Want to know personal loan interest rate? Well you have landed on the right article
In times of recession and inflation, it is important to be financially independent. However, amidst the creation of FDs, we tend to ignore other financial assets and might face problems later on.
Personal loans can provide you with the funds to help you reach your personal financial goals more quickly. Whether it’s paying down your credit card debt, funding for a new car, home improvements, or even unexpected expenses, personal loans are a smart way to go when it comes to using money from your bank account.
Read through this article to find out more about the top twenty-two personal loan finance companies in India.
Personal Loan Interest Rate
The rates of personal loans are usually between 7.90% and 49% p.a.
Several factors such as loan amount, credit score, and repayment tenure affect the interest rates on your loan.
Personal Loan Eligibility Criteria
The following table will take you through the eligibility criteria to avail of a personal loan:
Criteria | Salaried | Self-employed |
|---|---|---|
Age | 21 to 60 years | 22 years to 55 years |
Net Monthly income | Rs. 15000 | Rs. 25000 |
CIBIL Score | Above 750 | Above 750 |
Minimum Loan Amount | Rs. 50, 000 | Rs. 50, 000 |
Maximum Loan Amount | Rs. 25 Lakh | Rs. 50 Lakh |
Documents Required to apply for Personal Loan
A set of documents has to be submitted from your side to the bank for verification and documentation. The following table highlights what is required from your end:
Requirements | Salaried Individuals | Self Employed |
|---|---|---|
Proof of Identity | Passport, Voter’s ID, Driving License or PAN Card | Passport, Voter’s ID, Driving License or PAN Card |
Proof of Residence | Passport or utility bills | Passport or utility bills |
Proof of Income | Bank statement of salary account for the past two years | Audited financial statement of the past two years |
Banks That Provide Best Personal Loans In India:
1. SBI:
Particulars | Salaried/Self Employed | Pensioners |
|---|---|---|
Loan Amount | Minimum: Rs.25,000 | Minimum: Rs.25,000 |
Loan Tenure | Up to 72 months | Up to 84 months |
Interest rate | 9.60% p.a.- 15.65% p.a. | 9.75% p.a. -10.25% p.a. |
Age | 21 - 58 Years | Up to 78 years |
Processing Fee | 1.5% of loan amount + tax | 0.5% of loan amount + tax (Minimum of Rs.500) |
Credit Score | 750 and above | At the discretion of the bank |
Prepayment Charges | 3% on prepaid amount | 3% on prepaid amount |
Salary/Income | Rs.15,000 onwards | At the discretion of the bank |
2. Bank Of Baroda:
Particulars | Salaried/Self Employed |
|---|---|
Loan Tenure | Maximum of 48-60 Months |
Interest Rate | 10.50% p.a. - 12.50% p.a. |
Loan Amount |
|
Processing Fee | 2% of the loan amount (Minimum of Rs.1,000 and maximum of Rs.10,000) |
Lowest EMI per Lakh | Rs.2,149 |
Age criteria |
|
Overdue EMI Interest | 3% on prepaid amount |
Employment Status | Salaried, self-employed, insurance agents, etc. |
Pre-Payment/Foreclosure Charges | As per the terms and conditions set by Bank of Baroda |
Credit Score | 750 |
3. Punjab National bank:
Particulars | Salaried/Self-employed/Pensioners |
|---|---|
Interest Rate | 8.90% p.a. to 14.45% p.a. |
Loan Tenure | Up to 84 months |
Employment Status | Salaried/Self-Employed/Retired employees/Doctors |
Salary/Income | As per the terms and conditions laid down by the bank |
Processing Fee | Up to 1% of the loan amount |
Credit Score | 650 and above |
Loan Amount | Up to Rs.20 lakh |
4. Union Bank Of India:
Particulars | Details |
|---|---|
Interest Rate | 10.60% p.a. onwards |
Loan Tenure | Up to 5 years |
Lowest EMI per Lakh | Rs.2,154 |
Credit Score | Ideal score – Over 700 |
Processing Fee | Up to 0.50% |
Employment Status | Salaried, self-employed, and government employees |
