Your Personal Loan Interest Rate Guide For 2018

By Shipra Sharma | October 9, 2018

Here is your Personal Loan interest rate guide to make sure you get the right loan that fits your needs. Read on. 

It really doesn’t matter how prepared you are to face financial emergencies in life because there comes a time when you may need a little cash to come out of a financial crunch. During those times, you may or may not always have a friend or relative to help you out, and that’s when a Personal Loan really comes in handy. It gives you the option to tackle your financial crisis on your own without having to depend on anyone for help.

A Personal Loan is simply an unsecured loan taken from a bank or a Non-Banking Financial Company (NBFC) to meet your personal needs. It is provided on the basis of various factors such as your income, credit history, employment details, and repayment capacity, etc.  As it is an unsecured loan, you are not required to pledge collateral like gold or property to avail it. Hence, in case of a default,  the lender cannot auction anything you own.

A Personal Loan can be ideally used for a wide variety of purposes like opening a new business, funding medical emergencies, paying additional debts etc.

Additional Reading: A Personal Loan Could Be Your Very Own Superhero

Opting for a Personal Loan is helpful when you are stuck in a financial crunch, but do remember that you have to repay the loan. So it’s wise to calculate your Personal Loan EMIs along with your monthly expenditures to strike a perfect balance between your monthly savings and expenditures.

Banks generally have different interest rates for Personal Loans, which may vary depending on several factors. So here’s a quick guide to Personal Loan interest rates offered by some of the popular banks in the country.

Standard Chartered Bank Personal Loan

Interest Range: 11.50%-14.50%

Eligibility Criteria:

  • You should be at least 22 years and less than 58 years.
  • Your minimum income needs to be Rs. 60,000 per month.
  • You should have a valid ID proof like passport, pan card, driving license, voter ID card and photo ration card.

Features:

  • It offers loans up to Rs. 30 lakhs for salaried employees and up to Rs. 10 lakhs for entrepreneurs.
  • You can take out a Personal Loan without the need for security, collateral or guarantors.
  • It doesn’t charge any processing fee.

Fees and Charges:

  • It charges a pre-closure fee of 5% of principal outstanding plus applicable service tax. (Pre-closure permitted only after first year)

Tata Capital Personal Loan

Interest Range: 10.99%-25.00%

Eligibility Criteria:

  • You should be at least 24 years and less than 55 years.
  • You should have valid ID proof like passport, pan card, driving license, voter ID card and photo ration card.

Features:

  • It offers loans up to Rs. 20 lakhs for professionals and up to Rs. 15 lakhs for entrepreneurs.
  • You can take out a Personal Loan without the need for security, collateral or guarantors.
  • It doesn’t charge any processing fee.

Fees and Charges:

  • 25% part-payment is allowed with a year of taking the loan at zero charges.Payment of more than 25% of the outstanding principal will attract 2% prepayment charge.
  • It doesn’t charge any processing fee.
  • Foreclosure charges: 4.5% of the principal outstanding at the time of foreclosure plus service tax.

IndusInd Personal Loan

Interest Range: 11.00%-16.00%

Eligibility Criteria:

  • You should be at least 21 years and less than 60 years.
  • Should have completed minimum two years in employment and minimum one year in the current organisation.
  • Should have completed minimum one year of stay at the current residence, if rented.
  • You should have a valid ID proof like passport, pan card, driving license, voter ID card and photo ration card.

Features:

  • It offers loans up to Rs. 25 lakhs depending on your eligibility, income, nature of job and repayment capacity.
  • You can take out a Personal Loan without the need for security, collateral or guarantors.
  • It doesn’t charge any processing fee.

Fees and Charges:

  • Foreclosure charges: 4% of the principal outstanding after repayment of 12 EMIs.

ICICI Bank Personal Loan

Interest Range: 11.00%-18.25%

Eligibility Criteria:

  • You should be at least 23 years and less than 65 years for salaried professionals.
  • Minimum net monthly income should be Rs. 15,000.
  • You should have a valid ID proof like passport, pan card, driving license, voter ID card and photo ration card.

