{"id":851,"date":"2015-12-17T17:51:48","date_gmt":"2015-12-17T12:21:48","guid":{"rendered":"http:\/\/trucompare.in\/blog\/?p=851"},"modified":"2016-01-16T16:31:59","modified_gmt":"2016-01-16T11:01:59","slug":"definitive-guide-on-getting-the-best-personal-loans-in-india","status":"publish","type":"post","link":"https:\/\/www.trucompare.in\/blog\/definitive-guide-on-getting-the-best-personal-loans-in-india\/","title":{"rendered":"A Guide On Getting The Best Personal Loans in India"},"content":{"rendered":"

Personal Loans<\/h2>\n

Personal loans<\/strong>, as the name indicates, are not associated with any specific kind of loan but are a great way of dealing with emergency situations or for those cases where normally loans are not available.<\/p>\n

Some facts and benefits of personal loans:<\/strong><\/h3>\n
    \n
  1. Personal loans are usually not secured; they do not require any kind of collateral security.<\/li>\n
  2. One can use a personal loan for any purpose. There is no obligation from the bank for any specific need.<\/li>\n
  3. Personal loans are offered both by banks as well non-banking financial institutions.<\/li>\n
  4. These personal loans are helpful for sponsoring a child\u2019s education or buying a piece of land or for marriage or even for holidaying.<\/li>\n
  5. Personal loans are usually on the higher side and these rates vary across the banks.<\/li>\n
  6. Personal loans, apart from being useful for personal purposes, also have the added advantage that their disbursement take very less time and they require minimal documentation for the processing purpose.<\/li>\n
  7. Unlike home loans, personal loans come with a short-term tenure and are usually given for a period of 1 to 5 years.<\/li>\n<\/ol>\n

    What to consider before applying for a personal loan?<\/strong><\/h3>\n

    Everyone wants to get the best deal when applying for a personal loan. Here we will do a comparison of personal loan rates<\/strong> for different banks. This will help you in getting an evaluative view of the loan, which suits your requirements the best.<\/p>\n

    The rates for personal loans<\/strong> for any bank are not fixed but variable. Rates can be different depending on two major factors:<\/p>\n

      \n
    1. The amount of loan needed<\/li>\n
    2. The term period of the loan<\/li>\n<\/ol>\n

      Apart from the above, some other factors that are considered by banks include:<\/p>\n

        \n
      1. Bank\u2019s pet! Banks offer special personal loan rates for their preferred customers.<\/li>\n
      2. Sometimes, it has been observed people with higher salaries and multiple investments with a bank are offered a lower rate for personal loan.<\/li>\n
      3. Along with these factors, banks will take into account the company employment status and borrower’s credit standing or credit history. So it is important that you pay your credit card bills and loan EMIs on time.<\/li>\n
      4. Another thing to bear in mind while applying for a personal loan is to consider the other loans that you might be holding. Your eligibility for a personal loan will certainly be impacted if you already have other loans going for you.<\/li>\n
      5. Personal loans are usually not offered if you are a student or have retired from active service.<\/li>\n<\/ol>\n

        How to find out the best deal for you?<\/strong><\/p>\n

        There are many financial institutions that offer personal loans. It can be a tedious task trying to find out the best or the most suitable one for your personal need. We have provided a brief comparative analysis of personal loan<\/strong> for some of the top banks and financial institutions like ICICI Bank, HDFC, SBI, Fullerton India, Kotak Mahindra Bank etc.<\/p>\n

        There are many different parameters of comparison. We will consider some of them here:<\/p>\n

        #1. Rate of Interest<\/strong>\u00a0<\/strong><\/p>\n

        The most obvious parameter is the rate of interest itself. The table below shows the most recent personal loan interest rates updated in November 2015.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
        Bank<\/strong><\/td>\nInterest Rate<\/strong><\/td>\n<\/tr>\n
        ICICI Bank<\/td>\n13.49% \u2013 17.50%<\/td>\n<\/tr>\n
        HDFC Bank<\/td>\n12.99% \u2013 20.00%<\/td>\n<\/tr>\n
        SBI<\/td>\n17.80%<\/td>\n<\/tr>\n
        Kotak Mahindra<\/td>\n11.50% \u2013 20.00%, Special Offers of 11.5% for 15 lac + 1 lakh Salary P.M<\/td>\n<\/tr>\n
        Axis Bank<\/td>\n15% – 20%<\/td>\n<\/tr>\n
        Bajaj Finserv<\/td>\n15% – 17%<\/td>\n<\/tr>\n
        Standard Chartered<\/td>\n14% – 18%<\/td>\n<\/tr>\n
        Fullerton India<\/td>\n16% – 32%<\/td>\n<\/tr>\n
        IndusInd Bank<\/td>\n14% – 16.5%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