Loan Amount | Up to Rs.15 lakh |
5. Bank Of Maharashtra:
Particulars | Details |
|---|---|
Loan Amount | Up to Rs.20 lakh |
Processing Fee | 1% of the disbursed loan amount |
Lowest EMI per Lakh | Rs.3,201 |
Loan Tenure | Up to 36 months |
Interest Rate | 9.45% p.a. |
6. Canara Bank:
Particulars | Salaried |
|---|---|
Interest Rate | 13% - 14.15% p.a. |
Loan Amount | Up to Rs.1 lakh |
Processing Fee | 1% of the loan amount (Minimum of Rs.250) |
Pre-Payment | Nil |
Salary | Rs.6,000 or net salary to be 40% of gross salary Rs.1.5 lakh |
Credit Score | 700 and above |
Loan Tenure | Up to 36 months |
Lowest EMI per Lakh | Rs.3,369 |
7. Indian Overseas Bank:
Particulars | details |
|---|---|
Processing Fee | 0.40% of the loan amount |
Loan Amount | Up to Rs.5 lakh |
Interest Rate | 11.50% p.a. |
Salary / Income | Minimum Rs.5,000 per month |
Employment Status | Salaried |
Lowest EMI per Lakh | Rs.2,219* |
Loan Tenure | 1 to 5 years |
Pre-Payment/Foreclosure Charges | Nil |
Credit Score | Ideal score – above 700 |
Part Payment Charges | Nil |
8. Kotak Mahindra Ban2k:
Particulars | Salaried |
|---|---|
Loan Tenure | 1 to 5 years |
Processing Fee | Up to 2.5% + GST |
Loan Amount | Rs.50,000 – Rs.15 lakh |
Interest Rate | Rs.50,000 – Rs.15 lakh |
Lowest EMI per Lakh | Rs.2,187 |
Employment Status | Salaried Individual |
Credit Score | 750 |
Salary / Income | Minimum monthly income of Rs.20,000 |
Overdue EMI Interest | 3% per month on the amount due |
Pre-Payment/Foreclosure Charges | 5% of Outstanding Principal + GST |
9. ICICI Bank:
Loan Amount | Rs 50,000-Rs 25 lakh |
Tenure | 1-6 years |
Interest rate | Up to 2.50% of loan amount |
Interest rate | 10.50% p.a. onwards |
Minimum Monthly Salary: | Rs 30,000 |
Pre-payment Charges | 5% on outstanding principal + GST and NIL, if the loan is closed using own funds (for MSME classified borrowers) Any waiver on prepayment charges are applicable if borrower has paid at least 12 EMIs |
EMI Bounce Charges | Rs 400 per bounce + GST |
Processing Fee | Up to 2.50% of loan amount + GST |
Loan Cancellation Charges | Rs 3,000 + GST |
Repayment mode swap charges | Rs 500 per transaction + GST |
Penal Interest | 24% p.a. |
10. Axis Bank:
Interest rate | 10.25% onwards |
Processing Fee | At the discretion of the bank |
Loan Tenure | Rs.50,000 to Rs.15 lakh |
Loan Amount | Rs.50,000 to Rs.15 lakh |
Employment Status | Salaried |
Salary / Income | Rs.15,000 onwards per month |
Credit Score | 700 and above |
Lowest EMI | Rs.2,224 per Lakh |
Foreclosure Charges | 2% and 5% |
Penal interest | 2% p.m |
11. Federal Bank:
Interest Rate | 10.49% p.a. to 17.99% p.a. |
Loan Amount | Up to Rs.25 lakh |
Loan Tenure | Up to 48 months |
Processing Fee | Up to 3% |
Schedule of charges | Fees |
Documentation charges | Nil to Rs.10,000 (on the basis of the loan amount) |
Prepayment charges | Nil or 3% (on the basis of the scheme) |
Late payment penalty | 2% per month on the amount which is overdue |
Charges for switching schemes of the loan | 0.25% of the outstanding loan balance |
Cersai registration and modification charges | Nil |
CIBIL report charges | Nil |
12. RBL Bank:
Particulars | Interest Rate |
|---|---|
Interest Rate | 14% p.a. - 23% p.a. |
Processing Fee | 4% of the loan amount |
Loan Tenure | Rs.1 lakh – Rs.20 lakh |
Loan Amount | Rs.1 lakh – Rs.20 lakh |
Minimum income of Rs.25,000 per month | Minimum income of Rs.25,000 per month |
Employment Status | Salaried |
Credit Score | 750 |
Lowest EMI per Lakh | Rs.2,405 |
Pre-Payment/Foreclosure Charges | Pre-payment allowed after payment of 12 EMIs. From 13 to 18 EMIs - 5% of Principal outstanding More than 18 EMIs - 3% of Principal outstanding NIL- if minimum of 12 EMIs are paid without any bounce and foreclosure should be done using own funds. |
Overdue EMI Interest | 2% per month of the overdue amount |
