What is Personal Loan?
Personal Loan is kind of unsecured loan people take for their personal needs (health, wedding, education, business, home renovation etc.
Bank doesn’t take any mortgage for this kind of loan in the lowest interest rate. Even the documentation is not so much for a personal loan.
Now we will know about 8 most important things about a personal loan.
- Personal Loans are a type of installment loan. Which means borrower will borrow a fixed amount of loan from bank and borrower has to pay it back by installments in 12 to 84 months with interest. Once you have paid the loan your account gets closed.
- Banks are probably the first place you can remember if you are thinking of getting a personal loan. There are also other financial institutions and NBFCs, credit unions who give personal loans.
- If you only need 3Lakhs only borrow 3Lakhs from the bank don’t borrow excessive money only because you are eligible. You must have received cold calls, e-mails from a bank but don’t fall for it.
- Banks and other financial institutions who give the personal loan always checks the CIBIL Score before giving you personal Loan. So you have to maintain the score you have to pay your EMIS timely. Because if you have high CIBIL Score your interest rate will be lower.
- Processing Fees of personal loans are 2.0%-5.0%. And some banks also don’t have the processing fees for the personal loan.
- Personal Loans are more difficult to get because it is an unsecured loan so the bank can’t take any of your property if you can’t pay the loan and interest rate higher than any other loan.
- Personal Loans have fixed interest rate it doesn’t change by time if you got a loan on 15% interest rate till the last date of your repayment it would be the same.
- Penalty Charges are heavy on personal loans if you missed an EMI that financial institution have right to charge you. And it also affects your CIBIL Score. So pay your loan on time.
Now we are giving a list of financial institutions and their interest list of Personal Loan
|BANK NAME||LOAN AMMOUNT||LOAN TENURE||LOAN INTEREST||PRE CLOSURE CHARGE||Processing Fee Range|
|1-5 years||11.60%-13.60%||2.25% of outstanding balance only in case of taking over.||1.22%(minimum 1,228)|
|1-5 years||15.75%-24.00%||NIL||2.00%+service charge applicable.|
|1-5 years||10.99%-21.25%||Between 2% to 4% of the outstanding principal.||Upto 2.50%|
|State Bank Of India||Minimum-25,000|
|1-5 years||10.75%-15.55%||Between 2% to 4% of the outstanding principal.||1.01% of the loan amount|
|1-5 years||10.99%-18.49%||5% of outstanding principal + GST||0.99% to 2.25%|
|1-5 years||10.99%-18.49%||2% of outstanding principal.||1%+ S.T charges|
|1-5 years||14% per annum.||Within 12 to 24 months: 4%|
Within 24 to 36months: 3%
Within 36 to 48 months: 2%
After 48 months: No charges.
|2% of the principal minimum 999|
|1-5 years||11.99% onwards||5% if less than 6 months.||Upto 5%|
|1-5 years||12%-16%||4% of outstanding||2% of the principal|
|1-5 years||11.00%-13.75%||4% of principal outstanding in 1st year, 3% in the 2nd year, and thereafter preclosure permitted after 6 months.||1% of principal.|
|1-5 years||14.00%-33.00%||4%of outstanding principal.||Up to 2.00%|
|UBI(United Bank Of India)||Minimum-|
|1-3 years||13.45%-14.20%||NIL||1% of principal.|
|BOB(Bank of Baroda)||Minimum-50,000|
|1-4 years||11.80%-16.80%||Within 6 months it costs 6% after six months no charges.||2% minimum rupees 250|
|PNB(Punjab National Bank)||Minimum-|
|1-5 years||12.00%-15.00%||NIL||1.8%+ Taxes|
|OBC(Oriental Bank Of Commerce)||Minimum-|
|6months-5years||10.65%-11.65%||NIL||0.5% Minimum RS.500|
|BOI(Bank Of India)||Minimum-10,000|
|1-3 years||12.00%-14.00%||2% or 1,000+10,000+ Tax.|
|1-5 years||11%-16%||4% of the outstanding principal||Minimum 1% maximum 2.50%|
|Standard Chartered Bank||Minimum-|
|1-5 years||10.99%-14.49%||NIL||999 almost.|
|TATA Capital||Minimum-1 lakhs|
|1-5 years||11.50%-17.25%||4% of the outstanding principal.||upto2%|
|1-5 years|| 11.35%-12.70%|
|1% minimum RS.750|
|1-5 years||12.25%-13.50%||NIL||0.5%minimum RS.500|
|Kotak Mahindra Bank||Minimum-|
|1-5 years||10.99%-20.99%||5% of outstanding principal.||Up to 2.5%|
|1-5 years||11.49%-17.99%||2%-4% as applicable.||Upto 0.50%|
|1-3years||13.00%-14.00%||1% of principal|
|1-5 years||11.75%-14.65%||NIL||0.5%minimum RS.500|
Documents required for Personal Loan:
- KYC DOCUMENTS:
- Pan Card
- Adhaar Card
- Voter’s ID
- Passport Size Photo
- Driving License
- A canceled cheque
- INCOME DOCUMENTS, PROOF OF EMPLOYMENT:
- Salaried: Last 3 years of PAYSLIPS, 6 months salary account bank statement.
- Most recent salary certificate with form16.
Installments applicant is currently paying, all the numbers of credit cards.