Compare Personal Loans from Different Banks

Author: Poonam Dambare
td

Compare Personal Loans from Different Banks

Personal Loans are the saving grace for the people, who like ot have financial support during their emergency needs. Since, the personal loans require no pledging of asset and no collateral; they are unsecured and thus draw a reasonably high interest rates as compared to secured type of loans like Home Loans and other mortgage loans. The Personal Loans, however comes with various benefits, in the form of complete freedom over how you want to spend your money, without giving any record to the lending party, at all.

However, the Personal Loans vary from one banks to another banks, the rates of interest and some conditions, of course differ from bank to bank, and thereby, a complete research and data analysis must be done before, opting for a particular bank.

The Personal Loans vary across from banks to banks and from banks to NBFCs and cooperative Banks. There are several banks, who are looking for the customers expansion, and thus offer Personal Loans at cheaper rate of interest, while some are those, who consider repayment and loans not going default, as their top priority.

Personal Loans Rates of Interest

Below, there’s an indicative list of some banks and NBFCs, with their Personal Loans, Rates of interest, Processing Fee, Loan Amount and Loan tenure (in alphabetical order):

Name of Banks/NBFCs

Rate of Interest

Processing Fee

Loan Amount

Loan Tenure

ADITYA BIRLA CAPITAL

11.00% – 13.75%Fixed

1%

30L Max

1-5 Years

ALLAHABAD BANK

13%Floating

1.22% (min. INR 1,228)

50K – 7.5L

1-5 Years

BANK OF BARODA

11.35% – 16.35%Floating

INR 1,000 to INR 10,000

1L – 10L

4 Years

BANK OF INDIA

12.90% – 13.90%Floating

INR 1,000 to INR 10,000 + applicable tax

10K – 5L

1-3 Years

BANK OF MAHARASHTRA

12.70%Floating

1% (min. INR 1,000)

1.5L Max

1-3 Years

CANARA BANK

12.75%Floating

INR 1,000 to INR 5,000

3L

5 years

CAPITAL FIRST

12% – 18%Fixed

Up to 1.5%

15L Max

1-5 years

CENTRAL BANK OF INDIA

11.3%Floating

500 + applicable tax

10L

4 Years

CITIBANK

10.99% – 16.49%Fixed

0

30L Max

1-5 Years

DENA BANK

13.00% – 14.00%Fixed

1%

15K – 1L

1-3 Years

FULLERTON

12.49% – 33%Fixed

6.00%

15L Max

1-4 Years

HDBFS

14.99% – 14.99%Fixed

Up to 2%

20L Max

1-5 years

HDBFS – Business Loan

15.95% – 18.95%Fixed

2%

20L Max

1-3 years

HDFC BANK

10.99% – 21.25%Fixed

Up to 2.5%

40L Max

1-5 years

ICICI BANK

11.00% – 18.25%Fixed

From.75% (min. INR 999 + applicable tax)

20L Max

1-5 Years

IDBI BANK

12.55%Floating

1% + applicable tax

50K – 10L

1-5 Years

IDFC BANK

11.5% – 13.5%Fixed

1% + applicable tax

2L – 25L

1-5 Years

InCred

16% – 28%Fixed

2% – 5%

50K – 7.5L

1-4 Years

INDIA INFOLINE FINANCE LTD

13.49% – 19.99%Fixed

Up to 2%

Upto 25L

1-5 years

INDIAN BANK

  • p>
0.51% (max. INR 510)

50K – 1L

3 Years

INDIAN OVERSEAS BANK

13.55%Floating

1.01% to 1.10%

1L – 15L

1-5 Years

INDUSIND

11% – 16%Fixed

0

25L Max

1-5 years

KARUR VYSYA BANK

12.95% – 15.45%Floating

0.40%

  • p>
1-3 Years

KOTAK MAHINDRA BANK

10.99% – 18.15%Fixed

Up to 2.5%

25L Max

1-5 years

SOUTH INDIAN BANK

13.00%Fixed

0.50%

10L Max

1-4 Years

STANDARD CHARTERED BANK

10.99% – 14.49%Fixed

0%

30L Max

1-5 years

STATE BANK OF INDIA

12.75% – 14.75%Floating

1% + applicable tax

25K – 15L

5 Years

TAMILNAD MERCANTILE BANK

13.75% – 15.75%Floating

1%

2L Max

1-5 Years

TATA CAPITAL

11.50% – 17.25%Fixed

0

20L Max

1-6 Years

UCO BANK

11.20% – 11.45%Floating

1% (min. INR 750)

10L Max

5 Years

UNION BANK OF INDIA

14.4%Fixed

0.5% (min. INR 500)

5L Max

1-5 Years

VIJAYA BANK

13.50%Floating

0.75% + applicable tax

10L Max

1-5 years

YES BANK

14%Fixed

  • p>
20L Max

1-5 Years

What to compare with Personal Loans from Different Banks?

You should do a thorough detailed comparison of personal loan interest rates and charges of all banks before choosing the best bank for your personal loan needs and demands. Here are few points, which you should compare on all Personal Loans offering from Different Banks.

