Personal loan is an unsecured loan facility, which can be availed by both salaried and self-employed individuals. Proceeds from the loan can be used to meet any personal and business related financial requirements without any end usage restriction. Personal loan also comes with fewer documentation requirements, which enables quicker processing and disbursal than other credit options.
| Key Highlights | |
|---|---|
| Interest Rates | 10.49% p.a. onwards; some PSUs may offer lower rates |
| Loan Amount | Up to Rs 40 lakh; some lenders may offer higher loan amounts |
| Tenure | Up to 5 years (some lenders offer repayment period till 8 years) |
| Processing Fee | 0.5% to 4% of loan amount (may vary across lenders) |
Personal Loan EMI Calculator helps consumers determine the amount they will have to pay each month towards servicing their personal loans. Using this online calculator, consumers can also quickly calculate the interest cost and total amount payable against various combinations of loan amounts, interest rates and loan tenures in no time. The consumers can also determine the best possible tenure for their personal loans after considering their repayment capacity and plan their loan repayment better.
Principal Amount:
An increase in the principal amount leads to an increase in your EMI, provided the values for loan tenure and interest rate remain unchanged.
Interest Rate:
Personal loan EMIs increase with every increment in the interest rates.
Tenure:
Choosing longer tenure on your loans results in lower EMIs. However, it also leads to higher overall interest cost on the loan.
The interest rates offered on a personal loan is determined based on the applicant’s credit profile and the lenders’ credit risk-based pricing model, cost of funds, etc. As the interest rates on your personal loan primarily influences the total cost of your borrowing, one must always look for best interest rates available on their credit profile.
For this, consumers should first check offers from lenders with whom they already have deposit, credit card and/or loan account(s). Then, they should visit online financial marketplaces to compare interest rates offered by other banks and NBFCs.
| Interest Rates | |
|---|---|
| SBI Personal Loan Interest Rates | ICICI Personal Loan Interest Rates |
| HDFC Personal Loan Interest Rates | Axis Bank Personal Loan Interest Rates |
| PNB Personal Loan Interest Rates | BOB Personal Loan Interest Rates |
Many lenders offer pre-approved personal loans with instant disbursals to their select existing customers having good credit profiles. Thus, consumers should first check for such pre-approved offers with banks and NBFCs with whom they have an existing banking relationship. After checking for pre-approved offers, visit online financial marketplaces to compare personal loan offers from various banks and NBFCs offering quick disbursals, preferably within the same day of making the loan application.
The key differences between regular and instant personal loan are as below:
| Instant Personal Loan | Regular Personal Loan |
|---|---|
| Disbursed in a few minutes or seconds | Usually takes 2-4 day's time for loan disbursal |
| Usually pre-approved and offered to select existing customers having good credit profiles | Offered to new individuals as well as existing customers |
| Can avail only till the sanctioned loan amount | Can avail higher loan amounts based on their repayment capacity |
Attributes and Advantages of Personal Loans Personal loans are favored for their accessibility, minimal paperwork, and swift disbursal, making them a preferred choice for financing lifestyle aspirations and bridging financial gaps. Here are the key characteristics and benefits of personal loans:
Varieties of Personal Loans In addition to standard personal loan offerings, numerous banks and NBFCs offer various personal loan variants tailored to meet distinct financial needs. While overarching characteristics such as tenure and processing fees remain consistent with regular personal loans, the following are brief descriptions of some popular variants:
While the fees and charges of personal loans usually vary widely depending on lender and the credit profile of the loan applicants, the following table will give you a fair idea of the personal loan fees and charges levied by the lenders:
| Particulars | Charges |
|---|---|
| Loan Processing Fees | 0.5% to 4% of loan amount |
| Pre-payment/Part-payment/Foreclosure Charges | For Floating Rate: Nil For Fixed Rate: Usually around 2% – 5% on the principal outstanding |
| Loan Cancellation | Usually around Rs 3,000 |
| Stamp Duty Charges | As per actuals |
| Legal Fees | As per Actuals |
| Penal Charges | Usually @ 2% per month; 24% p.a. |
| EMI/Cheque Bounce | Around Rs 400 per bounce |
Other fees and charges levied by the lenders include documentation charges, verification charges, duplicate statement charges and NOC certificate charges.
Age:
18 – 60 years
Salary:
At least Rs 15,000 per month for salaried customers
Income:
At least Rs 5 lakh p.a. for self-employed customers
Credit Score:
Preferably 750 and above as having higher credit scores improve chances of loan approval
Employment Stability:
Usually 1 year with some lenders requiring longer work experience
Business Continuity:
Usually 3 years of business continuity with some lenders requiring longer period of business continuity
Employment Type:
Salaried employees working with reputed organizations, MNCs, Private and Public Limited Companies, Govt. organizations, PSUs, and large enterprises
Personal loan lenders require documents from their applicants to establish their identity, income, loan repayment capacity and place of residence. These documents are more or less the same across lenders. Here are the few common set of documents that you will need to submit when applying for a personal loan:
| Requirements | Salaried Individuals | Self Employed |
|---|---|---|
| Proof of Identity | Passport, Voter’s ID, Driving License, Aadhaar Card or PAN Card | Passport, Voter’s ID, Driving License, Aadhaar Card or PAN Card |
| Proof of Residence | Aadhaar Card, Passport or utility bills | Aadhaar Card, Passport or utility bills |
| Proof of Income | Salary Slips, Bank Account Statement, Form 16 | Previous Years’ ITR, P&L Statement and Balance |
5 Strategies to Enhance Your Probability of Securing a Personal Loan Due to the absence of collateral, personal loans pose higher credit risks for lenders, necessitating stringent evaluation of applicants' creditworthiness. To bolster your likelihood of obtaining approval for a personal loan, consider implementing the following tactics:
Wishmyloanr.com offers a seamless platform for individuals to compare personal loan options from over 30 banks and NBFCs, facilitating convenient online application processes. Here's a step-by-step guide:
Enter Your Mobile Number:
Initiate the process by providing your mobile number, enabling access to the personal loan application portal.
