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About Personal Loan

Personal loans are meant to meet short-term financial needs i.e. you can borrow money for a minimum period of one year to a maximum of five years. The needs may vary as needs may arise due to an unexpected medical emergency, going on a vacation, home renovation, buying consumer durables, repay credit card debt or any other personal exigency which has a temporary effect on your earnings.

Features & Benefits

With personal loans, you can take advantage of Flexible EMI plans, higher loan amount and flexible tenure options. Although, the quantum of personal loans to the customer depends on a number of factors such as borrower’s credit history, existing loans, company with which you are currently employed & the number of years of relationship with the bank etc.

Quick approval

A personal loan has the fastest loan disbursal time when compared with other loans. The whole process takes 2 to 3 days.

Multi-purpose loan

The personal loan provides complete flexibility of end-use. There are no restrictions on how you should ...more

Minimal paperwork

A personal loan requires very little paperwork when compared to other types of loans.

No security or collateral

If you are eligible, you are not required to provide any security or collateral to the lender in the form of shares or any other assets.

Flexible repayment options

The Personal Loans come with a host of repayment options such as post-dated cheques, online payment of EMI, ECS and so on.

Reasonable interest rates

Personal Loan comes with competitive interest rates that are easily affordable.
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Eligibility & Documents Required

Eligibility Required

Any individual who is an Indian citizen or national and has residual income qualifies for the personal loan. By design Personal Loans are unsecured loans and therefore an applicant does not have to worry about furnishing paperwork related to collateral For getting a personal loan, you need to fulfill certain parameters as a part of the eligibility criteria.

Credit Rating or score
Income criteria
Age criteria
Employment stability
Existing EMIs
Employer

Credit Rating or score

The Credit score is an important factor for approval of your loan. Usually, an applicant’s creditworthiness is determined by evaluating his credit score i.e. CIBIL / EXPERIAN score. Loan applications of applicants having poor credit score may get rejected. It’s always advisable to keep on updating your credit score every now and then. If you have a bad credit score and somehow your loan application gets approved, you might be asked to pay a high rate of interest and be offered unfavorable terms and conditions on your loan as compared to someone who has an excellent credit score.

Document Required

The personal loan entails the simplest form of documents which can be divided broadly into two categories:-

  1. Documents for Salaried Individuals *
  2. Documents for Self-Employed Individuals *

Salaried Individuals
Self-employed Individuals

Salaried Individuals

Documents required for Salaried Individuals are as follows:-

  • Identity proof:- Any one of Aadhar Card / Voters ID / Passport / Driving License / PAN Card.
  • Residential proof:- Any one of Leave and License Agreement / Utility Bill (maximum three months old) / Passport.
  • Salary Slips:- Latest (last) three months' Bank Statement of the account in which salary or income is credited.
  • Employment certificates:- 2-year Employment continuity document
  • Photographs:- Two passport size photographs

*Note:- The required documents may vary from institution to institution. Every lending entity has their own criteria for documentation.

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Interest Rate & Charges

The very first question that comes to our mind when we are looking for a personal loan is how much interest rate one would need to pay. Historically banks and other financial institutions have charged much higher interest rates in this category.

The table below shows the interest rates offered on Personal Loans by various banks as of March 2018.

Bank
Personal Loan Interest Rates*
Lowest EMI per lakh for Max Tenure
SBI12.50%In the range of 2% to 3%
HDFC Bank10.99%Min 0.99%, Max 2.50% Up to Rs. 10,000
ICICI Bank10.99%Starting from 0.99%, Up to 2.25%
Bajaj Finserv11.99%Starting from 1.50%, Up to 3%
Citibank10.99%Up to 0.5%
IDFC Bank11.00%Starting from 0.75%, Up to 2%
Axis Bank11.25%1.50% to 2.00%
Tata Capital11.99%A flat fee of Rs. 999*, Up to 2%
Fullerton India14.00%Up to 6.50%
IndusInd Bank11.99%Min 1% to Max 2.50%
Kotak Bank11.50%Up to 2.5%
RBL Bank13.99%Up to 2%
IIFL12.99%1 - 2%
HDB Financial13.99%Up to 2% of loan amount
Karur Vysya Bank13.90%0.40%
PNB11.70%1.8% + taxes
Vijaya Bank12.50%0.25%, Max. Rs. 10000 + ST
Union Bank of India14.40%0.5%, Min Rs. 500
Syndicate Bank14.20%0.5%, Min Rs. 500
Standard Chartered Bank10.99%1.00%
Indian Overseas Bank12.70%Rs. 204 per lakh
Andhra Bank13.05%Case to Case
Bank of Baroda11.60%2%, Min Rs. 250
Bank of Maharashtra15.10%1%, Min Rs. 1,000
Canara Bank13.65%0.50%
Corporation Bank12.75%1.5%, Min Rs. 500
Dena Bank13.00%1%
Federal Bank13.32%0.5%, Min Rs. 500
IDBI Bank13.20%1%
Allahabad Bank12.95%1.06%, Min- Rs. 1068
Indian Bank14.35%0.5%, Min- Rs. 508
Yes Bank10.75%Starting at 0.99%, Up to 2%

*Special Note:- Rates are subject to periodic changes. Personal loan interest rates and other fees/charges are subject to regular reviews and can vary from customer to customer - depending upon a number of factors ranging from credit score to existing loans, amount of savings, company with which you are currently employed, number of years of relationship with the bank or NBFC etc.

