Personal Loan

A Personal Loan is an unsecured loan provided by banks and financial institutions to meet personal exigencies.

Personal Loan Overview

Availing a Personal Loan as an additional back-up is something you could consider if you find yourself in a tough spot. Some people take Personal Loans to consolidate their credit card debt. You too can do this and pay off your existing credit card outstanding amount. MyLoanOnDemand has products which offer Personal Loans for home renovation as well as consumer durables like a television or a refrigerator - the possibilities are endless. 

A decade or so ago, taking a Personal Loans was not common. Now, with rising incomes and increased competition among banks to improve their credit portfolios, Personal Loans have become more accessible to get. There are various advantages of taking Personal Loans. Banks these days offer attractive interest rates as well as the flexibility of repayment.

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Personal Loan Eligibility

Personal loans are provided by most of the banks/NBFCs but with different eligibility requirements and needs. However, there are some certain criteria’s that are common for all the financial institutions. Hence, to avail a personal loan, the applicant should meet these requirements and also it is advisable to check your eligibility before applying for a personal loan. The eligibility criteria to get an online personal loan approval for salaried and self-employed individuals are listed below for better understanding:

Age 23/24 years - 60/65 years
Employment Type
  1. Salaried
  2. Self-Employed professionals
Credit score 750+ or with a good credit or cibil score history
Minimum Net Income (Monthly)
  • 15,000(non-metro cities
  • 20,000( metro cities)
Loan Amount Up to 40-50 lacs depending on the credit profile and the applicants profile.
Work Experience
  • Salaried
    • Employed at current company for at least 6/12 months
  • Self-Employed
    • Business tenure of at least 3 years (continuous)
    • ITR of last 3 years

Documents Required for a Personal Loan

The common documents which are required for an online personal loan approval are given below:

For Salaried Individuals
  1. Identity & Age Proof
  2. Completely filled personal loan application with photograph
  3. PAN Card
  4. Residence proof - Passport driving license, Voter ID, postpaid/landline bill, utility bills (electricity/water/gas)
  5. Bank statements for the last 3 months (preferably your salary account)
  6. Salary Slips of last 3 months of the current company
  7. Form 16 or Income Tax Returns of last 3 years if govt. employee

For Self-Employed Individuals
  1. Identity & Age Proof
  2. Completely filled personal loan application with photograph
  3. PAN Card
  4. Residence proof - Passport driving license, Voter ID, postpaid/landline bill, utility bills (electricity/water/gas)
  5. Bank statements for the last 6 months (preferably your salary account)
  6. Salary Slips of last 3 months
  7. Last 3 years Income Tax Returns with computation of Income
  8. Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account

Personal Loan Interest Rate

Banks and financial institutions are liberal in sanctioning Personal Loans, especially to borrowers having good credit scores (in the range of 650 and above).

Name of Personal Loan provider ICICI Bank Personal Loan

Interest Rates

  • Interest rate starting from 11.25% to 18%

Tenure

  • Ranging from 12 to 60 months

Loan Amount

  • Maximum Loan Amount - 20 Lakhs

Fees

  • 2.25% of the sanctioned loan amount with a minimum of 999
  • Prepayment Fee at 5% p.a. of principal outstanding + GST
  • Loan cancellation charges - 3,000 + GST

Eligibility for Salaried Employees

  • Age between 23 and 58 years
  •  Minimum monthly income - 17,500
  • For Mumbai and Delhi borrowers - 25,000
  • For Chennai, Hyderabad, Bengaluru, Pune, and Kolkata - 20,000
  • Two years stable employment
  • One year continuous stay at your residence

Eligibility for Self Employed

  • Age for self-employed individuals - 28-65 years
  • Age for Doctors - 25-65 years
  • Minimum Turnover for Non - professionals - 40 Lakhs
  • Minimum Turnover for Professionals - 15 Lakhs
  • Minimum Profit after tax for Proprietorship/ partnership & self employed individuals - 2 Lakhs
  • Minimum Profit after tax for non- professionals - 1 Lakh
  • Business stability of 5 years in current business for Self employed individuals
  • For Doctors - 3 years of business stability

 

