Now Reading
Best Banks For A Personal Loan In India

Best Banks For A Personal Loan In India

Best Banks For A Personal Loan In India

Best Banks For A Personal Loan In India

A personal loan comes under the category of unsecured loan, which doesn’t require any collateral. Anyone working under someone or self-employed can avail it. It can help you overcome financial difficulties like medical emergency, credit card bill payment, travel, financing of new business, to improve one’s credit score, etc. When you opt for a personal loan, the loan amount you take depends entirely on your eligibility and EMI.

But it should be chosen only when there’s a financial emergency because a personal loan has high-interest rates. And it should be repaid within 3 to 6 months.

One should know that a personal loan should be used appropriately. If you misuse the advantages of your loan, you might not be able to get another loan approved ever. To get a loan approved, you need to have a good CIBIL score and a well-maintained credit history.

When you decide to opt for a personal loan, you should look through all the schemes and offers you can get on a personal loan from different banks and go for the best bank.

Some of the best banks for loans in India that offer personal loans are:

1) State Bank of India

Personal loans offered by SBI are provided to everyone, whether working in an organization or self-employed, but there is a requirement that the person should have been in that job for at least 2 years.

SBI provides a personal loan in three different categories. They are:

i) SBI Xpress Credit Personal loan:

This type of personal loan is provided to employees who work under specific sectors and have salary accounts in SBI Bank.

The sectors that come under these are the Educational institutions of national repute, Central and State governments, Quasi-government, Central and profit-making state PSUs, and some specific corporate that are in a relationship with the bank in terms of business.

Particulars Effective Interest Rate Loan amount
Term Loan 12.05% p.a. onwards Rs.25,000 onwards
Overdraft Facility 12.55% p.a. onwards Rs.5 lakh onwards

Key Benefits

  • Loans can be repaid over a duration of 5 years
  • A second loan can be taken by borrowers

Eligibility for Xpress Credit Personal Loan

  • Monthly income should be Rs.5,000.
  • The EMI/NMI Ratio (Net Monthly Income) should not be above 50%.

ii) SBI pension loan:

This loan is provided to employees who are under the central, state government or are Defence pensioners.

Eligibility for SBI Pension Loan:

  • The employee should be withdrawing his pension through the SBI bank
  • He must not be more than 76 years of age.
  • The EMI (Equated Monthly Instalments) or NMP (Net Monthly Pension) should not be above 50% for every pensioner. For family pensioners, the EMI or NMP should not be above 33%.

Effective Interest Rate Loan amount
12% p.a. Rs.25,000 onwards

Key Benefits

  • Pensioners do not have to pay a processing fee.

iii) SBI Xpress Power Personal Loan:

This loan is available for employees who are working under the Central and State government, Quasi-government, Defence establishment, PSUs, Educational Institutions of National Repute and Selected Rated Corporate.

Particulars Effective Interest Rate Loan amount
Term Loan 12.15% p.a. onwards Rs.25,000 onwards
Overdraft Facility 12.65% p.a. onwards Rs.5 lakh onwards

Key Benefits

  • Nominal processing fee
  • No Salary Account with SBI necessary

The prerequisites for SBI Xpress power personal loan are:

  • Monthly income of Rs 50,000.
  • It isn’t necessary to have a salary account with the bank.
  • The interest rates of SBI personal loan starts from 11.30 percent up to 15.5 percent.

Benefits of opting for SBI personal loans:

  • The requirement for a minimum monthly income is really low.
  • There are three categories/types of loans available.
  • The bank has an extensive network spread all over India so people can easily avail of the services.

Loan Scheme Processing Fee Prepayment charge Penal Interest
Xpress Credit 1% of the loan amount 3% on the prepaid amount 2% p.a.
Xpress Power 1% of the loan amount NIL 2% p.a.
SBI Pension 0.5% of the loan amount 3% on the prepaid amount 2% p.a.

