There comes a time when you require some funds to meet your personal aspirations or the contingency needs. This is where your old friend personal loan can come to help you. Banks and non-banking finance companies (NBFCs) provide a personal loan for various purposes like the wedding, education, medical emergency, purchasing a durable or car, etc. So, no dream is bigger with a personal loan. Let’s get through the journey of a personal loan from its basic features to the lender offers.
- Personal loan amounts range from ₹ 50,000-20,00,000
- Loan tenure equals to 5-6 years
- Interest rate 11%-25% per annum
- Both salaried and self-employed can apply for personal loan
- Processing fee amounts to 1-3% of the loan amount
- Prepayment charges calculated at upto 5% of the outstanding loan balance
Top Banks Providing Personal Loan In India-
SBI Personal Loan-
- State Bank of India (SBI), with more 14,000 branches across India, provides a personal loan at attractive interest rates of 11.90%-14.90% per annum.
- The maximum loan amount offered by the bank equals to 24 times the net monthly income, subject to a limit of upto ₹ 15 lakh.
- The amount of processing fee is calculated to be 1% of the loan amount plus service tax as applicable.
- Borrowers can prepay the loan without having to pay any penalty on the same.
SBI Personal Loan Eligibility-
- Both salaried and self-employed are eligible for a personal loan.
- The minimum net monthly income (NMI) required is ₹ 7,500.
- The ratio of EMI to NMI must not be over 50.
SBI Personal Loan Application-
You can apply for a personal loan by visiting the branches of SBI or the website. The latter option could well be the most convenient of the two. Being online allows you to get the receipt of the application form easily instead of asking for the same at the branches of the bank. You can easily fill the details online to submit your application to the bank, which would then process your case further. If all goes well, the bank would disburse the loan within 2 days to a week.
HDFC Bank Personal Loan-
- The personal loan from HDFC Bank is available to all the salaried professionals at an interest rate of 11%-20% p.a.
- The loan amount offered by the bank ranges from ₹ 15 lakh-25 lakh.
- You can avail a personal loan for a maximum period of 5 years.
- Processing fee charged upto 2.50% of the loan amount subject to a maximum of ₹ 25,000.
- Prepayment charges are calculated at 4% of the principal outstanding plus service tax as applicable.
HDFC Bank Personal Loan Eligibility-
- Individuals with an age of 21 years at the time of application and a maximum of upto 60 at the maturity are eligible for a personal loan.
- The total work experience should be a minimum of two years with a year of employment with the existing organization.
- The minimum net monthly income should be ₹ 12,000-15,000.
HDFC Personal Loan Apply-
Want to apply for personal loan at HDFC Bank? Visit any of the bank branches. If visiting the branches is not what you like, there is an option of going online to apply for a personal loan. Within 2 days to a week’s time, you would get the disbursal if there is no discrepancy in the documentation.
Axis Bank Personal Loan-
- You can also apply at the third largest private sector bank i.e Axis Bank for your personal needs.
- Axis Bank Personal Loan interest rates are in the range of 15.50%-24% per annum.
- The maximum loan tenure for the same is 5 years
- The processing fee is computed at 1.50%-2% of the loan amount along with applicable service tax.
- No prepayment charges
Axis Bank Personal Loan Eligibility-
- Both public and private sector employees are eligible for a personal loan at Axis Bank.
- The minimum age which you can apply is 21 years and the maximum age permitted at the time of loan maturity is 60 years.
- You should earn a minimum net monthly income of ₹ 15,000.
Axis Bank Personal Loan Apply Online-
Bring home the needed funds by applying for a personal loan at Axis Bank. You can either visit the branch or opt for the online option. The second option will add to your convenience as you can apply via your mobile or computer with the help of an Internet connection.
Calculator Personal Loan-
You can use the calculator to find out the loan servicing cost. The personal loan eligibility calculator will determine the amount of loan you are expected to receive based on your income and savings. The EMI calculator will show the amount of installment you need to be ready with to pay off the loan each month. The EMI constitutes a portion of both principal and interest amounts. The amortization calculator, on the other hand, gives a schedule of the interest and principal and interest repayment each year. It also shows the outstanding balance of the loan amount every year.
Now I guess, the path for a journey full of happiness is clear with the comprehensive know-how of a personal loan. Use this as a guide to steer yourself comfortably amid all the challenges that the life presents from time to time.
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. And because of net banking, it has become easier to drop a personal loan application. But while submitting the personal loan application form the applicant must fill the necessary details.
Personal Loan Application Form:
To avail the loan facility one has to fill in the application form. The application form is available at all the bank branches. The candidates can apply for the loan online as well.
need to fill 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
Also, the candidate is supposed to submit the requisite documents. The documents required are:
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
Factors Affecting Personal Loan Eligibility:
Once the application is submitted, the candidate’s profile is evaluated thoroughly. There are various parameters based on which the eligibility of the candidate is judged. The major factors affecting the eligibility are as follows:
Monthly Income – The most important criterion that helps in setting the disbursal amount is the income of the candidate. The person earning a handsome salary or high revenues is likely to get higher loan amount.
Age – When it comes to applying for a loan, the age of the applicant also matters. The age limit varies from lender to lender but in general, ranges from 21- 60 years.
Monthly Expenses – As the lender assumes that the borrower will be repaying the loan from the monthly income excluding expenses, so the applicant’s savings become a concern while calculating the eligibility.
Any Other Loan – The lenders count the applicant’s obligation to repay any other loan while deciding the disbursal amount. If the applicant has the capacity to repay both the loan simultaneously the new loan is sanctioned.
Credit History – The healthy credit history of the applicant builds up the CIBIL score which makes it convenient for the applicant to avail a loan.
Job Stability – The applicant should have a stable job and have the experience of working with the same company for at least an year. The self-employed applicant too must have a regular source of income.
Personal Loan Eligibility Calculator:
The lender checks your repayment capacity by using the personal loan eligibility calculator based on which the disbursal amount is decided. The following inputs are required to compute the eligibility value:
- Personal loan interest rates
- Per lakh EMI
Now, how is the amount decided? The formula used to compute the value is:
Personal Loan Eligibility Amount = ₹ 1,00,000 x Savings/Per Lakh EMI
For the better understanding, let’s solve it using an example –
Illustration: The monthly income of an employee working in a reputed company is ₹ 80,000. He wants a personal loan for some reason. After meeting all his expenses he is able to save 50% of his income which is ₹ 40,000. He applied for the personal loan in a bank. The bank after considering his income calculated the eligibility amount in a manner specified below:
Per Lakh EMI for –
Tenure – 4 years
Interest Rate – 14.50% p.a.
EMI Amount = ₹ 2,758
So, the eligibility amount = 1,00,000 x Savings/EMI
= 1,00,000 x 40,000/2,758
= ₹ 14,50,327
Therefore, the candidate having a monthly income of ₹ 80,000 can avail a loan of up to ₹ 14.50 lacs.
Now with the availability of these unsecured quick loans, there is no need to keep your longings pending. Just file the application and access your dream at the right time.