        (Source: Best Loan Providers<\/a>)<\/p>\n

        #2. Processing Fee<\/strong><\/p>\n

        \u00a0<\/strong>All the banks have a certain minimum-processing fee attached with personal loan<\/strong>. Most of the banks have processing fee varying from 1% to 3%. A break-up of latest processing fee is tabulated below:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
        Bank<\/strong><\/td>\nProcessing Fee Rate<\/strong><\/td>\n<\/tr>\n
        ICICI Bank<\/td>\n0.8% \u2013 2.0%<\/td>\n<\/tr>\n
        HDFC Bank<\/td>\n0.99% \u2013 2.0%<\/td>\n<\/tr>\n
        Bajaj Finserv<\/td>\n2.0% – 2.5%<\/td>\n<\/tr>\n
        Kotak Mahindra<\/td>\nRs. 500 \u2013 2.0%<\/td>\n<\/tr>\n
        SBI<\/td>\n2.0% – 3.0%<\/td>\n<\/tr>\n
        Axis Bank<\/td>\n2.0%<\/td>\n<\/tr>\n
        Standard Chartered<\/td>\n1.0%<\/td>\n<\/tr>\n
        Fullerton India<\/td>\n2.0%<\/td>\n<\/tr>\n
        IndusInd Bank<\/td>\n1.0% – 2.0%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

        (Source: Best Loan Providers<\/a>)\u00a0<\/strong><\/p>\n

        #3. Prepayment Charges<\/strong><\/p>\n

        There are certain banks that levy a pre-payment charge on personal loans<\/strong>. There are many banks that do not charge anything if you want to payoff your personal loan well in advance. If you think that there is a possibility for you to use the prepayment option at some point of time during your loan payment then it is important to consider and compare banks that charge prepayment penalties. Sometimes the prepayment charges can be as high as 4% – 5% and you would want to be careful before considering a personal loan from such financial institutions. Below are the prepayment charges for different banks.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
        Bank<\/strong><\/td>\nProcessing Fee Rate<\/strong><\/td>\n<\/tr>\n
        Bajaj Finserv<\/td>\nNil<\/td>\n<\/tr>\n
        Axis<\/td>\nNil<\/td>\n<\/tr>\n
        SBI<\/td>\nNA<\/td>\n<\/tr>\n
        Standard Chartered<\/td>\n0 \u2013 5.0%<\/td>\n<\/tr>\n
        HDFC<\/td>\n4.0%<\/td>\n<\/tr>\n
        Fullerton India<\/td>\n4.0%<\/td>\n<\/tr>\n
        Kotak Mahindra Bank<\/td>\n3.0% – 5.0% (Nil after 12 Months for Loan amount above 10 lacs)<\/td>\n<\/tr>\n
        ICICI Bank<\/td>\n5.0% Or Nil (For Loan Amount More Than 10 Lacs)<\/td>\n<\/tr>\n
        IndusInd Bank<\/td>\n4.0%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

        (Source: Best Loan Providers<\/a>)<\/p>\n

        Online EMI calculators help to decide the personal loan amount<\/strong><\/h4>\n

        There are many online EMI calculators available that can help you decide what amount of personal loan<\/strong> you can comfortably apply for within your budgetary constraints.<\/p>\n

        The following picture gives a brief description of how the EMI calculator can help you decide the personal loan amount based on your budget. For example, if you can afford to pay an EMI up to Rs.12000 for 5 years for an amount borrowed at an interest rate of 15%, then you can safely apply for Rs.500000.<\/p>\n

        \"best
        EMI Calculator<\/figcaption><\/figure>\n

        (Source: EMI calculator<\/a>)<\/p>\n

         <\/p>\n

        You can clearly see that on a borrowed amount of Rs.5 lacs @15% rate, one would have to pay almost 30% of the borrowed amount as interest payment. EMI calculators help you show you at a quick glance what are the various financial parameters at play so that you can easily decide what suits your needs the best. These financial calculators can be used for any bank. All one has to do is to plug in the rates and adjust the loan and tenure fields and the calculators will tell you exactly your EMI payments.<\/p>\n

        <\/h4>\n

        Apply for a Personal Loan<\/strong><\/h4>\n

         <\/p>\n

        Below are some of the bank sites where one can apply for a personal loan online:<\/p>\n

