Features of Leading Personal Loan Banks
| Feature | HDFC Bank | ICICI Bank | Bajaj Finance |
| Interest Rate | 10.49% – 17% | 11.25% – 18.5% | 12% |
| Min Loan Amt | Metro : 100000 & Non Metro: 100000 | 100000 | 100000 |
| Max Loan Amt | 50 Lacs | 50 Lacs | 1 Cr |
| Loan Tenure | 1 – 6 Years | 1 – 5 Years | 1 – 5 Years |
| Processing Fee | 0.25% – 2% of the Loan Amt | 1% – 2.5% of the Loan Amt | 0.5% – 2% of the Loan Amt |
| Preclosure Charges | 2%, Nil foreclosure charges after 12 months | 2%, Nil foreclosure charges after 24 months | Nil |
| Overdraft Facility | No | No | Yes |
Benefits of Personal Loans
- One can take the loan for Rs.40 lakh or more.
- Choose a loan tenure of 5 years or less and repay your loan in easy EMIs.
- One can apply through Offline or Online modes.
- Less paperwork and low documentation are required.
- No restrictions on how the loan amount should be used.
- Affordable interest rates ranging between 10% – 24% p.a.
- Helps in quick consolidation of debts.
- Fast Approval.
- Pre-approved loan offers are also available.
Apply for a personal loan online through our channel partners and get the best offer available from top banks based on your needs. Avail of personal loan on National info for weddings, travel, home renovation, or an emergency financial requirement.
If you are looking for a loan, compare several banks that provide credit at a low rate of interests, secure EMI, and low processing charges. Here are some of the leading banks :
HDFC Personal Loan
- Attractive personal loan Interest rates for self-employed applicants.
- Loan Disbursal is done in 10 seconds for pre-approved HDFC Bank Applicants
- Flexible Repayment tenures extending up to 5 years.
| Interest Rate | EMI | Foreclosure/Prepayment Charges | Repayment |
| 10.50% onwards | Rs.2,149 | Salaried- 13-24 months – 4% of principal outstanding,25-36 months – 3% of principal outstanding>36 months – 2% of principal outstanding | Rs.1,28,963 |
Apply for HDFC Bank Personal Loan online 2023
Fullerton India Personal Loan
Key Highlights:
- Easy and Quick approval process as per personal loan eligibility
- Flexible tenures from 12 months up to 5 years.
- Smooth proces with minimal documentation, and existing Fullerton India customers are eligible for additional benefits.
| Interest Rate | EMI | Foreclosure/Prepayment Charges | Repayment |
| 11.99% | Rs. 2,633 | 3% to 7% of the outstanding amount of principal depending on the time of application of foreclosure | Rs. 1,26,380 |
Apply for Fullerton India Personal Loan
ICICI Bank Personal Loan
Key Highlights:
- Collateral-free personal loans
- Get Funds in just 3 seconds*
- Minimal personal loan documents plus hassle-free application process
* Applicable only for pre-approved customers upon completion of online verification and acceptance of the final offer by the bank*
| Interest Rate | EMI | Foreclosure/Prepayment Charges | Repayment |
| 10.5% onwards | Rs.2,149 | 5% of the total principal outstanding amount + GST | Rs.1,28,963 |
Apply for ICICI Bank Personal Loan
SBI Personal Loan
Key Highlights:
- Collateral-free personal loans
- Low rates of interest
- Minimal documentation and hassle-free processing and use of personal loan EMI calculator will make it easy.
| Interest Rate | EMI | Foreclosure/Prepayment Charges | Repayment |
| 9.60% onwards | Rs.1832 | 3% of the total principal outstanding amount + GST | Rs. 1,31,939 |
Apply for SBI Personal Loan online 2022
Kotak Mahindra Bank Personal Loan
Key Highlights:
- Minimal paperwork
- Competitive interest rates and convenient repayment options
- Smooth and quick loan disbursal
| Interest Rate | EMI | Foreclosure/Prepayment Charges | Repayment |
| 10.75% onwards | Rs.2,162 | Effective 1st Aug 2021, below foreclosure charges, will be applicable to all personal loan customers:– 0 to 12 Months : Lock-in Period – 1 to 3 years : 4% + GST on principal outstanding– 3 years onwards: 2% + GST on principal outstanding | Rs.1,29708 |
Apply for Kotak Mahindra Bank Personal Loan
Tata Capital Personal Loan
Key Highlights:
- Easy and Quick finance at flexible rates of interest
- The loan can be used to finance anything like emergency medical requirements, weddings, etc.