The documents they ask for to process your loan are:

  • Application form
  • Pan card
  • ID proof
  • Address proof
  • Recent salary slip and salary account statement for the last 6 months.
  • Audited or certified ITR for the last two years.
  • Your salary or pension account number of SBI

2) HDFC BANK

This personal loan is available to both earning, and self-employed population over corporate and government institutions. You can borrow an amount of Rs 50000 to 40 lakhs. And being one of the best banks for a loan, they ask for no collateral. After the processing is done, the amount gets credited to your account within 4 hours. And if you already have an account with HDFC Bank, your loan gets approved within 10 seconds. However, personal loans do come with a higher interest rate, HDFC Bank personal loan rates start from 11.25% and goes up to 21.50%.

Benefits of opting for HDFC personal loan:
  • Pre-closure charges are lower than other banks.
  • Hassle-free repayment options.
  • Very less documentation required.
  • No collateral or security required.
  • Borrowers can also avail an optional insurance cover.

The eligibility criteria for opting for this loan:

  • The loan is available only for employees working under Pvt. Ltd, PSU including the State and Central and local governments.
  • The borrower should be of age 21 to 60 years.
  • He should have the job for at least the last 2 years.
  • The minimum monthly income of the employee should be Rs 15,000.
  • Residents of Mumbai, Bengaluru, Delhi, Hyderabad, Chennai, Ahmedabad, Kolkata, Pune, and Cochin should have a minimum income of Rs.20,000 per month.

Loan processing fee Up to a maximum of 2.5% of the loan amount, subject to a minimum fee of Rs.1,999 and a maximum fee of Rs.25,000
Pre-payment/Part-payment charges
  • loan tenure between 13 – 24 months – 4% of the outstanding principal
  • loan tenure between 25 – 36 months – 3% of the outstanding principal
  • loan tenure if over 36 months – 2% of the outstanding principal
Overdue EMI interest 2% per month will be charged on the principal or EMI that is overdue
Cheque swapping fee Rs.500
Amortization schedule fee Rs.200
Cheque bounce charges Rs.550 per event

The documents you’ll require to apply for this loan: 

  • Application form
  • A Government-issued ID proof
  • A valid address proof
  • Bank statement of last 3 months
  • Recent salary slip

3) Axis Bank Personal loan

Another best bank for a loan, Axis bank offers personal loans with no foreclosure charges.

You can make your loan repayments in 60 months or even if you want to settle the loan amount prior to the tenure, then also there will be no prepayment charges on loan.

The interest rate on loan starts from 15.75 percent up to 24%. You can get a loan amount of maximum 15lakh rupees and repayment tenure of 60 months.

Benefits of opting for Axis bank personal loan:
  • No prepayment charges.
  • No part payment charges.
  • Quick processing.
  • Documents required are very less.

To be eligible for this loan, you need to:

  • Be a government employee, or Pvt. ltd or an earning doctor.
  • Must be of 21 years or above.
  • And a maximum age of 60 years.
  • Have a minimum monthly salary of Rs 15000
  • Your credit score should be more than 750.

Interest Rate 15.75% to 24% p.a.
Loan Amount Rs.50,000 to Rs.15 lakh
Processing Fee 1.5% to 2% p.a. of the loan amount + GST
Pre-Payement NIL (Repayment tenure varies from 12 to 60 months.)

The documents you’ll require to apply for this personal loan:

  • Application form.
  • Your photograph.
  • A Government-issued ID proof
  • A valid address proof
  • Age proof.
  • Proof of income.
  • Bank statement.
  • Proof of signature verification.

4) Bajaj Finserv

This loan is provided to only those people who are earning a monthly income.

You will have to apply online for this loan, and you will get instant approval. After the processing, the loan amount is credited to your account within 24 hours.

The lowest interest rate offered is 12.99%. You can borrow a loan amount of up to Rs 25 lakh. Also, you can make a pre-closure payment just after the first EMI.

Benefits of opting for Bajaj Finserv personal loan:
  • Instant approval.
  • Flexible tenure
  • Quick processing.
  • Pre-approved offers
  • No Hidden Charges
  • Loan amount credited within 24 hours.
  • Can make repayments after the first EMI too.

To be eligible for this loan, you need to:

  • Must be between the age of 23 to 55 years.
  • Have a monthly income of around Rs 25,000 to 35,000.

