Personal Loans

Instant Personal Loan

Personal Loans

What is an Instant Personal Loan?

Personal Loan Interest rates in India are offered to individuals with established credentials and strong financial stability without any surety or collateral. These bank personal loan interests are short tenure loans of a maximum of five years, which can help one tide over a temporary crisis or meet an emergency financial need. Personal loan interest rates in banks are higher on these loans due to their unsecured nature. Personal loan EMI is usually quicker to be sanctioned and readily available when matching all the bankers' conditions.

Personal loan interest rates in banks are usually between 10.5% to 22%, depending on the bank or financial institution offering the loan, and the tenure can vary from 12 months to 60 months.

Types of Personal Loan Interest Rates in Banks

There are two types of personal loan interest rates in India, i.e., Fixed rate of Interest and Floating rate of interest loans.

Fixed-Rate of Interest:

In this type of personal loan, a certain amount of interest is fixed and will remain constant throughout the loan tenure. It will ensure that your EMIs remain standard till the complete repayment of the loan is made.

Floating Rate of Interest:

Borrowers are free to choose this type of loan for which the bank gives no fixed rate of interest, and a floating rate influenced by market factors will determine the interest. It may benefit borrowers since the interest rates will be lowered if the markets go down and vice versa.

How Can I Get Instant Personal Loan? / How to Bid for the Right Personal Loan?

  • Check the Terms and Conditions of the Bank
  • Verify the Interest Rates, the EMI rates, the Processing Fee, the Tenure of the Loan, the Documentation, and the Turnaround Time
  • Never pay any upfront payments to any third party to get a loan sanctioned, as any processing fee would be deducted from the loan directly.
  • Never hand over your documents to anyone unless you are 100% sure that he is an authorized bank vendor or employee.

While all banks appear to offer pleasing schemes on Personal Loans quoting competitive rates and attractive features, you must check the rates to make a proper comparison. It would also be appropriate to check your eligibility, verify the EMI calculation, and then decide on the best bank and personal scheme.

Why Loanz99?

Loanz99 will help you make the ideal choice for both the loan scheme and the bank to obtain the maximum benefit and leverage, and it is convenient for you to pay back. Once you register with us, we handhold you throughout the loan application, processing, and disbursement process and ensure you get privileges such as referral benefits, early-bird offers, and attractive cash backs.

Best Banks to Take Personal Loans

Public sector banks such as SBI, Bank of Baroda, Syndicate Bank, Union Bank of India, and such banks usually have lower interest rates, but sanction and processing may take time. HDFC Bank, Tata Capital, RBL Bank, Citibank, ICICI Bank, Axis Bank, and such private banks disburse personal loans in just one or two working days. Most of them offer online lending services. You have to make an online application and provide the required details asked for, and within a matter of hours, you get their approval or rejection or a request for additional documents. If you are an existing customer of a particular bank, your record can help you obtain a faster personal loan when you apply there. Physical verification is done if the bank decides to do so, and based on the same; the loan is processed and sanctioned.

Why do we need a Personal loan?

One may need a personal loan for any reason to meet an immediate need, such as a family vacation, a wedding, a medical emergency, or any personal reason. Since personal loan EMIs are unsecured loans, they are given out higher interest than other loans. Personal loans must be availed only to cover an emergency, and the repayment plan must be panned out accurately to protect your track record.

How to get approved for a personal loan?

There are several ways to apply for a personal loan if you have the appropriate eligibility. You can visit a bank's website or use their mobile app to apply online for Personal Loan, following the procedures laid out. Or you can make a personal visit and speak to the bank representative or manager. Alternatively, you can contact Loanz99, and we can give you the necessary direction to get your loan sanctioned with the best benefits.

Bank interest rates for personal loan?