- Flexible EMI options that cater to your requirements, your budget, and your timeline.
| Interest Rate | EMI | Foreclosure/Prepayment Charges | Repayment |
| 10.99% | Rs.1903 | 4.5% of the Principal outstanding at the time of foreclosure + GST Foreclosure charges for a closing loan within 6 months will be 6.5% + GST If foreclosed within 6 months post completing part pre-payment: Foreclosure changes will be 4.5% of the Principal outstanding at the time of foreclosure + GST + Part pre-payment amount | Rs.1,31,204 |
Apply for TATA Capital Personal Loan
Citibank Personal Loan
Key Highlights:
- Low Interests rate for both Salaried and Self-employed applicants
- Funds are usually credited in your bank account within few hours
- Fewer documentation and Instant approval for existing Citibank customers
| Interest Rate | EMI | Foreclosure/Prepayment Charges | Repayment |
| 9.99% onwards | Rs.2,124 | Up to 4% of the total outstanding principal amount plus the amount of interest for the month in which foreclosure is done | Rs.1,27,452 |
Apply for CitiBank Personal Loan
Standard Chartered Bank Personal Loan
Key Highlights:
- Attractive personal loan interest rate
- Quick approval when you apply online
- Flexible repayment tenures extending up to 5 years
| Interest Rate | EMI | Foreclosure/Prepayment Charges | Repayment |
| 11.49% onwards | Rs.2,199 | 0-12 Months- 5% of the Principal Outstanding.12-24 Months- 4% of the Principal Outstanding.25-36 Months- 2% of the Principal Outstanding.Over 36 Months- 1% of the Principal Outstanding | Rs.1,31,956 |
Apply for Standard Chartered Personal Loan
Capital First Personal Loan
Key Highlights:
It is good option If you are looking to top up your personal loan with additional funds.
- Repayment tenure of the loan is convenient, ranging from 1 to 5 years.
- The approval of the loan may take hardly two minutes, thereby helping you save time and getting access to funds immediately.
| Interest Rate | EMI | Foreclosure/Prepayment Charges | Repayment |
| 10.49% onwards | Rs.2149 | 5% of the principal outstanding amount | Rs.1,28,933 |
Apply for Capital First Personal Loan
IIFL Personal Loan
Key Highlights:
- The eligibility can be found out instantly, and the online approval takes not more than five minutes after the submission of your documents along with the form.
- The loan amount is disbursed and transferred into your bank account within few hours.
- The documentation process is also quiet simple, and the paperwork involved is minimal, thus helping you save on time and effort.
| Interest Rate | EMI | Foreclosure/Prepayment Charges | Repayment |
| 24% | Rs.2,877 | Up to 6% of the outstanding principal amount | Rs.1,72608 |
HDBFS Personal Loan
Key Highlights:
- Special Disconts for employees of individual companies.
- The processing of the personal loan is fast, and no guarantor or security is required to avail the loan.
- The tenures are also flexible ranging from 1 to 5 years.
The calculation of EMI’s and the total amount payable is done assuming the loan amount to be repaid is Rs.1 Lakh and is taken for the tenure of 60 months. The interest rate can vary depending on the income of the applicant and the amount borrowed.
| Interest Rate | EMI | Foreclosure/Prepayment Charges | Repayment |
| 30-36% | Rs.2,378 | 2% to 4% of the outstanding amount of principal based on the date of application of foreclosure | Rs.1,42,708 |
Apply for HDBFS Personal Loan
Personal Loan Eligibility
| Criteria | Salaried | Self-Employed |
| Age | 21 to 60 years | 22 to 55 years |
| Net Monthly Income | Rs.15,000 | Rs.25,000 |
| CIBIL Score | More than 750 | More than 750 |
| Minimum Loan Amount | Rs.50,000 | Rs.50,000 |
| Maximum Loan Amount | Rs.40 Lakh | Rs.50 lakh |
Documents Required for Personal Loan
Essential documents required are given as follows:
| Requirements | Salaried Individuals | Self Employed |
| Proof of Identity | Passport, Voter’s ID, Driving License or PAN Card | Passport, Voter’s ID, Driving License or PAN Card |
| Proof of Residence | Utility bills or Passport | Utility bills or Passport |
| Proof of Income | Bank statement of salary account for the previous six months | Audited financial statement of the previous two years |
If you are an NRI and looking to take a personal loan, these are the documents that you will need to submit to the lender:
- Recent passport-size photographs and of the guarantors
- Passport copy
- Visa Copy
- Bank Statements
- work Email ID or the Email ID of the HR of the company.
- Salary Certificate or salary slips
- Proof of Identity, Residence, Income, and Assets
- NRO/NRE bank statements of the previous 6 Months
*RBI has announced an extension of Moratorium for EMIs*
Other Fees & Charges for Personal Loan
- Processing fee
- Goods and Services Tax or GST
- Verification charges
- Charges levied for issuing a duplicate statement
- Penalty for defaults
- Penalty for pre-payment and part payment of a loan
Moreover, the lender may also charge for documentation, credit, stamping, collection, administration, etc.
| Bank | Processing Fee | Prepayment Charges |
| HDFC Bank | 0.25% to 1.50% | 2%, Nil foreclosure charges after 3 months |
| Axis Bank | 0.50% to 1.50% | Nil |
| ICICI Bank | 0.25% to 1.50% | 2%, Nil foreclosure charges after 9 months |
| SBI | 500/- to 0.50% | Nil |
| Kotak Bank | 1% to 2% | 2.25% of foreclosure amount if closed 1 month ahead of the tenure. |
| IIFL | Nil | Nil |
| Muthoot Finance | Nil | Nil |
| Manappauram Bank | Nil | Nil |
| PNB | 0.70% to 1% | Nil |
| Canara Bank | 0.01 | Nil |
| Andhra Bank | Nil | Nil |
To check Personal Loan Interest Rate for all major banks you can visit: Personal Loan Interest Rates
Personal Loan for Army Personnel
The individuals working in the Defence forces, like the Army, the Navy, and the Air Force, have a difficult road ahead of themselves when starting afresh and moving on with life after completing their service.