Interest Rates 12.99% onwards
Processing fees Up to 3.99% of the loan amount
Bounce Charges Rs. 600 – 1200 Per bounce
Penal interest 2% of EMI amount per month or Rs. 200 per month, whichever is higher.
Secure fee
(only for online approvals)
Rs. 4,499

The documents you’ll require to apply for this loan:

  • Online Application form.
  • Your Employee ID proof.
  • KYC documents.
  • Your salary slip.
  • Bank statement of your salary account of the last 3 months.

5) Bank of Baroda

Amongst the best banks for a loan, the loan given by Bank of Baroda is provided to both earning monthly income and earning money. The maximum loan amount offered is Rs. 10 lakh and make your repayments up to 60 months.

Benefits of opting for Bank of Baroda personal loan:
  • No prepayment charges for a personal loan after the initial 6-month period.
  • You can take a loan of a low amount as well.
  • Personal loans to pensioners and ex-defense personnel also.

To be eligible for this loan, you need to:

  • The maximum age requirement for salaried employees is 21 years to 60 years.
  • Maximum age requirement for self-employed personnel is 21 years to 65 years.
  • The employee should have a job or business for at least 1 year.
  • Insurance agents must have been in business for at least 2 years.

Interest Rate 11.35% to 16.35%
Processing Fees Rs.1,000 to Rs.10,000
Pre-closure Charges Within 6 Months – 6% of Principal outstanding
After Six Months – Nil
Loan Tenure 4 years
Minimum loan amount Rs.1 lakh Semi-urban and rural areas: Rs.50,000
Maximum loan amount Rs.10 lakh Semi-urban and rural areas: Rs.5 lakh

The documents you’ll require to apply for this loan:

  • Application form.
  • A Government-issued ID proof
  • A valid address proof
  • Bank statement of the last 6 months.

6) Standard Chartered Bank

Standard Chartered Bank has the lowest interest rates on personal loans starting from 11.99% to 21%, and you can get a loan amount of up to 30 lakhs.

Benefits of opting for Standard Chartered Bank personal loan:
  • Lower interest rate.
  • Loan amount up to 30 lakh.
  • No collateral required.
  • Easy online processing.
  • The personal loan provides a tenure period ranging from 12 months to a maximum of 60 months.

To be eligible for this loan, you need to be:

  • Between the age of 21 to 58 years.
  • Must earn a minimum salary of Rs. 22000 per month.
  • Should be having work experience of at least 1 year.

Type of Fees Charges Applicable
Interest Rate 11.99% onwards
Processing Fee Up to 3% of the Loan Amount
Pre-Payment Charges
  • 0-12 Months: 5% of the Principal Outstanding
  • 12-24 Months: 4% of the Principal Outstanding
  • 25-36 Months: 2% of the Principal Outstanding
  • More than 36 Months: 1% of the Principal Outstanding
Late Payment Fees Rs. 495
Interest on arrears 2% per month
*Swap Charges Rs. 500

The documents you’ll require to apply for this loan: 

  • Application form.
  • A Government-issued ID proof
  • A valid address proof
  • Bank statements for the last 3 months.

7) Citibank

This loan is mainly beneficial for the employees earning monthly income. These employees can get a personal loan at a low-interest rate than the self-employed class. Their interest rates start from 10.99% and go up to 18.99%.

Benefits of opting for Citibank personal loan:
  • Lower interest rate.
  • Loan amount up to Rs 25,000 to 30,00,000.
  • Quick processing and approval.
  • Loan amount credited within 48 hours.
  • Repayment options from 12 to 60 months.
  • There are no late payment charges.
  • With Citi Bank’s personal loan, the decision time is 4 hours after the individual has applied through ‘Click 4 Call’.

To be eligible for this loan, you need to:

  • Be an earning employee, self-employed, or a business owner.
  • Age limit for the Salaried individuals must be 23 years to 60 years, and for self-employed professionals must be 25 years to 65 years.
  • Rs.25,000 per month for salaried applicants, and Rs.5 lakh in gross annual receipts for self-employed professionals.
  • Existing Citibank customers for extra benefits.

