Personal Loan Interest Rates in India: Get Instant Personal Loan



Personal Loan in India

Personal Loans can be defined as unsecured loans where the bank lends you money if you are creditworthy. No security of any sort is required for the money you borrow from the bank, in this case. But the interest rates of Personal Loans are higher than any other type of loans like education or home loan since there is considerable risk being taken in lending the sum.

This is one of the most applied for forms of loans in India and the amount could be utilized for any of your personal interests like office construction, home renovation, destination wedding and so on. The repayment tenure varies and the money can be used as per your requirement without being informed to the bank.

Personal Loan Interest Rates in India

Serial No. Bank Personal Loan Interest Rates
SBI 10.55%
HDFC Bank 10.75%
ICICI Bank 11.25%
Bajaj Finserv 11.99%
Citibank 10.50%
IDFC First Bank 11.25%
Axis 11.25%
Tata Capital 10.99%
Fullerton India 11.99%
Induslnd Bank 11.00%
Kotak 10.75%
RBL 13.99%
IIFL 12.99%
HDB Financial 13.99%
Andhra Bank 11.55%
Yes Bank 10.99%
Muthoot 14.00%
Standard Chartered Bank 10.99%
Bank of Baroda 11.60%
Union Bank of India 12.70%
Canara Bank 13%
Bank of Maharashtra 15.10%
IDBI Bank 13.20%
Allahabad Bank 12.15%
Federal Bank 11.49%
Karur Vyasa Bank 13.90%
Syndicate Bank 13.40%
Corporation Bank 12.95%
PNB 12.00%
Indian Overseas Bank 12.70%
Indian Bank 11.05%

Top 10 Banks For Personal Loans In India

If you are looking for a personal loan, comparing the options provided by various banks will be useful:

  1. HDFC Personal Loan:

Interest Rate Minimum income Loan Amount Loan Tenure
11.25% INR 15,000 monthly Up to INR 15 lakh 12 to 60 months

 

  1. SBI Personal Loan:
Interest Rate Minimum income Loan Amount Loan Tenure
11.95% to 16.60% p.a. INR 5,000 monthly INR 25,000 to INR 15 lakh Up to 60 months

 

  1. PNB Personal Loan:
Interest Rate Minimum income Loan Amount Loan Tenure
12% to 15% pa Semi-urban or rural centres: Rs.10,000
Urban centres: Rs.12,500
Metro centres: Rs.15,000
Rs.50,000 to Rs.10 lakh or 20 times the monthly net income Up to 60 months

 

  1. Axis Personal Loan:
Interest Rate Minimum income Loan Amount Loan Tenure
15.75% to 24% p.a. INR 15,000 INR 50,000 to INR 15 lakh 12 to 60 months

 

  1. Canara Personal Loan:
Interest Rate Minimum income Loan Amount Loan Tenure
11.00% to 14.15% p.a. INR 12,500 INR 1 lakh to 3 lakh 36 to 60 months

 

  1. Bajaj Finserv Personal Loan:
Interest Rate Minimum income Loan Amount Loan Tenure
12.99% INR 30,000 Up to INR 25 lakh 12 to 60 months

 

  1. Mahindra Finance Personal Loan:
Interest Rate Minimum income Loan Amount Loan Tenure
11.70% NA Up to INR 3 lakh Up to 3 years

 

  1. IDBI Personal Loan :
Interest Rate Minimum income Loan Amount Loan Tenure
10.15% to 12.90% INR 15,000 INR 50,000 to INR 10 lakh 12 to 60 months

 

  1. Allahabad Personal Loan:
Interest Rate Minimum income Loan Amount Loan Tenure
13% INR 15,000 INR 50,000 to 12 lakh or 24 times of current gross monthly salary Up to 60 months

 

  1. Indian Overseas Personal Loan:
Interest Rate Minimum income Loan Amount Loan Tenure
12.75%- 15.25% Above INR 50,000 Up to 5 lakh Up to 60 months

 

 Type and purpose of Personal Loan in India:

Personal Loans can be required for a wide variety of purposes. We have enlisted all the types of personal loans for you:

  • Wedding Loan: Weddings are important but can turn out to be extremely costly in India. Everybody wants their wedding day to be memorable and leave no stone unturned to make that happen. A wedding loan can be taken be bride, groom or any other family member to carry out the wedding expenses at ease.

Key Points:

  1. The loan amount can start from as low as INR 1,000 and go up to INR 25 lakh.
  2. The loan repayment tenure ranges from 3 months to 72 months.
  3. The documentation process is minimal.

