Which Personal Loan Is Suitable For You? Check it Out Now

Are you bound to fulfill personal responsibilities towards your family? Worried, whether you will be able to fulfill them or not due to the paucity of funds. Don't worry but look for personal loans that are designed  to cover up all your personal requirements whether it is relating to purchase of consumer durable items like LCD, refrigerator, laptop to conducting a wedding in the family, paying school fees of your children or  for financing costly medical treatment. Whatever may be your reasons, Personal loans are the ideal solution till the time it doesn't prove costly on your pocket.

Look for lowest interest rates with flexible tenures where you get ample of time for settling your equated monthly installments at ease. A better idea where you can rescue yourself from the loan settlement anxiety on a shorter duration. The best approach for availing Personal loan come from having a glimpse of what top banks have to offer for Personal loan in India.

Top Banks Providing Personal Loans in India

SBI Personal Loan

SBI Personal loan is offered without any collateral security. The interest rates are offered by the bank ranging from 11.90%-16.55% per annum (unsecured), 10.55%-15.65% per annum (secured). The maximum loan amount that can be obtained is ₹ 15 lakhs with the flexible tenure of up to 5 years.

ICICI Personal Loan

This is one such multi-purpose loan offered by ICICI Bank without any collateral or security to salaried and self-employed professionals. A salaried person can get a loan up to ₹ 20 lakhs whereas a self-employed person can get the maximum loan of ₹ 30-40 lakhs. Also, the interest rate on the loan starts from as low as 11.59% per annum which comes with a flexible tenure facility of up to 5 years.

HDFC Bank Personal Loan

HDFC Bank has attractive rates to offer for instant approval at competitive interest rates ranging from 15.75% to 20% per annum subject to the profile of the borrower and the repayment capacity. An individual need to possess a minimum monthly income of ₹ 12,000/- within the age of 21 years to 60 years and can easily get this credit facility. 

Axis Bank Personal Loan

Axis Bank is one of the best lenders in the financial market of India in terms of the personal loan as well. Axis Bank loan provides the maximum loan upto ₹ 15 lakhs with interest rates ranging between 15.50%-24.00% per annum. The bank also offers flexible loan tenure of 12 months to 60 months.

Bajaj Finserv Personal Loan

Bajaj Finserv offers a personal loan to all the salaried applicants of India at attractive interest rates which start from 12.75% per annum The maximum loan tenure and maximum funding from Bajaj Finserv are 1-5 years and ₹ 25 lakhs, respectively.

Kotak Mahindra Bank Personal Loan

All Indian residents who are employees of the reputed company are eligible to obtain the personal loan from Kotak Mahindra Bank. The age limit should be between 21 years and 58 years. The maximum loan amount is ₹ 15 lakhs with the interest rates ranging from 11.29% to 14.29% per annum.

Personal Loan Eligibility

The salaried class employees and self-employed professionals are entitled to apply for personal loans. The Personal loan eligibility criteria differs from bank to bank when it comes to providing personal loans which are as follows:

Eligibility for Salaried Individuals

• Minimum age of the borrower: 21 years
• Maximum age of the borrower: 58 years
• Minimum work experience: 1 Year
• Minimum Net Monthly Income: ₹ 20,000/-

Eligibility for Self-employed Individuals

• Minimum age of the borrower: 24 Years
• Maximum age of the borrower: 65 Years
• Minimum work experience: 3 Years
• Minimum Net Annual Income: ₹ 1 lakh

Personal Loan Application Form

In order to avail personal loan, the borrower has to fill the details which are required in the application form. The borrowers can also apply online by filling in the following details:

   

• Personal Details along with the photograph
• Details of Co-obligant/ Guarantor along with recent photograph    
• Profession Details
• Income Details
• Details of Assets and Liabilities    
• Purpose of taking the loan    
• Repayment Details

Documents Required for a Personal Loan

Salaried employees and self-employed professionals are required to produce the following documents:

For Salaried Employees

•    Loan Application Form
•    2 Passport size photos
•    Salary Slips for last 3 months
•    Identity Proof PAN Card or Driving License or Voter ID Card or Adhaar Card, etc.
•    Residence Proof (Driving License/Voter ID Card/Aadhaar card, etc.)
•    Last 3 months Bank Statements
•    Employment Proof
•    Signature Proof

For Self-employed Individuals

• Loan Application Form
• 2 Passport size photos
• Identity Proof PAN Card or Driving License or Voter ID Card or Adhaar Card, etc.
• Office Residence Proof
• Income Proof: Audited financials for the last 2 years
• Last 6 months Bank Statements
• Employment Proof
• Signature Proof

How Much Personal Loan Can You Get on Your Income?