Features

  • No security or guarantor
  • Balance transfer of another bank's loan
  • Quick approval within 72 hours
  • Loan insurance

Types of Personal Loans

  • You can avail a Personal Loan for a wedding, home renovations, and go on vacation

 

Name of Personal Loan provider HDFC Bank Personal Loan

Interest Rates

  • 11.25 % to 17.50% for salaries customers

Tenure

  • 12 months to a maximum of 60 months

Loan Amount

  • Maximum loan of 40 Lakhs

Fees

  • Processing fees of 2.50% with a minimum of 1,999 and maximum of 25,000 for salaried customers
  • Prepayment not allowed until repayment of 12 EMIs
  • 13 to 24 months - 4% of principal outstanding
  • 25 to 36 months - 3% of principal outstanding
  • Over 36 months - 2% of Principal outstanding
  • Late payment charges - 2% per month on EMI
  • Cheque Bounce charges - 550 per instance

Eligibility

  • Salaried doctors, CAs, employees of private limited companies, employees from public sector undertakings, including central, state and local bodies       
  • Individuals between 21 and 60 years of age
  • Stable employment for a minimum of 1 year with the current employer& maximum experience for 2 years
  • Net Income of 15,000 for cities other than those listed below
  • 20,000 for customers from Mumbai, Delhi, Bengaluru, Chennai, Hyderabad, Pune, Kolkata, and Cochin

Features

  • Get Personal Accident Insurance Cover up to 8 Lakhs by paying a nominal premium
  • Critical Illness cover up to 1 Lakh
  • Personal Loan Insurance
  • Balance Transfer facility from other banks

 

Name of Personal Loan provider IDFC First Personal Loan

Interest Rates

  • 12% to 18% per annum for salaried employees
  • Can go up to 22% for self-employed professionals

Tenure

  • Flexible tenure between 12 and 60 months

Loan Amount

  • 1 Lakh to 25 Lakhs

Fees

  • 1.5% to 2% - One-time fee

Eligibility

  • Age between 23 and 58 years (at time of maturity)
  • Self-employed persons - Minimum 28 and maximum 68 years at maturity
  • Salaried and self-employed persons are eligible
  • Stable job with minimum 1-year service
  • Self-employed - Minimum 3 years business
  • Credit score 650 and above

Features

  • Personal Loan disbursement in 24 hours and a maximum of 2 days after submission of documents
  • No guarantor or security
  • Flexible repayment options like RTGS, NEFT, PDC, ECS, and so on
  • Online application and approval
Name of Personal Loan provider Standard Chartered Bank Personal Loan

Interest Rates

  • 10.89% to 18%

Tenure

  • Maximum 5 years

Loan Amount

  • 1 Lakh to 30 Lakhs

Fees

  • 3% of the loan amount
  • Documentation charges

Eligibility

  • Minimum age 21 years, Maximum 58 years
  • Both salaried employees and self-employed professionals are eligible
  • Minimum income 22,000 per month

Features

  • Facility to apply online
  • Last EMI waiver or 2% cashback on EMIs paid
  • Zero Processing Fee
  • Flexible tenures
  • Online and mobile banking facilities
  • Balance transfer facility
  • Self-employed persons - Maximum eligibility 10 Lakhs
  • Top Up facility available
  • Easy repayment options
Name of Personal Loan provider Bajaj Finserv Personal Loan

Interest Rates

  • 11.99% to 15.50%

Tenure

  • 24 months to 60 months

Loan Amount

  • Up to 25 Lakhs

Fees

  • Processing fees - 2.25% to 3%
  • Cheque bounce charges - 1,000 per occasion
  • Penal interest - 2.38 % default interest including taxes per month
  • Fee for online applications - 1,999
  • Foreclosure charges - 4% plus applicable taxes on principal outstanding*Prepayment - 2% plus applicable taxes on part-payment amount paid*

Eligibility

  • Minimum 25 years at the application and 58 years at maturity
  • A salaried employee from multi-national companies, private organisations, and public companies are also eligible
  • 2 months' salary slip and 3 months bank statement along with KYC documents
  • You must be a residing citizen of India.

