|Refer to T & C -
|Bank Name||Pre Payment Charges||Processing Fees||Loan Disbursement Time||Maximum Loan Amount|
|HDFC Bank Personal Loan||4.00%||0.8% – 1.75% (for Special Companies) 2% (HDFC)||2-3 working Days||Rs.50,000 to 15 lakhs|
|ICICI Personal Loan||5% Or Nil (For Loan Amount More Than 10 Lacs)||0.8% for special companies else 2%||3-4 Working Days||Rs.50,000 to 15 lakhs|
|State Bank of India Personal Loan||Nil||2.02%-3.03%||1 Week||Determined by your income and repayment capacity.|
|Bajaj Finance Personal Loan||Nil||2.00% – 2.50%||48 Working Hours||Upto 25 lakhs|
|Fullerton India||4.00%||2.00%||2-8 Working Days|
|IndusInd Bank||N.A||4 Working Days||Rs.50,000 to 15 lakhs|
|Axis Bank Personal Loan||Nil||2.00%||1 Week||Rs.50,000 to 15 lakhs|
|ING Vysya||0% (Valid till 31st December 14 )||0.5 - 2%||1-4 Working Days||Loan up to 15 Lac*|
|Kotak Mahindra||5.00%||1.50% - 2.00%||3-4 Working Days||Rs. 50000 to Rs. 15 Lakhs|
• Compare Interest Rates: Unsecured Loan can be compared primarily on the basis of interest rates which vary across banks depending on your profile which is further linked to your occupation, salary/income, credit history etc and the company that you work with. The personal loan interest rates ranges from 12% to 25%, you must go for that loan which is offering you at the minimum rate. These rates are lowest if you are working in top 5000 companies in India and you have income above 75000 and you have a good cibil track.
• Other Charges: You should also check on the other charges like processing fee, pre-payment penalties and documentation fee because they increase the overall loan cost and vary widely across banks. Processing fee range is between 0.5% to 2.5% and prepayment charges are in range of 0-5%.
• Evaluation of various Loan offers: You should first calculate the entire loan cost across banks which constitute the rate of interest & other charges. Evaluate offers keeping the tenure of the loan constant & compare the rate of interest, EMIs & other charges. This process will help you get the Best Loan deal.
• EMIs: EMI is the monthly equated installment which constitutes the principal amount and the interest on the principal equally divided across each month in the loan tenure.
• Tenure: Tenure is the time frame for the loan payments to be paid back to the bank; it ranges from 1 year to 5 years. If you have a longer tenure you will end up paying more interest & will have lower EMI, on the other hand shorter loan tenure will carry higher EMIs & the interest amount is less. You must compare the loan offers by keeping the tenure constant.
• Eligibility Check: Before taking a loan you must know the eligibility criteria’s offered by various banks on the basis of which they offer loans and also compare personal loan banks. Checking the eligibility parameters will help you find the best loan deal. Check out your eligibility by various banks.
• Turnaround time: It becomes one of the most important factors in evaluation of your loan application when you are in a dire need of money. Turnaround time is the time which banks take in processing your loan application; you must check this parameter which varies from bank to bank.
How does 0 % Prepayment help
If you have taken a personal loan and you expect some money to come in between the tenure of personal loan which you can return. By returning the loan amount before the tenure will save you a lot. Eg. If you take up a Personal Loan of 1 Lac for a tenure of 4 years @ 15% ROI with 0% prepayment. You will be able to save approx Rs. 3,925 per Lac if you foreclose you loan after one year; Rs. 2766 per Lac if you foreclose your loan after two years; Rs. 1421 per Lac if you foreclose your loan after three years of repayment.
Benefits of Personal loan1. A Loan without security: A Personal Loan is not a secured loan (bank doesn’t ask for any security or collateral) as against a Secured Loan where one is required to pledge a house or other security to acquire a loan.
In case of Salaried||
In case of Self Employed|
How does the Cibil Score affect your loan application?This a norm wherein the banks before giving Personal Loan checks the database of all loan borrowers in the country by the Credit Information Bureau of India (CIBIL) which is called the Cibil Score. If there has been a default in your loan payment; your loan application would certainly be rejected. Your Cibil score ranges from 100 to 999, for instance if your credit score is 100 then your loan application might be out rightly rejected. On other hand if it is higher say 800, then your loan application would be processed faster & will be rewarded with lower interest rates & discounts in processing fee & other charges.
Reducing Interest Rate or Flat Interest Rate, which is better?The Interest Rates vary between 14% and 25% depending on your profile & payment ability. There are basically two types of interest Rates offered by banks which are
|ING Vysya Bank||13.75%-18.75%|
|HDB Financial Services||16%-21%|
|Indus Ind Bank||14%-16.50%|