Features:

  • It offers loans up to Rs. 20 lakhs depending on your eligibility, income, nature of job and repayment capacity.
  • Conditional pre-closure – only after six months.
  • You can take out a Personal Loan without the need for security, collateral or guarantors.

Fees and Charges:

  • Foreclosure charges: 5% of the principal outstanding amount.
  • Processing Fee: Up to 0.75% p.a. of the loan amount plus service tax.

HDFC Bank Personal Loan

Interest Range: 10.99%-21.25%

Eligibility Criteria:

  • You should be at least 21 years and less than 60 years for salaried professionals.
  • Minimum net monthly income should be Rs. 20, 000 (Rs. 25,000 in Madhya Pradesh)
  • You should have a valid ID proof like passport, pan card, driving license, voter ID card and photo ration card

Features:

  • It offers loans up to Rs. 40 lakhs depending on your eligibility, income, nature of job and repayment capacity.
  • You can take out a Personal Loan without the need for security, collateral or guarantors.

Fees and Charges:

  • Processing Fee: Up to 2.50% of the loan amount subject to a minimum of Rs. 1,000 & maximum of Rs. 25,000 for salaried customers.
  • Part-payments can be made only after completion of 12 months. For part payments between 13 to 24 months, a fee of 4% is applicable on the part-payment amount. 3% is applicable to payments made between 25 to 36 months. 2% is applicable post 36 months.
  • Part-payments are allowed only twice during the loan tenure and once a year, and the amount cannot exceed 25% of the principal outstanding.

Fullerton Personal Loan

Interest Range: 12.49%-33.00%

Eligibility Criteria:

  • You should be at least 21 years and less than 65 years for salaried professionals.
  • Minimum net monthly income should be Rs. 25,000.
  • You should have a valid ID proof like passport, pan card, driving license, voter ID card and photo ration card

Features:

  • It offers loans up to Rs. 15 lakhs for salaried professionals and self-employed.
  • You can take out a Personal Loan without the need for security, collateral or guarantors.

Fees and Charges:

  • Foreclosure charges: 7% of the principal outstanding amount.

Additional Reading: 4 ‘I’s of Personal Loan Rejection

Once you zero in on the bank after taking into consideration different interest rates and other charges, the next ideal step is to calculate your monthly EMIs that you would have to pay back each month. This will help you get an estimate of how much money you would require to shell out each month and will help you plan your finances accordingly.

To calculate your monthly EMIs, you can make use of a Personal Loan EMI calculator which is an online tool that helps you calculate your EMIs easily.

In order to use the online EMI calculator, you just need to enter the following details:

  • Tenure of the Personal Loan

You need to select the time period over which you intend to pay back the loan. Generally, the repayment tenure for a Personal Loan ranges from 12 months to 60 months. However, it varies from one bank to another.

  • Desirable loan amount

Enter the loan amount you wish to apply for. Ideally, your Personal Loan should not exceed 10% of your income. Therefore, exercise caution when deciding the loan amount so that you don’t let yourself fall into a debt trap later on.

  • Amortisation details

Amortisation details help you understand your principal Personal Loan amount, interest paid till date and the details of your outstanding loan amount on a half-yearly or annual basis.

  • Interest rate and processing fee

Next step is to enter the interest rate offered by your desired bank. Do take note that interest rates depend on various factors like Credit Score, income level, loan amount and tenure, previous relationship with the lender, etc.

Additional Reading: Your Personal Loan EMI Calculator Is Here

Once you enter these details, you will get an estimate about just how much you need to shell out each month to repay the loan amount.

A Personal Loan is a fast, easy and reliable way to tackle your financial crunch without hassles. So make an informed choice right away! Now that you know about the Personal Loan interest rates and your monthly EMI amount, don’t forget to check your eligibility online to apply for a Personal Loan

Additional Reading: 10 Ways You Can Use A Personal Loan To Get The Most Out Of 2017

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit www.bankbazaar.com for the latest rates/offers.
Category: Personal Loans UCN
Shipra Sharma

About Shipra Sharma

Shipra left her job as a correspondent with Outlook Money to be a full-time content superstar at BankBazaar. Apart from a passion for Personal Finance, she is a lover of beaches, coffee, books, and comics. Though believes she is no orator, she certainly has a point of view when it comes to writing.

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