Features

  • Flexible Finserve Loan facility available where you pay the interest alone in EMIs and the principal amount either as a lump sum amount or at the end of the loan tenure.
  • Facility to withdraw from your credit line multiple times
  • Quick loan approvals with funds credited to account within 24 hours
  • Part prepayment facility up to 6 times a year at no extra cost
  • Use for a variety of purposes like wedding, travel, home improvement, medical emergencies, or higher education
Name of Personal Loan provider Yes Bank Personal Loan

Interest Rates

  • Interest rate ranging from 10.75% to 18%*

 

Tenure

  • 5 years

 

Loan Amount

  • 2 Lakhs to 20 Lakhs

Fees

  • 4% principal outstanding if you foreclose the loan between 13 and 24 months
  • 3% if the foreclosure between 25 and 36 months
  • 2% between 37 and 48 months
  • Zero Cost after 48 months

Eligibility

  • Minimum Salary 25,000
  • 6 months continuity in a job
  • Total employment - Minimum 2 years
  • Last 2 years IT returns
  • Minimum age 22 years and maximum 58 years at maturity

Features

  • No collateral or guarantor required
  • Purpose of loan can be anything like wedding expenses, home renovation, medical expenses, overseas travel, new business, resolve financial crunch and so on
  • Flexible repayment options
  • Competitive interest rates
  • Minimum documentation
  • Part prepayment allowed after completion of 6 months and full prepayment after 12 EMIs
Name of Personal Loan provider Kotak Mahindra Bank Personal Loan

Interest Rates

  • 10.99% to 24%

Tenure

  • 12 months to 60 months

Loan Amount

  • 50,000 to 50 Lakhs

Fees

  • Up to 2.5% of the loan amount+ service tax / GST and other applicable statutory levies up to 5% of the Loan amount, not exceeding 7500 (inclusive of GST / Service tax)

Eligibility

  • Salaried employees, self-employed professionals, and business owners
  • Minimum 21 years and maximum 58 years at maturity
  • Net salary 20,000
  • Minimum qualification - Graduate
  • Available in select Indian cities
  • Credit score of 750 and above

Features

  • Minimum documentation
  • Flexible repayment options
  • Minimum lock-in period of 12 months
Name of Personal Loan provider Citibank Personal Loan

Interest Rates

  • 10.99% to 18

Tenure

  • Minimum 12 months
  • Maximum 60 months

Loan Amount

  • 1 Lakh to 30 Lakhs

Fees

  • 2.00% - 3.00%
  • Pre-closure charges - 4% of the outstanding loan amount

Eligibility

  • Minimum age 23 years and maximum 60 years at maturity
  • Salaried, self-employed professionals and business people can apply
  • A regular source of income
  • Credit score 700 and above

Features

  • Simplified Loan process with minimum documentation
  • Add-on facility availability
  • Quick turnaround process
  • Fixed rate of interest
  • Use for marriage expenses, home improvement, and other personal expenses
Name of Personal Loan provider Tata Capital Personal Loan

Interest Rates

  • 11.25%-17%

Tenure

  • 12 months to 72 months

Loan Amount

  • 75,000-25,00,000

Fees

  • Processing fees - 0.5% to 2.5% of the loan amount
  • Part Pre-payment charges - 4.5% if payment exceeds 25% of the principal amount
  • Foreclosure charges - 2% of the outstanding amount

Eligibility

  • Salaried employees, self-employed professionals and business people are eligible
  • Minimum 21 years and maximum 58 years at maturity for salaried, 22-65 years for self employed individual, 22-65 years for businessman
  • Monthly income 20,000 for salaried employees and a yearlyincome of 2 Lakhs for self-employed persons
  • 2 years continuous job or 3 years continuity in business

Features

  • Use for a variety of purposes like wedding expenses, educational expenses, travel, and any other general purpose except speculation
  • Fast turnaround time of a maximum of 72 hours after submission of all documents
  • Easy repayment options
  • No security or guarantor
  • Top up facility available

Types of Personal Loans

  • Step-Up Flexi EMI Personal Loan - Choice of paying higher EMI
  • Step-down Flexi EMI Personal Loan -Facility to decrease the EMI
  • Bullet Flexi EMI Personal Loan - Pre-pay the loan in periodic instalments