Achieve your entire dream with a loan that makes your life a happy one. Here we are talking about the personal loan which is given for countless purposes including marriages, education, medical emergencies, voyages, home, restoration and many others which accomplish your personal needs.
A personal loan is a type of unsecured loan which both salaried and self-applied can apply. This is a loan that comes with an option of attractive interest rates and flexible repayment. For any kind of personal loan, one can either apply online, visit the bank branch or by non-banking finance company (NBFC). Just need to pay a processing fee at pertinent rates. Then the loan lender will check all your details and will process your loan as per your loan eligibility. Once you meet their eligibility criteria, your loan will be paid out to your bank account. Now let’s know it in more detail, from applying to disbursing in your bank account.
Banks Offering Personal Loan at Lowest Interest Rates March 2023
In this festive season, following is a list of top most banks who are offering personal loan at lowest interest rates. Just glance the table below and know the best interest rates
Yes Bank
| Interest Rates | Loan Amount (in INR) | EMI Per Lakh (in INR) | Processing Fees | Prepayment Charges |
| 10.75% – 18.00% | Up to INR 40 lakhs | 2,162-2,539 | 1% of the loan amount plus GST | Nil- Up to 2% of the principal outstanding + GST |
HDFC Bank
| Interest Rates | Loan Amount (in INR) | EMI Per Lakh (in INR) | Processing Fees | Prepayment Charges |
| 10.99% – 15.00% | For Salaried-Up to INR 50 lakhs. For Self-employed- Up to INR 15 lakhs | 2,173-2,379 | 2% of the loan amount or INR 3,500(>=10 Lac) | Nil – Up to 4% of the principal outstanding + GST |
Standard Chartered Bank
| Interest Rates | Loan Amount (in INR) | EMI Per Lakh (in INR) | Processing Fees | Prepayment Charges |
| 10.75% – 13.00% | Up to INR 50 Lakhs | 2,162-2,275 | 1% of the loan amount + GST | 1%-5% of the principal outstanding + GST |
ICICI Bank
| Interest Rates | Loan Amount (in INR) | EMI Per Lakh (in INR) | Processing Fees | Prepayment Charges |
| 10.50% – 18.00% | Up to INR 50 lakhs | 2,149-2,539 | 2% of loan amount + GST or INR 3500(>=10 Lac) | 5% of the principal outstanding + GST |
State Bank of India (SBI)
| Interest Rates | Loan Amount (in INR) | EMI Per Lakh (in INR) | Processing Fees | Prepayment Charges |
| 9.60% – 13.60% | Up to INR 15 lakhs | 2,105-2,306 | Nil – 1% of the loan amount + GST | Nil – 3% of the principal outstanding + GST |
Kotak Mahindra Bank
| Interest Rates | Loan Amount (in INR) | EMI Per Lakh (in INR) | Processing Fees | Prepayment Charges |
| 10.99% – 20.99% | Above INR 20 lakhs | 2,174-2,705 | 0.99% to 2.50% of the loan amount+ GST | 5% of the principal outstanding + GST |
IDFC First Bank
| Interest Rates | Loan Amount (in INR) | EMI Per Lakh (in INR) | Processing Fees | Prepayment Charges |
| 10.50%-25.00% | Upto INR 1 Crore | 2,149-2,935 | 1% of the loan amount plus GST | 5% of the Principal Outstanding Plus GST |
Axis Bank
| Interest Rates | Loan Amount (in INR) | EMI Per Lakh (in INR) | Processing Fees | Prepayment Charges |
| 10.50% – 25.00% | Up to INR 40 lakhs | 2,149-2,935 | 1% of the loan amount + GST | NIL |
Fullerton India
| Interest Rates | Loan Amount (in INR) | EMI Per Lakh (in INR) | Processing Fees | Prepayment Charges |
| 12.00% – 24.00% | Up to INR 25 lakhs | 2,224-2,876 | 2.00% – 6.00% of loan amount + GST | 0-4% of the principal outstanding |
RBL Bank
| Interest Rates | Loan Amount (in INR) | EMI Per Lakh (in INR) | Processing Fees | Prepayment Charges |
| 17.50% – 26.00% | Up to INR 20 lakhs | 2,512-2,994 | 2.00%-2.5% of the loan amount + GST | 3%-5% of the principal outstanding |
IndusInd Bank
| Interest Rates | Loan Amount (in INR) | EMI Per Lakh (in INR) | Processing Fees | Prepayment Charges |
| 10.49% – 31.50% | Up to INR 25 lakhs | 2,149 Onwards | up to 3% of the loan amount + GST | As applicable by the bank |
Tata Capital
| Interest Rates | Loan Amount (in INR) | EMI Per Lakh (in INR) | Processing Fees | Prepayment Charges |
| 10.75% – 18.00% | Up to INR 25 lakhs | 2,162-2,539 | 1% of the loan amount + GST | 4% of the principal outstanding |
DCB Bank
| Interest Rates | Loan Amount (in INR) | EMI Per Lakh (in INR) | Processing Fees | Prepayment Charges |