Bank Name Interest Rate Processing Fees Tenure Partial Payment Fore Closure Process Time
HDFC Bank 10.25% - 13.45% Rs.999/- on entire Loan amount to 1.5% 12 to 72 months No PartPayment charge, only for 10 Lakhs above Nil charges for above 10 lakh, Otherwise 4.00% 24 Hrs
ICICI Bank 10.5% - 17.50% 0.99% - 2.25% 12 to 72 months No PartPayment charge, only for 10 Lakhs above Zero above 10 lakh & 12 EMI Paid, Otherwise 5.00% 48 Hrs
Axis Bank 10.25% - 21.00% 0.5% - 2% 12 to 60 months Option available from 1st month with 4% charges N.A for above 10 Lakhs 60 Hrs
Indus Ind Bank 12.99% - 20.00% 2% 12 to 60 months No option   60 Hrs
Standard Chartered 13.00% - 21.00% 2.00% for salaried, 2.50% for self employed 12 to 60 months No option Up to 5.00% 3-4 Working Days
Yes Bank 10.25% - 16.99% Upto 2% 12 to 72 months No option Nil Above 7.5Lacs 48 Hrs
Kotak Mahindra Bank 10.50% - 16.99% Rs.999 - 2% 12 to 60 months No option Zero above 10 lakhs loan amount, Else 5.00% 60 Hrs
IDFC First 10.99% - 21.00% Upto Rs.9999 13 to 60 months No option upto 5% 60 Hrs
Citibank 11.49% - 16.50%   14 to 60 months No option Up to 3% 72 Hrs
SBI Personal Loan 11.95% - 16.55% 2.00% - 3.00% 15 to 60 months No option NIL 72 Hrs
Tata Capital 11.99% - 17.00% 1.25% - 2.50% 16 to 60 months No option NIL Foreclosure charges after 12 EMI 72 Hrs
Fullerton India 11.99% - 26.00% 2.00% 17 to 60 months No option Upto 7.00%, 0% after 3 years 48 Hrs
Bajaj Finserv 11.99% - 16.00% Upto 2.00% 18 to 60 months No option Upto 4% post 1st EMI clearance 48 Hrs

FAQs on Instant Personal Loans Interest Rates in India

Do I need a bank account to avail a personal loan?

Absolutely. To service your bank loan, you must open a bank account to which the credit is sent and from which the repayment is also made.

What are the generaltenures of personal loans?

Banks give personal loans starting from one year to five years.

Should I contact the Bank directly for a Personal Loan?

While you can do that on your own, with Loanz99, the entire process will be routed through us, making the process much simpler for you since we would be there throughout the process, guiding you from your loan application documentation to getting the loan sanctioned. The bank personnel will call you only for checks and verifications as a standard protocol.

How can I calculate EMI for a Personal Loan?

You can calculate EMI by using our Loanz99 Personal Loan EMI Calculator

Can bank personal loan interest rates alter after my loan is sanctioned?

Actually No. Once a specific interest rate is fixed, banks usually do not change them. However, some borrowers opt for a floating interest rate, which may occasionally lower the interest and benefit them personally. However, these are made clear to you at the time of your loan disbursement, so you need not worry.

Do I need a minimum salary to get a personal loan?

Yes. As per standard banking rules, the minimum earning to get a personal loan is Rs.15,000. Still, these criteria vary from bank to bank for salaried individuals.

If I have a bad credit score, can I still get a personal loan with a low interest rate in India?

Though it is less likely that one with a bad credit record will be considered for a personal loan, banks have the discretion to consider each application according to an individual's merits. Alternatively, they may charge higher interest and ask for an additional co-applicant to appropriate the applicant's creditworthiness.

Are there any tax benefits on personal loan EMI/ principal amount?

Personal loans usually are not considered for tax benefits, but one may occasionally get a tax exemption, depending on the loan's purpose. Under Section 24 of the Income Tax Act, personal loans taken for home renovations or down payments can be eligible for a tax deduction. It is only available on the interest paid, not the principal amount. You can also claim any interest paid on personal loans taken for business purposes against taxable income, lowering your income tax liability.

