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Personal Loan
A personal loan is a popular choice for those searching for a financial solution to tackle a variety of expenses, such as consolidating debt, handling unexpected costs, or purchasing something big. Offered by banks, credit unions, and online lenders, this type of unsecured loan allows for a fixed interest rate and a predetermined repayment period. One of the significant benefits of a personal loan is its accessibility, even for those with a lower credit score. Lenders, when evaluating loan applications, consider factors such as credit score, income, and debt-to-income ratio, with better scores often resulting in lower interest rates.
For individuals in search of financial assistance, personal loans offer a multitude of benefits, but choosing the right loan can be overwhelming. It's crucial to understand the key aspects of personal loans, including loan fees, monthly payments, credit score requirements, and more.
One of the most significant steps in the personal loan process is to compare options from various lenders to find the best interest rate and terms that suit your needs. Furthermore, it's crucial to delve deep into the loan's fees and charges, such as origination fees, prepayment penalties, and late fees, to avoid any financial strain.
Consider your repayment capacity and make sure the loan payments are within your budget, without putting you in a difficult financial situation. Additionally, keep in mind that your credit score will be a critical factor in determining the interest rate and loan approval.
- Eliminate high-interest credit card debt through consolidation.
- Tackle unexpected medical expenses.
- Fund a significant purchase such as a home renovation or a wedding.
- Cover the cost of a down payment for a car or house.
- Strengthen your credit history.
- Finance education or job training.
- Start or expand your small business.
- Address unexpected home repairs or emergencies.
- Pay for a dream vacation or large expenses.
- Fund a special project or event.
Personal Loan Eligibility
Personal loan eligibility in India, a crucial aspect to consider before applying for a loan, is dependent on several factors, including income, credit score, employment status, and repayment capacity.
- Income: Banks and financial institutions typically demand a minimum monthly income ranging from Rs. 20,000 to Rs. 25,000 for a personal loan application to be considered eligible. Nevertheless, the requirement may differ based on the lender and loan amount.
- Credit Score: A crucial criterion for personal loan eligibility, a credit score of 750 or higher, is often considered a desirable indicator of a borrower’s good credit history and timely loan repayment.
- Employment Status: Regular employment is usually a must for personal loan eligibility, with self-employed individuals being required to present additional documentation, such as financial statements, GST returns, and income tax returns, to prove their repayment capability.
- Repayment Capacity: Banks and financial institutions assess an applicant’s ability to repay the loan by examining their income, credit score, and outstanding debts. Insufficient repayment capacity may result in a loan denial.
Personal Loan Documents
The documents required for a personal loan in India may vary depending on the lender and the borrower’s employment status. However, some common documents that are generally required include:
- Identity proof: PAN card, voter ID card, passport, or Aadhaar card.
- Address proof: Utility bill, voter ID card, passport, or Aadhaar card.
- Income proof: This can include salary slips for the last three months, Form 16, or income tax returns for the last two years. Self-employed individuals may need to provide additional documents such as GST returns, financial statements, and bank statements.
- Age proof: Birth certificate, school leaving certificate, or passport.
- Employment proof: A letter from the employer on company letterhead, recent salary slips, or an appointment letter.
- Signature proof: A passport or PAN card.
- Passport size photos: 2-3 recent photographs
- Bank statement: Last 6 months’ bank statement
- Co-applicant’s documents: If you are applying for a personal loan jointly with someone else, you may need to provide the same documents for the co-applicant.
Personal Loan Interest Rates
The determining factors of personal loan interest rates are subject to fluctuations and are dependent on multiple elements, including the lender and the borrower’s creditworthiness. The interest rate spectrum, in most cases, lies between 10% and 24% per annum.
The credit score, income, employment history, and loan amount of the borrower are some of the crucial factors that contribute to the interest rate offered on a personal loan. However, some lending institutions might proffer personal loans at a more favourable interest rate to a specific demographic of borrowers, such as salaried individuals, women, and senior citizens or for particular purposes like education loans, or home improvement loans.
Best Personal Loan Marketplaces
There are several best personal loan companies in India, ranging from leading banks in the market such as HDFC, SBI, ICICI, Bajaj, Kotak, Fullerton, Axis, and so on… to the other online lending marketplaces that host a web of these networks with easy procedures such as Paisabazaar, BankBazaar, Lendingkart, or one of our own, Loanz360. Online lending marketplaces help host the leading financiers in a common place to get the best deals possible for loan seekers immediately without having to make multiple credit checks or visit several branches or sites to find the best deals available. Marketplaces help customers to compare options and get personalized quotes with several alternatives at low or no prices. Hence desirable.
Table of Contents
How To Get A Personal Loan Online
When searching to get a personal loan online, there are a few things you should keep in mind: 7 steps involved in getting a personal loan online include:
- Research different lenders’ options in the market and compare their interest rates and terms.
- Check your credit score and credit history to ensure that you qualify.
- Gather the required documentation, such as proof of income and ID.
- Submit your loan application online, including all required documentation.
- Wait for the lender to review your application and make a decision.
- If approved, review and accept the loan terms and e-sign the loan agreement.
- Wait for the funds to be disbursed to your bank account.
With the fluctuation of financial institutions and their lending policies, the difficulty of determining the credit score required for personal loans becomes increasingly complex. The elusive minimum credit score often deemed necessary for a loan by banks and other conventional lending organizations is considered to be a "fair" score of 700 or higher. However, this figure is merely a baseline and may not guarantee loan approval.
Lenders assess the creditworthiness of an individual by evaluating a multitude of factors, including credit score, income, employment history, and debt-to-income ratio. The higher an individual's credit score, the more likely they are to receive loan approval and be offered favourable terms, such as lower interest rates.
Getting an instant loan without a CIBIL score is not impossible either. It is possible to avail of a personal loan without a CIBIL score or credit score at Loanz360. Contact our financial advisors to find ways to get a personal loan with a low CIBIL score. We have options available for every profile which makes it easy to get personal with a “low CIBIL score” or “no credit score”
With the advent of innovative lending models, the concept of "no interest personal loans" has gained momentum. A 0% interest personal loan, as the name suggests, is a loan where the borrower is not subjected to any additional interest charges on the loan amount. The borrower simply repays the original loan amount, devoid of any interest charges.
Typically, such loans are offered by organizations with a social motive, like non-profits, religious institutions, or government agencies. These loans can be used for various purposes such as education, housing, or emergency expenses.
Though no interest personal loans may not have interest charges, they may still entail fees or other charges that the borrower must pay. For instance, some no interest personal loans may require an origination fee or a service charge to be paid by the borrower. Moreover, certain credit card companies may offer promotional 0% APR on balance transfers or purchase for a specified period, which can be considered as a form of a "no interest personal loan" during that time.
