A personal loan is an unsecured loan from a bank or other financial institution. Personal loan interest rates are among the highest, so it’s best to borrow from a lender that offers lower rates and shorter terms. Keep in mind that banks give lower interest rates to borrowers with high credit scores.
Personal loan interest rates vary from bank to bank.
For example, IDBI Bank personal loan interest rates start at 8.15% and go up to 14%; these come with a term of 12 to 60 months and for an amount between Rs 25,000 and Rs 5 lakh. State Bank of India (SBI) personal loan rates start at 9.6% and go up to 15.65%; these come with a tenor of 6 to 72 months and one can borrow between Rs 25,000 and Rs 20 lakh.
Click here for a full list of bank personal loan interest rates
What is the maximum and minimum limit of the personal loan
The minimum and maximum amount that can be borrowed varies with each bank and institution. SBI, for example, states on its website that salaried people can get a maximum personal loan of Rs 20 lakh. Personal loans of up to Rs 12 lakh are available from HDFC Bank, according to the bank’s website.
You can acquire a personal loan for as low as Rs 75,000 and up to Rs 25 lakh, according to the Tata Capital website, depending on your creditworthiness.
Does a personal loan help deal with a financial crisis caused by the coronavirus?
In response to the covid crisis, some lenders have raised credit scores and income requirements, making it harder for borrowers to qualify for a loan or get a low rate. Is it a good idea to get a personal loan at such a time. Plug into knowledge.
Who is eligible for the personal loan?
Personal loan eligibility requirements differ from bank to bank. According to the SBI website, you must have a minimum monthly income of Rs 15,000 to be eligible for a personal loan, whether or not you have a salary account with the bank.
Your credit score will also play a role in deciding your eligibility for a personal loan. Individuals must be between the ages of 21 and 60 and have worked for at least 2 years, including at least 1 year with the current employer. Those with a monthly net income of at least Rs 25,000 can apply to HDFC Bank.
What is the term of personal loans?
Lending institutions such as banks often provide personal loans for up to five years. However, the duration may differ according to the establishments.
Go contactless: your checklist for an online personal loan application
Are you eligible for an online personal loan?
Anyone eligible to get a regular personal loan offline is also eligible to get the same loan online. All employees and professionals with a stable job can benefit from an online personal loan.
Where can you get such a loan?
Loans are available from all major banks, NBFCs and fintech platforms. Note that there is no obligation for you or any client to take out the loan from the bank where you hold your salary or savings bank account. You are free to search for digital personal loans from any lender of your choice and compare to arrive at the one that gives you the best deal.
Interest rates on online personal loans
Online personal loans are not necessarily more expensive or come with high interest rates or processing fees. In fact, they can be cheaper than in-person and offline personal loans due to lower operating costs etc. which, if offline, can be passed on to borrowers. Depending on the borrower’s income, the company they work for, the loan amount needed and their credit rating, the interest rate can start from 10.25% per annum (based on of a declining balance) and go up to 36%. Compare the different offers on the market to choose what is best for you and your pocket.
An updated digital KYC is required
The key to availing the loan at an attractive rate in a quick and convenient manner, however, lies in having a correct and up-to-date digital KYC fingerprint.
5 points for a successful application
- Your mobile number should be updated in your Aadhaar and bank account.
- You must have an active net banking facility in your main savings bank account into which you receive your monthly salary is credited and the updated mobile phone number with the bank must match the one you are applying for the loan with is also the one associated with your Aadhar.
- Your last current address should be updated in your Aadhaar and savings bank account.
- You must be able to receive and send emails from your official email address, if you have one.
- You must have original physical copies of your main KYC documents, mainly your PAN card, Aadhaar card with the correct current address, in order to complete the KYC video.
What are the costs associated with a personal loan?
A bank or NBFC charges processing fees, stamp duties, and other regulatory fees on a personal loan.
Also, pre-payment or pre-closing fees will be imposed depending on the lender. Those opting in should be sure to review the many forms of fees that may be imposed before taking out a personal loan.
