Read on to find out more about personal loans.
Where can you avail a personal loan?
While one can approach one’s friends and relatives for a personal loan, lending institutions such as banks and non-banking financial companies (NBFCs) offer personal loans in a more structured and ‘on-tap’ format. Apart from banks like State Bank of India (SBI), HDFC Bank, NBFCs such as Tata Capital, Bajaj Finserv also offer personal loans. As personal loan from one’s friends and relatives may not always be readily available, we shall consider the more structured format of personal loans offered by lending institutions.
Maximum and minimum amount
The minimum and maximum amount that can be taken varies from one lending institution to another. For instance, according to its website, SBI offers a maximum personal loan of Rs 20 lakh to salaried individuals. On the other hand, HDFC Bank offers personal loans up to Rs 12 lakh, as per the bank’s website.
According to Tata Capital’s website, you can take a minimum personal loan of Rs 75,000 and maximum of Rs 25 lakh depending on your eligibility.
Fixed or floating interest rate
While taking a loan, one should check with the lender if the interest rate offered on the personal loan is fixed or floating. In case interest rate is fixed, changes in the bank’s MCLR will not impact your equated monthly instalment (EMI) amount. Also, do remember that normally the interest rates charged on personal loans are much higher than on home loans or loans against gold because the former are unsecured loans.
Interest rate, loan amount offered by banks for personal loans
|BANKS||Personal Loan Amount||Tenure||Interest rate (%)|
|AU Small Finance Bank||Upto 7.5 Lacs||Upto 60 months||11.60% – 20%|
|Axis Bank||Upto 15 Lacs||>=36 Months||12% – 24%|
|Bandhan Bank||>=50000 and <=5 Lacs||12 – 36 Months||15% – 16.80%|
|Bank Of Baroda||>=50000 and <=10 Lacs||48 – 60 Months||10.25% – 15.25%|
|Bank Of India||Upto 10 Lacs||36 – 60 Months||10.35% – 12.35%|
|Bank Of Maharashtra||Upto 10 Lacs||60 months||10.85% – 11.85%|
|Canara Bank||Upto 20 Lacs||Upto 60 months||12.40% – 13.90%|
|Central Bank Of India||Upto 10 Lacs||48 Months||9.00% – 10.20%|
|City Union Bank||>=5000 and <=5 Lacs||12 Months||9.75% – 12.50%|
|Dhanlaxmi Bank||>=1 Lacs and <=15 Lacs||12 – 60 Months||12.00% – 15.70%|
|Federal Bank||Upto 25 Lacs||48 Months||11.49% to 17.99%|
|HDFC Bank||Upto 15 Lacs||12 – 60 Months||10.75% – 21.30%|
|I O B||Upto 5 Lacs||60 Months||>=10.90%|
|ICICI Bank||Upto 20 Lacs||60 Months||11.25% – 21.00%|
|IDBI Bank||>=25000 and <=5 Lacs||12 – 60 Months||8.90% – 14.00%|
|IDFC First Bank||>=1 Lacs and <=40 Lacs||12 – 84 Months||>=10.75%|
|Indian Bank||>=50000 and <=5 Lacs||12 – 36 Months||8.50% – 11.05%|
|IndusInd Bank||>=50000 and <=15 Lacs||12 – 60 Months||11.00% – 31.50%|
|J & K Bank||Upto 1.50 Lacs||48 Months||>=11%|
|Karnataka Bank||Upto 5 Lacs||Upto 60 months||12% – 17%|
|Karur Vysya Bank||Upto 10 Lacs||12 – 60 Months||12% – 20.20%|
|Kotak Mahindra Bank||>=50000 and <=20 Lacs||12 – 60 Months||>=10.75%|
|Punjab & Sind Bank||>=1 Lacs and <=3 Lacs||Upto 60 months||9.35% – 11.10%|
|Punjab National Bank||Upto 10 Lacs||Upto 60 months||6.90% – 11.65%|
|RBL Bank||Upto 20 Lacs||12 – 60 Months||14% – 23%|
|South Indian Bank||>=1 Lacs and <=10 Lacs||Upto 60 months||9.50% – 13.55%|
|State Bank Of India||>=25000 and <=20 Lacs||06 – 72 Months||9.60% – 13.85%|
|Union Bank Of India||>=5 Lacs and <=15 Lacs||Upto 60 months||8.90% – 13.00%|
|Yes Bank||>=1 Lacs and <=40 Lacs||12 – 60 Months||13.99% – 16.99%|
|Ujjivan Small Finance Bank||>=50000 and <=15 Lacs||12 – 60 Months||16.49% – 20.24%|
All data sourced from Economic Times Intelligence Group (ETIG)
Data as on August 19, 2020
Eligibility to apply for personal loans
The eligibility criteria for sanctioning personal loans vary from lender to lender. To be eligible for a personal loan from SBI, your minimum monthly income should be Rs 15,000 irrespective of whether you have a salary account with the bank or not as per the bank’s website.
In case of HDFC Bank, to be eligible for a personal loan an individual should be between 21 years and 60 years of age and should have a job for at least two years, with a minimum of one year with the current employer. Further, if salary account is maintained with HDFC Bank, then the individual should have minimum Rs 25,000 net income per month. If the individual is not an HDFC Bank account holder, then he/she should have minimum Rs 50,000 net income per month.
Your credit score will also play an important role in determining whether or not you are eligible to get the personal loan.
Tenure of personal loans
Usually, a personal loan is offered for a maximum of five years by lending institutions such as banks. However, the tenure can vary from lender to lender.
Charges in personal loan
To avail a personal loan, a bank or NBFC will levy certain charges such as processing fees, stamp duty and other statutory charges etc. These charges vary from lender to lender.
Further, a lender can also levy pre-payment charges or pre-closure charges. Therefore, before taking a loan from the lender do check the different types of charges leviable.
Disclaimer: The data/information given above is subject to change, hence before taking any decision based on it, please check terms and conditions with the bank/institution concerned.
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