The advent of digital lending platforms has offered novel prospects for individuals searching for personal loans. Unlike conventional lending institutions, these online platforms incorporate a nuanced approach when evaluating a borrower's creditworthiness. In addition to a borrower's credit score, the lender may consider other factors such as income, employment status, and bank statements. Therefore, even those with less-than-perfect credit scores may have the possibility to obtain a personal loan through these online channels, bypassing the rigid limitations of traditional credit score demands.
Ways To Get Instant Personal Loan
The plethora of options available to individuals seeking instant personal loans in India is extensive and varied. From online lending platforms like Loanz360, Capital First and Fullerton India, to digital lending platforms such as Paytm, Google Pay, and PhonePe, there are numerous ways to attain this type of financial support. Banks and non-banking financial companies (NBFCs), like HDFC Bank, ICICI Bank, and Axis Bank, also offer swift approval and disbursal of personal loans. Furthermore, credit card companies such as SBI and HDFC Bank, offer the convenience of instant approval against the credit limit of one’s credit card. The realm of personal loan procurement is further expanded through the realm of peer-to-peer lending platforms like Faircent and LenDenClub, and digital banks such as Paytm Payments Bank and Kotak 811.
In the financial market, there are more than 20 loan options available for customers with different needs, offered by various lenders to get a personal loan online. However, In India, the top 5 easy loans to get include:
- Personal Loans: These loans are unsecured, meaning they do not require collateral and are typically offered based on the borrower's creditworthiness.
- Home Loans: These loans are secured by the borrower's property and can be used to purchase or renovate a house.
- Auto Loans: These loans are used to purchase a vehicle and are typically secured by the vehicle itself.
- Education Loans: These loans are specifically for education-related expenses and are often offered at lower interest rates.
- Gold Loans: This loan is secured by gold and can be availed of by keeping gold as collateral.
In India, the need for urgent cash loans can arise unexpectedly and the thought of obtaining it can be overwhelming. However, fret not, as various alternatives can come to your rescue and help you get the urgent loans you require swiftly. Although obtaining cash in an hour may be an unrealistic expectation, there are still several options that can provide you with the much-needed funds promptly.
One option to consider is applying for a personal loan from a bank or non-banking financial company (NBFC). These loans can be used for any purpose, including emergencies, and can be approved and disbursed relatively quickly.
Other great options to consider are online lending platforms like PaySense, MoneyTap, Capital Float, EarlySalary, Lendingkart and Loanz360. Our platform, Loanz360, offers a lending system that enables our valued customers to access quick and urgent cash loans with ease. Our process is designed to be user-friendly, with minimal documentation and a fast application process, ensuring a quick disbursal of loans.
While it's true that getting cash in an hour may be a bit of a stretch, with a little bit of research and some smart choices, you'll be well on your way to efficiently securing the financial assistance you require promptly.
Just remember, before taking a loan, always check the interest rate, processing fee and other charges, and make sure you can repay the loan on time to avoid any penalties or additional charges.
It may be challenging to do an urgent cash loan without submitting any documents, as lenders typically require certain information to verify the borrower's identity, income, and creditworthiness. However, some online lending platforms, like one of our own, may offer loans with minimal documentation requirements.
For example, we may use alternative data sources, such as bank statements and social media profiles, to verify a borrower's identity and income. Others may offer loans that are secured by assets, such as vehicles or property, which do not require as much documentation as unsecured loans.
There are also urgent cash loans with no credit check options that several financiers may offer, however with stricter repayment terms and other alternatives.
It is important to be aware that lenders that offer urgent cash loans without documents or with minimal documentation requirements may charge higher interest rates and fees, and may also have stricter repayment terms. It is also recommended to consider other options, such as borrowing from friends or family or using a credit card, before taking out a high-cost loan.
The notion of a personal loan without collateral refers to an arrangement wherein the borrower isn't compelled to provide any security in the form of assets as assurance to the lender. This implies that the borrower isn't required to furnish any property, like a house or automobile, as collateral for the loan. In lieu of that, the lender will depend on the borrower's creditworthiness and their capacity to repay the loan as a foundation for granting the loan.
Non-collateralized personal loans are commonly provided by banks, credit unions, and online lenders. They are often utilized for personal expenses, such as consolidating debt, covering unexpected expenses, or financing a substantial purchase. Interest rates for unsecured personal loans might be higher in comparison to secured loans due to the elevated level of risk taken by the lender by lending funds without collateral.
Some ways to attain a personal loan without collateral include:
- Applying for an unsecured personal loan from a bank or online lender. These loans do not require collateral, but the interest rates might be higher, and the loan amount may be smaller than a secured loan.
- Employing a credit card. Numerous credit cards offer cash advance options, which allow you to borrow money against your credit limit. Nonetheless, cash advances typically come with high-interest rates and fees.
- Applying for a peer-to-peer loan. These loans are funded by individual investors instead of banks, and they may feature more flexible requirements and interest rates. However, they may also be more challenging to qualify for.
- Applying for a personal line of credit. A personal line of credit is similar to a credit card in that you can borrow up to a particular limit, but you only pay interest on the amount you borrow.
5 Best Personal Loan Offers - 2023
There are many personal loan offers available in India from various banks and financial institutions. Some of the best offers currently available include:
- SBI Personal Loan: This loan is offered by the State Bank of India and offers one of the low-interest personal loans starting at 11.00% p.a with a long repayment tenure of up to 72 months.
- HDFC Bank Personal Loans HDFC Bank is another leading financial provider offering personal loans with low-interest rates starting as low as 10.50% p.a, minimal documentation, and a quick loan disbursal process.
- ICICI Bank Personal Loan: ICICI Bank personal loans scheme also offers several flexible repayment options, minimal documentation, and quick loan disbursal; with loans starting as low as 10.75% p.a, for a tenure of up to 6 years.
- Bajaj Finserv Personal Loan: Bajaj Finserv offers no less compared to its competitors in the market. With several online loans with low-interest rates, minimal documentation, and quick loan disbursal, Bajaj Finserv is one of the well-known financial aids in the market at only 11.00% p.a, with a flexible repayment period of up to 84 months.
- Axis Bank Personal Loan: Best low-interest personal loans are not an unknown territory in the financial market. However, Axis Bank offers personal loans with competitive interest rates ranging from 10.49% p.a – 21% p.a for a tenure of up to 5 years for a minimum monthly wager with online loans fast approval.
Types Of Personal Loans
Personal loans are a type of unsecured loan offered by banks and financial institutions in India. They can be used for a variety of purposes, such as financing a vacation, paying for home renovations, or consolidating debt.
- Secured personal loans: These loans are secured by collateral, such as property or a vehicle. This type of loan generally has a lower interest rate and longer repayment terms than an unsecured personal loan.
- Unsecured personal loans: These loans are not secured by collateral. They are typically offered to individuals with good credit and a steady income. The interest rate on an unsecured personal loan is generally higher than on a secured loan.
- Instant personal loans: These are unsecured personal loans that can be disbursed quickly, often within 24 hours. They are typically offered to salaried individuals with good credit scoresTop-up.
