Loan Finance Companies in India

The easiest way to raise money to meet various personal needs is to get a personal loan. Perhaps more importantly, you do not need to provide collateral to get this loan and there is almost no limit on using the borrowed money. But borrowing money also means paying interest, processing fees, documentation costs, and the like. This way, being able to compare the best personal loan offers available will help you make an informed decision. Read on to learn how to compare different loan offers to choose the most suitable personal loan offer for you.

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How to choose the best personal loan?

To choose the best personal loan offer, you first need to identify the features with which you can compare the available offers. The following are key features that can help you identify the best personal loan offers available:

  • Low-interest rate: The interest rate determines the amount you will have to pay in addition to the main principle of the loan during the repayment period. The best personal loan deals usually have the lowest interest rates as they will cost you less to borrow.
  • Interest method to reduce the balance: not only the interest rate quantum but also the method of calculating interest affects the cost of the loan. Personal loan interest is calculated using one of two methods: the flat or diminishing balance method. Usually, your interest payment is lower when you use the interest calculation method to reduce your balance if both fixed-rate and lower-rate offers have the same interest rate. Therefore, the best personal loan deals usually use the balance to reduce the calculation.
  • A low processing fee: the processing fees normally charged for the loan will be canceled; therefore, the lower they are the better for the lender. Therefore, the best personal loan offers have low processing fees (ideally the Nile), including administration or documentation costs associated with your loan application.
  • Part prepayment and partial fulfillment: the perfect personal loan offer will allow you to pay off the loan amount before the maturity is established, in part (partial prepayment) or in full (execution) at the minimum additional cost. The partial and full prepayment of the loan allows you to save substantially on the interest component of the loan and the partial advance/action (ideally nowhere) means more money in your pocket.
  • Simple documentation and quick distribution: Personal loans favor lenders because of the simple documentation and quick payment. To save time by choosing to offer a personal loan that gives you the shortest time and easiest documentation.
  • Flexible payment season: Most personal loan offers have a period of permanent repayment, generally between 12 and 60 months. EMI allows you to pay at your convenience if you have the least impact on your monthly budget. In some cases, you can also earn extra flexibility in the form of ticket payments, which is desirable for applicants with seasonal cash flow.

The best personal loan checklist above is designed to help you compare the loan offers available, and in a real-world scenario you rarely, if ever, get an offer that states with all the boxes. So the reality is that you should settle for the non-ideal personal loan option. However, even though the selected loan offer meets most of the above criteria, you will decide and choose the best personal loan offer available to you.

Types of personal loans

The main personal loans for final use are:

  • Marriage loan: This loan can be used to cover costs associated with marriage, such as booking, hospitality, accommodation, etc.
  • Home Renovation Loan: This is the best option if you want to refurbish your home furniture or incur some maintenance costs.
  • Medical loan: Personal loans also help you deal with the costs associated with a medical emergency.
  • Travel loan: The loan allows you to travel around the world with friends and family. 
  • Debt Consolidation Loan: This is a special type of personal loan, where you can pay off many small loans and pay the EMI Company for better debt management.
  • Permanent Consumer Loan: Often called a purchase loan, it can be used to pay for white goods and electronics, such as washing machines, mobile phones, laptops, etc.
  • Immediate personal loan: Also known as a previously approved personal loan, immediate personal loans are offered to existing bank customers and negative bank lenders. They are minimal in terms of documentation and fast distribution.
  • Personal Loan Collection: Refers to a second personal loan existing to meet the request for additional funds.

Important personal loan calculators

Some of the most important personal loan calculators are:

EMI personal loan calculator

This personal loan calculator will help you calculate your monthly payment based on the following parameters:

  • Total loan,
  • Interest rates 
  • Loan ownership.

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Personal loan eligibility criteria

Below are the criteria selected by Indian banks and NBFCs for obtaining a personal loan. The best personal loan deals can usually be said to be those with the broadest criteria.

  • Regular source of income: You should have a fixed income, such as a monthly salary, a pension, or the right to a personal loan for business income.
  • Age: For most personal loan providers, the minimum age of the applicant must be 21 years.
  • Good Credit Score: Refers to a 3-digit summary of your credit report and is a direct reflection of your payment history. The score ranges from 300 to 900 and as the score increases, so does the chance of getting a personal loan.
  • Employer Reputation: Working with a reputable private employer or central or state government improves your chances of getting a personal loan, as it implies job stability.
  • Work experience/business duration: Most banks and BNFCs offer personal loans to people with at least one year’s experience, whether employed or at least 2 years’ experience, if self-employed.

Benefits of a personal loan

The following are advantages that make a personal loan one of the best options for applying for personal loans:

  • End-use flexibility: You can use a personal loan for almost any purpose, such as weddings, home renovations, medical emergencies, and more.
  • Guarantee free / no guarantee: in general, do not require collateral or security for a personal loan, car loans, or unlike home loans.
  • Minimum documentation: As there is no collateral between the personal loan, minimum documentation is required. You will need to provide proof of identity, residence, and income in most cases.
  • Quick repayment: The amount of the personal loan is usually given and approved in a few days.
  • Permanent repayment flexibility: Generally, you can repay the loan for up to 5 years, depending on your convenience.

#1. State Bank of India personal loan

You can get an SBI personal loan in three categories: SBI Xpress Credit Personal Loan, SBI pension loan, and SBI fast personal loan.

SBI’s loan can be accessed for all employees and pensioners with at least one year’s service.

Why apply for an SBI personal loan?

  • Lower need for net monthly income (15,000 rupees)
  • Three categories of personal loans: SBI Xpress Credit, SBI Pension Loan, and SBI Quick Personal Loan.
  • SBI’s extensive network of offices offers a service to people living anywhere in the country.

