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Comparison of Personal Loan from Top Providers Apr 2017
|Bank/NBFC||Institution Type||Minimum Loan Amount||Maximum Loan Amount||Minimum Tenure||Maximum Tenure||APR||Fees & Charges|
|Axis Bank||Bank||INR 50,000||INR 15, 00,000||12 months||60 months||15.50% to 24%||Loan processing charges 1.50% to 2.00% +Service Taxes|
|Bajaj Finance||NBFC||INR 100,000||INR 25,00,000||12 months||60 months||14.25% - 16.75%||Processing Fee - 1.99% - 3%|
|Capital First||NBFC||INR 50,000||INR 400,000||24 months||36 months||16.00% - 24.00%||Processing Fee - 1.99%|
|HDFC Bank||Bank||INR 50,000||INR 25,00,000||12 months||60 months||11.49% - 20.00%||Processing Fee - 0.25% to 1.50%; Min - Rs. 999, Max - Rs. 25000|
|ICICI Bank||Bank||INR 100,000||INR 25,00,000||12 months||60 months||11.49% - 22.00%||Processing Fee - 0.25% to 1.50%; Min - Rs. 999|
Rate of interest is high?
- Try applying for a higher loan amount as most banks reduce interest rates as loan amount increases.
Not getting the desired loan amount
- Try adding the income of a co-applicant like a working spouse
Not getting the desired loan amount?
- Finance Buddha can try to do a debt consolidation/balance transfer to increase eligibility
Your Search for Personal Loan Ends here!
Are you a self-employed or salaried individual trying to meet both ends? Have you given a thought about personal loan option? When there is an unusual expense like child's marriage, renovation of your home or furnishing, children’s higher education, family holiday, or any other dream to be turned into reality, make use of the personal loan optionality. With this, you have the option to repay your borrowed amount gradually through upcoming years, no guarantor or security is required, hassle free documentation process- right officials will come to you to collect necessary documents and if all requirements are met, money can be expected within few days. Embark on your dream at the right time with opportunities available!
Purposes and Types of Personal Loan:
It is essential to be aware of ‘what purposes a personal loan can be availed’. Without valid reasons, a loan will not be approved. For purposes like house renovation, education, maternity expenditure, vacation, automobile etc. personal loan is the best option. You can choose suitable interest rates and payment plan from the options available in the banks. The main two types of personal loans available in India are secured loans and unsecured loans. The first one is where there is a need for guarantee or security against the sum borrowed like a fixed or movable asset. In case of default of the loan amount, ownership of the security will be taken over by the bank. The latter does not require any security, but the lender will charge a high rate of interest on the money borrowed. In case of default, the lender will seek legal assistance for the loss incurred.
Different Types of Personal Loans You can Get in India
There can be many reasons to avail a personal loan. But for all the reasons, you need to know the benefits and the target audience for that loan. These are the different types of personal loans you can get:
Business Start-up Loan:
These loans give funds to meet the cost of raw material, advertising, and sustenance. A great feature for a corporate business is that if the business does not work out, the owner does not have to pay the whole cost. So, the owner does not have to pay the cost of the bankruptcy. It can also fund your marketing projects, hence helping your new brand. A great benefit is that these might not need guarantors.
People who plan to start new businesses are the target audience for a business loan need to provide documents to avail this loan.
Some of the banks and Financial Institutes who provide this loan are Regional Rural Banks (RRBs), Industrial Development Bank of India (IDBI) and Industrial Finance Corporation of India (IFCI)
This kind of loan is beneficial for people who already have a business, but want to expand this. It is helpful because businesses find it difficult to buy buildings and equipment. Also, it is helpful for people who plan acquisitions. Corporate loan serves this purpose. It is a short term loan.
People who are doing well and want to expand the horizons of their business are the target audience. Some of the loan providers are ICICI Bank, Bank of Baroda and SBI.
Govt. Loans for Small Scale Businesses:
While there are many loans provided by private institutions for small-scale businesses, they come with a hefty interest rate. A loan offered by business is beneficial because it has lower interest rate and they provide funds for every day needs. One can go for a state sponsored scheme or that by the central government. Government loans are also more transparent and risk assured.
People who want loans at affordable rates with security ensured should go for this.
Some institutions that provide this loan are NABARD, MSMEs, SIDBI, etc.
Small Business Loans for Women:
These loans are very important since they uplift the status of women in the society. These loans are given to women who wish to open small businesses like beauty parlours, tuition centers, tailor shops, etc. The benefit is that interest rates are lower. Annapurna Scheme, Mudra Scheme and Cent Kalyani Scheme are two loan categories which can be availed by women who wish to be entrepreneurs.
Bhartiya Mahila Bank, Union Bank and State Bank of India are some of the banks that provide such loans.
Home Improvement Loan:
These loans are beneficial for people who want to renovate their houses or want to add more floors or storeys to it. You can also use these loans for painting or getting the wood work done for your house.