- Personal loan for self-employed: These are unsecured personal loans that are specifically designed for self-employed individuals. They may have different eligibility criteria and documentation requirements compared to personal loans for salaried individuals.
- Balance transfer personal loan: These loans are availed to transfer the outstanding balance from one or multiple high-interest credit cards to a single personal loan with a lower interest rate.
- Short-term personal loan: The top-up is obtained on the existing loan if the consumer may require an additional amount to meet their financial requirements. Top-up loans are flexible and attractive when the customer has a clean record of his repayment history and has a satisfactory completion of specified EMIs with the lender.
- Consumer durable: Durable items such as furniture, capital equipment, tools, appliances, smartphones, tableware, etc can be obtained with a durable consumer loan over a specified period with or without down payments.
- Short-term personal loan: Short-term loans are loans extending over a maximum period of 12 months or less.
- Personal line of credit: these are revolving credit facilities, which can be availed as per the needs and repaid multiple times, and interest is charged only on the utilised amount
- Personal loan for pensioners: These are personal loans that are specifically designed for pensioners who have a steady source of income in the form of a pension. The interest rate on these loans is generally lower than on regular personal loans.
Unsecured Personal Loan
Unsecured personal loans in India, a financial instrument that holds the key to fulfilling personal desires sans any collateral or security deposit, have increasingly become a popular choice for individuals seeking monetary aid for diverse purposes such as home renovation, travel, education or medical expenses. Banks and NBFCs (Non-Banking Financial Companies) offer these loans to individuals, but the loan amount and interest rate hinge upon the applicant’s credit score, income, and ability to repay. With a repayment period ranging from a mere 1 to 5 years, it’s crucial to bear in mind that unsecured personal loans tend to come with a higher interest rate in comparison to secured loans, as the lender is taking on a greater risk. Thus, before applying for a loan, it’s wise to meticulously compare and scrutinize the terms and conditions of various lenders.
Secured Personal Loan
A secured personal loan in India is a type of loan that is secured by collateral, such as property or a car. The collateral serves as security for the lender in case the borrower is unable to repay the loan. To apply for a secured personal loan in India, an individual must have a stable income and a good credit history. The lender will also evaluate the value of the collateral and determine the loan amount that can be approved.
The interest rates for secured personal loans in India are typically lower than those for unsecured personal loans. However, if the borrower defaults on the loan, the lender has the right to seize the collateral. Regardless of which loan you are applying for it is always recommended to read and understand the terms and conditions of the loan before signing the loan agreement. It’s also worth noting that secured personal loans are also known as “gold loans” or “property loans” in India depending on the collateral provided.
Secured personal loans and unsecured personal loans - two distinct forms of personal financing each with their own distinct characteristics and attributes. Secured loans demand collateral or security, whereas unsecured loans do not. The former type of loans often flaunt lower interest rates as compared to the latter, and have more flexible terms, including longer repayment periods. On the downside, in the event of default on a secured loan, the lender may claim the collateral provided. On the flip side, unsecured loans may have stricter credit requirements and may only be extended to those with good credit. These loans, without the safety net of collateral, are commonly sought after for purposes such as credit card consolidation, home improvement, or unforeseen expenses. In contrast, secured loans, with the added security of collateral, are often used for larger purchases such as a car or home.
Secured And Unsecured Loans Online
To procure an unsecured loan in India, you must furnish the lender with personal details such as your name, address, income, and credit score. Supporting documentation, such as a government-issued ID and proof of income, may also be required. After the submission of your application, the lender will perform a thorough review and notify you of the outcome, including the terms and conditions of the loan, should you be approved.
Conversely, obtaining a secured loan online mandates the provision of collateral, such as a car or house, serving as security for the loan. The procedure for securing a loan online is similar to that of an unsecured loan, but with the added step of disclosing information about the collateral. The lender must also verify that you have the rightful ownership of the collateral for use as security.
Pre Approved Personal Loan
Aspiring borrowers should be aware of the complexities involved in a personal loan pre-approval. It is a rigorous evaluation procedure where a lending institution meticulously examines the financial and credit standing of an individual. The lender carries out a comprehensive analysis of the borrower’s credit score, debt-to-income ratio, income, and other relevant financial information to assess their capability to repay the loan.
Through the pre-approval process, the lender grants a preliminary estimate of the loan amount that the borrower may qualify to receive, along with the corresponding loan terms, such as interest rate and repayment duration. This serves as a valuable insight for the borrower regarding the quantum of credit they may acquire and the expected monthly payments.
However, it is critical to acknowledge that pre-approval is not a guarantee of loan approval. The lending organization may require supplementary information or documentation before rendering its final verdict. Despite this, a pre-approval offers a positive indication of loan approval and facilitates the borrower in planning their finances proactively.
How To Get Pre Approved Personal Loan
The eligibility criteria for obtaining pre-approval for a personal loan in India encompasses a multitude of aspects that must be meticulously considered and satisfied by the borrower, prior to the lender’s evaluation. These requirements are as follows:
- A satisfactory credit score: The creditworthiness of the borrower is assessed by evaluating their credit score and credit history. A credit score of 750 and above is deemed commendable by lenders.
- Evidence of financial stability: The lender demands irrefutable proof of the borrower’s income in the form of salary slips and bank statements, to determine their ability to repay the loan.
- Demands pertaining to age and residency: Most lenders have established stringent age and residency conditions that must be fulfilled by the loan applicant.
- Submission of required documents: To apply for a loan, the borrower must furnish the lender with the necessary documents such as ID proof, address proof, and income proof.
- Two options to apply: The borrower has the choice of either applying for the loan online or by visiting the bank’s physical branch.
Benefits Of Pre Approved Personal Loan
There are several benefits of a pre-approved personal loan:
- Faster loan processing: A pre-approved loan means that the lender has already evaluated the borrower’s creditworthiness and ability to repay the loan. This can speed up the loan processing time, as the lender does not need to go through the same process again when the borrower formally applies for the loan.
- Better loan terms: Pre-approved loans may come with better interest rates, fees and other terms than loans that are not pre-approved. This can save the borrower money over the life of the loan.
- Planning: Pre-approved loans give the borrower an idea of how much they can borrow and what their monthly payments might be, which can help them to plan their finances accordingly.
- Negotiating power: Having a pre-approval in hand, gives the borrower more negotiating power when shopping for a loan. This allows the borrower to compare loan terms from different lenders and choose the one that is best for them.
- Peace of mind: Pre-approved loan can provide peace of mind, knowing that you have been approved for a loan and you can use it when you need it.
Personal Loan Categories
Short Term Personal Loan
Short term personal loans in India are a type of unsecured loan that can be availed by individuals for various personal or financial needs. These loans can be availed from various financial institutions such as banks, Non-Banking Financial Companies (NBFCs) and other lending institutions.
