– Why do you need a personal loan?
If you ask me.
That’s because personal loans should be taken only in emergency situations.A personal loan is an insecure loan that comes to you without having to submit any collateral for the same. It can be given for multiple purposes alike as marriage, education, medical emergency, trip, home improvement, etc. Both salaried and tone- employed can apply for a particular loan. The loan comes with seductive interest rates and flexible repayment options. You can also apply online or at the branch of the bank or non-banking finance company (NBFC). You’ll also need to pay the processing charge at applicable rates. The lender will assess the loan eligibility based on your income, credit score and repayment potential. After receiving the application, the lender will pull your credit report from CIBIL or other credit bureaus. Once you meet the eligibility criteria, the lender will disburse the loan amount in your bank account.
I won’t recommend anyone to take a personal loan. A personal loan should be the last option because of the high- interest charges.
You should repay your personal loan within 3 to 6 months.
If you take Rs.1,00,000 loan for 12 months at the interest of 24 also you would end up re-paying around Rs.1,13,400.
Personal loans help you sort out short- term financial crisis but costs you high- interest charges. Don’t misuse the personal loan installation otherwise you could end up in a financial mess.
You can take a personal loan either from a bank or from a private finance company.
State Bank of India Personal Loan
You can get a personal loan from SBI under three categories – SBI Xpress Credit Personal Loan, SBI Pension Loan, and SBI Quick Personal Loan.
SBI personal loan is accessible to all salaried persons having a minimum service of 1 year and to pensioners.
SBI Xpress Credit Personal Loan
Xpress Credit personal loans are for employees working at the below entities and maintaining a salary account with SBI.
The entities include Central & State Government,Quasi-Government, Central & profit making State PSUs, Educational Institutions of National Repute, and Selected Corporates who have a business relationship with the Bank.
SBI Pension Loan
SBI pension loan is for persons who are Central, State Government, Family or Defence Pensioners. Drawing their pension through one of the SBI branches and aren’t more than 76 years of age.
SBI Quick Personal Loan
SBI Quick personal loan is available to employees working with Central & State Government,Quasi-Government, PSUs, Educational Institutions of National Repute, and with corporates.
You should have a minimum net monthly income of Rs.15000 and there’s no requirement of maintaining a salary account with SBI.
If you’re thinking to take a personal loan for education then you should first check the best bank for an education loan in India.
Why You Should Apply for SBI Personal Loan
Lowest net monthly income demand (Rs.15000)
Three orders of personal loan-SBI Xpress Credit, SBI Pension Loan, and SBI Quick Personal Loan.
The wide network of SBI branches makes service availability for people residing anywhere in the country.
Loan allowed only uptoRs. 20 Lakhs.
Eligibility Criteria
Abbreviation Used
NMI-Net Monthly Income
EMI-Equated Monthly Installments
NMP-Net Monthly Pension
| SBI Xpress Credit Personal Loan | SBI Quick Personal Loan | SBI Pension Loan |
| Minimum NMI of Rs. 15,000 EMI / NMI ratio should not exceed 50%
| Minimum net monthly income of Rs. 15,000 EMI / NMI ratio up to 50% Minimum service of 1 year
| Below 76 years of age EMI / NMP ratio should not exceed 50%
|
Documents Required
-Application Form or online application through SBI web portal
-PAN Card
-ID Evidence & Address Evidence
-Latest Salary Slip with ITR, bank account statement for last 6 months
– Your salary/ pension account number with SBI for X-press Credit & Pension Loan.
HDFC Bank Personal Loan
You have an option to adopt from Rs.50000 to Rs. 40 Lakhs as a personal loan from HDFC Bank. The loan is available for a salaried individual across corporate, PSUs and government institutions.
Once the proof is complete, your personal loan will be expended within 4 hours. The existing HDFC customers can get personal loan OKs in 10 seconds.
Along with loan, you can also avail an accident or loan insurance cover at a nominal premium.
HDFC Personal Loan Interest Rates
Ranging between-10.40 %to21.13%
Other Personal Loan Details
Loan Amount– Up to 40 Lakh
Processing Fee– Up to2.5 %
Minimum –Rs. 2999and Maximum –Rs. 25000
Late charge– 24%p.a
Prepayment Charges
– Up to 12 months-not allowed
13-24 months – 4% of principal outstanding
25-36 months – 3%of principal outstanding
> 36 months – 2%of principal outstanding
Loan term -Up to 60 months
– Part- payment allowed only once in a financial time and double during the loan term.
-Part- payment allowed up to 25%of the principal outstanding.
Why You Should Apply for HDFC Personal Loan
-Up toRs. 40 Lakhs of personal loan
-2%pre-closure charges (after 36 months) is lower than other banks
-Zero hidden charges, and convenient repayment options
-Minimal paperwork and documentation
Concerns
-Interest rate is comparatively on the advanced side.
-Up to2.5% processing fees
Eligibility Criteria
| Particulars | Eligibility |
| Employees of | Pvt Ltd, PSU including central, state and local bodies |
| Age | Between 21 and 60 years |
| Work Period | Job for at least 2 years, |
| Net income | Person having HDFC bank salary account – Minimum Rs. 25,000 |
Documents Required
-Application Form or online application through HDFC web portal
-ID Evidence, Address Evidence
-3 Month bank statement (Passbook of previous 6 months)
-2 Latest salary slip or current dated salary certificate with the latest Form 16.
Evidence of end- use
Axis Bank Personal Loan
Axis Bank Personal Loans offer fast processing of your loan. Personal Loans can be used for plenty of purposes! They can be profited when you’re planning a holiday, repairing your home or arranging a dream marriage for yourself or somebody special in the family. Now you need not postpone things on your bucket list! You can get a Personal Loan fromRs. uptoRs. with minimal documentation and speedy approval from Axis Bank. Also, you can transfer your existing high interest Personal Loan to Axis Bank as well. With a quick approval on Personal Loans, turn your dreams into reality! personal loan rate of interest:12% to 21%Personal Loan Details
Loan Amount-Rs.50000 to 15 Lakh
Processing Fee-1.5% to 2% of the loan amount
Late Fee- 24%p.a
Part- payment/ Foreclosure Charges– 0 to 12 months – 5 %
-13 to 24 months – 4 %
-25 to 36 months – 3 %
-more than 36 months – 2 %
Loan Tenure -12 to 60 months
Why You Should Apply for Axis Bank Personal Loan
-Quick approval with minimum documents
-You can earn reward points while applying for a personal loan
Concerns
– High- Interest rate
-Rs. 15 Lakhs of the loan amount ( even less than what SBI offers)
-Preference for salaried persons.
Eligibility Criteria
| Particulars | Eligibility |
| Employees of | Govt (including PSU, central, state and local bodies), |
| Minimum Age | 21 years |
| Maximum Age | 60 years at the time of maturity of the personal loan |
| Net monthly income | Minimum of Rs. 15,000 |
Documents Required
- Application form
- ID proof, & Residence proof
- Income proof and Bank statement
- Standing instruction request / ECS