Personal loan is one of the best unsecured credits available at the time of any financial need. It’s a common financial product in today’s consumer world. It proves to be a great support and the reasons may vary from person to person as it comes with an instant cash in hand to fulfill the requirement of that hour. The borrower is free to use the amount for any purpose and being unsecured it does not require any kind of a security or collateral. A personal loan is good idea to pull you out from any financial shortfall. The processing time of the loan application for personal loan takes very less time to get approved. And once approved the loan amount gets transferred to your account instantly .
The personal loan amount may vary from 50,000 to 25,00,000 and can be used for any personal need and can be availed by both salaried and self employed professionals. It is more advantageous for those who have a good credit score, excellent repayment history and above all a decent income. Being an unsecured service, the borrower has to go through few difficult filters to obtain a personal loan. Banks do not provide these loans to everyone as per their demand and are selective to provide these loans to customers who are eligible and have a good repayment track record. The customers should have stable income, assured source of income and a good credit history to avail this service. Though, the interest rate can be higher as compared with secured loans, as it is the main cost associated with the loan. The higher the interest rate the more you have to repay by the end of the loan.
In any arena, thinking an idea is easy but the execution is a little difficult task unless you have done a complete research on it. Similarly, thinking to borrow a loan is easy but from where to borrow can be a difficult question unless you know the characteristics and features of the financial service providers. There are many personal loan providers available in the market but it’s important to know which Bank/ NBFC can cater your requirements. The factors other than interest rates like the processing fees, documents or KYC’s, prepayment charges need to be compared to crack the best fit deal for you.
Keeping the above points let’s take a move ahead and review the features and characteristics of top 5 Banks/ NBFC’s that provide the personal loan service.
HDFC Bank Personal Loan
• The bank provides this financial service at a very competitive interest rate that starts from as low as 10.99%.
• The bank is known for its instant loan approving process with minimal documentation and ensures to be a financial service provider to both salaried and self-employed professionals.
• Its quick and transparent processing makes it a unique and a top choice among customers.
• Present HDFC account holders get special offers on the interest rates and certain loan charges are waives in special cases.
• Those who earns minimum of Rs 15000 per month are eligible for HDFC personal loans
• Now a days, the Bank is promoting its per-approved paperless loan offer.
• HDFC bank has a vast Bank branch network which ensures seamless customer services.
ICICI Bank Personal Loan
• ICICI bank multi-purpose personal loan . The end use of ICICI Bank personal loan can be house renovation, purchase of a consumer durable, Holiday, Child education, Marriage, Short term loan for equipment purchase or even short term working capital requirement.
• Daily reducing balance type of interest rate is applied and is low as 10.99% and goes upto 22% depending on the customer profile and segmentation.
• Processing Fee goes upto 2.25% + GST and ICICI offers flexible loan tenors upto 60 months in personal loans
• The eligibility criteria vary for both salaried and self employed individuals but the loan service is being provided to both.
• The simple repayment options and a simple list of documents make it a suitable choice for the personal loan application process.
Axis Bank Personal Loan
• Axis bank is known for its short turnaround time (TAT) by conveying their decision within 3 days of receipt of application.
• Only the salaried individuals with a regular monthly income are eligible for the loan and the self-employed professionals do not qualify for the same.
• The interest rates are quite reasonable among the competitors and starts with 11.49%.
• The loan applicants are rewarded with Axis EDGE reward points depending upon the borrowed amount and the borrower can redeem these points at select online and offline stores.
Kotak Mahindra Bank Personal loan
• Earlier, in its initial days, Kotak Bank restricted its financial service of personal loan provider only to salaried individuals. Gradually, with time now the service has been extended to both salaried and self-employed individuals.
• Kotak Bank does not restrict the loan amount into any category. This means that the borrower is free to use the loan amount for any sudden or unavoidable expenses.
• It allows the quick processing of the loan application. The approval for the loan amount takes less than 72 hours.
• For the employees of large and reputed companies, the Bank offers special schemes and discounts.
• Refinancing of any existing personal loan is easily available.
Bajaj FinServ Limited Personal Loan
• With its easy and fast processing it approves the loan in 24hours.
• The financial service is designed in a manner to serve the need of the borrower at the right time.
• It takes less than 24 hours to disburse / transfer the loan amount in the borrower’s account with minimal documentation.
• Being an NBFC it caters the borrower with low credit score also. Though the criteria may vary from case to case.
Let’s understand the comparison in an easy way with the following chart:
Here at Mudra Home you can apply for the personal loan, check the eligibility criteria and also the EMI calculator will help you to find the right EMI that fits well in your budget. Here we provide you with the detailed list of required documents (KYC’s) for personal loan.