In India, the loan amount for short term personal loans or small personal loans can vary from as low as Rs.50,000 to as high as Rs.25 Lakhs depending on the lender and the borrower’s creditworthiness. The interest rate for these loans also varies based on the lender and the loan amount. It can range from as low as 10.75% to as high as 24% per annum. The repayment period for short-term personal loans in India can range from 1 year to 3 years.
To apply for a short-term personal loan in India, the borrower must typically meet the following eligibility criteria:
Navigating the loan market can be a daunting task, especially when searching for a short-term solution that doesn't require a credit check. This is where "no credit check loans" come into play, loans offered by alternative lenders such as online or payday lenders, which do not require a traditional credit check.
While these types of loans offer the convenience of quick and easy access, even for individuals with poor credit, it is important to be aware of their drawbacks. High interest rates and fees, as well as the possibility of needing collateral, make these loans more costly than traditional loans.
However, those who are able to secure traditional loans like personal or credit card loans, they might secure better terms and rates compared to no credit check loans. It's also worth keeping in mind that some lenders may conduct a "soft credit check," which provides insight into the borrower's creditworthiness without affecting their credit score.
Before making any final decisions, it is essential to thoroughly examine the loan terms, including the interest rate, fees, and repayment schedule. Furthermore, one must consider their ability to repay the loan in full and on time, as defaulting on a short-term loan can have severe financial consequences. To ensure that the best loan options are obtained, it is advisable to compare 30+ top loan rates from leading financial providers in India at Loanz360. Reach out to them today to secure only the best offers for your specific loan needs.
Personal Loan For Salaried
The personal loan opportunities for salaried individuals in India isare replete with a diversity of offerings, from cashback incentives to advantageous schemes. Availing of a personal loan, as an unsecured form of credit, provides the salaried individual with the necessary financial support for diverse purposes, such as holiday excursions, wedding expenses, or debt consolidation.
However, it is essential for the individual to possess a reliable source of income and a commendable credit score, to be deemed eligible for a personal loan by the lender. The procedure of acquiring a personal loan involves submitting an application, coupled with documentation verifying the income and identity of the applicant.
The lender may also evaluate the creditworthiness of the individual through an examination of their credit score and history. The interest rate on a personal loan can differ among lenders, the loan amount, and the credit score of the applicant, with rates ranging from 10% to 25% p.a. and the repayment period ranging from 1 to 5 years.
It is recommended to weigh the interest rates, terms, and fees of various personal loan options before making a decision, and to borrow only an amount that can be reasonably repaid, to avoid incurring debt.
Personal Loan For Pensioners
In India, pensioners can apply for personal loans from banks and other financial institutions. These loans are generally offered at lower interest rates and with relaxed eligibility criteria compared to regular personal loans. Pensioners may be required to provide proof of their pension income, as well as documentation such as their pension account statement and age proof. Some banks also have specific personal loan schemes for pensioners with attractive interest rates and relaxed documentation requirements. Pensioners availing of a personal loan should compare the terms and conditions of different loan options before applying, to ensure that they find the best loan for their needs.
The eligibility criteria for a personal loan for pensioners in India may vary depending on the lender. However, some common criteria that are typically required include:
Personal Loan For Women
A personal loan for women is a type of loan that is specifically designed for women to meet their financial needs. These loans can be used for a variety of purposes such as home renovation, marriage expenses, education fees, medical expenses, travel, or to start a business. Personal loans for women typically have lower interest rates and more flexible repayment options compared to other types of loans. Some banks and financial institutions also offer exclusive schemes and benefits for women borrowers.
However, In India, there are several personal loan schemes available for women with attractive interest rates and flexible repayment options. Some of the popular schemes you need to know include:
- Indian citizen
- Minimum age of 18 years
- Good credit score
- Relevant documents such as income proof, ID proof, and address proof.
Personal Micro Loans
Microloans, the little financiers that pack a punch, have been gaining popularity amongst individuals seeking personal funding. With their unsecured nature, they serve as a beacon of hope for those in need of quick cash, sans the hassle of collateral requirements. From debt consolidation, to covering unexpected expenses or even kickstarting a small business idea, the versatility of these loans cannot be overstated.
The advantages of personal microloans are numerous, starting with the expediency they offer. In a world where time is of the essence, these loans can be approved and disbursed with impressive speed, making them an ideal solution for unexpected financial emergencies. Furthermore, unlike other loan options that demand collateral, personal micro loans are unsecured, meaning that one’s house or car stays safe and secure. This factor, combined with their lower interest rates, makes them a more budget-friendly alternative for borrowers. And if that weren’t enough, the flexibility of these loans allows for a wide range of uses, providing the borrower with a sense of financial liberation.
Largely, personal micro loansmicroloans are a convenient, affordable, and flexible solution for those in need of personal funding. With their quick approval and disbursement times, lack of collateral requirements, and lower interest rates, it’s no wonder they’ve become a go-to choice for individuals seeking financial assistance.
NRI Personal Loan
An NRI (Non-Resident Indian) personal loan is a type of loan that is specifically designed for NRIs who are looking to borrow money for personal use. These loans are offered by banks and financial institutions in India and are typically unsecured, meaning they do not require any collateral.
NRIs can apply for personal loans, home loans, and other types of loans in India for various purposes, such as buying a property, financing education, or for personal use. Non-Resident Indians (NRIs) are eligible to apply for loans in India, subject to certain guidelines set by the Reserve Bank of India (RBI) and the lending institution. Here are some of the key guidelines for NRIs to obtain a loan in India:
NRI As Defined By RBI
A Non-Resident Indian (NRI), a term enshrined by the Reserve Bank of India (RBI), embodies a multifaceted definition. At its core, an NRI is a person of Indian origin, either an Indian citizen or a person of Indian descent, who resides beyond the boundaries of the country for a variety of reasons – employment, business pursuits, vocational pursuits, or any other purpose that suggests an extended stay overseas.
NRI Guidelines
The Reserve Bank of India (RBI) has established strict protocols for Non-Resident Indians (NRIs) to ensure they adhere to regulations while conducting their financial affairs. This is to facilitate seamless monetary transactions and foster compliance.
- NRIs are accorded several privileges, including the ability to open and manage current, savings, and fixed deposit accounts within India.
- NRIs are permitted to invest in a wide range of financial instruments such as shares, bonds, and mutual funds.
- NRIs can purchase and sell property in India, and are eligible for home loans to aid in this pursuit.
- NRIs can remit money to and from India, subject to certain restrictions and rules.
- Foreign currency accounts, including Foreign Currency Non-Resident (FCNR) and Non-Resident External (NRE) accounts, are available to NRIs to hold and manage foreign currency assets.
- Regardless of where they reside, NRIs must file income tax returns in India if their Indian income surpasses the prescribed limit.
- NRIs must also observe foreign exchange regulations, reporting any transactions that exceed set limits, and are subject to the Foreign Exchange Management Act (FEMA) which oversees foreign exchange transactions within India.
NRIs must meet the standard eligibility criteria of the lending institution, such as having a regular source of income, a good credit score, and a valid Indian passport and visa or work permit. Some banks may also require NRIs to have a minimum number of years of work experience or a certain level of income.