 

  • Travel Loan: This has been designed especially for family trips. With a travel loan, you have the privilege of going around the world and paying your bills later. You can also fund expensive family trips with this loan. These also come with travel insurance, so you receive protection at all fronts.

Key Points:

  1. Loan amount can reach up to 40 lakhs.
  2. Loan repayment period is flexible and can stand extended up to 72 months.
  3. Simple and quick documentation procedure.

 

  • Home Renovation Loan: You have the option of giving your house a new look or making necessary repairs with home renovation loans. People often find it tough to make the necessary repairs to their house since the cost is so high.

Key Points:

  1. Loan amount ranges from INR 2 lakhs to INR 40 lakhs.
  2. Loan repayment tenure is lengthy enough, up to 30 years.
  3. Rate of interest is pretty low, about 9% p.a.

 

  • Pension Loan: Such loans are exclusively for retired personals. The eligibility criteria is somewhat different under this scheme. Some banks provide up to 7 to 10 times the pension amount, under this scheme.

Key Points:

  1. Loan amount starts from INR 25,000 and goes as high as INR 14 lakh.
  2. Loan repayment tenure is of 60 months.
  3. The discounted rate of interest is as low as 11.70% p.a.

 

  • Education Loan: You can use an educational loan to meet the tuition fees and other academic requirements of a student.

Key Points:

  1. Loan repayment tenure can be up to 15 years.
  2. Rate of interest starts as low as 9.30% p.a.
  3. Loan amount is of INR 20 lakh.

 

  • Medical Loan: If you don’t have a medical insurance, then, in case of an urgent medical emergency, you can apply for a medical loan. This loan can be of great help in grave medical situations since it has instant approval and low interest rates.

 

  • Consumer Durable Loan: This is the type of loan taken to buy consumer goods, which include television, refrigerators, washing machines and other items. You can receive funds of up to INR 5 lakhs under this scheme.

 

  • Festival Loan: We know how important festivals can be to Indians. Festival loan is a type of loan used to cover all the expenses involved in celebrating a festival. There is a borrowing limit of INR 50,000 usually on such loans.

 

  • Top Up Loan: This is a sum of money you can borrow from the bank, over and above a personal loan you have already taken. This helps in consolidating the repayments for both loans under one EMI.

 

  • Bridge Loan: This is the one you can opt for if you need money for a short tenure. The tenures are 12 months at most and the interest rates are high.

 

  • Agricultural Loan: This is a financial aid provided to a farmer or an agriculturist. These are meant for people involved in farming activities. The repayment options are flexible, interest rates are low and there are other features to help the farmers.

 

  • Personal Computer Loan: Computers are an essential part of life now, so this loan will help you buy a computer or a laptop.

 

Eligibility Criteria for Personal Loans:

Eligibility criteria differ from one bank to the other. However, the common eligibility requirements for most banks are as follows:

For Salaried Individuals:

  • The minimum age of the applicant should be 21 years.
  • The maximum age of the applicant at the time of loan maturity should not be more than 60 years.
  • The minimum employment period should be 2 years in total and 1 year at the present organization.
  • Minimum income criteria ranges from INR 7,500 to INR 15,000 per month depending upon the bank where you are applying for the loan.

For Self Employed Professionals or Businessmen:

  • The minimum age of the applicant should be 25 years.
  • The maximum age of the applicant at the time of loan maturity should not be more than 65 years.
  • The applicant should have been in the current profession or business for 2 to 3 years.
  • The minimum annual income of the applicant should be INR 1 lakh.

Rules and Processing of Personal Loans in India:

Most bankers have become very stringent when it comes to approving loan

4 stage verification process for a Personal Loan:

  1. Receipt of Personal Loan Application:

To initiate the verification process, the bank needs a duly completed application form submitted by you. The application form requires 2 passport sized photographs, KYC documents, employment proof, income proof and other documents. You can choose to fill the form online or visit the office or branch of the bank in person.

  1. Document submission:

When the bank receives your application, they will check your credit score. If your credit score meets their requirements, a representative will be send to your home to collect all the documents needed.

Documents required to apply for a personal loan :

KYC documents for verifying identity, age and residence:

  1. PAN card
  2. Aadhar card
  3. Driving License
  4. Voter ID
  5. Passport

Income documents:

For salaried employee:

  1. Salary slips for the past 6 months
  2. IT return with form 16 for the last two years.
  3. Bank Account Statement of the past 3 months which reflects your income.
  4. Employment certificate issued from the current employer.

 

For self-employed people:

  1. Financial statements including Balance Sheet, Profit and Loss statements.
  2. IT returns for the last 2 years.
  3. Bank Account Statement (Proof of continuity of business).
  4. Evidence that you have a business (like GST Registration).