Owners and tenants usually avail these loans as though they can be also paid in a longer term (though it depends on age of the applicant, too).
These loans are provided by PNB Housing, DHFL, HDFC, ICICI HFC, etc.
Loans for Unemployed:
Prime Minister Rozgar Yojana is one of the loan schemes in this regard which is very popular. The benefit of the scheme is that the person gets help to start the business. Some subsidy is provided by the government for this.
These loans can be availed by educated (at least 10th) or skilled people between the age of 18-40. There is some leverage to people belonging to lower cast.
Loans are provided by Mudra Bank, Indian Bank, Vijaya Bank, etc.
Marriages are usually a very costly event in India due to so many functions, jewellery purchase and cost of other miscellaneous arrangements involved. In such a scene, the benefit of marriage loan is that it helps one to meet the ends for the wedding day and after events. Also, you might not want to invest all your savings into the wedding but save for any emergency. Also, you can invest the money you saved for wedding for a better apartment after your marriage.
These loans can be availed by salaried professionals. These can also be taken by parents or guardians who might even be retired but are pensioned.
Marriage loans in India are provided by HDFC Bank, SBI, Tata Capital, etc.
In case of a surgery, operation, therapy, procedure, etc one can avail a medical loan. The benefit is that it also includes the medical test costs and the cost for medicines.
These loans can be availed by people who are relatives or close acquaintances of the ill person.
ICICI Bank, HDFC Bank and AXIS Bank are some of the many banks that fund these loans.
Personal Loan for Low CIBIL Score:
A low CIBIL score can mean that you have had a bad credit history. This means that either you have not availed any loan in the past. Or, it can mean that you have not paid your instalments on time. This means that banks and financial institutions will refrain from giving you a loan in future. A person with low CIBIL score must start to repay his loan. Also, the loan should be a mix of secured and unsecured loans. One with low CIBIL score can avail loan on the name of his wife or anyone close. You can also take loans against assets, (Gold or car). A benefit of availing a loan when you have low CIBIL score is that you can manage a loan when you need it urgently.
These loans benefit people who do not have fair chances of getting a loan normally.
There are some banks that still provide loan for people with low CIBIL score, like HDFC Bank, Tata Capital, Kotak Mahindra, Aditya Birla, etc.
Same Day Loans:
As the name suggests, same day cash loans are the loans provided on urgent basis. These loans can help in cases of immediate or urgent needs like if you need to pay someone in emergency. These loans do not need guarantors. The response time for these loans is very less. These loans are also called payday loans. The benefit is that the documentation process is swift and easy.
These loans are availed by people who need money urgently.
HDFC Bank, Tata capital, Citibank, IndusInd are some of the banks that provide these loans.
Features of Personal Loan:
- Only self-employed and salaried-individuals can avail loan.
- Special loan is offered for Chartered Accountants, Doctors, Engineers, Company Secretaries, Architects and for ICWAI graduates.
- Loans amounts vary according to the individual eligibility and bank policy and procedures.
- Banks offer flexible repayment options, tenure ranging up to 60 months.
- Hassle-free loans with no collateral, security or guarantor.
- EMIs repayment option.
- Repayment track-record of existing personal, home or auto loan is considered.
- Life insurance policy premium-receipts is considered as a valid proof for processing loans.
- Minimal documentation, simple procedure and quick approval.
Top Banks for Personal Loan:
- ICICI Bank: It has attractive scheme at reasonable interest rates.
- HDFC Bank: Loan at low-interest rates with or without security.
- IndusInd Bank: Easy processing and quick responsive.
- Citibank: Attractive loans rates and good scrutinize for genuine requests.
- AXIS Bank: Requires least documentation and fast processing.
How to Select the Right Personal Loan?
Comparing and choosing a best personal loan provider is always a task, it is essential to understand the way they work, banks interest rates, types of loans offered- secured, unsecured, fixed, and variable, overdraft and line of credit, go through the bank’s application checklist and look for Star ratings. There are a lot of online applications to compare what is offered by each bank, choose the top five, bring down your list to top 3 and then narrow it down further to the bank that offers the best personal loan.
Do’s & Don’ts of Personal Loan:
Here are few do and don’t to be kept in mind for Personal loan:
It is essential you read this before taking a personal loan, work out how much you need exactly.
- Borrow Exactly As Per The Requirement: Borrowing more than the requirement can lead you to pay interest for unnecessary debts. It is essential to consider all requirement for a loan, sum up the amount requirement and then start looking for loan option, interest rates, monthly EMI, tenure etc.
- Borrow What You can Afford to Repay: Taking loan that you will struggle to pay is not a good idea. Before taking a loan, make a thorough calculation of how much you will be able to pay.
- Use the Money for Necessities: Taking a loan ‘just because it is easy to get one’ is the worst idea. Avoid putting yourself into debt. Be clear why a loan is required and stick to the plan.