Although a fixed income is secured for the rest of their lives in the form of pensions, subsidies, and other various perks, they prefer not to rest idly and may want to continue working either by getting a job or starting their own business to remain active in life.
There are various financing alternatives available to defence personnel, from bank loan products to government loan schemes.
Personal loans are lended by most commercial scheduled banks at concessional interest rates to Army personnel There are various banks that offer personal loans to armed forces personnel to the extent of up to Rs.10 lacs.
One can choose tenures of 1 to 5 years and you can make partial prepayments without any added charges. Some banks also offer a free accident insurance policy with a personal loan. Below listed are the personal loan offers by some of the commercial banks:
| Bank Name | Interest Rates (per annum) | Tenure | Loan Amount |
| Andhra Bank | 11.70% | 12-60 months | Up to Rs. 5 Lacs |
| Oriental Bank | 11.50% | Up to 60 months | Up to Rs. 5 Lacs or 15 times of Net take-home salary |
| IDBI Bank | 12.99%-13.49% | 12-60 months | Up to Rs. 10 Lacs |
Apart from these banks, One can also get personal loans from nationalized banks which will give you the best loan options. The processing fee is also minimal or waived off in personal loans offered by these banks to army personnel.
Personal Loan for Pensioners
Retired people might face financial hurdles that compels them to avail of a loan. In order to help them, several banks provide loans to pensioners. For Central or State Government or Defence pensioners, the maximum age is set at 77 years old who can avail of this loan.
They can get their loan sanctioned from any of the branches of the banks from which they draw their pension. The personal loan can be used to meet their personal financial needs. Some of the key features of personal loans for pensioners are:
- Processing fees: It is nominal, up to 0.5% of the total loan amount. Defence pensioners need not pay any processing fee.
- Fast loan processing.
- Interest rate: The interest rate is 3.80% above 2 years MCLR. This is currently 11.45%-12.5% per annum.
- No added interest charges are imposed.
- Prepayment charges: If the loan amount is to be repaid before the tenure ends, then a prepayment fee of 3% of the loan amount needs to be paid.
- For the employees of the central government, the minimum loan amount is Rs.25,000. The maximum is a pension of 18 months with a different upper limit for different age groups.
- For defense employees, the minimum loan amount is Rs.25,000. The maximum is 36 months’ Pension with an upper limit of Rs. 14 lacs for Pensioners below 56 years. It is also a pension of 18 months with a different upper limit for different age groups.
Personal Loan for Women:
Many lenders do provide discounted interest rates to women borrowers on personal loans. This is done so as to boost the sense of financial liberty among the women of our country.
These discounted rates can help to uplift women and create more employment opportunities for them, be it salaried, self-employed, or as an entrepreneur. Below listed are some of the top personal loan lenders with the lowest personal loan rates are:
| Bank | Interest Rate | Processing Fee |
|---|---|---|
| PNB | 8.95% -11.80% | 1.8% + Taxes |
| SBI | 9.60% -16.40% | 1.00% |
| Kotak Bank | 10.40% -17.99% | Starting from Rs.999 |
| Yes Bank | 10.40% -20.00% | Min-Flat Rs.2021 |
| Axis Bank | 10.49% -16.75% | Up to 1.75%,Min Rs.4,999 |
How to Submit a Successful Personal Loan Application
- Assess the need for your loan
- Do proper research to get the best offer
- Check your credit score
- Check the fine print on your loan document
- Based on the repayment ability, select your tenure
- Choose an affordable rate of interest
- Select your loan amount as per your needs
- Review your EMIs properly
- Review the processing fee
- Choose between fixed or variable interest rates based on your preferences.
| Do’s | Don’ts |
| Do proper research before you apply for a loan | Don’t sign your loan documents without understanding every point |
| read the fine print carefully | Don’t make multiple inquiries regarding loans from different banks |
| save your money carefully when you are repaying | Don’t take a personal loan without any important purpose |
| pay your loan installment promptly every single time | Don’t be in a hurry to end your loan comparison process |
| evaluate your credit score thoroughly | Don’t forget to pay your loan installments |
| apply for an affordable loan amount | Don’t accept bad loan products |
Different Types of Personal Loans in India
You can use a Personal loan for any purpose as long as it is legal. But, some specific lenders provide different loan products based on the use, which is mentioned by the borrower in the loan application. Based on your need, there are several personal loans that can be taken in India:
- Personal Loan (Wedding): A loan which is offered mainly to meet the expenses of a wedding is a wedding Personal Loan.