 

  1. Document verification:

The bank will now initiate the verification procedure. The documents will be send to the verification team who will come to your address to check if you live there and will verify all the information. Yet another representative will visit your office to check if you work there. Other documents including PAN card, Aadhar card, etc. will be verified.

  1. Sanctioning and Distribution:

Once a favourable report is received after verification, the processing team will prepare the loan agreement which will enlist all the important information including the terms and conditions related to the loan. After you have signed the agreement, the amount will be credited to your account within 24 hours.

 

How to Apply for a Personal Loan in India:

The personal loan application procedure is pretty simple and helps you meet a wide range of expenses. You can apply online or go to your nearest bank branch to apply offline. Make sure you research your loan requirement well. You can use a Personal Loan eligibility calculator to find out how much loan you can get. Follow this step by step guide to help you with the application:

  1. Fill up your personal, financial and employment details.
  2. Select the loan amount you require and the tenure period (and you might get instant approval).
  3. Submit the required documents, with the bank representative, who will shortly get in touch with you.
  4. Receive the money in your bank account within a period of 24 hours.

 

Features and Benefits of Personal Loans in India:

Personal loans are gaining popularity for a wide array of reasons. They might be the one you are looking for. Take a look at some of the benefits provided by personal loans:

  1. No need to provide collaterals: These are unsecure loans which means that you don’t have to mortgage collaterals such as home or shares to get the loan.
  2. Easy documentation: The paperwork, documents needed and the processing is simpler for this type of loan. You just need your ID proof, address proof and income proof.
  3. Quick disbursal: You can get a personal loan in no time if you meet the eligibility criteria and have a good credit score. You can also apply online and get online approval for a personal loan.
  4. Limitation free end use: You can use a personal loan for purpose. You wouldn’t have to inform the bank of the way or how much you are spending.
  5. Flexible tenure: You have the flexibility to choose which tenure suits you best. Longer tenure means you have to pay lower EMI. You can use an EMI calculator to calculate the EMI and then decide the tenure.
  6. Pocket friendly repayment: You can easily pay off your personal loan in installments or EMIs. You will be able to optimize your monthly outgo.
  7. Tax Benefit: You can avail the tax deduction of up to INR 2 lakh under the Section 24B in a fiscal year. However, you have to provide necessary documents that the money has been utilized for the reason you have stated.

 

Why are Personal Loans Rejected?

There is no sure shot answer as to why a personal loan application might get rejected but there are some reasons due to which such scenarios might arise:

  1. Multiple loan enquiries and applications.
  2. Poor credit history or error in credit report.
  3. Higher existing debts.
  4. Annual Income criteria not met.
  5. Unstable employment history.
  6. Incorrect Documentation.

 

How to Avoid Rejection:

There is no fooproof way to guarantee acceptance of your personal loan application. But here are some things you could try out to increase your chances:

  1. Check your credit report and credit score.
  2. Keep your employment history in check.
  3. Pay off your outstanding loans.
  4. Keep your payment history regular.
  5. Show a steady stream of income.

 Tips for Seeking Personal Loans in India:

Personal loans have lately become pretty popular and applying for the same is fairly easy. However, few tips might come in handy:

  1. Evaluate your requirements before taking a personal loan.
  2. Compare interest rates of various banks and check for the best interest rate available.
  3. Check your credit scores because lower credit score equals higher interest rate.
  4. Carefully think over the conditions and terms of the loan.
  5. Ask for pre-payment.
  6. Don’t apply for multiple loans.
  7. Wait 6 months before re-applying.

Repayment Tenure and Options

For personal loans, the most common tenures range between 12 months and 60 months and all the banks have the option of letting you decide your tenure. There are multiple aspects which you need to consider before choosing the ideal tenure. Let’s have a look:

  1. Loan amount: The amount you wish to borrow should be the first parameter to influence your loan tenure. If your loan amount is small, then you should not pick a long tenure. Longer tenure means lesser monthly installments and vice versa.
  2. Interest rates: Interest rate offered depends on your credit scores. If you are offered a lower interest rate, then choosing a shorter tenure to avoid paying more interest makes sense. With a bad credit and poor repayment history, you might want to pick a longer tenure since you will get a higher interest rate.
  3. Monthly budget constraints: If your monthly expenses take over 60% of your income then you might want to choose a longer loan tenure. On the other hand, a shorter tenure would mean higher monthly repayments.

One thought on “Personal Loan Interest Rates in India: Get Instant Personal Loan

  1. Very comprehensive compilation. Especially the part about why are personal loans rejected. Thanks for sharing

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