         <\/p>\n

        Axis Bank<\/strong><\/p>\n

        http:\/\/www.axisbank.com\/personal\/loans\/personal-loan\/personal-loan-features.aspx<\/a><\/p>\n

         <\/p>\n

        SBI<\/strong><\/p>\n

        https:\/\/www.sbi.co.in\/portal\/web\/personal-banking\/sbi-saral-personal-loan<\/a><\/p>\n

         <\/p>\n

        ICICI Bank<\/strong><\/p>\n

        http:\/\/www.icicibank.com\/Personal-Banking\/loans\/personal-loan\/index.page<\/a><\/p>\n

         <\/p>\n

        HDFC Bank<\/strong><\/p>\n

        http:\/\/www.hdfcbank.com\/search\/personal-loans\/index.asp<\/a><\/p>\n

        \u00a0<\/strong><\/p>\n

        Similar website URLs are available for other banks and financial institutions which offer personal loans.<\/p>\n

         <\/p>\n

        Conclusion<\/strong><\/p>\n

         <\/p>\n

        The personal loan offers from various institutions are quite competitive. Banks like ICICI, HDFC, Axis and SBI stand apart a bit from the other banks with respect to their interest rates, processing fee and prepayment charges. ICICI, Axis and HDFC banks have variable range of interest rates and the lower interest rates are certainly an attractive feature for those who qualify. If one wants fixed interest rate, then SBI is the best choice although it\u2019s a bit on the higher side. These four banks offer a good deal on processing fee as well with most of them having a higher limit of 2%. SBI has its processing fee higher limit of 3%. In prepayment charges SBI and Axis bank levy no charge, where as HDFC charges 4% and ICICI 5%. ICICI does not charge any prepayment fee for personal loans in excess of 10 lacs.<\/p>\n

         <\/p>\n

         <\/p>\n

         <\/p>\n

         <\/p>\n

         <\/p>\n

         <\/p>\n","protected":false},"excerpt":{"rendered":"

