Personal loan is a financial product that can be availed for your personal requirements. Also known as a consumer loan, personal loan is provided insecurely by financial organizations based on the criteria such as income level, employment history, credit history, repayment capacity, and profession. It is a multipurpose loan which can be used to meet any immediate requirements.
Features of Personal Loan
- End use flexibility
- No requirement of collateral or security
- Tenure flexibility
- Quick disbursal
- Minimal documentation is required
- Loan amount flexibility
Personal Loan EMI Calculator
Format: 12m, 36m, 3y, 7y
Monthly Payment (EMI):
₹85.61
Total EMIs:
12
Total Payments:
₹1,027.29
Total Interest:
₹27.29
The below mathematical formula is used for the calculation of your personal loan EMI.
EMI Amount = [P x R x (1+R)^N]/[(1+R)^N-1]
Where,
- P = loan amount,
- N = he tenure period in number of months,
- R = rate of interest
You can also calculate your personal loan EMI by our personal loan EMI calculator provided above. Just enter your rate of interest, loan amount, and tenure period variable for calculating the EMI for your personal loan.
Personal Loan Comparison
There are a number of banks, credit unions, and other financial organizations that provide personal loans and you can easily apply for them either offline or online. Though for availing a personal loan, it is important for you to go through the personal loan schemes of various organizations.
You must compare their interest rates, and other fees and charges included by them, before making a decision. Below is a small comparison of personal loan amount, tenure period, interest rate, and processing fee between SBI, HDFC & other lenders.
| Bank/NBFC | Loan Amount | Tenure | Interest Rate | Processing Fee |
|---|---|---|---|---|
| SBI Bank | Up to ₹20 Lakh | 1-6 Years | 9.80% p.a. onwards | Up to 1.5% |
| ICICI Bank | Up to ₹25 Lakh | 1-6 Years | 10.50% p.a. onwards | Up to 2.5% |
| Axis Bank | Up to ₹15 Lakh | 1-5 Years | 10.25% p.a. onwards | Contact bank for this information |
| Punjab National Bank | Up to ₹20 Lakh | 1-7 Years | 8.80% p.a. onwards | Up to 1.0% |
| Bank of India | Up to ₹20 Lakh | 1-3 Years | 10.75% p.a. onwards | Up to 2.0% of the loan amount |
| IDBI Bank | Up to ₹5 Lakh | 1-5 Years | 9.50% p.a. onwards | Up to 1.0% |
| Bajaj Finserv | Up to ₹25 Lakh | 1-5 Years | 13.00% p.a. onwards | Up to 4.0% |
| Indian Bank | Up to 20 times of monthly gross salary (salaried) | 1-7 Years | 9.40% p.a. onwards | Contact bank for this information |
| HDFC Bank | Up to ₹40 Lakh | 1-5 Years | 10.75% p.a. onwards | Up to 2.50% of the loan amount |
| Union Bank of India | Up to ₹15 Lakh | 1-5 Years | 9.80% p.a. onwards | Up to 1.0% of the loan amount |
| IndusInd Bank | Up to ₹5 Lakh | Up to 5 Years | 11.00% p.a. onwards | Up to 3.50% of the loan amount |
| Tata Capital | Up to ₹20 Lakh | 1-6 Years | 11.25% p.a. onwards | Up to 2.75% of the loan amount |
| Fullerton India | Up to ₹25 Lakh | 1-5 Years | 11.99% p.a. onwards | 3.00% to 6.00% of the loan amount |
| Kotak Mahindra Bank | Up to ₹25 Lakh | 1-5 Years | 10.50% p.a. onwards | Up to 2.5% of the loan amount |
| CitiBank | Up to ₹30 Lakh | 1-5 Years | 10.50% p.a. onwards | 0.50% – 3.00% of the loan amount |
| Standard Chartered Bank | ₹1 Lakh – ₹6 Lakh | 1-3 Years | 11.00% p.a. onwards | Min ₹10,000 |
| Yes Bank | ₹50 Thousands – ₹2 Lakh | 1-3 Years | 20.00% p.a. onwards | 2.50% of the loan amount |
| HDBFS Bank | Up to ₹20 Lakh | 1-5 Years | 14.99% p.a. onwards | Up to 2.00% |
| India Infoline Finance Ltd. | Up to ₹25 Lakh | 1-5 Years | 13.49% p.a. onwards | Up to 2.00% |
| IDFC First Bank | Up to ₹5 Lakh | 1-5 Years | 12.50% p.a. onwards | Up to 3.50% |
Personal Loan Eligibility
To get qualify for a personal loan; applicants need to fulfill the criteria for personal loan eligibility provided by a lender. These include
| Eligibility Criteria | Requirements |
| Age of applicant | Min age: 21 years, Max age: 68 years |
| Credit Score | At least 750 or more (from a certified credit bureau) |
| Net Monthly Income | Rs.5,000 and above |
| Employment type | Salaried, Self-employed personnel, Business Owner, Home maker, Student |
| Work Experience | 1 – 3 years and above |
| Employment status | Applicant can be any one of these: Employed, In business for at least 2 years |
| Max EMI allowed | Up to 65% of the salary |
Personal Loan Documents
Documents required are required for availing a personal loan. Most NBFCs and Banks have similar guidelines regarding the list of documents. The generic list include
- Address Proof – Aadhaar Card/ Property Purchase Agreement/ Bank Account Statement/ Lease/ Driving License/ Utility Bill (less than 3 months old)/ Passport.
- Identity Proof – Aadhar Card/ Driving License/ PAN Card/ Passport/ Voter ID.
- Income Proof –
For self-employed: Balance Sheet/ P&L Statement/ ITR (previous year)/ Bank Account Statement.
For salaried: Form 16/ Bank Account Statement/ Salary Slip.
Personal Loan Interest Rate and Fees
Currently, personal loan interest rates range from 8.95% to 35.99% p.a. Interest rate depends on a number of factors such as your annual income, credit score, existing debt, credit history, and the type of lender choose such as credit union, online lender, or bank. You can shuffle through multiple lenders that provide personal loan plans for finding out the lowest personal loan interest rate option available for you.
Though, personal loan is not just about the interest rate that is being charged on loan amount. There are also a number of other charges and fees associated with personal loans online apply and must be taken into consideration. These mostly include
- Processing fee (0.5% to 2.50%)
- Goods and service tax (GST)
- Verification Charges (differs from lender to lender)
- Late payment penalty for EMI (differs from lender to lender)
- Foreclosure or prepayment penalty (2% to 4%)
- Duplicate Statement Fees (Rs.200 to Rs.500)
Don’t forget to go through Terms & Conditions (T&C) of the personal loan agreement provided by the bank. The page consists of the information of various charges and fees applicable on the instant personal loan.