I.e To be eligible for an NRI personal loan, the individual must meet the following criteria:
- They must be a non-resident Indians (NRI) as defined by the Reserve Bank of India (RBI)
- They must have a consistent and regular source of income
- They must have a good credit score
- They must have a valid Indian passport
- They must have a valid Indian visa or work permit
- Application form
- ID proof (passport, voter ID, PAN card)
- Address proof (passport, voter ID, utility bill)
- Income proof (latest salary slips, bank statement)
The interest rate for NRI personal loans can vary depending on the bank or financial institution, as well as the applicant's credit score and income. Generally, the interest rate for NRI personal loans ranges between 10% and 16% per annum.
The repayment of NRI personal loans can be made through various methods such as through NRE/NRO account, through inward remittance, or through post-dated cheques. The repayment tenure of NRI personal loan is typically between 12 months and 60 months. NRIs must ensure that they have sufficient funds in their account to make the loan repayments. NRIs are also required to file their income tax returns in India and may have to pay taxes on the interest earned from the loan in India.
NRIs may be required to provide security or collateral for the loan, depending on the loan amount and the lending institution's policy. Some unsecured loans may not require collateral.
Joint Personal Loan
Joint Personal Loans in India refer to a type of loan that is taken by two or more individuals together. The loan is typically used for personal expenses such as home renovation, medical expenses, travel, or other such purposes.
In India, several banks and financial institutions offer joint personal loans. The options and schemes available can vary depending on the lender. Some common options include:
Personal Loan For Wedding
A personal loan for a wedding is a type of unsecured personal loan that is specifically used to finance the expenses associated with a wedding. This can include things like the cost of the wedding venue, catering, flowers, photography, music, and more. Many banks and online lenders offer personal loans for weddings, and the loan amount and terms will vary depending on the lender and the borrower’s creditworthiness.
To apply for a personal loan for a wedding, you will typically need to provide the lender with information about your income and credit history, as well as information about the wedding expenses you plan to finance. Some lenders may also require that you have a co-signer or co-borrower, such as your fiancé or spouse.
When considering a personal loan for your wedding, compare different loan options, interest rates and fees, and read the terms and conditions carefully. Also, you should make sure you can afford the loan payments and that the loan does not put your finances at risk. Also considering other options for financing a wedding such as savings, credit cards, or crowdfunding is worth the effort.
Personal Loan For Business
A personal loan crafted for business purposes is a unique financial instrument, designed to aid in the initiation or growth of a company. This unsecured loan caters to a wide spectrum of business needs, from procuring essential equipment to stock up inventory or supplies, staffing the business with employees, or giving the commercial space a facelift. Obtaining this loan from various sources such as banks, credit unions, or online lenders, the loan amount and conditions of the loan differ from lender to lender and from borrower to borrower, relying heavily on their creditworthiness and financial standing.
To acquire a personal loan for business, a lender would require certain information that encapsulates the borrower’s income, credit history, and other details about the business. This information usually comprises of a business plan, financial projections, and any collateral that may be present. Some lenders may necessitate a co-signer or co-borrower, who acts as a business partner in this endeavor.
When embarking on a personal loan for your business, it is imperative to consider if the loan will foster business growth and generate a revenue stream that can repay the loan. It is also advisable to explore other financing options for a business such as business credit cards, crowdfunding, or availing small business loans from the Small Business Administration (SBA), which offer comparatively lower interest rates and more favourable terms. To ensure the success and longevity of your business, it’s crucial to make an informed decision that aligns with your business goals and objectives.
Personal Loan For Education
A personal loan earmarked for education in India is a financial tool that can aid in financing educational costs such as tuition, exam fees, and other associated expenses. These loans are generally unsecured, meaning they do not necessitate collateral. Whether the loan is obtained by the parent or the student depends on the applicant’s age and the lender’s guidelines. Nonetheless, the individual applying for the loan must meet the lender’s criteria.
Aspiring students and parents can choose from a plethora of options to finance their education. Several loan alternatives are accessible for educational pursuits, including:
Personal Loan For Travel
A personal loan for travel can be used to finance a vacation, trip, or other travel expenses. These types of loans are typically unsecured, meaning they do not require collateral such as a home or car to be used as security. They can be obtained from banks, credit unions, or online lenders, and may have fixed or variable interest rates.
Eligibility and documents required for a personal loan for travel will vary depending on the lender, but generally, most lenders will require the following:
Medical Emergency Loan
A medical emergency personal loan is a type of loan that is specifically designed to help individuals cover the costs of unexpected medical expenses. In India, the requirements and benefits of this type of loan can vary depending on the lender, but generally, the borrower will need to provide proof of income, employment, and medical expenses. Some of the benefits of a medical emergency personal loan in India may include fast approval and disbursal, flexible repayment terms, and the ability to use the funds for a wide range of medical expenses. Additionally, many lenders will not require collateral or a co-signer for this type of loan, which can make it more accessible to a wider range of borrowers.
By following these steps, you can increase your chances of getting approved for a medical emergency personal loan, and get the funds you need to cover your medical expenses.
- Gather all necessary documents: Before applying for a loan, make sure you have all the necessary documents, such as proof of income, employment, and medical expenses.
- Shop around: Compare different lenders to find the best interest rates and terms.
- Improve your credit score:scores Lenders will often look at your credit score when deciding whether to approve your loan. Low credit scorers can try to improve it before applying for a loan.
- Provide collateral or co-signer: If you have collateral or a co-signer, lenders may be more likely to approve your loan.
- Apply for government schemes: Indian Government also have schemes for a medical emergency personal loan. You can check with your local authorities if you are eligible for any such schemes.
- Be transparent: Be honest with the lender about your financial situation, and provide all the necessary information they request.
Flexi Personal Loans
If you’re seeking a loan that offers you the flexibility to withdraw funds as and when you need it, a flexi personal loan could be the solution you’re looking for. Often referred to as a line of credit, this type of loan differs from traditional loans that disburse the full amount in one lump sum.
In India, you have several choices when it comes to flexi personal loans. Let’s take a look at some of them:
- Personal Overdraft: This loan option offered by banks allows you to withdraw funds up to a certain limit. The catch? You’ll only be charged interest on the funds you withdraw, not the entire loan amount.
- Flexi Personal Loan: Non-banking financial companies (NBFCs) offer this type of loan that provides you the flexibility to withdraw funds as and when you need them, up to a certain limit. However, interest is applied to the entire loan amount, but you have the option of paying interest only on the funds you withdraw.
- Credit Cards: A lot of credit cards come with a cash withdrawal feature that enables you to withdraw cash up to a certain limit. But be warned, the interest on the amount you withdraw is usually higher compared to other loans.
- Personal Line Of Credit: This loan option offered by NBFCs gives you the flexibility to withdraw funds as per your needs, up to a certain limit. The good news? You’ll only be charged interest on the amount you withdraw.