- Personal Loan (Home Renovation): A home renovation loan is availed to meet the costs of renovating or repairing your home.
- Personal Loan (Vacations): A holiday loan is specially designed for vacations. You can take a loan for your vacation and pay the loan amount back on a later date through easy Instalments.
- Personal Loan (Pensioners): A loan that is offered explicitly to pensioners is called Pensioners Personal Loan.
- Personal Loan (Festivals): Certain banks offer a personal loan exclusively for festivals. If you are looking out for a personal loan to make arrangements for a festival celebration, you can apply for a festival loan.
How to get personal loan online? Improve your Chances
- Rebalancing your debts and incomes: Lending institutions ask for proof of income when you apply for personal loans to know your debt-to-income ratio. Evaluate the sale of liquid assets like stocks or earning more through a part-time job to increase your annual income. Doing so will increase your debt-to-income rate and increase your chances of getting a loan.
- Credit Clean-up: The main factor taken into consideration by lenders is your credit score. Getting a personal loan is more comfortable with a high credit score. If your credit score is low, you must check your reports to see if there are any errors. Sometimes, simple mistakes could harm your scores, and if you find any of these, you must report them to CIBIL.
- Restrict Your Borrowing: It is risky to ask for money more than you require to meet your financial needs. You should calculate how much you need and apply only for that specific amount.
- Consider Co-signers/Guarantors: If you are not able to get a personal loan on your own record, you could apply for one by adding a guarantor or co-signer. The guarantor chosen by you must have a good CIBIL score. Guarantor’s major aim is to ensure that you will repay your loan. But, they are liable to repay the loan themselves if you are not able to do so. Picking a person with a credit score over 750 is beneficial as it will considerably increase your chances of getting a personal loan.
- Select the Right Lender: Each lender has its own requirements for assessing income and credit scores. When looking out for this type of loans, pick a lender whose eligibility criteria you can meet and apply accordingly. The problem with using more than one lender is that each one of them will check your credit score. Every time your full credit report is pulled out, your credit score drops, a bit.
Prepayment and Part-Payment in Personal loan
A Personal loan is normally of a fixed tenure period which is known as the loan repayment tenure. An applicant is required to pay regular EMIs every month for this period. In case the applicant decides to pay off the loan amount before the end of the tenure, it is termed as foreclosure or Pre-payment. There are broadly 2 types of prepayment:
Full Prepayment
If the applicant pays off the whole outstanding amount of the loan before the end of the tenure, it is termed as full- repayment.
- Merits of Full Prepayment:
- If the lender does not charge any sort of interest for the pre-payment then you can save yourself interest charges by making full prepayment of your loan.
- Avoid paying hefty interest on loans.
- Getting rid of the loan is always a good thing.
- Demerits of Full Prepayment:
- Some lenders may charge heavily if you plan to foreclose your loan.
- Paying regular EMIs on your loans also provides you with certain tax benefits. Foreclosing your loan might not be the best option in such cases.
| Lenders | Prepayment Charges | Prepayment Norms |
|---|---|---|
| HDFC Bank | Prepayment when made between 13th-24th months – 4% of the principal outstandingPrepayment when made between 25-36 months – 3% of the principal outstandingPrepayment when made after 36 months – 2% of the principal outstanding | The Full or part pre-closure application can be processed only after the successful payment of the first 12 Equated Monthly Installments (EMIs)Part-prepayment allowed upto 25% of the principal outstanding. You can part pay only once in the financial year and twice during the loan tenure. The charges for the same will apply to the part payment amount |
| ICICI Bank | 5% of the principal outstanding | Prepayment allowed only after the successful payment of the first 12 EMIs or morePart-prepayment not allowed |
| Kotak Mahindra Bank | 5%-6% of the principal outstanding | Lock-in period- 12 monthsHowever, the bank allows prepayment before the lock-in period. If you do so, the upper charge limit of 6% is applicable. Else you will pay 5% |
| IndusInd Bank | As applicable | Prepayment allowed only after the successful payment of the first 12 EMIsNo part-prepayment allowed |
| YES Bank | Prepayment when made between 13-24 months – 4% of the principal outstandingPrepayment when made between 25-36 months – 3% of the principal outstandingPrepayment when made between 37-48 months – 2% of the principal outstandingPrepayment when made after 48 Months – NIl charges2% on the part payment amount when you opt for part prepayment | Prepayment in full or parts allowed after the successful payment of the first 12 EMIs |
| IDFC First Bank | 5% of the principal outstanding when making a full prepayment of either simple or smart personal loans2% of the principal outstanding when making a part prepayment of smart personal loans | Part prepayment not allowed in simple personal loans. Part prepayment allowed upto 40% of the principal outstanding once in a financial year under smart personal loans. You can avail of this facility post three 3 successful EMI payments |
Part Pre-Payment
If the applicant pays off only a part of the entire amount of the loan, then it is termed as Part Prepayment.
