Financial emergency can strike anyone at anytime. Although your friends and relatives will offer you financial support in your bad times, but everyone has their own personal obligations and their contribution may or may not be sufficient to fulfil your needs. And during such time, personal loans are the best rescuers as they are available at ease provided applicant meets the eligibility criteria of the lender and choosing the loan available at lowest interest rate should be opted. The most important benefits of personal loans are as follows:
- Applications are fast as most of the banks offer online facility to check eligibility and apply.
- Approvals are fast. Certain banks approve personal loans for their customers in less than 4 hours or within a day.
- For bank customers, document requirements are very few and there is no need to provide ID/address/income proof.
- Loans can be used for any purpose and there is no need to specify the reason. So you can use it for travel, wedding, medical treatment, renovating your dream home, buying necessary durables for your home such as fridge, washing machine etc.
- Different tenures are offered by the banks so you can choose tenure best suited to your need. Read more on when to take personal loan.
Listed below are the lenders offering cheapest personal loans in India:
|Name of Bank||Interest Rate|
|ICICI Bank||11.99% to 20.00%|
|HSBC||12 to 17.84%|
|State Bank of India||12.85% (Xpress Credit)|
|Citibank||14% to 15%|
|Bank of Baroda||14.50%|
|Axis Bank||15.50% to 24%|
|Bank of Maharashtra||15.50%|
|HDFC Bank||15.75% to 20%|
|Kotak Mahindra / ING Vysya Bank||21% to 24%|
|IndusInd Bank||Up to 23% p.a|
The most important criteria are the salary or income of the applicant which is used to judge the repayment capacity of the individual. Higher the salary, lower would be the interest rate and vice-versa. Apart from these, applicant’s credit history is another factor which plays a big role in loan rejection or acceptance. Although there are many terms and conditions by each lender. Other eligibility criteria for personal loan applicants are – minimum and maximum age, number of years in job, relationship with the bank and few others.
Tips to consider before buying personal loan:
Irrespective of the loan amount you need to consider following points before buying any kind of loan (personal, home, auto etc.):
- Always look for lowest interest rate.
- Apart from these you should also consider pre-payment charges
- Processing charges
- EMI options
- Late payment charges