| 13.00% – 25.00% | Up to INR 5 lakhs | 2,275-2,935 | 2% – 3% of loan amount + GST | As Applicable by the Bank |
**In the above table EMI calculations are based on a tenure of 5 Years.**
Table of Contents
Highlights of Personal Loans
Immediate Loan Approval & Disbursal – Your loan will be approved immediately, once your eligibility criteria are fulfilled. The lender will check all your details that you have submitted either online or offline and will sanction a loan on that basis. If all your details are appropriate, he will communicate you through email or SMS. After sanction of the loan, the next step that is disbursal begins i.e within minutes your loan amount will be credited to your personal bank account.
Bulky Loan Amounts- Today, maximum banks or NBFCs have changed their loan offerings. Earlier, one can get only up to 25 lakhs but, now you can apply for Rs40 lakh or more. To get such kind of loan, one just has good income, credit score and repayment capacity.
Flexible reimbursement Tenures – You can get a loan for 1 to 5 years and the best part of this loan is that you are given enough time to repay your dues.
Interest Rates – Apply for any kind of personal loan and avail of interest rates from 9.85% per annum.
No Guarantee/Security Required – To get this loan, no need to submit any kind of security or guarantee as this is an unsecured loan. All will depend on your earnings and credit score.
Usage – This loan is given for countless purposes including marriages, education, medical emergencies, voyages, home, restoration and many others which accomplish your personal needs.
Forestallment Allowed in a Loan – After your first 12 EMIs, you can prepay this loan anytime you want. The forestallment means the sum of the outstanding loan balance before the completion of the original loan tenure. Meanwhile, it will depend upon your lender whether he allows you to repay it as one sum or in parts.
Fees & Charges
A personal loan comes with a list of charges that have been discussed below:
Interest Rate – This is the rate loan is provided to you. Every bank has a different interest rate and the result of the interest rate will be seen on your monthly instalment as well as the overall interest outgo.
Processing Fee – It is a one-time fee that every bank and other financial institution will take to process your loan amount. The fees can be an amount or percentage that is taken from the loan amount. The personal loan disbursal amount is different from the processing amount because the processing fee owed is deducted from the final amount. But the interest rate will be charged on the applied amount.
Late Payment Charges – After the due date, if you pay your EMI then 2% will be charged on the amount due.
Foreclosure Charges – If you close the loan before the original tenure, it will be called foreclosure and charges will apply on the same.
Personal Loan Eligibility Criteria
As the nature of the loan is unsecured, so the lenders need to be convinced by your ability to pay off the EMI. The lender can ask about your age, income-earning employment period, residence constancy, credit score, etc. Immediate personal loans can only be provided if you fulfil the above conditions. Let’s get into deep what it means
Age – For the approval of the loan, age of the applicant is very important. Only those who are above 30 years and below 50 years can get approval but lenders can also provide loan to those who has attain a minimum age of 21 years (salaried) and 24 years (self-employed). However, the maximum age of the applicant must not be more than 58 years if you are salaried and 65 years if you are self-employed.
Earning Amount – It depends on lenders on which and what criteria they provide loans to their applicants. Salaried people can get their personal loan sanctioned on earning a minimum net monthly income of INR 15,000-20,000. But in the case of self-employed, loan eligibility is based on the profit that comes after the incidence of tax.
Existing Loan Obligations – The lender will charge the personal loan depending on the eligibility of candidates and based on their existing loan requirements. If your loan amount runs, the lender will check your EMIs and then add them to the EMI of a personal loan you want. If both EMI’s value comes within 50% of your net monthly income, the lender will sanction your loan easily. In case it is afar, your personal loan eligibility will be lesser.