- Merits of Part Pre-Payment:
- It will reduce the principal loan amount and also the EMI amount.
- The overall interest rate will also be reduced.
- Demerits of Part Pre-Payment:
- Your lender might charge you heavily for the pre-payment.
What to do after closing a Personal Loan?
Paying off your loan whether partly or fully does not mean that your obligation for the loan is over. There are various things you must do after you complete paying off all your dues:
- No dues certificate: Once you make all the payments due to your loan amount, the lender will issue you a No dues certificate as proof that your loan has been paid off. It is one of the most essential documents that you must collect from your lender. In case of loan payments being made by cheque or NEFT, the lender will issue the certificate to your registered address.
- Statement of Account: As a Statement of account is optional in nature, not all lenders provide it. In case of discrepancies in the CIBIL score, you may use a Statement of Account to make the necessary changes.
- Unused cheques: The collection of no dues certificate along with the unused cheques usually marks the end of the closing of a personal loan.
It is also recommended that you check your CIBIL score after the loan process ends.
Modes of a Personal Loan Loan Repayment
The mode of loan repayment may vary from bank to bank. But the main modes that are widely followed are as follows:
- Post Dated Cheques: These are the cheques issued for repayment of loans in a particular future date for a specific mentioned amount.
- Electronic Clearance System: is an electronic mode of repayment of loans by transference from one bank to another.
- National Automated Clearing House: NACH offered by NPCI can be used as a model for real-time transactions.
- Debit Mandate or standing instruction: is when you give an instruction to the bank to make payments to some other bank at a regular period of time.
Pre-approved Personal Loans
If you already have a relationship with a lender, you can get pre-approved personal loans without submitting any documents. Since the lender will have papers by the time you have a relationship with them, whether through a loan or a savings account. You can get a pre-approved personal loan if you have a credit card, savings account, home loan, or any other relationship with the lender.
How to Check Personal Loan Status?
You may be wondering about the latest status of your personal loan after applying for it. National Info is ready to assist you! The dedicated executives will keep you updated on the status of your loan. When the lender accepts the loan, the executives will notify you. You can also receive the notification via email.
You can also check the status on the lender’s official website. Before you can verify the situation, you must enter the application reference number, which you should have received via SMS when you applied for personal loans online and other information.
- Online mode: All major banks and NBFCs provide online portals where you can log in to check the status of your loan application.
- Offline mode: You can contact your lender over the phone to know your personal loan status and can also visit the branch to know about the loan personally.
How to Get a Personal Loan Statement?
You can get your loan statement by visiting the branch of your lending bank or can check the online web portal for the same. On most websites entering the account number and other essential details will provide you with your personal loan statement through your registered e-mail.
How to Avoid Personal Loan Rejection ?
There may be a number of reasons why your personal loan application may get rejected. But provided you fulfill the eligibility criteria including age requirements, income requirements, good CIBIL score, and also provide all the necessary documents like Income proofs and residential proofs, you can prevent your rejection.
Personal Loan Top-Up
Apart from having an existing loan, you may also apply for an additional loan known as the Top-up loan. This loan will be subjected to the same loan tenure as your previous loan and its interest rate may go up by 1% than the existing loan rate.
Key Highlights and benefits
- Existing customers who have paid their EMIs on time and have no pending payments are eligible for the loan top-up.
- The top-up loan amount is disbursed quickly or instantly.
- There is a bare minimum of documentation required.
- Several lenders offer no-fee processing.
- There is no need for collateral.
Personal Loan Balance Transfer
A transfer of the personal loan balance is a process that enables the outstanding loan balance to be transferred to another lender at a lower interest rate. Since a personal loan lasts no more than five years, balancing savings will only be significant if the new interest rate is nearly 3% – 4% lower than the actual rate. The new bank will also impose a fee for the transaction of a balance transfer. In this way, before applying for the transaction as mentioned above, you must calculate.
- Low-interest rates are available.
- Option to get a top-up personal loan.
- Avail of various benefits like zero processing fee, waiver of previous EMI, etc.
Personal Loan EMI calculator:
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Personal Loan – Reducing Balance Vs. Flat Interest Rate Method
| Methods | Reducing Balance Method | Flat Interest Rate Method |
| Method of Calculation | EMIs are calculated only on the principal amount that is outstanding after each prior payment. | EMIs are calculated on the original amount that is borrowed, i.e. the entire loan principal. |
| EMI Payout | Individual EMI payouts decrease with each successive EMI payment made by the borrower. | Individual EMI payouts remain constant over time. |
How Much Can You Save on a Personal Loan Balance Transfer?
Consider the following example to get a sense of the savings available through a balance transfer.