- Gold Loan: If you have gold lying around, you can pledge it as collateral and get a loan. This type of loan is popular in India and is widely available.
Personal Line Of Credit
A personal line of credit is a type of loan that allows borrowers to access a set amount of money, known as the credit limit, which they can use as needed. The borrower can withdraw funds from the line of credit as they need them, up to the credit limit, and then make payments to pay down the loan balance over time. Interest is typically charged on the outstanding balance, and the borrower may be required to make minimum payments. Personal lines of credit can be unsecured or secured by collateral, such as a savings account or a car.
There are several reasons why someone might consider getting a personal line of credit. Some of the most common include:
- Emergencies: A personal line of credit can provide a source of funds in case of unexpected expenses, such as a medical emergency or car repair.
- Home Improvements: A personal line of credit can be used to finance home improvements, such as a new kitchen or bathroom.
- Debt Consolidation: A personal line of credit can be used to consolidate high-interest credit card debt into one lower-interest loan.
- flexibility: A personal line of credit can be used as needed, and only the funds that are actually borrowed accrue interest, this can help to manage cash flow.
- Backup Plan: A personal line of credit can act as a backup plan for when other sources of funds, like savings or credit cards, are unavailable or insufficient.
Do’s and Don't To Get The Best Personal Line Of Credits
Do's
- Be informed and aware: Take the time to understand the intricacies of the loan, including the interest rate, fees, and repayment schedule.
- Exercise responsibility: Use the line of credit wisely, only taking what you need and can repay in a timely manner.
- Monitor your credit score: A good credit score can result in lower interest rates and better loan terms, so keep an eye on it.
- Debt consolidation: Consider using the line of credit to consolidate high-interest credit card debt and save money in the long run.
Don't
- Unnecessary expenses: Avoid using the line of credit for frivolous or unnecessary expenses that won’t bring value to your finances.
- Over-extension: Don’t max out the credit line as this can have a significant impact on your credit score.
- Missed payments: Late payments result in fees and harm your credit score, so make sure to stay on top of your payments.
- Multiple applications: Applying for multiple lines of credit at once can also have a negative effect on your credit score, so be careful and considerate.
Personal line of credit rates in India vary depending on the bank or financial institution offering the loan. Generally, they range between 12-24% per annum. However, the exact rate will depend on various factors such as the applicant's credit score, income, and the bank's policies. It's best to check with multiple banks or a representative at Loanz360 to compare rates and find the best deal for you.
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Personal Loan Vs Line Of Credit
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Feature
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Personal Loan
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LOC
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Loan Amount
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₹50K - ₹50Lakhs
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₹5K - ₹500K
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Processing Time
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1 - 3 Days
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< 24 Hours
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Collateral On Loan
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Nil
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Nil
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Interest Accural
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Principal Rate
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Outstanding Rate
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Repayment Method
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Fixed EMI
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Flexible EMI
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Business Equipment Finance
Business equipment finance is a type of financing that allows companies to purchase equipment and machinery needed for their operations. Instead of paying for the equipment upfront, the business can finance the purchase and make payments over time. There are several types of equipment financing options available, including:
- Leasing: This option allows a business to use equipment for a specified period of time, typically 2-5 years, and make payments during that time. At the end of the lease, the business may have the option to purchase the equipment at a reduced price or return it to the leasing company.
- Loans: This option allows a business to borrow money to purchase equipment and make payments over a fixed period of time, typically 2-7 years. The business owns the equipment from the start.
- Line Of Credit: This option allows a business to have access to a certain amount of money for equipment purchases and only pay interest on the amount used.
- Vendor Financing: This option allows a business to purchase equipment directly from the manufacturer or supplier and make payments over time.
The terms of the financing will depend on the lender, the type of equipment being financed, and the creditworthiness of the business. It is important for a business to carefully review the terms and compare different options before making a decision.
How To Apply Personal Loan At Loanz360
Unleash your potential with a personal loan!
To secure a personalized loan experience at Loanz360, a premier online financial marketplace, follow these steps:
- Initiate contact with a Loanz360 financial advisor via the designated contact page to explore your loan prospects.
- Determine the ideal loan amount and preferred repayment term.
- Furnish the lender with your personal and financial information, including your name, address, income, employment status, and more.
- Supply your contact information and submit the loan application.
- Upon receipt of your application, the lender will evaluate and process it.
- Should your application be approved, you may be asked to provide additional documentation to fulfill loan requirements.
- Upon receipt of the necessary documentation, the approved loan amount will be promptly transferred to your designated bank account.
How Easy Is It To Apply For A Personal Loan Online
Unleash your potential with a personal loan!
With Loanz360 financial dealers, you can now get online personal loan approval easily and conveniently from the comfort of your own home. The process is simple and can be done at the tap of your fingers, making it quick and easy to get approved for the loan you need. No need to go to a physical location or wait in line, you can complete the entire process online with Loanz360. Plus, as we are financial dealers, we work with 30+ lending partners so you can find the best loan options for your situation.
Applying for a personal loan online at Loanz360, a financial marketplace, is considered to be the easiest and most convenient. The process typically involves filling out an application form with personal and financial information and submitting it for review.
The online application process at Loanz360 allows you to:
- Compare the rates and terms of different personal loan offers from different lenders.
- Fill out the application form with your personal and financial information.
- Submit the application form and required documents online.
- Get instant approval on the loan and quick disbursal.
- Track your loan status online.
At Loanz360, we do not offer personal loans with a repayment period of 60 days or less. We believe that our customers should have enough time to repay their loans without undue pressure or stress. Our personal loans come with flexible repayment periods ranging from 12 to 60 months, allowing you to choose a tenure that suits your financial needs and goals. We also understand that APR is an important factor to consider when taking out a personal loan. Starting at 15%, our maximum APR for personal loans span upto 36%, which is in line with local laws and regulations. This rate includes interest, fees, and other charges, and we ensure that it is calculated consistently and transparently for all our customers.
As an example, if you borrow ₹100,000 at an interest rate of 18% per annum for a period of 36 months, the total cost of the loan would be ₹132,310. This includes a processing fee of ₹2,000 (Take advantage of our special conditions and skip the processing fee at Loanz360) and an EMI of ₹3,676 for 36 months. We provide a detailed breakdown of all applicable fees and charges, so you know exactly what you’re paying for.
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Personal Loan @Loanz360
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Interest Rate
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9.90% p.a. onwards (@Loanz360.com)
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Loan Amount
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Can get upto 50 lakhs and upto 100 lakhs; subject to lender's policy
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Repayment Period
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1 to 6 years, and with certain lenders, it is possible to extend up to 7 years
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Prcoessing Fee
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0.5% - 4%+GST of loan amount (Upto 100% cashback on processing fee @Loanz360)
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Modes Of Loan Payment
The most common modes of repayment include Electronic Clearance System (ECS), Post Dated Cheques (PDCs), National Automated Clearing House (NACH), and Debit mandate or standing instruction.
