Personal Loans or Signature Loans are designed to meet the immediate financial needs of an individual. It is an unsecured loan that means the lender does not require any collateral against the loan. As it is an unsecured loan, the ROI and risk factor is high as compared to a secured loan.
Important Points to Remember:
The approval of your loan application depends on various factors such as:
- It is granted to an individual having a fixed salary or income i.e. it requires financial stability
- It is a fixed loan i.e. every month you have to pay a fixed installment to your lender
- It can be used for specified purposes
- It depends on your credit history (CIBIL score)
- It requires minimum documentation
- It is easy-to-manage
- It does not require any collateral
- It has higher interest rates compared to other loans
- It is easy-to-avail, and more.
Before availing a loan, don’t forget to consider the ROI (Rate of Interest) taken by the financial institutions. Go with the best option considering the interest rate, processing fee, repayment tenure and other factors.
Limit of Personal Loan:
Currently, the set limit for a personal loan is Rs.25 Lac. The loan amount granted by a bank or NBFCs to an individual depends on the income or salary of the recipient. Furthermore, the bank also considers a few more details like currently running EMI, etc. In general, you can avail the loan up to 30 times your income.
Choose the organization providing loan with:
- Flexible repayment tenure
- Attractive ROI
- Minimum processing fees
- Require Minimum documentation
- History of quick-approval of loan application
The leading banks providing personal loans are enlisted below:
- State Bank of India:
State Bank of India is a great option for availing a personal loan. The bank provides several kinds of personal loans to the customers at the ROI starting from 9.60% p.a.
- Pre-approved Personal Loans, Xpress Credit Loan, Xpress Elite, and SBI Pension Loan, are major types of loans granted by the bank.
- The minimum processing fee they charge from the borrower is 1%. It is the processing fee taken against the approved loan amount.
- You need to fulfill the minimum income requirement (Rs.15, 000) to avail the loan.
- The loan tenure of the SBI personal loan is up to 6 years.
Tabular Description of SBI Personal Loan Types
|Types of Personal Loan||Processing Fee||Interest Rate||Documentation Required||Loan Amount|
|SBI XPress Credit||1.5% of the loan amount||9.60% p.a.||ID proof, Address Proof, Income Proof and other related documents||Up to Rs.20 Lakh|
|SBI XPress Bandhan||1% of the total loan amount||According to the bank’s decision||ID proof, Address Proof, Income Proof and other related documents||Up to Rs.15Lakh|
|SBI Pension Loan||0.5% of the total loan amount||10.55% onwards||ID proof, Address Proof, Income Proof and other related documents||Up to Rs.14 lakh|
|SBI Pre-approved Personal Loans||At the bank’s decision||From 9.60% p.a.||ID proof, Address Proof, Income Proof and other related documents||As per the bank’s decision|
|SBI QUICK Personal Loan||1.5% of the loan amount||10.85% p.a. – 12.85% p.a.||ID proof, Address Proof, Income Proof and other related documents||Up to Rs.20 lakh|
2. HDFC Bank personal loan:
Apply for a personal loan and if your loan application gets approved by the bank, you can instantly get the loan.
- The minimum loan amount approved by the bank is 50k.
- The processing fee is 2.5% (including general sales tax)
- ROI starts from 10.75%
The pre-set eligibility criteria of the HDFC personal loan are mentioned below:
- You must be a salaried employee of public sector undertakings, or private limited companies (working for the past 2 years and 1 year in the current company).
- If you are a business person, your minimum monthly income should be 25k/ month
- The age limit should be 21 to 60 years
Charges/ Interest Rates
- The Rack Interest Rate to be paid by a salaried employee includes 10.50% to 21.00%
- Up to 25, 0000, the Loan Processing Charges should be around 2.5% of the loan amount
- Other statutory charges are applicable according to the laws decided by the state government
- The pre-payment charges for the salaried person is negligible
Loan Eligibility Calculator
- You can check your personal loan eligibility online in one minute at selected branches
- After approval from the bank, the loan gets disbursed in your account within 4-5 hours
- It takes only 4-5 seconds to deposit the loan in your account if you are a pre-approved HDFC Bank customer
3. Yes Bank Personal Loan:
Yes Bank offers personal loans up to Rs.40 Lakh for both salaried employees and self-employed individuals. The bank sanctioned the loan amount considering your age, employment status, income, credit history, repayment capacity, current EMIs and other parameters. There are several advantages for choosing YES Bank for taking a personal loan:
- Interest rates on the loan amount are 10.99%
- Loan Tenure is 12-60 months
- The processing fee on the total loan amount is 2.5%
- Flexible repayment
- Quick disbursal of loan
- Easy to apply
- Fast approval and more.
Types of YES Bank Personal Loans
YES Bank offers personal loan for varied purposes including:
- Home Renovation: Yes Bank offers amazing plans for renovating your home
- For wedding expenses: Take it to manage your wedding costs which should be very high
- For holiday: Helps to cover your traveling expenses
For getting your desired loan amount, it should be mandatory to complete the documentation process and get quick approval from the bank. You need to carry your ID proof, current residential address proof, application form and income proof.
4. Kotak Mahindra Bank personal loan:
Kotak Mahindra Bank has offered personal loans to the customer at attractive interest rates of 10.50% to 28.00%.
- The loan approval and disbursal process of the bank is very fast.
- If you are a salaried professional or a self-employed individual, you are eligible for the personal loan.
- The bank charges a 2.50% processing fee (inclusive of all taxes) on the net loan amount from the recipient.
- The loan tenure period starts from one year which can exceed up to five years.
5. Bank of Baroda personal loan:
Bank of Baroda provides personal loans to the customer at the ROI of 11.40% to meet their financial requirements. Furthermore, the documentation procedure of the bank is quite simple.
- Processing fee charge is 2%
- Loan repayment tenure is up to 60 months
- Maximum loan amount would be 10 Lakh
Types of Personal Loan:
- Bank of Baroda Personal Loan: Loan amount starts from Rs.1 lakh to Rs.15 lakhs
- COVID 19 Personal Loan: Rs.25, 000 to Rs.5 lakhs
- Pre-Approved Personal Loan: Get up to Rs.10000 to Rs.5 lakhs
6. ICICI Bank:
You can avail personal loans from ICICI Bank at the interest rate of 11.25% to 22%. The processing fee of the bank is 2.25% of the total loan amount which can be less than Rs.20 Lakhs. The repayment tenure of the loan is up to 5 years.
Apart from the above-mentioned, several other banking and non-banking financial institutions are involved in providing personal loans to the customer. You can also go with Baja Finserv, Axis Bank, CITI Bank, Money View, TATA Capital, and more.
If you want a personal loan, just do a little research and choose a reliable lender. The processing fee, ROI, tenure period and repayment methods of the lenders may vary, so, do comprehensive research and select the best one to meet your loan requirement. You can select a non-banking financial institution, Money View, for providing loans at minimum documentation.
Read more: Wiliams Loans Putney Later Life