Loan Amount Minimum: Rs.25,000  Maximum: Rs.30 lakh
Tenure 6 months to 60 months
Interest Rate 10.99% to 18.99%
Processing Fees 0.50% – 3.00%
Booking Fee Up to 3.00% of the loan amount sanctioned.

The documents you’ll require to apply for this loan: 

  • A Government-issued ID proof
  • A valid address proof
  • Your age proof.
  • Length of employment/business continuity.
  • Proof of income and occupation.

8) ICICI Bank

In the list of best banks for loans, the loan amount you can avail through an ICICI Bank personal loan is up to Rs 20 lakhs that too, without any collateral or security. Their interest rates begin from 11.50% and go up to 19.25%.

See Also
How To Improve Your CIBIL Score Instantly

Attractive benefits are offered to existing account holders with the bank. The documents required for them are minimal, and they are already eligible for opting the loan. The repayment tenure offered is up to 60 months.

Benefits of opting for ICICI Bank personal loan:
  • Lowest interest rate.
  • Loan amount credited to your account within 72 hours.
  • No collateral required.
  • Flexible repayment tenures.

To be eligible for this loan, the requirements are:

  • Employees earning a monthly income should be age 23 to 58 years.
  • Self-employed should be of age 25 (for doctors) and 28 years (for self-employed individuals) to 65 years.
  • Salaried employees must earn a minimum income of Rs. 17,500.
  • Self-employed individuals should have a minimum turnover of Rs. 15 to 40 lakhs.
  • Salaried employees should have been in a job for at least 2 years.
  • At least 3 years for doctors and 5 years for professionals in their current business.

Maximum Loan Amount Rs.20 lakh
Tenure 12 months to 60 months
Interest Rate 11.50% onwards
Processing Fees Up to 2.25% p.a. of the loan amount + GST
Prepayment Charges 5% p.a. of the principal outstanding amount + GST
Loan Cancellation Charges Rs.3,000 + GST

Other Charges and Penalties:

Additional interest on late payment 24% p.a.
Repayment mode swap charges Rs.500 per transaction + GST
EMI bounce charges Rs.400 per bounce + GST

The documents you’ll require to apply for this loan: 

  • Application form
  • A Government-issued ID proof
  • A valid address proof
  • Your age proof
  • Back statement
  • Length of employment/business continuity
  • Proof of income and occupation

9) Kotak Mahindra Bank

This personal loan is for everyone, whether salaried or self-employed individuals. The loan amount can be extended up to Rs. 15 lakhs starting from Rs. 50,000. The interest rates on loan start from 11.25% and go up to 19.99%.

Benefits of opting for Kotak Mahindra Bank personal loan:
  • Fast loan approval.
  • Flexible and affordable interest rates.
  • Minimal Documentation Process.
  • Maximum Loan granted up to Rs. 25 lakhs.
  • Flexible Repayment options, ranging from 1 to 5 years.
  • Disbursal with money into your account within 48 hours.

To be eligible for this loan, you need to be:

  • An Employee of MNC, Public or PVT.LTD Company.
  • Must be between the age of 21 to 58 years.
  • Have a monthly income of Rs. 20,000.
  • The borrower must be a Graduate.
  • He/she must be in a job for at least a year.
  • Must be a resident of a city for at least a year.

Schedule of charges Rates
Processing charges up to 2.5% of the loan amount + GST
Dishonor Rs. 750 per instance (inclusive of GST)
Collection charges 30% of dishonor charges + overdue interest
No due certificate Rs.500 + GST
Swap Charges( Replacement of PDCs) Up to Rs. 500 per Swap per Instance+ GST and other applicable statutory levies
Prepayment Interest / Foreclosure Charges Lock-in period for 12 months. After 12 months, 5% foreclosure charges + GST on principal outstanding

The documents you’ll require to apply for this loan: 

  • Your ID proof.
  • Your address proof.
  • Bank statements for the last 3 months.
  • Income details.
  • Salary slips for last 3 months.
  • 2-3 passport size photograph.