- ECS is an electronic mode of transfer of funds from one bank to another and is widely used.
- PDCs are cheques issued by the borrower for a future date, which the lender will use to deposit or encash the amount mentioned on the cheque.
- NACH, offered by the National Payment Corporation of India (NPCI), allows for real-time processing of transactions and can be used for loan repayments.
- Debit mandate or standing instruction allows the borrower to instruct their bank to pay off a specific amount of money to another bank or bank account at regular intervals, and the bank will make the payments towards the loan repayment regularly.
Income Based Loans
In India, financial aid in the form of income-based loans, commonly referred to as “priority sector lending,” are proffered by banking establishments and other monetary institutions to persons and groups who fall under predetermined income categories or are part of specific professions. These loans serve as a means of providing monetary support to individuals who may not be eligible for conventional loans owing to the absence of collateral or credit history.
A few instances of income-based loan programs in India are:
It is not always possible to get a loan without providing any documents. Lenders typically require certain information and documentation to verify your identity, income, and creditworthiness. However, at Loanz360, we offer several options from lenders willing to offer "no document" or "low-document" loans, which may require less documentation than traditional loans. To find these types of lenders, you can search online for "no document loans","low-document loans", or contact us at Loanz360 to get further assistance and personalized options depending on your profile. Keep in mind that these types of loans may have higher interest rates and fees depending your requirement and profile. Do not miss on the best deals our financial providers have to offer, contact us at Loanz360 now to get easy loans without documents!
Obtaining a personal loan without producing necessary documentation can prove to be a challenging feat. Nonetheless, there exist several alternatives for borrowers to consider:
- Payday Loans: These are expeditious loans that are relatively easy to be eligible for and do not necessitate the provision of any supporting papers. Despite this ease, these loans entail incredibly high-interest rates and penalties, thus making repayment quite onerous.
- Credit Cards: A substantial proportion of credit cards do not require any paperwork and can be utilized for various expenditures. Regrettably, these options often come with substantial interest rates and fees.
- Peer-to-peer Lending: P2P lending platforms serve as intermediaries connecting borrowers to individual investors who are willing to finance loans. These loans may be more attainable than conventional loans and could offer lower interest rates.
- Home Equity Loans: For individuals possessing equity in their homes, they may be able to secure a loan by leveraging their equity as collateral. While these loans may offer lower interest rates compared to unsecured personal loans, they necessitate borrowers to have substantial equity in their homes.
- Guarantor Loans: This type of personal loan is supported by a third-party guarantee. A guarantor, generally a friend or family member, will guarantee to repay the loan in the event that the borrower is unable to. This loan alternative is easier to be eligible for but comes at a higher interest rate.
It is possible to get a personal loan without income proof or income verification, but it may be more difficult and come with higher interest rates. Some lenders may offer no-income-verification loans, but they may require collateral or a co-signer. Additionally, some online lenders may not require income verification, but they may have stricter credit requirements. It's important to understand the terms and conditions of any loan and the potential risks before applying.
Before you decide to shop around and compare offers from multiple lenders, using a financial marketplace can make this process easier, as it allows you to compare offers from a variety of lenders in one place. At Loanz360, we bring you the deals to the table without having to scourge for multiple lenders online. We help you find the best deals and solutions without having to waste your time and resources in conducting extensive market research. Get a free personalized quote now on your loan and avail of urgent cash loans without documents and no credit check instantly.
At Loanz360, we have partnerships with over 30 top financial providers in India. Our platform includes, but is not limited to, personal loan lenders such as:
- Navi personal loan
- HDFC personal loan
- SBI personal loan
- Axis personal loan
- ICICI personal loan
- Kotak personal loan
- Tata capital personal loan
- Shriram finance personal loan
- PNB personal loan
- IIFL personal loan
- Reliance personal loan
- Muthoot personal loan
- HSBC personal loan
- Indiabulls personal loan
- Hero fincorp personal loan
- Standard chartered personal loan
- LIC personal loan
- DBS personal loan
- Fullerton personal loan
- Punjab and sind bank personal loan
- HSBC personal loan
- Karur vysya personal loan
- Bank of baroda personal loan
- IDFC first personal loan
- Corporation bank personal loan
- Yes bank personal loan
- Personal loan bank
- Uco bank personal loan
- RBL bank personal loan
- Karnataka bank personal loan
- Best bank for personal loan
- Bank of Maharashtra personal loan
- Ujjivan bank personal loan
- Andhra bank personal loan
- State bank personal loan
- Karur vysya bank personal loan
- Syndicate bank personal loan
- Allahabad bank personal loan
To apply for a personal loan, borrowers must show evidence of income, job status, and creditworthiness. Personal loan interest rates can vary from 9.75% to 24% based on the lender and the borrower's credit history. Processing fees, ranging from 1% to 2% of the loan amount, may also be imposed by some lenders. However, at Loanz360, you can enjoy peace of mind with our cashback offer on processing fees of up to 100%. Explore our diverse offers before securing a personal loan.
Interest Rates
CURRENT PERSONAL LOAN INTEREST RATES START @ 9.50% P.A ONWARDS
Compare bank loan interest rates and check more deals offered on personal loans by our financial partners at Loanz360 in 2023.
Bank Name | Interest Rate (P.A) |
HDFC | 10.50% onwards |
Bank Of Baroda | 10.90% |
Kotak Mahindra | 10.99% |
Corporation Bank | 10.75% |
Karur Vysya Bank | 10.50% |
Citi Bank | 10.50% |
IDFC First Bank | 10.49% |
SBI | 11.00% |
ICICI | 10.50% |
Axis Bank | 10.49% |
Shriram Finance | 12.00% |
RattanIndia | 13.50% |
HSBC | 9.75% |
IIFL Finance | 12.75% |
Tata Capital | 10.99% |
IndusInd Pvt Ltd | 11.00% |
Bajaj Finserv | 11.00% |
Fullerton India | 11.99% |
Federal Bank | 10.49% |
Bank Of Maharashtra | 10.00% |
Aditya Birla Capital | 14.00% |
HDBFS Personal Loan | 13.99% |
Yes Bank | 10.99% |
Standard Chartered Bank | 11.49% |
Ujjivan Small Finance | 16.50% |
Muthoot Finance | 14.00% |
Home Credit | 24.00% |
Union Bank Of India | 10.30% |
Bank Of India | 12.15% |
Indian Bank | 10.00% |
IDBI Bank | 9.50% |
Navi Finserv | 9.90% |
PNB | 10.40% |
Canara Bank | 13.00% |
UCO Bank | 12.45% |
Dhanlaxmi Bank | 11.90% |
Punjab and Sind Bank | 10.40% |
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Fees & Charges
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|---|---|
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Processing Fees
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0.5% - 4% of loan amount (Upto 100% cashback on processing fee @Loanz360)
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Prepayment/Foreclosure
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Floating Rate: 0 Interest; Fixed Rate: ≈ 2% to 5% on the outstanding principal
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Cancellation & Rebooking
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₹1,000 - ₹3,000 + GST Included
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Legal Fee
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Lender Discretion
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Stamp Duty
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Lender Discretion
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Cheque Bounce
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≈ ₹300INR (+ GST)
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Late Fee Penality
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≈2% p.m, 24% p.a (Subject to conditions)
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FAQ
A personal loan is a type of unsecured loan. This means that there is no collateral in the form of an asset being used as security to ensure that the borrower will repay the loan. This makes it easier for borrowers to get approved, but they have a higher risk of defaulting on their payments.