Example: Mukesh Kumar has taken an INR 8 lakh personal loan at an annual rate of 16%. Two years have passed until now since the loan which he took for five years. He receives a balance transfer offer from a new lender at a rate of 12 percent per year. How many funds can he secure if he uses the balance transfer option? Check the table given to find out more:
| Repayment Aspects | Details |
|---|---|
| Loan Amount | INR 8,00,000 |
| EMI Payable at 16% | INR 19,454 |
| Interest Payable at 16% Over 5 Years | INR 3,67,267 |
| Interest Paid @16% Till 2 Years | INR 2,20,266 |
| Outstanding Loan Balance at the End of 2 Years | INR 5,53,358 |
| New EMI @12% | INR 18,379 |
| Interest Payable @12% Over the Next 3 Years | INR 1,08,301 |
| Interest Paid Till 2 Years + Interest to be Paid Over the Next 3 Years | INR 3,28,567 |
| Savings in Terms of EMI | INR 1,075 (19,454-18,379) |
| Savings in Terms of Interest Outgo | INR 38,700 (3,67,267-3,28,567) |
Payment Comparison of EMI for Reducing Balance vs. Flat Rate
Following table, compares the EMI payable with reducing balance and flat-rate methods of interest calculation over various time periods, interest rate, and loan amount:
| Personal Loan Specifics | EMI for Reducing Balance Method | EMI for Flat Rate Method | Interest savings over loan tenure* |
| Rs. 50,000 @ 10% for 3 years | Rs. 1,613 | Rs. 1,806 | Rs. 6,919 |
| Rs. 1 lakh @ 14% for 5 years | Rs. 2,327 | Rs. 2,833 | Rs. 30,390 |
| Rs. 2 lakh @ 16% for 4 years | Rs. 5,668 | Rs. 6,833 | Rs. 55,933 |
| Rs. 1.5 lakh @ 15% for 1 year | Rs. 13,539 | Rs. 14,375 | Rs. 10,035 |
What is the Maximum Repayment Tenure that I Can Get on a Personal Loan?
Minimum repayment period of 1 year and a maximum period of 7 years is given on personal loans.
What is a Credit Report’s Role in Sanctioning a Personal Loan?
Personal loans are unsecured loans, hence banks try to minimize the risks by checking the credit report. To determine a borrower’s credit historyand monitor his/her loan repayment actions over the years, lenders review their credit reports. This gives the bank or financial institutions an understanding of the borrower’s credit discipline. This also helps the bank in deciding whether the borrower is of high risk or low risk.
What is the Credit Score Impact on Personal Loan APR/Loan Amount?
| Credit Score | Best Average APR | Best Average Loan Amount |
| 760+ | 10% | 1,465,975.00 |
| 720-759 | 12% | 1,321,040.00 |
| 680-719 | 18% | 1,012,941.00 |
| 640-679 | 24% | 8,36,822.00 |
Offers vary as per the lenders, but the information above may give an idea of the credit score when you apply for a personal loan. Additionally, personal loan calculators can also make it easier to calculate how high of a monthly payment you might end up with based on your credit score.
My Credit Score is Below 750, Can I Still get a Personal Loan?
The guarantee of securing a personal loan for any given credit score is nil. Borrower’s chances of getting a personal loan increases when they have a score above 750. A score slightly below 750 does not imply that the request for personal loan will be denied.
If the score varies from 300-599, the borrower is not eligible for a personal loan. This is because low score is a warning signal to the lender that the customer does not have a history of good credit behaviour.
A credit score of 600-749
Chance of being accepted by some lenders, but it is not a high score. Lenders may look at other factors, such as the stability of the borrower’s career, annual income, the magnitude of other liabilities, that will affect his/her repayment potential in the future. If, looking to apply for a personal loan, one is advisable to maintain their score above 750.
A credit score of 750 and above :
Have a good chance of obtaining a loan. A high score has several additional benefits: faster approval process, large amount of loan, and can negotiate at lower interest rate.
What are the Factors That Influence Approval For a Personal Loan?
Credit History is most important factor for personal loan approval.During the loan approval process, your employment is also one of the significant factors. As customers of personal loans do not have any security/collateral, lenders need to make sure that during the loan period the borrower has a steady monthly income that will allow him/her to make regular repayments to the bank. This is the reason for paying close attention to the borrower’s work status.
Lenders will look at whether you have a steady job and that too for a certain time period. Someone with a history of regularly changing their employment may not be easily eligible because this shows that during the loan term he/she may or may not have a steady source of income and may not be able to make regular payments.
Another factor is the annual salary. The banks want to know that the borrower has a decent income (from salary and other sources) that will allow him/her to make monthly loan repayments.
What are the Advantages and Disadvantages of a Personal Loan?
The advantages of a personal loan are that they are very easy to get (because they do not need as much paperwork as a home or car loan); there is no limit on money that can be spent; no collateral is required. So if a person does not have any assets to give as security, like house, shares or gold then too they can avail this loan facility.
When compared to other loans, the biggest disadvantage of a personal loan is the higher interest rate. As lenders do not have any protection against default in payment, they charge high-interest rates to cover the risk of their lending.
How to Calculate Total Cumulative Interest?