13. Bandhan Bank:
Interest Rate | Minimum: 15.00% p.a. |
Loan Amount | Minimum: Rs.1 lakh |
Benefits | Online eligibility check with minimal documentation and competitive interest rates, loan amount, and charges. |
Processing charges | 1% of the loan amount + applicable GST |
Prepayment charges | Nil (prepayment allowed only after the payment of first 6 EMIs) |
Late payment charges | 24% p.a. on the outstanding amount from the date of default |
Stamp duty | As per the law applicable in the state |
Other statutory charges | As per the law applicable in the state |
Cheque bounce | Rs.300 for each bounced cheque + applicable GST |
14. LIC Housing Finance:
Interest Rates | 6.66% p.a. to 7.90% p.a. |
Loan Tenure |
|
Loan Amount | Minimum of Rs.1 lakh |
Processing Fees |
|
CERSAI Charges |
|
Conversion Fees |
|
Cheque Bouncing Charges | Rs.350 |
Document Retrieval Charges | Rs.2,500 + GST |
Photocopies of Title Documents | Rs.500 + GST |
Providing List of Documents | Providing List of Documents |
Late EMI Payment Penalties | Up to 2% per month on the defaulted amount |
15. Tata Capital Housing Finance:
Minimum Age | 21 years |
Maximum Age | 60 years |
Interest Rate For Salaried Person | 10.99% onwards |
Interest Rate For Self Employed | 10.99% onwards |
Factors that can affect your loan interest Rate | Income, credit score, history of defaults, employer’s status, and debt-to-income ratio |
The repo rate is 4% | The repo rate is 4% |
Loan Amount | Loan Amount |
Loan Tenure | 60 months |
16. Bajaj Housing Finance:
Minimum Age | 21 years |
Maximum Age | 60 years |
Interest Rate For Salaried Person | 13% onwards |
Interest Rate For Self Employed | 13% onwards |
Factors that can affect your loan interest Rate | Income, credit score, history of defaults, employer’s status, and debt-to-income ratio |
RBI Monetary Policy Update | The repo rate is 4% |
Loan Amount | 25 Lakhs |
Loan Tenure | 60 months |
17. PNB Housing Finance:
Minimum Age | 21 years |
Maximum Age | 60 years |
Interest Rate For Salaried Person | 6.75% p.a. onwards |
Interest Rate For Self Employed | 6.75% p.a. onwards |
Factors that can affect your loan interest Rate | Income, credit score, history of defaults, employer’s status, and debt-to-income ratio |
RBI Monetary Policy Update | The repo rate is 4% |
Loan Amount | 25 Lakhs |
Loan Tenure | 60 months |
18. Indiabulls Housing Finance:
Minimum Age | 21 years |
Maximum Age | 60 years |
Interest Rate For Salaried Person | 13.99% Onwards |
Interest Rate For Self Employed | 13.99% Onwards |
Factors that can affect your loan interest Rate | Income, credit score, history of defaults, employer’s status, and debt-to-income ratio |
RBI Monetary Policy Update | The repo rate is 4% |
Loan Amount | 15 Lakhs |
Loan Tenure | 36 months |
19. Aditya Bila capital:
Minimum Age | 21 years |
Maximum Age | 60 years |
Interest Rate For Salaried Person | 11% p.a. up to 26% p.a. |
Interest Rate For Self Employed | 11% p.a. up to 26% p.a. |
Factors that can affect your loan interest Rate | Income, credit score, history of defaults, employer’s status, and debt-to-income ratio |
RBI Monetary Policy Update | The repo rate is 4% |
Loan Amount | 15 Lakhs |
Loan Tenure | 36 Months |
20. ICICI Home Finance:
Minimum Age | 23 years |
Maximum Age | 65 years |
Interest Rate For Salaried Person | 11% p.a |
Interest Rate For Self Employed | 11% p.a |
Factors that can affect your loan interest Rate | Income, credit score, history of defaults, employer’s status, and debt-to-income ratio |
RBI Monetary Policy Update | The repo rate is 4% |
Loan Amount | 3 lakhs to 5 crores |
Loan Tenure | 72 months |
21. Aditya birla:
Minimum Age | 21 years |
Maximum Age | 60 years |
Interest Rate For Salaried Person | 11.75 % to 26-1% |
Interest Rate For Self Employed | 11.75 % to 26-1% p.a |