You can’t deny the fact that life is unpredictable and it changes from time to time, sometimes giving us the joy and sometimes utter discomfort. Due to the lack of income, you would want your kids to be educated in India. But kids being kids can dream big and would like to get the degree from a prestigious institution overseas.

There can also be the demand from the kids to watch their favourite cartoon shows and other amusement programs in a high-definition LED Television. Even you would like to match the lifestyle of your peers by having the latest iPhone in the market. All these wishes can’t be ignored as life is given once and you should live it with zest.

To meet these, you would have to fall back on a Personal loan, which can be availed for almost all the purposes. But more important is to see how much loan you can command based on the income you earn. So, get ready to understand the crux of a personal loan with us march towards the fulfillment of your wishes.

What is Personal Loan All About?

A personal loan is a type of credit that can be made available to you to serve a large number of purposes, some of which can be travelling, marriage, education, medical contingencies, and others. It is an unsecured loan given by banks and other financial institutions without requiring any collaterals from your side. And given the fact it is unsecured, you may have to bear a slightly higher Personal loan interest rate compared to other loans. Typically, the interest rate ranges from 11%-25% per annum across lenders. Also, lenders levy processing fee, a one-time charge, at 1%-3% of the loan amount.

Banks Scrutinize Your Income

Needless to say that the most important factor that can be a make or break of your personal loan application is the earning you make every month. Why am I saying it? It’s because of the fact that the EMI, the short form of Equated Monthly Installment, comes to the equation. The EMI is nothing but a constituent of the interest and principal repayments towards a loan each month.

So, if your income is not able to deal with the pressure of the proposed EMI, your loan application could either be rejected or you be given a lower amount of loan from the bank. For example-State Bank of India (SBI) provides a personal loan upto 24 times of the net monthly income (NMI), at an interest rate of 11.90%-16.55% p.a. So if your NMI is ₹20,000, you could say a loan amount of upto ₹4,80,000 is waiting at your doorstep. This is the maximum you can get but not exactly the same. You can know what I mean to say, right below.

Personal Loan Eligibility Calculator

To understand this better, you need to be aware of the eligibility calculator that the bank uses to figure out the amount of personal loan that can be given to you. The calculator takes into account your income and savings to ascertain the amount of loan.

Example- You are a mechanical engineer bagging away a net salary of say₹35,000 and the savings you generate each month is ₹15,000. In the eyes of a bank, the savings can be used for the repayment of the EMIs. Firstly, a per lakh EMI calculation will be made by the bank. The EMI calculation is dependent on the loan amount, interest rate and the tenure of the loan. Suppose you want to apply for a personal loan at HDFC Bank whose interest rates range within 15.75%-20% per annum. The maximum loan tenure is 5 years. Taking all these into account, the per lakh EMI will be ₹2,419-2,649. The sum so arrived will be put in the formula shown below.

Loan Eligibility- ₹1,00,000 x savings/per lakh EMI

                         - ₹1,00,000 x 15,000/2,419=₹6,20,090 (Approx.)

                         - ₹1,00,000 x 15,000/2,649=₹5,66,251 (Approx.)

So, this is it, the answer to your long-standing query of how much Personal loan can be given based on your income. If the loan amount sanctioned is slightly lower, you can use a bit of saving, if any, and thus reduce your interest liability.

Personal Loan Interest Rates Comparison for Shorter EMIs

Earlier the people use to postpone their desires and wishes due to the shortage of money and wait till the time they accumulate the required amount. Till they use to arrange the funds, they lost the interest in the thing they desired earlier. This is because the pleasure derived by instant gratification cannot be received by delaying things. Also, the right things, done at right time reap good results. Therefore in today’s time, people do not leave things on time and spontaneously grab the opportunity by arranging financial credit. There are various types of loan products available in the market. But the loan that is sanctioned in the shortest time possible is a personal loan.