The annual interest on a loan can be calculated using the formula:
I = P x (R/100)
Where, I = Interest payable, P = Principal (loan outstanding) and R = Rate of Interest (annual percentage rate)
Formula can be used in case of 1-year tenure and the multi-year loan may feature different principal in various successive years as the loan is repaid. Then, the different interest amount for each year is added to calculate the total cumulative interest of a personal loan. To eliminate such complicated calculations, it is advisable to use an EMI calculator which can instantly provide you with details such as the total interest payable on your home loan.
What are best tips to get a low PL Interest Rate?
If the lender perceives the borrower to be financially responsible then the interest rate applicable to a personal loan is lower. Following are some of the ways you may be able to get a low-interest rate for your personal loan:
- Maintain a high credit score and clean credit history
- Have minimal outstanding debt i.e. credit utilization ratio of 30% or less
- Apply for a personal loan with a bank/financial institution with whom you already have a relationship
- Opt for secured personal loans
What are Some of the Ways to Decrease the Total Interest Payout?
It is not possible to get the lowest rate of interest for your personal loan, following are 3 ways that can decrease the total interest payout on your loan:
- Opting for a shorter tenure – Higher individual EMI but lower overall interest payout
- Part pre-payment/foreclosure – Decreases the loan principal thus interest payout is lower
- Opting for a lesser loan amount – Lower loan principal equals lower total interest payout
Can one Get Pre-Qualified for a Personal Loan?
Yes, borrowers can get pre-qualified for a personal loan within a few minutes online. You just need to fill out some personal information such as the amount of loan you need, your income, address, and other considerations. You can then easily see which loans you are likely to qualify for and then you can compare them for the best rates and terms.
Personal Loan Disbursal
The usual eligibility standards for personal loan approval are outlined above. If you fulfill those requirements, you pass the preliminary test and apply for the loan. But what will determine the actual disbursement amount? To a large extent, it will be determined by your income. But, your repayment capacity will be more important . Individuals with a higher income have more options for repayment than those with a lower payment.
Lenders also look at the proposed EMI to net monthly income ratio. This tells them a lot about the repayment capacity of the borrowers. Lenders will most likely approve amount that keeps the total monthly obligation within 50% of your net monthly income. The responsibility here refers to all types of debt, including the loan you must service. If you are already servicing a loan or two, your eligibility may be limited compared to someone who currently has no debt obligations.
Why Choose National Info for your Personal Loan?
- Several offers on a single platform: Our Channel partners saves you the trouble of visiting individual lender websites/offices to compare available personal loan options.
- View all potential lenders: Our Channel partners displays all potential lenders (both banks and non-bank financial companies) who can provide a personal loan without affecting your credit history or credit score.
- Check the loan amount that is eligible: Our platform allows you to determine the loan amount you qualify for.
- Personal loan EMI calculator: Make use of Our Channel partners personal loan EMI calculator to determine your monthly EMI payment. This trait allows you to plan your finances more suitably.
- Quick Assistance: Our Channel partners provides its customers with services that are available 24 hours a day, seven days a week. You can contact us at any time of day or night, and we will do our best to respond as soon as possible. Furthermore, the approval process for personal loans is quick and easy.
- Apply for a personal loan online: To save time and money, apply for a personal loan online through Our Channel partners. In addition, contact our customer service to answer all of your questions about your personal loan application.
- In-principle e-Approval in an Instant: When you apply online through us, you will receive in-principle electronic permission for your personal loan request in a matter of seconds.
- Assured Privacy and Transparency: All personal loan application information is kept private and secure, and no third parties are involved.
FAQs About Personal Loan
What is a personal loan?
A personal loan is an unsecured loan that you can borrow from a bank or NBFC to address any sort of financial need.
How does a personal loan work?
Once you submit your application to a lender, the lender verifies and approves it according to the requirements of the institution. Post this, the loan amount is immediately disbursed into your bank account. You will be required to pay the EMIs every month as a repayment of your loan.
What is an EMI?
Equal Monthly Installment or EMI is the amount of money that a borrower is required to pay every month to clear off the debt within a mentioned specific tenure. EMI includes the principal amount and interest on the loan.
What is a credit score? Why is it important?
A credit score or CIBIL score is a number that indicates your past repayment history. The requirement varies according to your lending institute.
What is the maximum amount of loan I can get?
The loan amount you can get completely depends on your income. In India, there are lenders who are offering up to Rs.50 lakhs.
What is a prepayment of a personal loan?
In case you want to repay the loan before the end of the tenure, it is termed as a prepayment of a personal loan. You may do it partially or even completely.
Is the PAN card mandatory to apply for a personal loan in India?
Yes, having a PAN card is mandatory while availing of a PL in India.
What if I default on my loan repayment when I have offered collateral security?
Personal loans are unsecured loans which means if you don’t fulfill the loan criteria, you may still be able to get a loan by offering collateral security. In such cases, you have to be careful about repaying the loan before the tenure ends.
What happens if I default on my EMIs and have a guarantor?
A guarantor is someone who guarantees the repayment of your loan on your behalf. So, if you’re not able to repay the loan amount within the tenure and when the installments are due, your guarantor or co-signer will be asked to pay them.
If I have a co-applicant and I default on my repayment of the loan. What will happen?