10) TATA CAPITAL

This financing institute offers loans up to Rs 25 lakh. The tenure for Tata Capital personal loans can be extended up to 60 months, and so you can have low EMIs. The interest rates start from 11.25% and go up to 19.75 %.

Benefits of opting for Tata Capital personal loan:
  • No Processing Fees.
  • Very little documentation and paperwork.
  • Repayment period starting from 12 months and extending up to 60 months.
  • Loan amount starts from Rs 75000 to Rs 25,00,000.

To be eligible for this loan, you need to:

  • Be of age between 21 to 60 years.
  • Must earn a minimum of Rs 15000 per month.
  • Must be having the job for at least 6 months.
  • Have a job experience of a minimum of 1 year.

Interest Rate 11.25% onwards
Loan Processing Charges Up to 2.5% of the loan amount + GST
Prepayment
  • No part prepayment allowed in the first 6 months.
  • Prepayment allowed only once in a year.
  • There has to be a gap of a minimum of 6 months between two-part payments.
Part Prepayment Charges
  • Part prepayment is applicable post repayment of 6 EMIs without any penalty or additional fee.
  • A fee of 2% of the amount paid plus GST is applicable beyond 25% of the principal outstanding.
Penal Interest/ Additional Interest 3% on the overdue amount per month + GST
Post-dated cheque charges Rs. 850 + GST
Bounce Charges Rs. 600 for every Cheque/ Payment Instrument/ ECS Dishonour + GST
Cancellation charges 2% of the loan amount or Rs. 5750, whichever is higher + GST
Instrument swapping charges Rs. 550 + GST
Foreclosure charges No Foreclosure is allowed in the first 6 months. 4.5% of the principal outstanding at the time of foreclosure + GST

The documents you’ll require to apply for this loan: 

  • Your ID proof.
  • Your address proof.
  • Income proof.
  • Salary slips of the last 3 months.
  • Employment certificate.

11) YES Bank

YES Bank promises to be the best bank for a loan, and it offers personal loan starting from Rs 1 lakh to Rs 40 lakhs. Their interest rates start from 10.75%, and they don’t ask you for any collateral.

Your approval chances can be known within 60 seconds through an online eligibility calculator. It takes 5 days for the verification and processing to be done, and after that, the loan amount is credited within a few hours.

Benefits of opting for YES Bank personal loan:
  • Personal Loan amount up to Rs 40 lakhs.
  • Minimum age limit should be 21 years and maximum age should be 60 years.
  • Online eligibility calculator.
  • Low-interest rates.

To know if you are eligible for this loan, you can use the online eligibility calculator. And the information you’ll need to provide for the calculation is:

  • Your age.
  • Your monthly income.
  • PAN number.
  • Contact details.
  • Employer details.
  • Employment history.
  • Address proof/residence details.

Interest Rate 10.75% onwards
Loan Tenure 12-60 Months
Loan Processing Charges Up to 2.50% of the loan amount subject to a minimum of Rs. 999/- plus GST
Pre-Payment Charges Prepayment only allowed after 12 EMIs. 2% plus GST on part prepayment amount paid.
Foreclosure Charges
  • 13-24 months –4% of principal outstanding
  • 25-36 months – 3% of principal outstanding
  • 37-48 months – 2% of principal outstanding
  • >48 months nil
Duplicate No Due Certificate or NOC Rs. 250 per event
Late Payment Charges 24% per annum on the amount outstanding from the date of Default

The documents you’ll require to apply for this loan: 

  • Application form.
  • Your ID proof.
  • Your address proof.
  • Income details.
  • Bank statements for the last 3 months.
  • Last 3-month salary slip.