  • Rates of interest for personal loans: There are several banks, which offer very special and attractive rate of interest in their offering s for the personal loans. While, the rate of interest vary depending on various factors, like your income, your place of work, your CIBIL Score, your repayment capability, and other such accumulative factors, the rates of interest for every bank differs depending on multiple factors. Hence, always do a proper check for personal loan offers from multiple banks to get the best rates on your personal loans

  • Personal loan processing fees: Most banks charge a processing fee of INR 999 to up to 2% of loan amount, whichever is higher. As, it is the processing fee, which may result in the significant difference in the total amount, you paid while availing your personal loans, never consider this factor as a onetime fee, and pay whatever they ask. These loans are short term loans, and thus higher processing fees can result in significantly high cost on loans. Thus, it becomes very important to compare the final loan amount, to be paid by you to the banks, including all factors like loan processing fee and other hidden charges, if applicable. Compare all Inclusive Rates for personal finance loans while comparing and shortlist the top offer. Get detailed comparison on interest rate, processing fees and all attractive offers and discounts schemes as offered by the banks.

  • Insurance premium: Since these are unsecured loans, banks may request you to take an insurance policy, while availing a loan. However, always remember that the premium varies from one bank to another, which of course depends on the risk coverage under various policies. Thus, thoroughly checking the loan sanction letter will help you in better understanding of the coverage and premium. In case, you are not satisfied over something in your loan sanction letter, you have every right to ask it from your lender and negotiate on those aspects. Thus, while comparing different offers from banks to banks, you must include the Insurance premium policies, thus allowing you in choosing a policy which gives you adequate coverage at lowest premium.

  • Personal loan prepayment and foreclosure: Every one of us wants to get rid of Loan of all kinds to be paid as soon as possible, if we are taking it for covering any emergency situation. It must be remembered that paying interest on a loan when you have surplus money, is one of the wisest steps, you can take towards the early repayment of your loan. This early payment of your loans, irrespective of the category of loan, it belongs to is called as the pre payment. While, In case you decide to pay the entire loan amount before time, it is called as foreclosure of the loan. However, the banks, have some conditions and restrictions, when it comes to the prepayment and foreclosure of loan. There are conditions, when the banks levy some additional charges on prepayment and foreclosure, and in some conditions, the banks even don’t allow in doing so. Also, there are additional charges applicable in doing so, which may exceed up to 5%. So, while making a shortlist of banks, for the final choice in personal loans, check carefully if the low interest rate personal loan you are getting comes with high prepayment or foreclosure charges. While, Some banks, might not allow you to prepay your loans before few months or a year, thus this becomes on eht important conditions, while making a choice of the final bank to opt for while applying for the personal loans.

HDFC Bank Personal Loans Details

Below is the eligibility criteria required for HDFC Personal Loans:

  • Minimum age of at least 21 years and must not exceed 60 years for Salaried

  • Minimum age of at least 21 years and must not exceed 65 years for self employed

  • A minimum earning must be there, which obviously differs from one city to another. However, a minimum of Rs.20000 per month net income is required.

Below are some features and details of HDFC Personal Loans:

  • No guarantor required

  • Conditional pre-closure, which can only happen after 1 year

Documents required for Personal Loans

  • KYC-PAN, Proof of address

  • Identity Proof

  • Income proof,

  • Bank statement justifying the income

  • Photograph

Fee to be incurred on Personal Loan

  • Preclosure fee equaling to 4% of principal outstanding (plus applicable tax) in 2nd year.

Other Conditions

Here are some conditions applicable for HDFC Banks Personal Loans:

  • Part-payments can only be made after completion of 1 Year

  • For part payments between 13 Months to 2 Years, a fee of 4% is applicable on the part-payment amount.

  • While, a fee of 3% is applicable on payments made between 25 Months to 3 Years.

  • A fee of 2% is applicable post 3 Years.

  • Part-payments are allowed only twice during the loan tenure and only once a year

  • The part payment amount cannot exceed 25% of the principal outstanding, in any case

Do’s and Don’ts to follow, while applying for a Personal Loan

While, comparing Personal loans as offered by different banks and NBFCs, there are several Do’s and Don’ts, which a person ought to follow. Here is the indicative list of those:

Do’s

Don’ts

Always Check best discount and offers for salaried customers and more importantly pay attention at the rates of interest offered by banks to the employees of the top companies, thus offering you better comparison points

Never apply for loan amount more than what you are eligible for and what you require. In case of applying for the loan amount, which you are eligible for can lead to the blatantly rejection of the loan application and asking for more, than what is required, is not at all a wise step, as it leads to the wasteful expenses, and since you are taking a loan, you have to return back

Opt for the Comparison of personal loan rates based on loan amount; while there are Some banks, which offer low interest rate at higher loan amount, you can better judge the personal loans based on rates of interest, as it is the rate of interest on any loan, which matters the most!

All at once, never apply with multiple banks for your personal needs as the Simultaneous loan applications gets recorded in your CIBIL report and even can hurt your chances of getting a personal loan

Check if there’s tenure based discount, available with the chosen bank. You must remember that there are several Banks, which may offer lower rates on personal loan for a particular tenure and if possible, opt for those loan tenures, having lower interest rates

Keep a note than Your salary bank may not offer the cheapest personal loan, thus look towards all variable loan options available within your hands and keep searching for the best rates of interest personal loans, who are eligible for.. Hence, the offer from your salary bank may not be the best option

Also, try checking your updated CIBIL Score, as its one of the most crucial aspect, in getting you a personal loan at the best rate. IN case of any issue, you notice, in your CIBIL Score, apply for reevaluation of your CIBIL Score

Don’t underestimate the power of CIBIL Score. In case, of any suspicion in your CIBIL Score, don’t leave things on the fate.

Always negotiate on your loans rates of interest

Loans rate of interest is negotiable and don’t consider it as bank’s final decision as a final one.

The Personal Loans always call for the detailed analysis and proper research, while choosing the lender, who can lend you with some of the best offers and schemes at your loan. Considering any source of the loan, might be disastrous for you in the entire process and you might end up in paying more than what you should have!