        Personal Loans Personal loans, as the name indicates, are not associated with any specific kind of loan but are a great way of dealing with emergency situations or for those cases where normally loans are not available. Some facts and benefits of personal loans: Personal loans are usually not secured; they do not require any … Continue reading A Guide On Getting The Best Personal Loans in India<\/span> →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[27],"tags":[],"class_list":["post-851","post","type-post","status-publish","format-standard","hentry","category-personal-loans"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p3wDt5-dJ","jetpack-related-posts":[{"id":854,"url":"https:\/\/www.trucompare.in\/blog\/apply-for-personal-loans-bad-credit-history\/","url_meta":{"origin":851,"position":0},"title":"How To Apply For Personal Loans With Bad Credit History","author":"Trucompare","date":"December 19, 2015","format":false,"excerpt":"Personal Loans Bad Credit History A credit history is a report on the past loans that a person takes. It depends on various factors like amount of loan, amount of credit left for repayment and number of times borrower has defaulted in repayment. One gets a personal loan bad credit\u2026","rel":"","context":"In "Personal Loans"","block_context":{"text":"Personal Loans","link":"https:\/\/www.trucompare.in\/blog\/personal-loans\/"},"img":{"alt_text":"TruCompare_head","src":"https:\/\/i0.wp.com\/trucompare.in\/blog\/wp-content\/uploads\/2013\/05\/TruCompare_head.png?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1461,"url":"https:\/\/www.trucompare.in\/blog\/5-tips-you-must-take-care-while-taking-a-term-plan\/","url_meta":{"origin":851,"position":1},"title":"5 Tips you must take care while taking a term plan","author":"Trucompare","date":"July 27, 2017","format":false,"excerpt":"\u201cWait, wait; don\u2019t sign it yet\u201d I screamed \u201cHave you compared the premium? Will that rider actually goanna benefit you? What is the Tenure?\u201d The scared couple glanced at each other and nodded \u201cNo\u201d \u201cHuff! You guys literally inspect that tomato with a microscope, and here you are ready to\u2026","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.trucompare.in\/blog\/wp-content\/uploads\/2017\/07\/trucompare_term_plan_tips.png?resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.trucompare.in\/blog\/wp-content\/uploads\/2017\/07\/trucompare_term_plan_tips.png?resize=350%2C200 1x, https:\/\/i0.wp.com\/www.trucompare.in\/blog\/wp-content\/uploads\/2017\/07\/trucompare_term_plan_tips.png?resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.trucompare.in\/blog\/wp-content\/uploads\/2017\/07\/trucompare_term_plan_tips.png?resize=700%2C400 2x"},"classes":[]},{"id":6,"url":"https:\/\/www.trucompare.in\/blog\/term-insurance-in-india\/","url_meta":{"origin":851,"position":2},"title":"Best Term Insurance Plan in India- How to Choose the Right Plan for You","author":"Trucompare","date":"May 2, 2013","format":false,"excerpt":"Choose Best Term Insurance Plan in India What is term insurance? Term insurance is the cheapest way to protect your family\u2019s finances if worst happens to you. In this article, we will look at how to select the best term insurance plan in India that meets your needs. Term insurance\u2026","rel":"","context":"In "Term Insurance"","block_context":{"text":"Term Insurance","link":"https:\/\/www.trucompare.in\/blog\/term-insurance\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":759,"url":"https:\/\/www.trucompare.in\/blog\/your-complete-guide-to-buying-an-online-term-insurance-plan\/","url_meta":{"origin":851,"position":3},"title":"Your Complete Guide to Buying an Online Term Insurance Plan","author":"Trucompare","date":"November 3, 2015","format":false,"excerpt":"Online Term Insurance Plan With the internet becoming a routine of our life, the number of net-savvy insurance buyers is gradually increasing. Non-life insurance products such as personal accident, health, motor and travel have fuelled the growth of online insurance products. Now, while a similar trend is yet to gain\u2026","rel":"","context":"In "Term Insurance"","block_context":{"text":"Term Insurance","link":"https:\/\/www.trucompare.in\/blog\/term-insurance\/"},"img":{"alt_text":"MaxLife_pic1","src":"https:\/\/i0.wp.com\/trucompare.in\/blog\/wp-content\/uploads\/2015\/11\/MaxLife_pic1.png?resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/trucompare.in\/blog\/wp-content\/uploads\/2015\/11\/MaxLife_pic1.png?resize=350%2C200 1x, https:\/\/i0.wp.com\/trucompare.in\/blog\/wp-content\/uploads\/2015\/11\/MaxLife_pic1.png?resize=525%2C300 1.5x, https:\/\/i0.wp.com\/trucompare.in\/blog\/wp-content\/uploads\/2015\/11\/MaxLife_pic1.png?resize=700%2C400 2x, https:\/\/i0.wp.com\/trucompare.in\/blog\/wp-content\/uploads\/2015\/11\/MaxLife_pic1.png?resize=1050%2C600 3x"},"classes":[]},{"id":194,"url":"https:\/\/www.trucompare.in\/blog\/what-is-term-insurance\/","url_meta":{"origin":851,"position":4},"title":"FAQs- Term Insurance","author":"Trucompare","date":"September 5, 2013","format":false,"excerpt":"Why do I need term insurance plan? Imagine how your family will cope up with financial liabilities if you were to to die tomorrow or say in next 3 years. How would they pay the home loan or take care of basic family expenses? You should consider buying term insurance\u2026","rel":"","context":"In "FAQ"","block_context":{"text":"FAQ","link":"https:\/\/www.trucompare.in\/blog\/faq\/"},"img":{"alt_text":"TruCompare_head","src":"https:\/\/i0.wp.com\/trucompare.in\/blog\/wp-content\/uploads\/2013\/05\/TruCompare_head.png?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1219,"url":"https:\/\/www.trucompare.in\/blog\/are-you-an-investor-or-a-trader\/","url_meta":{"origin":851,"position":5},"title":"Are you an investor or a trader?","author":"Trucompare","date":"May 6, 2016","format":false,"excerpt":"Most of the people who put their money in the market, do not know if they are long term investors in the market or if they are short term traders. There are couple of differences between traders and investors that one should understand\u00a0before putting any money into the stock market\u2026","rel":"","context":"In "Investing"","block_context":{"text":"Investing","link":"https:\/\/www.trucompare.in\/blog\/investing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.trucompare.in\/blog\/wp-json\/wp\/v2\/posts\/851","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.trucompare.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.trucompare.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.trucompare.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.trucompare.in\/blog\/wp-json\/wp\/v2\/comments?post=851"}],"version-history":[{"count":4,"href":"https:\/\/www.trucompare.in\/blog\/wp-json\/wp\/v2\/posts\/851\/revisions"}],"predecessor-version":[{"id":989,"href":"https:\/\/www.trucompare.in\/blog\/wp-json\/wp\/v2\/posts\/851\/revisions\/989"}],"wp:attachment":[{"href":"https:\/\/www.trucompare.in\/blog\/wp-json\/wp\/v2\/media?parent=851"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.trucompare.in\/blog\/wp-json\/wp\/v2\/categories?post=851"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.trucompare.in\/blog\/wp-json\/wp\/v2\/tags?post=851"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}