Lowest Personal Loan Interest Rate in India 2017
Last Updated 17th Mar 2017
✓ Most reduced personal loan interest rate beginning @11.29%*. Look at and get the best personal loan interest rate offers from banks
✓ Get instant personal loan interest rate online
✓ Greatest loan residency up to 5 years
✓ Part Payment, nil foreclosure charges alternatives accessible.
Personal Loan Qualification Check
You might be qualified from at least one banks in India on the off chance that you meet the accompanying qualification conditions:
| Qualification Criteria for Personal Loan | |
|---|---|
| Minimum and Maximum Age |
Note: However, many banks require the minimum age of 23 years |
| Loan Amount |
Note: A few banks additionally limit the most extreme qualification at 10 – 22 times next month to month pay |
| Net Monthly Income |
Note: A few banks indicate higher least salary prerequisite for individuals remaining on the lease |
| Employment Type |
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| Minimum Work Experience |
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| CIBIL Score for Personal Loan |
Note: Most banks avoid from giving loans in the event that you have low FICO rating |
Lowest EMI for Personal Loan
Personal Loan EMI is the sum that you pay each month to the bank or money related establishment keeping in mind the end goal to reimburse your loan. EMI is made out of both the vital sum and intrigue part. Intrigue part on your EMI is higher in early months and lessened with each EMI. EMI Calculator helps you to ascertain your month to month EMI at sought loan fee for a specific residency.
EMI relies on loan sum, financing cost, and loan residency
- Loan amount – If you apply for a high loan amount, then your EMI will be high
- Interest rate – the Higher interest rate on your loan leads to the high amount of EMI
- Loan tenure – EMI on personal loan reduces in case of high loan tenure
Comparison of Personal Loan Interest Rate in India
- Personal Loan processing fees – Most banks charge minimum processing fees of Rs. 999 to up to 2%. To get the lowest fee, personal loan comparison, offers and cashback applying online through LoanKorner.
- Insurance premium – Since these are unsecured loans, it is advisable to take an insurance policy when availing a loan. However, the premium varies from bank to bank depending upon the risk coverage under various policies. So, check the loan sanction letter carefully to know the coverage and premium.
- Personal Loan prepayment and foreclosure – No one needs to continue paying interest on a loan when you have surplus cash accessible to reimburse it. When you need to reimburse your loan mostly before time, it is called part prepayment. In the event that you choose to pay the whole loan sum before time, it is called dispossession. Banks regularly demand prepayment or abandonment charges in such circumstances and these can run from nil to even up to 5%. In this way, check deliberately if the low financing costs personal loan you are getting accompanies high prepayment or dispossession charges. Take note of that a few loans can’t be reimbursed before time.
Do’s and Don’ts while taking Personal Loan
To get best and lowest personal loan interest rate online, read the do’s and don’ts mentioned below.
| Do’s | Don’ts |
|---|---|
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Checklist for Personal Loan
- Identity proof
- Residence address and ownership proof
- Income proof
- Photo identity proof
- Bank continuity proof
- Bank statement
- 1 passport size photograph
- Latest ITR
- CIBIL Score and report
- Investment proof if you have any Fixed Deposit, Shares, Fixed Assets, etc
Documents Required for Personal Loan
| Documents ID | Individuals | Firms, Partnerships |
|---|---|---|
| Signed Application Form | Required | |
| Identity Proof | PAN card, Passport, Driving License, Aadhar Card, Voter id, Govt issued i-card | |
| Certificate and Proof of Business Existence | PAN, sales tax/ excise/ VAT/ service tax registration, Copy of partnership deed, Trade license, certificate of practice, the registration certificate issued by RBI, SEBI | |
| Address Proof | Passport, Driving License, Election ID card, Electricity/ Telephone/ Mobile bill/ bank statement (not more than 3 months old) | Bank statement, utility bill, Registry copy, lease or rent agreement, TAN allotment letter |
| Age Proof | PAN card, Passport, Driving License, Voter id card, Birth certificate, Employee ID card (only for PSU/ Government employees), School/ college leaving certificate | |
| Income Proof | Last 2 years Form 16, last 6 months salary slip, last 6 months’ bank account statement showing salary credit | Last 2 years ITR, last 6 months bank account statement |
| Maximum Annual Percentage Rate (APR) | 11.69% to 22.4% |
| A representative example of the total cost of the loan, including all applicable fees |
Here is an illustration of the total cost of the loan:
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Frequently Asked Questions on Personal Loan
Why do I need a personal loan?