Personal loans can be used for a variety of purposes, including consolidating debt, financing a large purchase, or paying for unexpected expenses.
Yes. However, discuss and explore options before applying for 2 unsecured loans at the same time. Some lenders may reject the loan if there are existing debts to be cleared and also the repayment burden may increase if you have two loans existing at the same time. Therefore, it is more advisable to take a top-up loan on the existing loan with the same bank if you have a good credit score and repayment record.
Yes, students can avail of a personal loan with several lenders under certain circumstances. The student may be required to have a good credit score or a stable income source depending on the lender’s discretion. Contact us at Loanz360 to get a free consultation on your loan procedure.
Before you apply for a personal loan, it is important to make sure that you have the best chance of being approved. You should also think about how much money you need and what type of loan would work best for your needs.
The minimum monthly salary necessary to qualify for personal loans differs among lenders. Nonetheless, for major lenders such as private and public sector banks, the minimum income eligibility is Rs. 15,000 per month or more.
The answer to this question is not that simple. It depends on the type of loan you are applying for and the lender that you are applying with.
There are many types of personal loans: car loans, mortgage loans, student loans, credit card debt consolidation loans…etc. It all depends on what you need money for and what your credit score is like. Preferably a credit score of 750 or above is likely to get you better deals on your loan. But an applicant with a poor credit score can also avail of a loan at Loanz360 under favorable lender conditions.
Personal loan amounts typically range from Rs 10,000 to Rs 50 lakhs and depend on your income and existing loan repayments. Lenders may use the Multiplier Method (10-24 times monthly income) or EMI/NMI Ratio to calculate the eligible loan amount, or a combination of both.
Once the loan application has been processed and the capital has been wired to a bank account or a check delivered into your hands, you are officially a borrower! You will be held responsible to pay the amount in its entirety with added interest rate over the agreed period of time (As in the agreement). But don’t worry, we’re here to help you every step of the way. You can benefit from Flexi personal loan options to avoid as such situation.
A Flexi personal loan is a type of loan that allows you to borrow money and then repay it over a period of time that suits you. It’s a great way to spread the cost of an expensive purchase, or to consolidate other debts into one manageable monthly repayment.
One of the best things about Flexi loans is that you only have to pay interest on the money you use, not the whole amount you’re approved for. This can save you a lot of money in interest payments, making Flexi loans a great option for savvy investors.
In an instance where the financier offers the customer a cash limit of Rs 15 lakh as a Flexi loan, and the customer has only used 2 lakhs to his requirement, then the customer will only have to pay for the amount he has used rather than the amount he has been sanctioned by the lender. This puts the customer at an advantage of accessing loans whenever he wants to without having to apply for multiple loans on multiple occasions because he has used out the cash he has applied for.
In a term loan, the financier will have sanctioned a loan to the borrower that he has to repay over a definitive period of time agreed by both parties involved in the exchange at the time of application, typically a term spanning between one and seven years at the most. While the borrower of a term loan makes regular payments in EMIs (monthly installments) until the loan has matured over its tenor, this type of loan is perfect for those who need a little help getting back on their feet financially.
There are two types of term loans:
Secured Loan: Secured loans are loans obtained against collateral or security pledged to access funds.
Unsecured Loan: Unsecured loans do not require collateral to avail of a loan depending on several key parameters such as loan amount, creditworthiness, etc.
The process may differ from bank to bank; some banks demand a fee or charge for canceling the loan while other banks allow the borrower to prepay under a preset of certain terms and conditions of the lender. However, you may discuss your concerns and demands with our marketplace or the lender before applying for the loan and waive off your charges on fees and taxes that may be applied due to improper knowledge or negligence.
If your cheques bounce, you may be charged as a criminal as per the RBI guidelines for personal loan defaulters. This will reflect badly on your credit score and may make it difficult for you to obtain loans in the future. You should take measures to avoid this by ensuring that you have sufficient funds in your account to cover your cheques.
If you have excellent credit, you can find a personal loan that fits your needs. You may be able to get a lower interest rate and a longer repayment term. If you have good credit, you can find a personal loan with a competitive interest rate and a reasonable repayment term. If you have bad credit, you can still find a personal loan, but you may have to pay a higher interest rate and a shorter repayment term.
It is possible to obtain a personal loan even if you do not have salary slips. You may provide your bank account statement, a copy of Form 16, an employee certificate from your employer, or other evidence of income to meet the eligibility requirements. Nevertheless, it is advisable to double-check with the lender regarding the necessary documents because the requirements may differ from one bank to another.
Lenders allow pre-payments/pre-closure during the loan term, but a fee may apply. Most lenders require a minimum of 1 year before prepayment is allowed. Inform your lender if you plan to prepay/pre-close.
To cancel your loan application, submit a written request before the loan is disbursed. Pay a cancellation fee to the lender. Once disbursed, cancellation is usually not allowed, but pre-closing is an option. To avoid high interest rates, consider transferring the outstanding balance to another bank.
Unlike personal loans, this type of credit will allow interest rates to only rack up on the amount utilized rather than the principal amount allotted. Once the PLOC is paid back in full, you will have the option to draw money again or to close the account, as you wish. To read more, click here.
DTI or debt-to-income ratio is a substitution of your monthly debts from your monthly gross income. This ratio is expressed in percentage and will determine your potential to pay debts.
While an ideal DTI is usually reported from anywhere between 20% to 35%, this might well vary from lender to lender. Therefore, if you are someone with a DTI ranging between the ideal spectrum, you might as well attract lower interest rates with the lender by negotiating terms. To read more, click here.
Whether you have excellent credit or are working to rebuild your credit history, you can find a personal loan that fits your needs. And, thanks to flexible credit and income requirements, personal loans are easier to qualify for than ever.
You can get an instant loan without documents at Loanz360, with our leading financial partners. Contact us today to know the latest bank loan interest rates and offers on a personal loan.
Not only do we have instant approvals and excellent approval rates at Loanz360, but our partners are willing to provide services for users with bad credit or poor profiles to create a sense of security among our customers. Get assigned an agent for yourself at Loanz360 who will assist you through the procedure towards the disbursal from working towards handling documents to processing loans in no time. With us, you can also escape those pesky taxes and fees that may be worrying you since the dawn of your financial independence. To know more, read here or call us at Loanz360.
