Everything You Need to Know About Personal Loans

When it comes to a personal loan, the first thing that comes to your mind is- a loan for personal usage as you can take this loan for any personal or professional purpose without any collateral. Being one of the most opted loans, Personal Loan is the boon for all those who have urgent need of money.

Here are some of the important things you must know about a personal loan:

Who can take a personal loan? - There are personal loans for salaried employee and personal loans for self-employed without financial documents at interest rates that are customer-friendly. Some lenders also provide personal loan to people with salary less than Rs. 15000. There is a different eligibility criterion for different banks and NBFCs  on the basis of which you get a loan. Other than the basic eligibility, you can check your personal loan eligibility with the help of the personal loan eligibility calculator also. So, for better rates and the loan offers, check different lenders, compare their rates and then choose the best one for you.  

For what purposes can you take a personal loan? - Personal loans can be taken for varied purposes like travel, higher education, wedding, home renovation, medical emergency, etc. So, for all those who want to fulfill their dreams but are stuck because of the shortage of money, taking a personal loan is the best option.

On what basis is a personal loan offered? - Banks and NBFCs have certain parameters on the basis of which they provide personal loans like- age, monthly income, the category of the employer, monthly expenses, job stability and credit history of the loan applicant. However, the applicants who are working in a reputed company and are earning a good monthly income are most likely to get lower interest rates and higher loan amount. In short, the better the overall profile of the customer is, the better the loan offer will be.

How can you apply for a personal loan? - You can apply for a personal loan online as well as offline as per your convenience. If you choose to apply online, the process will be time-saving and hassle-free.  

What is the maximum loan amount you can get? - Even though the loan amount varied from lender to lender, in general, the maximum loan amount that you can is Rs. 20 lakhs.

Banks offering Personal Loans-

State Bank of India: SBI offers personal loans at low-interest rates with the starting rate of 12.45% per annum. The bank gives the maximum loan up to Rs. 15 lakhs and the maximum tenure up to 5 years.

HDFC Bank: The bank gives you an interest rate of 15.75% per annum onwards and the flexible tenure option up to 5 years. If you are a salaried person, you can get up to Rs. 25 lakhs and if you are a self-employed individual, the bank would offer you the maximum loan up to Rs. 15 lakhs.

ICICI Bank: Being of the largest private sector banks in India, ICICI bank facilitates the personal loan services at an attractive rate of interest starting from 11.49% per annum. For personal loans, the bank gives longer tenure up to 5 years and the maximum loan amount up to Rs. 30 lakhs for self-employed individuals and Rs. 20 lakhs for salaried individuals.

Axis Bank: Axis Bank is one of the best personal loans providers in India with the higher loan amount- Rs. 15 lakhs, low-interest rates- 15.50% per annum and loan tenure-5 years. You can also get eDGE reward points on this loan facility.   

Kotak Mahindra Bank: With the starting rate of 11.50% per annum, Kotak Mahindra provides one of the lowest interest rate for personal loan. You can get up to Rs. 15 lakhs loan amount and choose the loan repayment period up to 5 years.