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Personal Loan
Personal loan is an unsecured short to medium term loan and one of the most popular kinds of loans. You can use the funds availed to meet requirements ranging from emergency medical expenses, wedding costs, travel needs, etc. Fincity offers you a platform to easily compare top Personal Loans from India’s premier lenders, apply and get it sanctioned in a matter of minutes!
Avail personal loans of up to Rs.50 lakhs and even more at interest rates starting at just 10.49% per annum for a tenure of up to 7 years. The processing fee charged depends on the lender you go with and may range from 0% to 3% of the borrowed amount + GST.
| Personal Loan Summary | |
|---|---|
| Interest Rate | 10.49% p.a. onwards |
| Loan Amount | Up to Rs.50 lakh |
| Loan Tenure | Up to 7 years |
| Processing Fee | 0% - 3% of the loan amount + GST |
Personal Loan Eligibility
Here are some factors the lenders takes into account when evaluating your loan application. Your loan will be approved only once you meet these personal loan eligibility criteria.
| Criteria | Salaried | Self-Employed |
|---|---|---|
| Age | 21 years to 60 years | 22 years to 55 years |
Popular Types of Personal Loans
A personal loan can be typically used to fund any financial need that’s legal. Having said that, certain lenders offer unique loan products that are designed to meet specific needs. The borrower will have to mention the purpose in the application to avail of these products. Here are the different types of personal loans based on utilisation.
Wedding
This loan is designed to fund all the expenses for a marriage.
Education Loan
You may avail of this loan to meet educational purposes ranging from paying tuition fees to other academic expenses.
Vacation
Holiday loans can be used to pay expenses for your vacation. You can repay the loan later via regular EMIs.
Festivals
Festivals can be expensive; this loan is offered to specifically fund those costs.
Home Renovation
A home renovation loan caters to your home repairing and renovation expenses.
Pensioners
This is specifically created to meet financial needs of pensioners.
Top up
This allows you to borrow a certain amount of money over your personal loan. You can use this when you suddenly need a little extra money.
Balance Transfer (BT)
Did you know you can save THOUSANDS on your interest costs on a personal loan? Well, that is what a Balance Transfer can help you with. You can pay off your existing loan with a new loan at a lower interest rate.
Note : Personal loan interest rates differ based on the lender you choose. It also depends of factors such as the loan amount, loan tenure and your credit score.
Personal Loan Features and Benefits
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No Collateral Needed
To avail a personal loan, you do not need to pledge any belonging such as a car or property as security. Your creditworthiness is assessed and your repayment capacity is evaluated by the lender, and your loan application is either accepted or rejected.
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Flexible Tenure
Some lenders may offer a flexible tenure of up to 7 years, but usually the limit is 5 years.
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Hassle-Free and Quick Disbursal
With Fincity, your loan is approved in a matter of minutes followed by a quick disbursal.
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Minimal Documentation
A very basic set of documents are required for your personal loan application. On Fincity, you can apply for personal loans online and submit only a few details such as your identity proof, address proof and proof of income.
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Flexible Use
Unlike other kinds of loans, you can use a personal loan to fund a range of needs such as medical expenses, renovation requirements, travel cost, etc.
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Flexible Amount Sanctioned
An applicant’s eligible loan amount depends on factors such as their age, income, profession and repayment history. You may get a personal loan for any amount ranging from Rs.10,000 all the way up to Rs.50 lakhs.
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Status Tracking
Advanced digital loans platforms such as Fincity also enables you to keep a track of your loan status online. It essentially serves as a one-stop for all your loan needs with the advantage of applying for a loan or accessing its progress from the comfort of your couch.
Note : Personal loan interest rates differ based on the lender you choose. It also depends of factors such as the loan amount, loan tenure and your credit score.
Personal Loan Interest Rate Comparison
Here’s an interest rate comparison of personal loans offered by top banks and non-banking financial companies (NBFCs) in India.
| BANK | INTEREST RATE |
|---|---|
| Axis Bank Personal Loan | 10.49% |
| HDFC Bank Personal Loan | 10.75% |
 | 11.69% |
 | 11.99% |
 | 13% |
 | 13.99% |
 | 14% |
 | 16.99% |
Stay upto date for any Rate change
Which Factors Influence Personal Loan Interest Rate?