Concerns

  • The loan is only allowed up to Rs. 20 lakes.

#2. HDFC bank personal loan

The loan is available to employed individuals in corporations, PSUs, and government organizations.

Once the documentation is complete, your loan will be repaid in 4 hours. Existing HDFC customers can get personal loan approval in 10 seconds.

Along with the loan, you can also get insurance for accident insurance or a loan with a nominal premium.

Why apply for an HDFC personal loan?

  • Up to Rs. 40 lakh personal loan
  • Expenses of 2% before closing (after 36 months) are lower than other banks
  • Appropriate amortization options and no hidden payments
  • Minimum procedures and documentation.

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Concerns

  • The interest rate is the highest difference.
  • Up to 2.5% of processing fees

#3. Axis Bank personal loan

If you want a hassle-free personal loan and get reward points, Axis Bank is the option. You can use personal loans Rs. 50,000 euros. 15 Lakh and earns 450 points per point. Each point has a value of Re. 0.20 and 0.25.

Choose yours are to repay the plan according to your convenience 12 to 36 months.

Why do you need to apply for an Axis Bank personal loan?

  • Quick approval with little documentation
  • You can earn reward points by applying for a personal loan

Concerns

  • High-interest rate
  • Rs. 15 Lakh of the loan amount (lower than that offered by SBI)
  • Priority for employees

#4. Bajaj Finserv personal loan

Bajaj Finserv offers personal loans to salaried professionals only. The loan procedure is completely online, which means you can get instant approval of your loan online and the loan amount will be repaid within 24 hours.

Bajaj FinServe is the only financial institution that allows you to repay the full amount of loan you have to pay off after the first IME.

Why choose to apply for a Bajaj Finserv

  • Get instant approval and the loan amount will be paid off in 24 hours.
  • You can also repay the loan amount after the first IME.

Concerns

  • High processing costs
  • The high minimum wage requirement
  • Focuses on the paid class only.
  • 0.25% of annual maintenance costs

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#5. Baroda Bank personal loan

Bank of Baroda offers personal loans to both employed and self-employed. Bank of Baroda is also considering personal loan insurance agents.

Depending on your eligibility you can get a maximum loan of 10 Lakh for a maximum of 60 months.

Why apply for a personal loan from Baroda Bank?

  • No execution or partial payment
  • Personal loan for employees, professionals, self-employed companies, and insurance agents

Concerns

  • Maximum loan is Rs. 10 Lakh only
  • Priority for people with a salary account at Bank of Baroda

#6. Citibank personal loan

Citibank’s loan starts at the lowest rate of 9.99% on instant personal loans. Citibank prioritizes the paid class for personal loans.

Loans are available up to Rs. 30 lakes. Payday loans that work with reputable companies with a higher net payroll have lower interest rates than people with a lower payroll.

Why apply for a CitiBank personal loan?

  • Reduced interest rate for wage earners with net domestic wage
  • Loan amount of Rs. 10,000 euros. 30.00,000
  • Get quick loan approval in 48 hours
  • No late payment

Concerns

  • 4% of expenses before closing

#7. Standard Chartered Bank personal loan

Standard Chartered Bank charges interest rates ranging from Rs 11.99% to Rs 50 lakhs for personal loans. This is one of the largest amounts of personal loans offered by any bank.

Why you should apply for a personal loan under a standard contract

  • You can borrow at most 50 Lakh
  • No warranty, guarantee or warranty required
  • 50% discount on online application processing costs

Concerns

  • Rs. 495 Late payment
  • processing up to 2.25%
  • Bank offices are not available everywhere

#8. ICICI bank personal loan

ICICI charges interest rates on personal loans by 10.50%. You can get the loan up to Rs. 25 Lakh with no warranty or security.

For existing ICICI Bank customers, there are attractive benefits, such as reduced documentation and automatic pre-qualification requirements.

The above benefits are based on the relationship with the bank, which may be through a bank account, credit card, or any other loan account

Why you should apply for an ICICI personal loan

  • Low-interest rate of 10.50%.
  • Fast loan processing and payment

Concerns

  • High closing charges: 5%
  • High. 30,000 minimum wage requirements

#9. Kotak Mahindra Bank personal loan

Kotak Mahindra Bank only provides personal loans to employed people. You can take out a personal loan of RS. 50,000 euros. 

Why apply for a Kotak Mahindra personal loan?

  • Personal loan of R. 50,000 euros. 20.00,000
  • Quick reception in metro cities

Concerns

  • There are no closures within 12 months
  • 3% monthly delay costs

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#10. Tata Capital personal loan

Tata Capital offers the top personal loan. You may have lower EMI because the loans are extended for up to 72 months.

Why you should apply for a personal loan from Tata Capital

  • Minimum procedures and documentation
  • The loan amount ranges from Rs. 75,000 euros. 25.00.000
  • Depreciation between 12 and 72 months

Concerns

  • High delay fees of 36%
  • Partial closure and payment of expenses
  • A maximum payment of 25% per annum is allowed

#11. Yes bank personal loan

Yes, the bank does not require you to provide collateral for personal loans.

Yes, The Bank needs about 5 days (after completing all documentation) to make the evaluation decision and, if sanctioned, the money is distributed within a few hours.

Why do you need to apply for a personal loan from Yes Bank?

  • Personal loan amount of Rs. 1 from Lakh to Rs. 40 lakes
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Concerns

  • 12 EMI lock to prepay
  • Closing and Prepayment Expenses

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Conclusion

Most lenders only consider the interest rate when applying for a personal loan and exclude commissions and other expenses. As a result, they pay a decent amount of money as payment.

Therefore, when applying for a personal loan, consider other factors such as processing costs, pre-closing costs, late payments, and other expenses.