Period of Employment – Personal loans can be provided to those also who have worked in an organization for at least one year. Apart from this, the lender can also check the overall work experience which is of 3 years and then only sanctions a personal loan to you.
Residence Stability – To get this loan, one should have stayed in the same provinces for at least 1-2 years.
Credit Score – A credit score will represent how a borrower is worthy to repay the loan. For immediate approval of the loan, the credit score must be above 750. However, if the score is between 700 and 750, the loan can still be approved although at a slightly higher rate of interest. So, if you are having a credit history of 1 year and above, you must have a credit score. Pay dues on time and your credit score will be good.
Type of Organization – The approval of loan depends upon the organization you are working with. Reputed organization, good salary and the approval will be instant.
Type of Business – If you are self-employed your business should be in running condition. This will help the lender to have confidence in you that you will repay the dues on time.
Note – The eligibility criteria explained above can vary from one lender to another.
Pocket-friendly Loan
Choose your EMI first, and then apply for a loan that fits your pocket.
I can pay EMI of…..per month for next years
Documentation Process
The Documentation is very important for approval of any loan same applied with personal loan application. Following are the documents needed
Documents for Salaried
Identity Proof – PAN Card/Voter ID/Aadhaar Card/Passport/Driving License
Residence Proof – Voter ID/Aadhaar Card/Passport/Driving License/Electricity Bill/Telephone Bill
Income Proof – Salary slips for the last 3 months, bank statement for the last 3 months
Recent passport-size photographs
Documents for Self-employed
Identity Proof – PAN Card/Voter ID/Aadhaar Card/Passport/Driving License
Residence Proof – Voter ID/Aadhaar Card/Passport/Driving License/Electricity Bill/Telephone Bill
Office Address Proof – Electricity Bill/Landline Bill/GST or VAT Registration
Income Proof – Salary slips for the last 3 months, bank statement for the last 3 months
Recent passport size photographs
How to Calculate the Personal Loan EMI?
Calculate your Equated Monthly Installment (EMI) in advance so that you can arrange the timely payments. All you need to just enter the Loan Amount, Tenure and Interest Rate in the device, and within a few seconds, it will obtain the exact EMI as well as the overall interest out-go.
For example, you INR 5 Lakh loan taken at an interest rate of 10.99% for 5 years. As per these details, you will most likely pay an EMI of INR10869. Over 5 years, the interest obligations will amount to INR 152126. The total amount payable will be INR 652126/-.
Types of Personal Loans
Personal loans are often offer on the following form
Wedding Loan – To meet all your wedding expenses including jewelry to guest accommodation, this type of loan is provided.
Travel Loan – Everyone loves travelling but sometime on short of money our plans got cancel so your plans don’t get cancelled , this type of loan is provided which involves your travel expense and your expedition desires.
Consumer Durable Loan – It differs from other type of personal loans. This loan is financed upto 80%-90% of the buy price of the consumer hard-wearing.
Home restoration/Improvement Loan – This is a loan which is provide for your home removal and this including all wear and tear expenses that needed for restoration .
Medical Emergency Loan – Health is uncertain, so this type of loan is provided by banks and NBFCs by seeing your monthly income. If all goes well, the loan can be approved and disbursed faster than it may payout in other personal loans.
Festive Loan – Festivals are celebrated with flamboyance in India so, lenders offers existing loans to their applicants to meet their festive needs.
Frequently Asked Questions (FAQs)
What is a Personal Loan?
Personal loan is a type of unsecured loan which both salaried and self-applied can apply. The personal loan is given for countless purposes including marriages, education, medical emergencies, voyages, home, restoration and many others which accomplish your personal needs. This loan is given by banks and other financial Institutions.
How Much Personal Loan Can You Get from Banks and Financial Institutions?
It depends on your income, repayment potential, credit score, etc. Loan amount varies from lender to lender, but minimum loan you can apply starts from Rs.50,000/- .Different lenders have different minimum and maximum amount and it can goes up to 50 lakh or above .
For How Long Can You Get a Personal Loan to Meet Your Needs?
You can get the loan for a maximum of 5 years. However, a few lenders like SBI can give a period of 6 years too, for repayment of the loan.
How Quickly Can You Get a Personal Loan?
Within 3-7 working days , you can get loan and every loan nature depends on your need.
What is the Rate of Interest on a Personal Loan?
It can be anywhere between 10%-20% per annum.