Personal loans are usually taken to meet short-term needs. Generally, the purpose of this loan is to pay off credit card debts, family vacation, wedding, medical emergency, etc. Personal loan Interest rate is mostly fixed and higher than other loan types. So, a loan should be taken only in case of emergencies. Also, you should have a plan that you can make all your repayments on time. If you have a low CIBIL score, then you should not apply in multiple banks for a loan as each rejection will drop your CIBIL score.
How can I apply for a personal loan?
You can apply in several ways. You can directly visit the bank branch and meet the salesperson, contact a loan agent or apply online at any bank or NBFC’s website. You can also compare personal loan interest rate of all banks online at LoanKorner and apply for a personal loan.
What are the minimum and maximum tenure of a personal loan?
These are generally taken for a short period of time. Generally, personal loan tenure is between 12 months to 60 months.
What are the charges for a personal loan?
Apart from rate of interest, there are two types of charges being charged by the banks.
- Personal loan processing fee: This is charged when you apply for the loan. The processing fee charged on the personal loan is 2 – 3% of the loan amount and could be reduced if you can bargain.
- Personal loan preclosure fee: This is charged when you close your loan before the completion of the loan tenure. Prepayment penalty charged up to 5% of the loan amount.
Is CIBIL Score for personal loan important?
Personal loan CIBIL score is vital. The great CIBIL score shows great reimbursement record and thus banks can offer you higher loan sum at a low rate of premium. Terrible CIBIL Score will bring about either loan at the higher financing cost or reject the loan application.
Do I need to open a bank account to service my personal loan?
Yes, you need no less than one practical financial balance in your name. It is far superior in the event that you have a record with a similar bank from which you might want to get a loan.
Can I apply for a personal loan jointly with my spouse?
Yes, you can apply for a personal loan together with a co-candidate (either be your companion or your folks). This helps you to expand your qualification and you can likewise benefit for a higher measure of the loan as your to candidate’s pay additionally gets added to your pay and that aggregate is thought about for computing the loan sum you will be qualified for.
Does it affect my co-applicant if I default on a personal loan?
Yes, in the event that you neglect to pay the loan on time then it will likewise influence your co-candidate as default in the loan will influence his/her CIBIL rating also.
What are the main factors that affect interest rate of a personal loan?
These are unsecured loans so it has a higher rate of intrigue. Enthusiasm on pl relies on components like loan sum, organization class, and your net pay. High salary and great organization profile can loan you high loan sum at a low financing cost.
Can I do balance transfer on personal loan?
Yes, in the event that you are getting a higher rate of premium and paying higher EMI than different banks, then you can select personal loan to adjust exchange and decrease your month to month trouble.
Can I get a top up on a personal loan?
Yes, you can get a top-up loan yet terms and conditions change from bank to bank.
How can I prevent rejection of my loan application?
Banks or NBFCs give a personal loan to those borrowers about whom they are certain that he/her can reimburse the loan. You have to know a couple of things in the event that you don’t need your application to get rejected:
- Work solidness for a personal loan is imperative. You should be steady in your present place of employment as excessively numerous occupation changes can affect adversely at the season of loan endorsement
- Try not to have many loans running at one time. Banks can dismiss your application on the off chance that you are now paying an excessive number of EMI’s in the meantime.
- Try not to give you landline number for tele-confirmation on the off chance that you realize that no one else is there at home when you are grinding away. A writing botch in flat number can likewise put a negative effect on loan specialists. Banks or moneylenders continue including these little things and reject your loan application.
What should I do if my personal loan application gets rejected by the bank?
Some conceivable reasons why your application gets rejected are as of now running numerous loans and henceforth a bank might be in uncertainty about your reimbursement capacity of another loan.
- For this situation, on the off chance that you have a life partner who is additionally working, you can include her as a co-candidate to support the joined pay levels.
- Clear your old obligations first so that your use levels descend.
- One all the more thing you can do is adjust exchange of your current loans so that the rate of enthusiasm on loans can descend and an extra loan can be profited.
