There comes a time in everyone’s life when you need some financial help urgently. People usually go and ask for such helps from their friends or relatives. However, now the time is changed and we have some other and viable option too. Among all, getting a Personal Loan is best for fulfilling your financial needs. To cover your unforseen financial needs, you can very easily get a personal loans.
You may easily apply for a personal loan either online or offline from one of the many banks in India that provide the best personal loans to its clients. However, before you apply for a personal loan, you should compare the interest rates provided by the various institutions, which range from 7.90% per annum to 49% per annum.
In this article, we will be discussing about the top lending organizations that are offering the best ROI on personal loans. So, let’s get started.
Top Lending Banks/NBFCs with their ROI
Bank/NBFC Name | Rate of Interest | Processing Fee |
14%-24% | 3% | |
12%-15% | 3% | |
11.25%-21% | 2.25% | |
10.5%-16% | 2.50% | |
10.50%-20% | 2.00% | |
10.75%-20% | 2.00% | |
13.50%-25% | 3.00% | |
10.49%-18% | 3% | |
13.05% – 15% | 3% | |
13.75%-25% | 2.50%-3.5% | |
9.5%-11.50% | 3.25% | |
18.99%-25.99% | 4% | |
16%-33% | 4%-5% | |
19%-22% | 2% | |
18%-36% | 4%-6% | |
10.75% – 17.99% | 2.50% | |
10.75%-20% | 2.50% | |
28%-44% | 3% | |
15% | 2% to 3% | |
17% – 24% | 3% to 3.5% |
Tips to avail Personal Loan with Low Interest
The following are a few crucial factors to take into account in order to obtain a personal loan with a low interest rate:
Maintain a credit score of 750 or above.
Look for deals that banks and NBFCs have already approved.
Consult the banks or NBFCs with which you already have loan and/or savings accounts.
Keep track of the interest rate reductions that lenders give during the holiday season.
Check and compare personal loan offers from numerous lenders by going to online financial markets.
Factors affecting Personal loan Interest Rates
Listed below are some factors that can directly affect the ROI on personal loans:
Income: When determining the interest rate for a loan, lenders consider the applicant’s income. High-earning people may have a reduced interest rate since they are a smaller risk to the bank. Conversely, those with lesser yearly salaries might be required to pay a higher interest rate.
Employer Information: The bank or financial institution is more likely to give you a reduced interest rate if you work for a reputable company.
Employment Type: Loan providers may offer various interest rates to applicants depending on whether they are salaried employees or self-employed.
Age: The borrower’s age may have an effect on the interest rate the loan provider quotes. A greater interest rate might be applied to people who are getting close to retirement age.
Relationship with the Loan Provider: Current bank/financial institution clients who have a good relationship with the loan provider may be given a cheaper interest rate when applying for a personal loan. However, the bank reserves the right to decide whether to give a favourable interest rate to all current customers.
Personal Loan Eligibility Criteria
Listed below are some factors that is taken into consideration while determining eligibility for getting a personal loan:
Criteria | Salaried | Self-employed |
Age | 21-60 years | 22-55 years |
Net monthly income | INR 15,000 | INR 25,000 |
CIBIL score | Above 750 | Above 750 |
Minimum Loan Amount | Depends on the lending organization | Depends on the lending organization |
Maximum Loan Amount | Upto 1 crore | Upto 1 crore |
Documents required for a Personal Loan
Here’s a list of some common documents that every lending organization needs while giving a personal loan to customers.
Requirement | Salaried | Self employed |
Proof of income | Passport, Voter’s ID, Driving License or PAN Card | Passport, Voter’s ID, Driving License or PAN Card |
Proof of residence | Passport or utility bills | Passport or utility bills |
Proof of identity | Bank statement of salary account for past two years | Audited financial statement for past two years |
FAQ's
If you need money to meet your financial obligations, you can easily get or apply for a personal loan from a bank or other financial organisation.
You can get a loan whenever you need credit. Your personal loan application is verified and approved by the lender once you submit it to them. The loan amount is then transferred into your bank account after this. As soon as you receive the loan amount, you must pay the lender back through EMIs for the duration of the loan.
To get a personal loan from lending banks/NBFCs, your CIBIL score typically needs to be higher than 720. If your credit score is low, your application can be denied or you’ll be given a personal loan with a high interest rate.