Personal Loan: Eligibility, Benefits, Documents and Interest Rates
Personal Loan is a type of Loan taken by an individual from any Bank to meet any of their personal unplanned needs/emergencies. It is a short to medium term unsecured loan (no collateral) that you can use to meet your financial needs. A personal loan may be used for practically any type of expense. This can be availed by:
- Salaried Professionals (Salary getting credited to Bank Account)
- Self Employed Professionals like Doctors, Architects, CA, etc
- Self Employed Non-Professionals who runs a Business (Like Trader, Manufacturer, etc)
Personal Loan: Benefits
- No Collateral Required: Loans are offered on the basis of an applicant’s credit history, income details, age, etc.
- Multipurpose Use: Unlike other loan options, a personal loan can be used as per the requirements of a borrower without any preconditions.
- Flexible Tenure: In a personal loan, borrowers get flexible tenure of up to 5 years to repay the loan amount, thus, making it more preferable than other credit options.
- Simple Documentation Process: To apply for a personal loan minimum documentation is required and is often approved within 48 hours of submitting an application.
- Flexible Quantum of Loan: Lenders offer personal loan for requirements as low as Rs. 10,000 to as high as Rs. 40 lakhs.
Personal Loan: Eligibility
For Salaried,
- Age: 21-60 years
- Income: Minimum Rs15,000
- Credit Score: Above 750
- Loan Amount: Rs 25,000 to Rs 20,00,000
For Self-Employed,
- Age: 21-68 years
- Income: Minimum turnover of Rs 30 lakhs for non-professionals and Minimum turnover of Rs 15 lakhs for professionals.
- Credit Score: Above 750
- Loan Amount: Rs 75,000 to Rs 35,00,000
Personal Loan: Documents required
For salaried,
- Proof of identity (Passport/Voter ID Card/Driving License/Aadhaar)
- Proof of residence (Passport/Voter ID Card/Driving License/Aadhaar/Leave and License Agreement/Utility Bill of not more than 3 months)
- A copy of the latest salary slip/current dated salary certificate with theForm 16
- Bank statement of the previous 3 months
- 2 passport size photographs
For Self-Employed,
- Proof of identity (Passport/Voter ID Card/Driving License/Aadhaar
- Proof of residence (Passport/Voter ID Card/Driving License/Aadhaar/Leave and License Agreement/Utility Bill of not more than 3 months)
- Proof of income (audited financials for the last 2 years)
- Proof of office address
- Proof of office ownership
- Proof of continuity of business
- Latest 6 months bank statement
- 2 passport size photographs
Personal Loan: Top 5 Providers
- State Bank of India- It lends the loan amount between Rs 25,000 to Rs 15,00,000 with the interest rate of 11% onwards and processing fees of 1% of the loan amount.
- AXIS Bank- It lends the loan amount between Rs 50,000 to Rs 15,00,000 with the interest rate of 11.49% onwards and processing fees between 1.5% to 2% of the loan amount.
- ICICI Bank- It lends the loan amount up to Rs 20,00,000 with the interest rate of 11.10% onwards and processing fees up to 2.25% of the loan amount.
- HDFC Bank- It lends the loan amount between Rs 50,000 to Rs 40,00,000 with the interest rate of 10.99% onwards and processing fees up to 2% of the loan amount.
- Bajaj Finsery- It lends the loan amount to Rs 35,00,000 with the interest rate of 12.99% onwards and processing fees up to 3.99% of the loan amount.
