest advantages of this loan is that it can be availed to meet multiple purposes. No matter what personal needs you have, this unsecured loan caters all your needs in the best way.

Top Banks Offering Personal Loan at Lowest Interest Rates 2018

Want to know the personal loan interest rates of top banks in India? If yes, all you need to do is just glance at the table below to know every detail.

Lenders Interest Rate (p.a) Loan Amount (in ₹) EMI per lakh(in ₹) Processing Fees Prepayment Charges
YES Bank Starting at 10.75% Up to ₹20 lakhs 2,162 Upto 2.50% of the loan amount subject to a minimum of ₹999+GST Nil- Upto 4% of the principal outstanding + GST
HDFC Bank 11.25%-21.25% For Salaried-Up to ₹25 lakhs. For Self-employed- Up to ₹15 lakhs 2,187-2,719 0.99%-2.50% of the loan amount (minimum ₹1,999) Nil – Up to 4% of the principal outstanding + GST
Standard Chartered Bank 10.99%-14.49% Up to ₹30 Lakhs 2,174-2,353 ZERO Up to 5% of the principal outstanding + GST
ICICI Bank 10.99%-18.49% Up to ₹40 lakhs 2,174-2,566 Upto 2.25% of loan amount + GST 5% of the principal outstanding + GST
Bajaj Finserv 10.99%-16.00% For Salaried – Up to ₹25 lakhs 2,174-2,432 Up to 3% of the loan amount 4% of the principal outstanding + GST
SBI 10.75%-15.15% Up to ₹15 lakhs 2,162-2,387 Nil – 1% of the loan amount + GST Nil – 3% of the principal outstanding + GST
Kotak Mahindra Bank 10.99%-20.99% Above ₹20 lakhs 2,174-2,705 0.99% to 2.50% of the loan amount+ GST 5% of the principal outstanding + GST
Axis Bank 15.75%-24.00% Up to ₹30 lakhs 2,419-2,877 1.50% to 2.00% + GST NIL
Fullerton India 14.00%-33.00% Up to ₹30 lakhs 2,733-3,777 2.00% of loan amount + GST 0-4% of the principal outstanding
RBL Bank 13.00%-18.00% Up to ₹20 lakhs 2,275-2,539 2.00%-2.5% of the loan amount + GST 3%-5% of the principal outstanding
Induslnd Bank 10.99%-16.00% Up to ₹15 lakhs 2,174-2,432 1.00%-3.00% of the loan amount + GST As applicable by the bank
Tata Capital 10.99%-18.00% Up to ₹25 lakhs 1,903-2,281 ₹999-2.50% of the loan amount + GST 4% of the principal outstanding
DCB Bank 12.00% Up to ₹5 lakhs 2,633 2.00% of loan amount + GST As Applicable by the Bank

**The above EMI calculations are based on a tenure of 5 Years.**

List of Other Banks Offering Personal Loan at Rate of Interest Sep 2018

Banks Interest Rates
Allahabad Bank 8.45%-12.95%
Andhra Bank 11.70%-13.20%
Bandhan Bank 14%-18.75%
Bank of Baroda 11.75%-16.75%
Bank of India 12.00%-14.00%
Bank of Maharashtra 11.75%-12.75%
Canara Bank 10.90%- 15.05%
Central Bank of India 11.25%-12.60%
Citibank 10.99%-18.99%
Corporation Bank 12.85%-13.85%
Dena Bank 13.00%-14.00%
Federal Bank 11.75%-14.65%
HSBC Bank 10.99%-17.50%
IDBI Bank 12%-14%
IDFC Bank 12%-20%
Jammu and Kashmir Bank 12.30%-14.30%
Karnataka Bank 12.70%
Karur Vysya Bank 13.40%-15.90%
Lakshmi Vilas Bank 13.15%
Nainital Bank 11.30%-14.75%
Oriental Bank of Commerce 11.40%
Punjab and Sind Bank 13.45%-13.95%
Punjab National Bank 12%-15%
Syndicate Bank 12.25%-13.50%
UCO Bank 13.35%-12.70%
United Bank of India 13.45%-14.20%
Vijaya Bank 12.55% – 13.55%

Eligibility Criteria

Let’s just understand the concept of personal loan eligibility with an example below.

Suppose, Raman Verma, a 28-year-old Sales Manager by profession wanted to avail a personal loan for a family trip to Singapore. He had applied for a loan, but the lender had rejected his application. Now, this thing came as a surprise to him as he was not expecting the same. On asking the reason, the bank replied that he was not eligible, i.e. he didn’t meet the eligibility criteria/norms set by the bank. That’s Right! Before offering the loan amount to the borrowers,the lenders do check the eligibility and if an applicant does not meet the norms, availing a loan would be difficult for him/her.

Though different lenders have their own eligibility criteria for salaried and self-employed, one should always check the eligibility before applying for a loan. However, for your understanding, we have mentioned below the criteria in general for both salaried and self-employed individuals.

Particulars Salaried Self-employed
Minimum age of the applicant 21 years 24 years
Maximum age of the applicant 58 years 65 years
Minimum work experience 1 year 3 years
Minimum Income ₹ 20,000 (monthly) ₹1 lakh (annual)

Documents Checklist

So, now that you know the significance of eligibility, let’s just move on further and understand another crucial aspect, i.e. documentation. It is one of the common reasons of loan rejection as many people while applying for a loan usually don’t pay much attention to it. Just like Mr.Akash Sharma, who failed to submit one necessary document. And, as a result, his personal loan approval got delayed. The bank asked him to submit a complete set of documents to proceed further with the approval process. So, if you don’t want your application to be rejected or delayed, check out the documents below, which are required to apply for this credit facility.

For Salaried Individuals

  • Loan Application Form
  • 2 Passport size photos
  • Salary Slips for last 3 months
  • Identity Proof PAN Card or Driving License or Voter ID Card or Adhaar Card, etc.
  • Residence Proof (Driving License/Voter ID Card/Adhaar card, etc.)
  • Last 3 months Bank Statements
  • Employment Proof
  • Signature Proof

For Self Employed Individuals

  • Loan Application Form
  • 2 Passport size photos
  • Identity Proof PAN Card or Driving License or Voter ID Card or Adhaar Card, etc.
  • Office Residence Proof
  • Income Proof: Audited financials for the last 2 years
  • Last 6 months Bank Statements
  • Employment Proof
  • Signature Proof

Why choose vidhi financial services to apply for a personal loan?

Want to grab the best deal for a personal loan? Looking for an expert assistance for a hassle-free loan journey? Well, if you are nodding your head in Yes, vidhi financial is the answer to your questions. We provide you an online platform, where you can compare, choose and apply for this credit facility in the simplest manner. Our experts help you at every step, right from comparing the offer of top banks to finally applying for the loan option of your choice. The decision is yours! We just ensure that you grab the best deal online at vidhi financial.