Loan Solutions from Our Trusted Members
The Annual Percentage Rate (APR) ranges from 10.5% to 45%. The Annual Percentage Rate is the total annual cost of your loan expressed in percentage. It includes the yearly rate of interest charged by the lender and other fees levied such as processing fees, administrative charges, loan insurance costs, etc.
Lenders require different kinds of documents to be submitted for the verification of your identification, source of income, capacity to repay, and residence address while applying for an instant personal loan. Most follow common standards, but their criteria may vary a little in each case.
For Salaried Individuals:
Requirements | Salaried individuals |
---|---|
Proof of identity | Aadhaar card, Driving license, Voter’s ID, PAN card or Passport. |
Proof of address | Aadhaar card, Voter’s ID, PAN card or Utility bill. |
Proof of income | Salary slips, Bank statement, Form 16. |
For Self-Employed Individuals:
Requirements | Salaried individuals |
---|---|
Proof of identity | Aadhaar card, Driving license, Voter’s ID, PAN card or Passport. |
Proof of address | Aadhaar card, Voter’s ID, PAN card or Utility bill. |
Proof of income | Bank Statements, Previous Years’ ITR, P&L Statement and Balance Sheet. |
The interest rate provided on a personal loan depends on the credit profile of the applicant, the lender's credit risk-based pricing model, the cost of funds, and other such factors. Therefore, borrowers have to continuously look for the best interest rates according to their credit history, as an interest rate defines the overall cost of borrowing of a personal loan.
Banks | Interest rates |
HDFC Bank | 10.85% onwards |
State Bank of India | 11.45% onwards |
Axis Bank | 11% onwards |
Kotak Mahindra Bank | 10.99% onwards |
IndusInd Bank | 10.49% onwards |
Bandhan Bank | 9.47% onwards |
ICICI Bank | 10.85% onwards |
IDFC Bank | 10.99% onwards |
Canara Bank | 10.95% onwards |
Federal Bank | 11.49% onwards |
Punjab National Bank | 9.40% onwards |
Union Bank of India | 11.35% onwards |
Indian Bank | 10% onwards |
Yes Bank | 11.25% onwards |
Bank of India | 10.85% onwards |
Bank of Baroda | 11.05% onwards |
IDBI Bank | 11% onwards |
AU Bank | Up to 30% |
Source: Bank’s Website
Your income and credit score are some factors which determine the loan amount that one can take. As reported by Paisabazaar, personal loans are given to a bank client up to ₹50 lakh in general.
Applications for personal loans are usually assessed and approved in seven business days after they have been submitted. However, other circumstances may delay the approval time.
Yes, personal loans are flexible, and one can use them to meet a wide range of purposes, including commercial needs. Personal loans are not only limited to personal expenses.
A personal loan may have a positive or negative impact on your credit score. Over time, responsible repayments and timely EMI payments would increase your credit score. However, even one delayed or missed payment can significantly bring down your credit score.
You can remove the monthly EMI burden early if you clear the personal loan fully. However, most banks do charge an amount known as a foreclosure fee when repaying before time. This amount depends upon the respective policies of the banks.