What are the Factors That Can Influence Personal Loan Interest Rates?
These factors include your income, repayment potential, credit score, etc.
Is the GST Levied Over the Interest Rate on a Personal Loan?
No, the Goods and Services Tax (GST) is not levied over the interest rate on a personal loan.
What is an EMI?
Equated Monthly Installment (EMI) is an amount of principal and interest owed every month to the lender. Greater the rate of interest, higher the EMI will be so vice-versa.
How Soon Can You Apply for a Personal Loan?
Anyone working in a public or private entity can apply for a personal loan as soon as he/she attains the minimum age of 21 years. Self-employed, on the other hand, need to be a minimum of 24 years at the time of loan application while salaried need to be 21.
How Much Work Experience is required to Get a Personal Loan in India?
In India, you must work at least 2-3 years in an organization. And minimum one year working experience in current organization will be seen by lender before approving your loan.
Can a Lender Accept Salary Certificate If I Don’t Have Salary Slips?
Yes, some lenders allow you to apply for a personal loan by submitting a salary certificate if you don’t have salary slips.
Do Lenders Seek a Credit Score While Sanctioning Personal Loans?
Yes, they do! Since the nature of loan is unsecured loan, lenders tend to be suspicious before sanctioning the loan. They check all your credit score before sanctioning you a loan.
How Much Credit Score Do You Require to Get a Personal Loan in India?
For instant personal loan approval, the credit score has to be 750 and above. Even if the credit score is below 750 but remains above 700, the loan can be approved but the interest rate will be higher..
What is the Processing Fee of a Personal Loan?
It is onetime fee that every bank and other financial institutions will take to process your loan amount. The fees can be amount or percentage that be taken from loan amount. The personal loan disbursal amount is different from the processing amount because the processing fee owed is deducted from the final amount. But the interest rate will be charged on the applied amount.
What Will Happen If You Pay EMI After the Due Date?
A penalty charges at 2% will be deducted from the account. The GST will also apply over the late payment amount.
Will the Late Payment Affect Your Credit Score?
Yes , only in case if delay is more than a month.
What are a Personal Loan Settlement and Does It Impact Your Credit Score?
A personal loan settlement is a process by which you can overcome the loan load by paying a settled amount to the lender. The settled amount is less than the amount due. When you pay the same, the lender will mark it as debt settled in its monthly report to the credit bureau. Since the settlement happens in agreement with the lender, there may not be an impact on your credit score.
Is a PAN Card Mandatory to Apply for a Personal Loan?
As per RBI regulations, transactions worth INR 50,000 and above require one to submit a PAN card. Since the minimum personal loan amount is INR 50,000, having a PAN card becomes mandatory.
Don’t You Get a Personal Loan Without an Aadhaar Card?
An Aadhaar Card is a document that not only validates uniqueness but also tells where the residence of an individual is. But not having it does not mean you can’t apply for a personal loan. There are alternatives such as Voter ID, Driving License, Passport, electricity bill, telephone bill, etc. You can submit any of these to the lender at the time of application.
Do Lenders Ask for a Guarantor Before Disbursing a Personal Loan?
Maybe the public lenders ask for a guarantor who can be your family member, relative or friend. These lenders allow those individuals to become a sponsor who has a banking relationship with them.
Can a Personal Loan be Given on a Joint Basis?
Yes, it can be given on a joint basis provided all the applicants are earning.
Can I Get a Personal Loan if I Have a Bad Credit Score?
No, you can’t!
Does a Personal Loan Prepayment Lead to Charges?
Yes, you will need to pay around 2%-4% of the principal outstanding plus 18% GST if you are doing full prepayment. If you make a part payment, around 2%-4% of the paid amount plus 18% GST will be deducted from the account.
How to Make EMI Payment on Time?
Make an ‘Auto Pay’ set by the bank or NBFC when you are applying for the personal loan. With this, the loan EMI will be debited automatically from the bank account on the due date. You just have to maintain a balance that has to be deducted.
Can I Get a Personal Loan if Any Other Loan is Running?
Yes, you can!
Can I Apply for a Personal Loan Offline?
Yes, you can! Just visit the branch of the lender with your documents. Ask for the personal loan application form, fill in the details as asked, put a signature and affix your photograph in the right space. Submit the form along with your documents.
What Happens When the Lender Approves Your Personal Loan Application?
You get the approval intimation on your mobile number and email address