All Banks Interest Rates:

Name Interest Rate
(Min)
Interest Rate
(Max)
Processing
Fee
Pre-closure
Charge
SBI 11.30% 11.30% Up to 2.5% 3%
HDFC Bank 11.25% 21.50% Up to 2.5% 2-4%
Axis Bank 15.75% 24% 1.5 to 2% NIL
Bajaj Finserv 12.99% N.A. Up to 3.99% 4%
Bank of
Baroda
11.35% 16.35% Rs.1,000 to Rs.10,000 NIL
SCB 11.99% 21% 3% 1-5%
Citibank 10.99% 18.99% 0.50% – 3.00% 4%
ICICI Bank 11.50% 19.25% Up to 2.25% + GST 5% + GST
Kotak Bank 11.25% 19.99% Up to 2.5% 5%+ service tax
Tata Capital 11.25% 19.75% Up to 2.5% of the loan amount + GST 4.5%
Yes Bank 10.75% N.A. Up to 2.5% 2-4%

COMPARING ALL THE BANKS WITH THE BENEFITS PROVIDED AND THE INTEREST RATES:

You can take personal loans to help with your financial emergencies. It offers the flexibility to use the funds wherever you want. You can know your EMI, which means your equated monthly installments and other important things through a personal calculator before you opt for a personal loan and also pre-plan your repayments according to your earnings.

There are many financial reasons a personal loan can help you with. It can be used for any small or big purpose.

Like:

  • To Consolidate Multiple Debts: An individual can choose to apply for a personal loan to help him manage financial emergencies and debts and repay them without any delay.
  • Credit Score: The credit score plays a major role when it comes to loans and credit cards. If you don’t have a well-maintained credit score, a personal loan can help you to build one.
  • To Pay off Credit Card Dues: You can clear your whole credit card dues by taking a personal loan at a very low-interest rate. A lower rate of interest will help you lower the number of repayments you have to make on your card every month.
  • To Finance New Business: You can apply for a personal loan for buying new equipment, taking a spot or commercial building on lease for setting up your business and day to day business chores, you can use the amount of money you get from your personal loan for any purpose. A personal loan is more easy and quick to avail than business loans.
  • For Renovating Your House: Rather than buying a new house, rebuilding and renovating your old house is a much better option since it requires fewer funds. This is the situation when a personal loan can help you meet your necessities.
  • Paying for Unforeseen Medical Expenses: Personal loans which can be availed in less time is one the best choice during medical emergencies. You should take personal loan when you urgently require money for medical expenses.
  • Higher Education Abroad: You can pay for your fees, books, hostel, and every other expense with the help of a personal loan.
  • Take a Dream Vacation: If you want to travel abroad and visit other countries, taking a personal loan to pay for your travel expenses is the right option. You can get one as soon as possible if your credit score is well maintained.
  • To Pay for Personal Events Like Wedding: A personal loan can help bear the wedding expenses instead of choosing to spend all your savings on it.

You can take a personal loan cover expenses in a lot of situations as it is easy to avail with no inconvenience. It has low-interest rates and hence is a wise option to choose to finance your needs.

So, the banks mentioned above are the top best banks for a loan in India that provide the best personal loans with the best benefits and easy processing. There are several other factors a personal loan depends on like:

  • Your CIBIL score: Gives information about your repayment capability. So it is a must that you have a well-maintained credit score.
  • Employment Status: If you are a salaried employee, that means you are definitely getting your salary every month. This helps the bank believe that you will be able to make the repayments on time every month.

But since in the case of self-employed people, banks fear to take any risk. This is why they have higher interest rates than people earning a monthly income.

  • Relationship With The Bank: If you have an old relationship with the bank, the chances of your loan application getting approved increases.
  • Employer Reputation: If you are working in a top-rated reputed company, your interest rates are automatically lowered.
  • Your Monthly Income: The more you earn, the more you are financially stable, and hence, there are higher chances that you will make the repayments on time.

The loan amount you take decides your interest rate and repayment tenure.

In many instances, your repayment capacity greatly influences your loan eligibility. Various other factors do too. When you submit your application for a personal loan, the lender or bank or the financial institution will examine if you are financially capable of making repayments on time, i.e., the discussed tenure. Your credit score, outstanding loans, current earnings, and continuity of income is checked thoroughly by your lender.

What's Your Reaction?
Cool
0
EXCITED
0
HELPFUL
0
MONEY
0
NOT SURE
0
View Comments (2)

Leave a Reply

Your email address will not be published.

© 2020 ADITYA FARRAD PRODUCTION. ALL RIGHTS RESERVED.

Scroll To Top