It is an unsecured loan the bank lends the loan after evaluating the repayment capacity of the individual. This value is determined by the bank on the basis of your income and savings. When a bank takes the time to evaluate your profile, you too should spare some time and compare personal loan interest rates. This will help you locate the lender that offers the credit at best pricing. Read the article below to know the necessary details about the product. Also, in the following section information about Personal loan provided by various banks is given.

Uses of Personal Loan-

The PL can be used for any purpose. There is no specified end usage of the amount disbursed under the personal loan. The borrower has the flexibility to use the loan amount in the way he/she wants. It could be used for any of the following purposes:

• Purchasing a car
• Paying off debt
• Buying furniture and fixtures
• Going on a tour
• Funding child’s education
• Organizing daughter’s wedding
• Accelerating business
• Renovating a house

Personal Loan Eligibility Criteria: To avail the benefits of personal loan the individual must meet the following parameters:

• Age - The minimum age of the applicant at the time application must be 21 years but not more the 60 years at the maturity of the loan.
• Employment Category -  The loan is provided to the candidates employed in the legal entities or is self-employed.
• Income - The income of the applicant plays a pivotal role in deciding the disbursal amount and the eligibility of the candidate. The candidate must be earning a handsome salary in order to secure a loan.
• Work Experience - The candidate must have a minimum experience of 2 years in the line of business and should have stable job experience.
• Credit Score -  The CIBIL report is the crucial factor that affects that decides whether the applicant is fit to give a loan or not. The idle score ranges from 350-900.

Factors Affecting Personal Loan Eligibility:

• Monthly Income - It is the basic factor that contributes in determining the loan amount the candidate is capable of receiving based on his repayment capacity.
• Age - The age of the applicant matters while accessing the profile of the candidate. The person belonging to the age group of 21 - 60 years can apply for the loan.
• Savings - Since the repayment will be made out of the savings, the lenders consider the amount an applicant is able to save after excluding all the expenses from the income.
• Any Other Running Credit - The running credit is also taken into consideration while computing the repayment capacity of the individual. If the applicant has the potential to repay both the loans simultaneously, the new loan is sanctioned.
• Credit History -  It is important to have a clean debt record otherwise, it may hamper the loan eligibility of the candidate.
• Job Stability - The work experience and business continuity are important factors that contribute in enhancing the individual’s profile. The applicant must have been engaged in the line of occupation for a desirable period of time and should have a stable job.

Documents Required

Identity Proof -  PAN Card/ Passport/ Election Card/ Photo Identity issued by Government, Defence Services, Public Sector undertaking/ Driving Licence/ Photo Credit Card/ Employee’s ID Card, Letter/card issued by UIDAI containing the details of name, photograph, address and Aadhaar number

Income Proof - Bank Statement for last 6 months, post dated cheques and electronic clearing mandates, legal documents as stipulated by the finance company, collateral security as advised by the finance company, any other document as advised by the finance company

Residence Proof - Bank Account Statement/ Latest Electricity Bill/ Latest Telephone Bill/ Latest Credit Card Bill/ Employer’s letter certifying current mailing address/Passport (valid)

Signature Verification- Valid Passport /Pan Card/ Processing Fee Cheque/ Banker's Verification Letter

Though the loan is taken in the times of great need but it is important to compare the lending rates offered by the various lenders to ensure that you don’t end up paying heavy interest. The interest rate offered by various banks are:

State Bank of India - SBI offers a personal loan to the salaried and pensioners under two different schemes namely, Xpress Credit and SBI pension loans. The rate of interest on the loan ranges from 12.45% p.a. to 14.90% p.a.

HDFC Bank - The HDFC Bank issues the personal loan only to the salaried individuals for meeting their personal expenses. The minimum age of the individual should be 21 years at the time of application and not more than 60 years at the expiration of the loan tenure. The rack interest of 15.75% p.a. to 20% p.a. is charged on the loan depending on the loan amount and tenure.

