Personal loans aid in meeting the immediate and private expenses without the need for any collateral. Personal loans can be used for the purpose of basic expenses such as vacation, higher education, travel, medical treatment, wedding, credit card payment. These unsecured loans can be availed by both salaried as well as self-employed individuals. As these loans do not require any collateral and are sanctioned quickly, they come with a higher personal Loan Interest rate than that of secured loans. Some banks have a fast turnaround and approve the loan in a few hours. They require minimum documentation for approval and usually have a tenor between 1 to 5 years.
Key Features of a Personal Loan
Here are some key features that an applicant needs to be aware of before applying for the personal loan. Keep in mind, these may vary across financial institutions
Age of the applicant: between 21 and 60 years of age
Loan amount: Rs.50000 to Rs.5000000
Loan tenor: 1 year to 5 years
Interest rates: starting from 10.75%
Processing fees: up to 2% of the loan amount
EMI: lowest EMI is Rs.2162 per lakh.
Prepayment charges: Nil to up to 5%
Documents required: identity proof, address proof, and income documents
These documents may include PAN card, driving license, Aadhar card, passport, voter ID, a government-issued i-card, bank statement, and telephone/ electricity/ mobile bill.
Some banks even demand work experience of up to 3 years to ensure income stability. Banks offers customized personal loans with special interest rates for salaried applicants working in defense, government, private, and MNC companies. Moreover, personal loans are also offered to self-employed professionals like CA, doctors, architects, and CS. Reputable banks also have special schemes for pensioners up to an age of 76 years.
Compare Personal Loan Interest Rate in India
It is crucial to compare the interest rates and processing fees of various banks before choosing a bank to avail for the personal loan. Also, applicants must check for the best discounts and current offers in addition to tenor based discounts. YES Bank is the best bank to avail a personal loan with respect to the interest rates, as it’s rate is just 10.75%. The interest rates of the top banks are as follows:
SBI personal loan interest rate: 12.50%
HDFC personal loan interest rate: 11.25%
ICICI personal loan interest rate: 11.25%
Axis bank personal loan interest rate: 11.25%
Those applicants who are in search of a loan within 1-2 days should opt for HDFC Bank, ICICI Bank, Tata Capital, Citibank, IIFL, and RBL Bank. Also, these banks offer instant disbursal for existing customers. This table displays the interest rate of all the banks along with its processing fees for easier comparison.
|Banks||Interest rate||Processing fee|
|HDFC Bank||11.25%||0.99%-2.50% up to Rs.10000|
|Axis Bank||11.25%||1.50%- 2.00%|
|Bajaj Finserv||11.90%||1.50%- 3.00%|
|Citibank||10.99%||Up to 0.5%|
|IDFC Bank||11.50%||0.75%- 2.00%|
|RBL Bank||13.99%||Up to 2%|
|Tata Capital||11.75%||Up to 2%|
|Fullerton India||17.25%||Up to 2%|
|Induslnd Bank||11.00%||1.00%- 2.50%|
|Kotak Bank||11.50%||Up to 2.5%|
|IDFC First Bank||14.00%||1.5%|
|HDB Financial||13.99%||Up to 2% of loan amount|
|Standard Chartered Bank||10.99%||1%|
|Yes Bank||10.75%||0.99%- 2.00%|
|Allahabad Bank||13.15%||1.06%, minimum Rs.1068|
|Vijaya Bank||12.50%||0.25%, maximum Rs.10000+IST|
|Indian Overseas bank||12.70%||Rs.204 per lakh|
|Indian Bank||11.05%||0.5%, minimum Rs.508|
|Union Bank of India||12.70%||0.5%, minimum Rs.500|
|Federal Bank||11.49%||0.5%, minimum Rs.500|
|Syndicate Bank||13.40%||0.5%, minimum Rs.500|
|Corporation Bank||12.95%||1.5%, minimum Rs.500|
|PNB||12.00%||1.8%+ loan amount|
|Bank of Maharashtra||15.10%||1%, minimum Rs.1000|
|Bank of Baroda||11.60%||2%, minimum Rs.250|
|Andhra Bank||11.55%||Depends upon the case|
Please note that the interest rates and processing fees can change without prior notification by the banks including the SBI personal loan interest rate.
If you want to apply for loan so you can check emi, interest rate, tenure and net payable amount through Personal loan EMI calculator.
Applicants must avoid applying with multiple banks as simultaneous loan applications get recorded in the CIBIL report and can hurt the chances of getting a loan. Also, borrowers must not apply for a loan amount more than what they are applicable for just because of low Personal Loan Interest rate offered by that particular bank.