ElitePersonalFinance carefully have reviewed the loan market of personal loans in India. What we can say is that there are a lot of scam there. There are so many companies scamming people with high interest. The best places to get a personal loan in India is from big banks, because their interest rates are low. But you have to meet their requirements. A good credit score, regular income are the main, but there are many additional.
Here is a list of the best personal loans rates by big banks.
|Bank||Personal Loan Interest Rates||Processing Fee|
|SBI Personal Loan||12.50%||In the range of 2% to 3%|
|HDFC Bank Personal Loan||10.75%||Upto 2.50% Min Rs. 1,999|
|ICICI Bank Personal Loan||11.25%||Starting from 0.99%, Up to 2.25%|
|Bajaj Finserv||11.99%||Starting from 1.50%, Up to 3%|
|IDFC First Bank||11.50%||1 – 1.5%|
|Axis Bank||11.25%||1.50% to 2.00%|
|Tata Capital||10.99%||Flat fee of Rs. 1499*, Upto 2.50%|
|Fullerton India||13.99%||Min 2%|
|IndusInd Bank||11.00%||Min 1% to Max 2.50%|
|Kotak Bank||10.50%||Upto 2.5%|
|RBL Bank||13.99%||Upto 2%|
|IIFL||12.99%||1 – 2%|
|HDB Financial||13.99%||Upto 2% of loan amount|
|PNB||12.00%||1.8% + taxes|
|Andhra Bank||11.55%||Case to Case|
|Yes Bank||10.99%||Starting at 0.99%, Up to 2%|
|Union Bank of India||12.70%||0.5%, Min Rs. 500|
|Bank of Baroda||11.60%||2%, Min Rs. 250|
|Syndicate Bank||13.40%||0.5%, Min Rs. 500|
|Standard Chartered Bank||10.99%||1.00%|
|Bank of Maharashtra||15.10%||1%, Min Rs. 1,000|
|Corporation Bank||12.95%||1.5%, Min Rs. 500|
|Karur Vysya Bank||13.90%||0.40%|
|Federal Bank||11.49%||0.5%, Min Rs. 500|
|Indian Overseas Bank||12.70%||Rs. 204 per lakh|
|Indian Bank||11.05%||0.5%, Min- Rs. 508|
|Allahabad Bank||13.15%||1.06%, Min- Rs. 1068|
Types of Personal Loans in India
Unsecured personal loans. These are the best types of loans because you risk nothing. You get the money because the lender put trust in you. If you have good credit score and regular income that prove that you can pay the loan on time, you can qualify for unsecured loan.
Secured personal loans. In cases when your credit score is not good, then the lender have low risk in you. So your chances are you won’t get approved, or you will get approved for not so high amount that you want, or you pay more fees. Or you have to go to some very expensive companies that we categorize scam because they are too expensive. We won’t show you them. So, in this case it will be a great idea to secure your loan. This means that you put something in collateral and the lenders put trust in you. That way you can qualify for more money, lower interest rates and better loans. But you have to be careful because if you don’t pay the loan on time, you can lose your collateral.
Home loans. Home loans are type of secured loans. People typically put as a collateral their come that the bank buy for you. These are high amount loans, and typically their interest are low. But you have to be very sure that you can pay all of the loan, if not the bank will get it from you.
Auto loans. Any personal loan can be get for purchasing a car. But there are specific companies that focus at auto loans. In most of the cases auto loans are secured, which means that you put your car as a collateral and if you stop paying the lender can get it. These loans are much more cheap than other.
Tips to Get Great Loan in India
Like we discussed earlier it is great if you get cheap bank loans in India. But for this you have to have great credit score and great income, so you prove that you can pay it back on time.
Always compare offers. There is no such a thing like the best loan. No one can stop you to check different offers. By comparing more offers, you are able to get the best.
Don’t get too many loans. If you have too many loans, even if they are low prices, lenders categorize you high risk.
Don’t get more money than you can pay. Be sure that you can pay the loan on time. If not then it can hurt your credit score and make you many additional problems.
Always start your research from unsecured loans. These are the best loans because if you get qualified you don’t risk your collateral. If you can’t get approved then, review other options like secured loans.
Avoid non trusted companies that offer loans. There are many non licensed lenders in India. be sure that every lender is licensed. You can be sure that all big banks are licensed loan business in India, but we can’t say this for all other companies that offer loans. We found many scams. Be careful on that.
Pay your loan on time. This build your great credit history and help you get more money next time, when you apply for a loan. Even small delays are not good for lenders. They feel that you don’t serve your contract correctly and next time they can not allow you a loan.
Ask for refinancing options before you get a loan. Many lenders won’t allow you to refinance. In case you can’t pay the loan on time one day, ask what are chances to refinance it.
Read carefully the contract. Many lenders try to scam people by not sharing all of the information before you and then try to hide in the contract. You have to full right to read the full contract and ask the lenders for clarifications.