Personal Loan Interest Rates

Personal Loan is an unsecured Loan which is granted to the customer based on his salary. In Personal Loan Interest Rates, the loan taker do not need to keep his assets as a mortgage with the bank. This type of Loan is very much in trend nowadays. Higher is your salary the more amount of Loan you can claim from the bank.

For these type of loans, all you need to have is a good CIBIL score. CIBIL is a credit rating agency, and its work is to provide a credit score of the persons, on their past credit history. Before giving credit to the applicants, the banks check their CIBIL score and then decide about providing the credit to the applicant.

 Eligibility criteria for Personal Loan Interest Rates:

For taking Personal Loans, the applicant is of two types:

  1. Salaried
  2. Self-employed

First, we will discuss Salaried employees:

For claiming a Personal Loan, the applicant must meet the following criteria in addition to a good salary and good credit score, which are

  1. It is essential that the applicant has completed 21 years of age at the time of taking the Loan.
  2. Further, it is important that the person is earning at least Rs.18,000 per month.
  3. Additionally, the person must have three years of work experience.
  4. Moreover, he/she must be getting a salary in the bank account only.
  5. Lastly, the credit history of the applicant needs to be good.

Now let’s see the criteria for self- employed persons:

  1. First of all, the self –the employed worker must be of at least 25 years of age.
  2. At least for the last three years, he/she should be filling the ITR.
  3. Their CIBIL score should be good.
  4. The ITR filed by him should be at least  2.5 lakhs per year.

Time Period

The time period for claiming a Personal Loan can vary from 1 year to 5 years, depending on the need of the persons applying for the Loan.

Documents for Personal Loan

The documents required for salaried individuals are:

  1. Identity Proof: For this purpose, all you need is a Pan Card/ Aadhar Card/ Valid Passport/ Voter Id Card, or it can be a Valid Driving License.
  2. Address Proof: Ration Card, Passport, Rent agreement, Electricity Bill.
  3. six months bank passbook or it can be the last three months bank statement.
  4. Latest Form 16.
  5. Recent Salary Slip or recent salary certificate.

Documents required for self-employed employees:

  1. Pan Card: For Firm/ Company/ Individual.
  2. Address Proof: Aadhar Card/ Passport/ Voter Id card
  3. Identity Proof: Passport/ Aadhar Card/ Driving License/ Pan Card
  4. Latest six months Bank Statement.
  5. Proof of Continuation.
  6. Certified Copy of Partnership Deed or a Sole Proprietorship Declaration, Certified original Copy of Memorandum and Articles of Association (certified by Director) and Board resolution.
  7. In addition to the above documents, the other main document is the latest ITR along with computation of income, recent Balance Sheet along with Profit & Loss a/c for the last two years, certified by a CA.

 Personal Loan Interest Rates and Processing   Fees:

Many banks charge different types of Personal Loan Interest Rate and Processing Fees, which can be seen as follows.

Bank Interest Rates Processing Fees
HDFC Bank 10.99% to 18% 2% to 2.5%
ICICI Bank 13.99% to 18% 2%
Fullerton India 17.25% to 32% 2% to 3%
Bajaj Finserv 13.99% to 16.75% 2% to 3%
Axis Bank 15.50% to 24% 1.5% to 2%
Standard Chartered Bank 15.75% to 22% 2% to 3%
Kotak Mahindra Bank 13.75% to 19% 2%
Andhra Bank 13.50% to 22% 0.5% to 1.5%
Bank of Baroda 13.50% to 19% 2%
Vijaya Bank 13.75% to 22% 1.5% to 2%
Corporation Bank 14.50% to 20% 1.5% to 3%
Allahabad Bank 13.70% to 20% 1.5% to 2%