When I am outside India, can I make my loan repayment?

Yes, of course! All repayments can be made through wire transfer or any online banking utility your bank provides you.

Can I get a personal loan as a pensioner if I have a bank account?

Yes, you certainly can get between 10-20 times the personal loan of your pension from any public sector or private bank.

Are there any benefits of part prepayment a personal loan?

It is possible to benefit from paying back a loan earlier than the accepted tenure. However, in many banks, this is allowed only after a certain initial period. However, they may charge a prepayment fee or penalty between 2-5% as their foreclosure costs. It is essential to understand this factor before foreclosing any loan. Usually, foreclosing loans provide little benefit to the borrowers. The law allows banks to adjust more of the interest amount at the beginning than the principal, assuming that the borrower completes the loan's tenure. It results in considerable losses in foreclosing any loan. However, these things are left to individual banks' discretionary powers, and the borrowers may still seek benefit from negotiations.

Is it possible to get a top-up loan on an existing personal loan?

Based on your repayment record, one can indeed get a top-up loan with specific different terms and conditions that vary from bank to bank.

How can I ensure my Personal loan application is accepted?

  • When the applicant has a clean record and an established foolproof income source, his application is usually not rejected since the applicant's trust factor is met, and the bank is assured of his repayment. Thus the loan application is not rejected.
  • If you have a working spouse, you can add them as co-applicants and enhance acceptance of the application by boosting the combined income levels and demonstrating higher repayment capability.
  • You should clear any older debts you may have, so your debt burden is clear, and thus your repayment capacity is more robust.
  • You can also transfer your balance to a different bank, so the interest rate is lowered, and an additional loan amount can be availed.
  • If your CIBIL factor is low, you may still apply to some NBFCs, which may not insist on these checks. But it is still a difficult task. It is best to have a clean repayment track as lower CIBIL scores are a black mark on one's track record, and financiers will levy additional interest amounts to such applicants as a deterrent. Having a poor CIBIL record weakens an application considerably from several banks or financial institutions, and hence it is wise to monitor your history diligently.

Can my spouse and I jointly apply for a personal loan?

If your spouse is also working, your chances of obtaining a loan are much higher as it enhances your eligibility due to a combined higher income level.

Would it affect my spouse's CIBIL score if I default on my repayment?

Both of your records will be affected even if one of you fails to repay.

What are the chief aspects that influence the interest rate of a personal loan?

Since personal loans are unsecured loans, they have a higher interest rate, which varies from bank to bank, your employment, your company category, and your net income. Employment with well-respected companies with a high income will usually get you the right loan amount at a lower interest. Government employees will have a different rate of interest than private-sector employees.

Can we transfer our personal loan balance to another bank?

If you feel you are being charged a higher interest, you can consider transferring your balance to another bank against a lower interest. However, please compare the foreclosing loan charges and extra penalties the existing bank may levy against the loan transfer.

What are the complete charges an applicant needs to pay?

In addition to the interest, banks usually charge the following fees on personal loans:

Processing Charges

Depending on the bank you apply to, they vary from 2-3%, but fortunately, you can negotiate based on the amount you are applying. Even third party authorized agencies like Loanz99 can negotiate with banks for the best rates. If you are lucky, you may get a complete waiver, too and possible cashback or incentives based on your creditworthiness.

Foreclosure fee:

This fee is payable when one wishes to close their loan before completing the loan term. Banks levy these charges to compensate for any losses they may incur due to the earlier closing of a fixed-rate loan, which can be up to 5% of the loan amount. It is advisable to read the terms and conditions carefully at the time of the application to be clear about this factor. However, even here, an applicant desiring to foreclose his loan is free to negotiate and possibly get a lower fee or a waiver altogether.

How much is CIBIL score recommended for a personal loan?

CIBIL scores above 750 are usually considered positive for sanctions of a personal loan. CIBIL scores range from 300-to 900, and a higher score is typically considered a healthy score and improves your prospects considerably.

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