FAQ's

Q.
What is a personal loan?
A personal loan is the money lent to an individual from a bank or NBFC for a short-term at pre-determined interest rates. The money can be used to fulfill any immediate or critical needs of an individual.
Q.
Who can apply for a personal loan?
The product has been designed to service the salaried & self-employed individuals.
Q.
What is the meaning of EMI?
The term EMI stands for Equal Monthly Installment which includes both the principal and interest amounts.
Q.
Is there any guidance on how to utilize the Personal Loan amount?
There are many ways in which the personal loan amount can be utilized by an individual. For example, it can be used to address any medical exigency, pay your credit card bills, take vacations, getting your child admitted to a school, down payment on your car/vehicle, having a get-together, for marriage-related expenses and any other. A personal loan is the perfect solution to all your worries.
Q.
What is the minimum tenure one can take a personal loan for?
An individual can opt for a personal loan for a minimum period of 12 months.
Q.
What is the maximum tenure one can take a personal loan for?
Generally, The personal loan can be taken for a maximum period of 60 months.
Q.
List of the major financial institutions which are offering personal loans?
There are a lot of financial institutions comprising Banks & NBFCs (Non- Banking Financial institute) who are offering personal loans of all shapes and sizes to cater all set of customers. List of leading Institutions are as follows: -

HDFC Bank: - HDFC Bank personal loan is one of the most aggressive products amongst all the Private Sector Banks. Apart from offering the personal loan, they offer personal accidental coverage up to Rs. 8 lakhs along with critical illness cover of 1 lakh.
To know more about HDFC Bank Personal Loan click here

ICICI Bank: -ICICI Bank personal loans are being offered to the salaried class & self-employed individuals.
To know more about ICICI Bank Personal Loan click here

State Bank of India Bank: -State Bank of India being the largest Public Sector bank India is the most preferred bank when it comes to availing loans. Like its direct competitors, State Bank of India offers personal loans to both salaried and self-employed individuals such as chartered accounts, doctors, engineers and architects.
To know more about State Bank of India Personal Loan click here

AXIS Bank: -Axis Bank's personal loan is yet another popular product in the market. Their customer experience and overall approach towards the loan process makes them a force to reckon with. Not only this, they have a reward program which allows the customer to earn reward points on taking a personal loan from Axis Bank. This program is called as the Axis eDGE rewards.
To know more about HDFC Bank Personal Loan click here

Q.
Will I be charged a processing fee?
Yes, the banks & lending institutions charge processing fee which ranges from 1% to 3% of the total loan amount. You can negotiate with the bank and can expect to get a certain level of waiver on the processing charges if you have a strong portfolio & relationship with the institution is good.
Q.
Do I need a guarantor to take a personal loan?
Typically, there is no need to present guarantor to avail personal loan but there are certain lending institutes which may ask you to provide a guarantor to support your personal loan application.
Q.
Can I get an option to choose between a fixed interest rate or a floating interest rate?
Absolutely, you can make a quick choice between which interest rate mechanisms you want to go ahead with. Please be mindful of what you choose because different interest regimes have their own advantages and pitfalls.
Q.
How important is it to have a healthy CIBIL score?
It is very important indeed to maintain a healthy CIBIL score. Nowadays almost all the banks and NBFCs check the customer's CIBIL score beforehand. In case, your CIBIL score is not at par or above the Bank's approved score limit, your loan application might get rejected. A CIBIL score above 750 is considered a good score.
Q.
How can I apply for a personal loan which will give me possibly the best loan deal?
Nowadays applying for a loan online is the best way to apply for a personal loan. You can visit www.afinoz.com and enter your credentials to get the best possible solutions for your need at the click of a button from the comfort of your home 24 x 7.
Q.
How much time does it take to get the loan approved?
Different Banks and NBFC have different timelines for approval for different loans, so it depends entirely on the bank you are applying to. Typically, the customer can expect to get his loan approved within 48-72 hours of loan application submission.
Q.
How many days does it take to get the loan disbursal done?
Different Banks and NBFC have different disbursal guidelines and timelines. Disbursal of loan post sanction can take upto 7 days from the date of sanction.
Q.
Can I track my loan application?
Surely you can. Once you have logged your personal loan application with Afinoz, you will be issued a unique transaction ID. This ID can be used to track your application on www.afinoz.com. We also send SMS alerts to our customer on their registered mobile number informing them about the progress of their loan application, and these alerts carry the real time status of the application.
Q.
How to avoid loan rejection?
Afinoz ensures that the customer's application is processed and sent to institutions wherein the customer's profile would qualify for the loan. It is unlike dealing with other agents who send out your application without understanding your profile or credit score to multiple ineligible banks / NBFCs. This results in rejected applications from various institutions and also degrades your credit score.
Q.
Will Afinoz charge any fee from its customers?
All our services rendered to our customers are free of cost meaning Afinoz will not charge any commission or processing fee from its customers at any stage of the process. Be wary of unknown callers who may use our name and ask you to pay certain fees for your case or loan application.