Co-applicants for a Personal Loan are equally responsible for the repayment of the loan. If one applicant fails to repay the loan, the remaining applicants are bound to do so. So, if you’re unable to pay the EMIs on time, then your co-applicant is expected to pay them regularly. If your co-applicant also fails to repay the installments of the loan on time, it will result in a repayment default of the loan amount.
Can I offer collateral and get a Personal loan even if I have bad credit?
Yes, you can avail of a loan on the basis of your collateral. This is the second way to get a loan even if your CIBIL score is low. Some lenders may offer you a loan if you’re willing to offer them something as collateral security. The lender will have every right to possess your collateral if you don’t repay the loan as agreed upon.
Am I eligible to get a loan if applied with a co-applicant, if I have a bad credit score?
Yes, applying for a personal loan along with a co-applicant who has a good credit score can help you get a loan even if you have bad credit. The scores of both applicants are taken into consideration when processing a joint-loan application. This way, the good credit score of your co-applicant will help balance out your poor credit score. But, keep in mind that your co-applicant will be held responsible for repaying the loan if you are not able to do so.
What credit rating should be required to get a personal loan?
A CIBIL score of 700 and above is considered to be a good score for personal loan approval. But, having a score of 800 or more will get you into the good books of lenders. It could also get you better interest rates and repayment options on the loan.
Why take a personal loan?
A personal loan which is an unsecured form of loan can help you during any sort of tough financial situation. You can apply for one easily if you simply qualify for it. Lenders usually process your loan quickly if all the requirements are met
What is the process of applying for a loan online?
The process of applying online includes the following steps:
- Search online for the right loan according to your need
- Get the required documents ready
- Applying for the loan online
- Submitting the documents to the concerned party
- Wait as your loan gets approved
- The loan will be disbursed in your bank account
What will happen if I don’t have all the required documents for a personal loan?
You must have all the documents that are required before you apply for a loan. However, if you don’t have any of these, you can talk to the lender and find out if there is an alternative way available. But, if these are vital documents, your loan will not be sanctioned until provided.
Is part- prepayment option available on my loan?
Your Personal loan can be prepaid in part or as a whole before the end of the term. Some banks may even charge a prepayment penalty for the same while others may not. Some banks do not allow for part-prepayment at all. So, it is important to check all the documents before finalizing the loan with the lender.
How can I accumulate the Prepayment sum?
If you’re serious about it, use the Personal Loan EMI Calculator regularly. You can use the calculator to check the repayment estimate at various points in time. To make a full prepayment, you must be very careful with your savings. Set a monthly savings goal and strive to meet it by reducing unnecessary expenses. Follow the same procedure if you want to make a partial payment; everything can be devised and accomplished successfully with the help of the EMI calculator.
Can I combine my income with my partner to take a personal loan?
Yes, you can combine the income of your lifepartner to boost your eligibility criteria to avail of a PL.
Am I eligible for a relationship discount for a personal loan?
If you’ve been a customer to a bank for a while, and you apply for a PL through it, then the bank might reduce the loan interest rate or other such charges.
Do I need a bank account to service my personal loan in that bank?
If you don’t have an account with the lender where you are applying for a personal loan, it is not compulsory to open one. But, if you apply for a Personal loan with your existing banker, then you may be eligible for a relationship discount.
How do I avoid other loan calls from the executives?
Some banks often let you register yourself for the “Do Not Disturb” option that prevents the executives from disturbing you with other loan calls.
What is the best mode to apply for a Loan?
The best way to apply for a loan is through the online mode of loan application tool available at DialaBank. The portal can be accessed on this page giving users the liberty to choose PLs from various lenders as per their needs.
Is my Data Safe with national info?
National info is India’s best upcoming financial helpline and takes utmost care in ensuring that all data is sent in electronic form with a high level of encryption. Dialabank does not share data with any third party other than the financial institution.
How can I obtain a Duplicate Repayment Schedule for my loan account?
You can request your bank or lender for a personal loan duplicate repayment schedule by visiting the bank or via your net banking account, or by calling them or by writing to them via your registered email address.
News about Personal Loan
Jul 27, 2021: RBI keeps the policy rate unchanged
It has been decided by the RBI to keep the rate of policy repo unchanged at 4.0%. The rate of reverse repo also remains unchanged at 3.35% with the MSF rate and the Bank Rate currently standing at 4.25%. Further, it was decided to carry on with the accommodative stance to revive growth and mitigate the impact of COVID-19, while keeping a check on inflation.
This decision of keeping the repo rate unchanged will impact retail loans like home, personal, car, two-wheeler, and gold loans along with business and mudra loans.
Jul 27, 2021: RBI unveiled Integrated Ombudsman to solve banking queries
RBI announced the launch of an Integrated ombudsman to improve the mechanism of grievance redressal. The new facility will resolve the issues related to debit cards, credit cards, UPI transactions, and various other issues. Through this mechanism, the customers will be able to take up all these complaints to a single ombudsman if they are unsatisfied with the response of the bank.