Credit Score: This is a 3-digit score that ranges between 300 and 900; it reflects a person’s financial health and gives lenders a view of their repayment capacity. A very poor score lowers your chances of getting a personal loan while a high credit score can help you avail of a personal loan at lower interest rates.
Note : Make sure to clear existing debts before you apply for a personal loan as that may lead lenders to believe that you have a higher financial obligation and a high chance of defaulting, and therefore charging you a higher interest rate.
Loan Amount
A higher loan amount typically comes with a higher rate of interest. This is because a lender sees this as a higher risk of default.
Loan Tenure
Generally, lenders charge a lower interest rate with a longer tenure. This is because they have a longer time to repay the borrowed amount.
How to Get Personal Loans at Low Interest Rate
If the lender perceives you as being financially stable and responsible, chances are that the interest will be lower. However, here are some tips to follow that may help you get low interest personal loans.
Maintain a high credit score (higher than 700) and a good credit history.
Opt for secured personal loan, such as loan against share, KVP, LIC, NSC, etc.
Either go debt-free or try to keep your outstanding debt to a minimum, with your credit utilization ratio not crossing 30%.
Note : Besides credit score and other tips mentioned above, there are a multitude of factors that are considered before your personal loan interest rate is decided.
How to Reduce Personal Loan Interest Payout?
These may not be as effective as getting a loan at a lower interest rate but it can definitely help bring down your interest payout.
Opt for a shorter loan tenure
This will increase the payable EMI amount but lower your total interest payout.
Opt for a lower loan amount
A lower loan amount generally comes with a lower rate of interest and therefore a lower interest payout.
Part prepayment
Part prepaying the loan lowers the principal due, bringing down the interest expense.
Personal Loan Interest: Reducing Balance vs. Flat Interest Rate Method
Reducing Balance Method
Most lenders use this method to calculate personal loan interest. In this case, interest is calculated on the outstanding principal amount after each EMI payment. EMI payouts decrease with each payment.
Flat Interest Rate Method
EMIs are calculated on the original principal amount borrowed and the individual EMIs payouts remain constant through the tenure.
Note : The method followed by the lender offering you the loan will be specified in the loan agreement.
Personal Loan EMI Calculator
Ditch tedious formulas and time-taking manual work and use the simple Fincity EMI calculator to know your EMI payable before you decide on a personal loan scheme. Enter the few required details and it will show you the monthly Personal Loan EMI, and also give you a breakdown of your repayment schedule.
Personal Loan Interest: Reducing Balance vs. Flat Interest Rate Method
- Salaried
- Proof of Identity (Any one)
- Passport
- Voter’s ID
- Driving License
- PAN Card
- Proof of Residence (Any one)
- Passport
- Utility bills
- Proof of Income
- Bank statement of salary account for the past two years
- Last 3 months’ salary slips.
- Proof of Identity (Any one)
Other Charges and Fees:
- Processing fee
- Goods and Services Tax or GST
- Verification charges
- Charges levied for issuing duplicate statement
- Penalty for defaults
- Penalty for pre-payment and part payment of loan
Top Up Personal Loan
Often, lenders offer their personal loan customers the additional benefit of availing a top-up loan over and above the existing loan borrowed. It comes with its own set of terms and conditions decided by the lender. To avail of this facility, make sure you maintain a clean EMI payment history without defaults.
Note : Certain lenders offer top-up personal loans at zero processing fee.
Personal Loan Balance Transfer
If you wish to switch your current personal loan to another lender offering you a lower interest rate, a longer tenure or better benefits, you can do so easily by availing of the personal loan balance transfer facility. This may also offer you the option of a top-up loan and additional benefits such as last EMI waiver, etc.
Why Apply for Personal Loan with Fincity?
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Convenience
Our superior UI makes comparing loan products and selecting the right one for you easy. -
Speed
The process of application is simply followed by fast approvals. -
Transparency
Throughout the process we do our best to maintain complete transparency with our customers.
How to apply for Personal Loan at Fincity?
Sign Up
Sign up and fill up the application with basic personal details.
Check Credit Score
Get a free Credit Report to know your creditworthiness.
KYC
Fill up the E-KYC form
Income & Property Details
Enter details of your salary and any other source of income.Enter property details like Builder name,Project name, Property address, etc
Loan Offers
Explore Loan Offers and find the one most suitable for you.
E-Sign
Self-attest the document with an e-signature