ICICI Bank - The bank provides the loan to the diverse needs of the customer. The loan is sanctioned for the highest tenure of 5 years and that too without providing any collateral or security. The interest is chargeable on monthly reducing balance. The nominal rate of interest starting from 11.59% p.a. is charged on the loan. However, it ranges up to 22% p.a. based on the individual’s profile. The loan amount is repayable in the form of easy installments.

Axis Bank - The applicant can avail a loan for the minimum amount of ₹ 50,000 and up to ₹ 15,00,000. The loan applicant can choose from the range of tenure varying between 1 year to 5 years. All the salaried employees within the age limit of 21 years to 60 years and earning at least ₹ 15,000 per month can apply for the personal loan. The interest rate of personal loan in Axis Bank begins from 15.50% p.a. and lasts up to 24% p.a.

It is always advisable to check the Personal loan interest rates before applying for the loan. This ensures that you get the loan at fair rates.

Why to Worry When ICICI Personal Loan is Here?

When it comes to availing a personal loan, it would not be wrong to say that there are plenty of leading names in the market, best known for offering this to you. But, one thing that needs to be mentioned here is the fact that among those lenders, how do you know which one is the best? Yes, choosing the best lender is something which is not everyone's cup of tea, and this is the reason that people without giving a second thought avail a loan from a lender randomly. Hence, they end up grabbing the deal which is not good for them.

So, choosing the best lender is a vital process, which every borrower needs to understand. However, those who are reading this article, for their convenience we have already selected ICICI personal loan as it is undoubtedly one of the best lenders of the country.

Yes, being the first largest private sector bank, ICICI, a multinational banking and financial services company, headquartered in Mumbai with its enormous range of financial services and products ensures that it offers the best to all. However, among its many unique products, there is no denying the fact that the personal loan is highly in demand, known for catering the diverse needs of one and all. So, without wasting any time further, let’s just get started and discuss more about this topic below…

Personal Loan Details-

The bank offers you this credit facility at an interest rate of 11.59%-22% per annum for a tenure of upto 5 years. The lender offers the loan amount of ₹40 lakhs along with a one-time processing fee of up to 2.25% of the loan amount. Apart from this, the bank also charge the prepayment of ₹100. With all this and much more, you can easily fulfill all your personal needs as this lender is here.

Eligibility Criteria-

If we talk about the personal loan eligibility, the bank has set certain eligibility norms for both salaried as well as self-employed individuals/ professionals. The age of the applicant should be lies between 23-65 years. The minimum income of the applicants should be ₹ 17,500-25,000 per month (salaried). And, for self-employed it is ₹ 15-50 Lakh per annum. Minimum 2 years of total work experience is required and 1 year of experience with the current employer.

Documents Required-

If you are looking to avail the personal loan being offered by this renowned lender, below are the documents that you need to carry. So, take a look below to know about the documents required.

For salaried:

• Signed loan application form with photograph
• Identity proof- Copy of Passport/Voter ID Card/Driving License
• Processing fee cheque
• Latest 3 months bank statement (where salary/income is credited)
• Last 3 months salary slips

For Self-employed:

• Signed loan application form with photograph
• Identity proof- Copy of Passport/Voter ID Card/Driving License
• Processing fee cheque
• Latest 6 months bank statement
• Income proof with last 2 years audited financials

Features & Benefits:

• Lowest Interest Rates
• Fastest Approvals
• Minimal Fee & Charges
• Simple Documentation
• Flexible Tenures
• No Collateral Required

ICICI Personal Loan EMI Calculator-

Now, here comes the important part that you should also be aware of. Yes, with the help of this smart, effective and time-saving device, you would be able to know the exact calculations of your monthly installments . Within few seconds, you would be able to know how much exact amount you need to pay so as to repay your loan. And, all this and much more can easily be possible with the help of this smart device that actually does all the magic for you. It allows you to do the calculations in a hassle-free manner as all you need to have is just the loan amount, interest rate and tenure.

That’s it! You just need to feed these details into the calculator, and the moment it reads your entries, it will fetch the results for you in the least time frame. It saves time, energy and comes with the accuracy and precision. This is the reason that people today prefer to use this device as it helps them in taking a calculative and smart decision.

So, let’s just hope that you’ll keep these above points in mind while applying for this credit facility being offered by ICICI Bank.