- Compare and Compare, Again and Again: Irrespective of how convincing the managers in the bank is and how flattering their talks are, it is your need and your hard earned money will be used for repaying. So compare as much as different personal loan offers from various banks, before considering and finalizing.
- Think Ahead: Every penny borrowed will have to be repaid with interest, think if there is really a need for loan. Being tied into long term contract is not a great move; there will be less option for you in case of any other necessities in future.
- Turn Greedy: Money will always look attractive and we will have wants. But taking personal loan should be for a need instead of for wants.
- Jump into Payment Protection Insurance: Check if there is a need for PPI and even if there is a requirement; take it from an independent company instead of the loan provider.
- Ignore The Policy And Procedures: It is worth you spending an hour extra now to read the guidelines provided bank instead of later regretting. Ignorance of terms is not an excuse.
- Miss Payments: Though it sounds obvious, don’ts list will be incomplete without this point. Missing or delaying one single payment will reflect on all aspects of your financial life. Apart from the extra interest that is required to be paid, you will end up having weak credit rating score.
How to Apply Online for Personal Loan at Finance Buddha?
Finance Buddha is not just a loan comparison site, but you can directly apply for a loan at the best bank of your choice. Here you just have to update your details such as Current Company, take home salary, existing EMI amount, Salary account bank, loan requirement and tenure, and it will auto-calculate the amount that should be paid per bank interest rates, its processing fees, etc. Once this information helps you to decide the bank you wish to avail loan, click on “Apply Now” and share your contact. After the successful submission of online application, our customer support will contact you directly to make your interest executed.
Along with the above information, keep in mind it is possible to negotiate on the personal loan interest with the details of your income, company status, credit rating, payment history and relationship with the bank. Make every effort to reduce the interest and enjoy the benefits to the fullest!
Top Rated FAQs
- The company where you work. Every bank has a list of companies running into thousands which they have categorised into segments like A, B, C etc depending on the credentials and financials of your employer. The higher the category the higher is the loan eligibility chances.
- Quantum of loans and credit card outstanding that you already have. Typically a bank will not give a loan if the total EMI obligation (including the current personal loan that your are trying to apply for) exceeds 50-75% of your total net take home salary.
- Your gross/net salary
- Your credit score as reflected in your CIBIL or Equifax report. Having a good credit score is a necessary but not a sufficient criteria.
Already running several loans and hence a bank may not be comfortable with your existing leverage levels vis-a-vis your salary level.Possible Way Out
- If you have a spouse who is also working, you can add her as a co-applicant to boost the combined salary levels or
- Try to pay off some of your debt so that your leverage levels can come down or
- Do a balance transfer/debt consolidation/re-financing of your existing loans such that the rate of interest on loans can also come down and additional loan can also be provided.
Issues in your credit history as reflected in your CIBIL, Equifax reportsPossible way out
- If the issue is a minor one like some delay in payment of credit card due then we can try your application in some other bank who can possibly take a lenient view on the deviation
- If you think that the credit report is erroneous and you have sufficient documentary proof we will represent the case to the bank and try to convince the credit team
- If the issue is a major one like write off, settlement of any past dues etc then it might be difficult to obtain a loan. Certain mitigation factor like if you/your spouse/your parents have an own house in India can give comfort to certain banks to give you a loan.
Most banks have certain internal credit parameters to evaluate a loan which is kept confidential and not shared with us. Several demographic, financial and credit aspects go into these internal evaluation. You might not have met the minimum cut off for obtaining a loan.Possible way out
We can re-apply for your loan in one of the other 10 plus lenders that we are affiliated to.
Reviews 4.94 stars, based on 177 reviews
Finance Buddha helped me gain a personal loan in the city of Bangalore with so ease. The constant support of the team helped me gain the loan with Tata Capital.Nandan Vishwanath 5/5
Finance Buddha was like an angel in Bangalore who helped me in getting a personal loan with Standard Chartered at the incentive of hassle free documentation process and application process.VeerappanAcharya 5/5
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Finance Buddha helped me gain the personal loan in the city of Bangalore with HDFC bank at the incentive of quick processing and disbursal of the loan amount in my account.Shivaram 5/5
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Finance Buddha’s quick disbursal of the loan provided to me in Bangalore was a boon. The loan was sanctioned by the NBFC Tata Capital who provided me other incentives too.Kiran R 5/5
Finance Buddha’s presence in Bangalore is just like a family member present in the unknown city. They helped me gain a personal loan with Kotak Mahindra Bank at the incentive of quick processing and disbursal of personal loan.Kadidal 4/5
Finance Buddha helped me in getting a personal loan in the city of Bangalore with so ease. The loan was sanctioned by Capital First with the incentive of the easy documentation process.Devraj 5/5
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Finance Buddha helped me gain the personal loan in Bangalore with HDFC Bank who was kind enough to provide me with the easy repayment process and ease with the EMI’s on my loan.Priya 5/5
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