Input Personal Details:
Fill in essential personal information such as the desired loan amount, employment status, net monthly income, current city of residence, preferred salary-receiving bank, and employer details.
Verification via OTP:
Verify your identity and authentication through a one-time password (OTP) sent to your registered mobile number.
Explore Pre-approved Offers:
Browse through available pre-approved loan offers tailored to your profile, offering insights into customized loan solutions.
Provide Additional Information:
For a comprehensive view of available options, furnish supplementary details including your current EMI commitments, PAN card details, total work experience, tenure with your current employer, and more.
Compare and Apply:
Evaluate the diverse loan offers presented, considering factors such as interest rates, repayment tenures, and additional benefits. Select the most suitable offer aligning with your financial requirements and preferences.
By following these steps, individuals can efficiently navigate the online personal loan application process, leveraging Wishmyloan.com's extensive network of lenders to secure tailored loan solutions effortlessly.
When seeking a personal loan, it's essential to explore offers from multiple lenders. While individuals can visit numerous bank and NBFC websites independently, leveraging an online financial marketplace like Wishmyloan streamlines and enhances the process. Here are several compelling reasons to opt for personal loans through Wishmyloan:
Extensive Comparison:
Access personal loan offers from over 30 partner banks and NBFCs effortlessly, empowering borrowers to compare multiple options comprehensively.
Credit Score Protection:
Evaluate loan offers without impacting your credit score negatively, ensuring informed decision-making without financial repercussions.
Pre-approved Offers:
Benefit from pre-approved loan offers featuring instant disbursals, facilitating expedited access to necessary funds tailored to your financial needs.
Loan Approval Insights:
Gain insights into your likelihood of loan approval based on your credit score and other pertinent aspects of your credit profile, enabling proactive planning and decision-making.
Seamless Online Application:
Experience a seamless end-to-end digital application process, simplifying and expediting the personal loan application process for enhanced convenience and efficiency.
By leveraging Wishmyloan's robust platform, individuals can navigate the personal loan landscape effectively, accessing a diverse array of loan options while safeguarding their credit score and enjoying streamlined application processes.
A personal loan serves as a short to medium-term financial solution addressing diverse personal and business needs, excluding speculative ventures. Typically unsecured, it does not necessitate borrowers to offer collateral or security.
Individuals may procure a personal loan from their preferred bank or NBFC, either through physical branches or via online platforms boasting end-to-end digital processes.
Prospective borrowers can initiate the application process by visiting the nearest branch of their chosen financial institution or applying online via the lender's official website or mobile application.
A credit score of 750 and above significantly bolsters the likelihood of securing a personal loan. However, some lenders may extend loans to individuals with lower scores, albeit at higher interest rates.
Interest rates for personal loans typically commence at 10.49% p.a., varying among different banks and NBFCs. Public sector banks may proffer more competitive rates to eligible applicants.
Regular personal loans generally span from 1 to 5 years, with some lenders offering extended tenures up to 6 to 8 years.
While certain lenders permit loan cancellation post-disbursal, it often incurs associated charges and processing fees. Alternatively, borrowers can opt for prepayment to mitigate interest costs, subject to lender terms.
Minimum monthly income criteria vary across lenders, typically ranging from Rs. 15,000 to Rs. 30,000. However, specific lenders may accommodate individuals with lower incomes.
Pensioners may access personal loans in the form of pension loans, provided they maintain a pension account with the respective lender. Students may qualify if they meet specified eligibility criteria set by lenders.
Personal loans are primarily unsecured; however, some lenders offer secured options requiring collateral such as gold, fixed deposits, or securities. Borrowers should explore secured loans judiciously.
Personal loan EMIs are typically computed using the reducing balance method. Several online EMI calculators facilitate swift and accurate calculations, factoring in principal, interest rate, and tenure.
Lenders evaluate personal loan eligibility based on various factors including age, credit score, income, occupation, and existing financial obligations. Eligibility criteria may vary among lenders.
Personal loans themselves are not taxable; however, GST may apply to associated charges like processing fees. Borrowers should inquire about applicable taxes from their lenders.
Standard documentation for personal loans includes proof of identity, income, and address. Salaried individuals typically provide salary slips and bank statements, while self-employed applicants submit financial statements and tax returns.
The instant personal loan represents a specialized form of personal financing characterized by its rapid disbursal, often within minutes of application submission. Typically, these loans are pre-approved and cater to established clientele with favorable credit histories.
