7 Tips to Find an Ideal Personal Loan in India

21 Sep 2021 8 min read
Personal Loan: 7 Tips to Find an Ideal Personal Loan in India - Afinoz

Getting a personal loan might be easy if you find the best personal loan in India that offers an attractive interest rate, minimum documents required, and flexible tenure for the loan repayment. The interest rate imposed on a personal loan is determined by the borrower's loan eligibility conditions. 

Availing of a personal loan might seem easy for both salaried and self-employed individuals. Thus, getting an instant personal loan might not be easy through email and SMS. But some essential tips help you to avail of the personal loan without any hassle.  

Tips to get personal loan approval 

Given below are the 7 tips to get personal loan approval easily:  

1. Increase Your Credit Score 

This is a commonly repeated remark, but it bears repeating: a good credit score is required for every type of loan you wish to obtain. A low credit score indicates that you have a significant risk of failing on future loan payments. As a result, if you have a low credit score, you must work to raise it before applying for a personal loan. 

2. Determine Your Financial Affordability 

The application will be rejected if you apply for a loan amount that you will not be able to repay. The lender will always analyze your repayment capabilities based on your regular income before granting a loan. There are numerous calculators available on the internet. At Afinoz.com, you will get a personal loan Eligibility Calculator that you can use to determine your eligibility. To avoid rejection, the best strategy is to determine your eligibility before asking for a loan. 

3. Select the Best Lender 

The eligibility conditions and loan fees charged by different lenders are different. As a result, rather than applying to a few banks at random, it is preferable to conduct an online comparison to see which banks' eligibility criteria you meet. After entering your personal and prior loan information in Afinoz.com's Personal loan section, you will be able to see the best offers available from banks that fit your eligibility criteria. Afinoz.com also provides all information about various costs like interest rates, processing fees, and prepayment charges that banks will apply to aid your comparison. Thus, choose the bank that suits you.  

4. A variable interest rate is preferred  

A floating interest rate is one that fluctuates with market conditions. A fixed interest rate is applicable on that stays the same for the duration of the loan. Floating interest rates are slightly higher than fixed interest rates. For a, you should always choose a floating interest rate. It is more profitable because the variable interest rate adjusts as the loan is repaid. 

5. Check Required Documents as Soon as Possible 

For hassle-free financing, proper documentation is essential. In comparison to other loans, such as a home loan, the documentation necessary for a personal loan is considerably less. As a result, the paperwork procedure is quick for an unsecured loan, but there is still a documentation process to follow. Before lending you money, banks will normally want verification of your identification, residency, and income. As a result, having all of the necessary documentation on hand will expedite the loan acceptance process. 

6. Choose a loan with a higher EMI.  

Your loan's Equated Monthly Instalment (EMI) is inversely proportionate to the interest rate. Lower the interest rate by increasing the EMI, and vice versa. You should get a loan with a larger EMI if you have a solid monthly income and can afford to pay hefty monthly installments. It will assist you in getting an affordable interest rate. 

7. Choose a loan with a shorter term 

Short-term loans are available at a lower interest rate from banks and commercial institutions. It's because a long-term loan entails a high level of risk. If you're asking for a personal loan online, a short-term loan with a lower interest rate is an option. However, before making any selection, you should constantly examine aspects such as monthly installments and loan amounts.  

Best Bank for Personal Loan in India  

You can apply for a personal loan directly on the bank's website, or you can use Afinoz to compare loans and then apply for one that you think suits you. Thus, you can choose and avail of the loan easily:  

Banks 

Eligible for 

Criteria  

Citibank Personal Loan 

Offers Low-Interest Rate 

Interest rates range from 9.99% p.a. 

Loan offered up to Rs.30 lakh 

The tenure period of up to 5 years 

HDFC Personal Loan 

For Self-Employed Professional 

Interest rates starting from 10.5% p.a. up to 21.00% p.a. 

Repayment Tenure of up to 5 years 

Loan amount of up to Rs.40 lakh 

Kotak Mahindra Personal Loan 

Quick Turnaround Time 

Interest rates ranges from 10.75% p.a. 

Loans of up to Rs.20 lakh 

The repayment tenure of up to 5 years 

Tata Capital Personal Loan 

Flexible Interest Rates offered  

Interest rates starting at 10.99% p.a. 

Repayment tenure of up to 6 years 

Loan offered of up to Rs.25 lakh 

ICICI Bank Personal Loan 

Quick Disbursal of loan  

Interest rates starting from 10.5% p.a. up to 19% p.a. 

The tenure period of up to 6 years 

The loan amount offered up to Rs.25 lakh 

Standard Chartered Personal Loan 

For short-term Requirement 

Interest rates ranges from 11.49% p.a. 

Repayment tenure of up to 5 years 

Loans of up to Rs.50 lakh 

IDFC First Personal Loan 

Top-Up Loans 

Interest rate starting at 10.49% p.a. 

Loans of up to Rs.40 lakh 

Tenure of up to 5 years   

Fullerton India Personal Loan 

Quick Approval 

Interest rates starting at 11.99% p.a. 

Loans of up to Rs.25 lakh 

Tenure of up to 60 months 

IIFL Personal Loan 

Easy Eligibility Checks 

Interest rates starting at 16% p.a. 

Loans of up to Rs.25 lakh 

Loan disbursal within 8 hours 

SBI Personal Loan 

Different Income Categories to the user 

Interest rates starting from 9.60% p.a. 

Loan offered up to Rs.20 lakh 

Tenure of up to 7 years 

PNB Personal Loan 

Affordable Interest Rates 

Interest rates range from 8.95% p.a. onwards 

Loans of up to Rs.10 lakh 

Tenure of up to 7 years 

Personal Loan Eligibility   

Here are some of the following factors that are considered by the lenders while going through the loan application users. If you meet the personal loan eligibility criteria consider yourself for personal loan eligibility:  

Criteria 

Salaried 

Self-Employed 

Age 

Minimum of 21 years 

Maximum of 60 years 

Minimum of 22 years  

Maximum of 55 years 

Net Monthly Income 

Minimum of Rs.15,000 

Minimum of Rs.25,000 

CIBIL Score 

Above 750 

Above 750 

Minimum Loan Amount 

Rs.50,000 

Rs.50,000 

Maximum Loan Amount 

Rs.25 lakh 

Rs.50 lakh 

Documents required for Personal Loan  

Requirements 

Salaried Individuals 

Self Employed 

Proof of Identity 

Submit Passport, Voter’s ID, Driving License or PAN Card 

Submit Passport, Voter’s ID, Driving License or PAN Card 

Proof of address 

Passport or utility bills 

Passport or utility bills 

Proof of Income 

Submit your bank statement of salary account for the past two years 

One can audit the financial statement of the past two years.  

Conclusion  

Besides the tips for availing personal loan in India, check the eligibility criteria, required loan amount, best banks in India, and other details required for availing of the personal loan. It will be tough for a lender to deny you a personal loan if you work on the following main areas and show yourself as a respectable borrower with a good credit score and adequate documents. 

personal loan
eligibility calculator
short-term personal loan
Check your Eligibility
To check how much loan you can get.
Verify

Didn't receive otp? Resend


blognews