Factors that can affect your loan interest Rate | Income, credit score, history of defaults, employer’s status, and debt-to-income ratio |
RBI Monetary Policy Update | The repo rate is 4% |
Loan Amount | 15 Lakhs |
Loan Tenure | 36 Months |
Features Of Personal loan
Immediate need of cash can be a big problem for many of us. So let’s have a look at the features of Personal Loan:
Flexibility of use – Personal loans are becoming increasingly popular. Easy to apply for and suitable for almost any purpose, they are the quickest and easiest way to get out of a cash crunch.
Personal loans are generally easier to obtain than most other types of loans and are more flexible in terms of repayment options too.Quick Disbursal – Loan approval is usually quick. Establishing your creditworthiness is key when it comes to a speedy handout of a personal loan.
Having a good credit score is a definite advantage. The time for disbursal depends on the bank or lender you’re working with but it’s generally within 24 hours; or 72 hours at most.Fewer Documents – Going through the steps of applying for a loan is never much fun. The process can feel like a hassle since there are always so many documents to fill out, errands to run, and forms to send back in. However, while filling the forms for personal loans, you can bid farewell to all kinds of stress and anxiety.
Minimal paperwork – As with any kind of business license, the required paperwork is minimal. The licensing procedure itself is swift and simple.
In case of any queries related to your business application, you can be certain that one of our executives will be happy to help you get sorted out in no time!No Collateral Needed –If you qualify and are eligible for a personal loan, you won’t be required to present any collateral.
This helps protect the assets you already own which is especially helpful if you don’t own any assets at all.
A personal loan is considered an unsecured type of short-term financial help and so because it requires no collateral, it’s often the best for people who need money in times of urgency.
Types Of Personal Loan
Wedding Loan: This loan can be availed of to meet wedding expenses.
Home Renovation Loan: One can avail of this loan if you want to renovate your horse, buy new furniture or pay maintenance costs of the house.
Medical Loan: This loan can be availed of to pay medical expenses.
Travel Loan: Travelers can avail of this loan to tick off their favorite destinations from their bucket lists.
Debt Consolidation Loan: A personal loan can help you pay off smaller loans by consolidating them into a single larger amount that is easier to manage on your own.
This allows you to get a lower interest rate and/or longer repayment period that makes repaying the loan more affordable.Consumer Durable Loan: Also known as a shopping loan, one can avail of this loan while buying household goods and electronics.
Instant Personal Loan: This loan can be availed by people with a good reputation with the bank and great credit scores.
Personal Loan Top Up: Extra loan availed of above and over the outstanding amount of existing loan.
Conclusion
Now, you can prepare yourself during times of emergency. However, don’t forget to check the eligibility criteria of the bank that you choose as it may vary from bank to bank. Also, make sure that all your documents are in place.
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Frequently Asked Questions (FAQs)
1. Which is the best personal loan bank in India?
SBI is the best personal loan bank in India.
2. Which bank gives personal loans easily?
can avail of a personal loan from HDFC Bank with minimum documentation.
3. Which bank has the lowest interest rate for a personal loan
HDFC and SBI Banks have the lowest interest rates for personal loans.