The most popular type of loan in the monetary market is a personal loan. All of an individual’s needs are met by these quick and collateral-free loans. Many banks, financial institutions, and Non-Banking Financial Companies (NBFCs) provide personal loans to people at competitive interest rates.
Even though there are many lenders on the market, it is crucial to choose credible and well-known ones. Make your decision after comparing the various personal loan options given by multiple lenders. In India, banks offer loans with rates between 10.5% and 21% and terms between 1 year and 5 years.
This article provides a list of the top 10 personal loan finance companies in 2022. But before we go through the list, we need to understand what personal loans are.
What Is A Personal Loan?
A personal loan is among the most common loan types. The funds can be lent to you for several purposes. For instance, you could use a personal loan to consolidate your debt, fund your ideal wedding, pay for unexpected medical costs, or renovate the house you’ve been putting off for a while.
You can apply for a personal loan from a variety of lenders, such as private personal loan companies. A personal loan taken from a finance company in India is an unsecured loan. This means there is no need for collateral.
Top 10 Personal Loan Companies
The HDFC personal loan is enticing. It has basic criteria for eligibility. It offers loans up to Rs. 15 lakhs. They provide personal loans with interest rates ranging from 11.25 to 21.50%. People can apply between the ages of 21 and 60 years. When all the necessary paperwork is in order, the personal loan from HDFC Bank is credited to your account in just two days. The loan’s maximum term ranges from 1 to 5 years.
Punjab National Bank
You can get a personal loan from Punjab National Bank at a fair interest rate to help you cover your immediate financial needs. It even offers doctors a personal loan scheme named “Doctor’s Delight”. This scheme gives a maximum loan amount of Rs 20 lakh and a maximum tenure of 7 years.
PNB personal loans are available for 5 years, with loan amounts starting at Rs. 50000 to Rs. 10 lakhs. The interest rate ranges from 12 to 15%, and the minimum income requirements are Rs. 10000 (rural), Rs. 12500 (urban), and Rs. 15000 (metros). A loan of up to 20 times one’s net monthly income is available.
Axis Bank personal loans have the distinct feature of no paperwork and quick approval. The loan terms have been relaxed as has the repayment schedule. The interest rate starts from 12% p.a. to 21 % p.a. The loan amount varies between INR 50,000 and INR 15 lakh. The loan has a maximum term of 5 years.
IDBI Bank personal loans have low-interest rates and can help you with a variety of personal and professional expenses. The processing fee is minimal and is as low as 1%. The interest rates available range from 8.15% per annum to 10.90% per annum. The loan amount varies between INR 25,000 and INR 5 lakh. The loan has a maximum term of 5 years.
Canara Bank provides both a personal budget loan and a personal loan for teachers. The teacher’s loan is ideal for those who are new to teaching. The annual interest rate is 12.40%, which is quite high. The size of the loan is INR 3 lakh or 10 months’ gross salary. The interest rate on the personal loan is 11.30% per annum to 12.30% p.a. It gives a maximum available amount of Rs 3 lakh or 6 months’ gross salary.
Indian Overseas Bank
The Indian Overseas Bank provides loans to people with a steady source of income. These loans are intended for PSU employees, government employees, reputable private firms, and many other businesses. The interest rate offered starts at 10.80% p.a. and goes up from there. The loan amount varies between Rs 5,000 and Rs 5 lakh. The loan has a maximum term of 5 years.
UCO Bank provides a personal loan scheme. It has been created to cover a variety of funds and other personal duties. The loan can be repaid in 48 EMI instalments. The loan’s interest rate is 13.5% per annum. The maximum amount is Rs 50,000 to Rs 15 lakh. The loan has a maximum term of 12 years.
This is one of the great choices for people looking for a loan within 24 hours of consent. The loan is available to people with a basic income of Rs. 30000 and an age range of 25 to 58 years. They provide loans of up to Rs. 25 lakhs with an annual interest rate of 12.99% for terms starting from 1 to 5 years.
Despite being one of the best NBFCs, Mahindra Finance has the least competitive figures on the market. Their personal loan interest rates can reach 26% p.a. The maximum loan amount is limited to Rs 3 lakh. The maximum loan term is also limited to only 3 years. To be eligible for this loan, the person must be between the ages of 21 and 58 years.
ICICI Bank offers personal loans with repayment terms ranging from 12 to 60 months. The loans available are all focused on the regular Indian consumer. The annual interest rate peaks from 12% to 24%. Loan amounts range between Rs 50,000 and Rs 15 lakh. The loan’s maximum term is 12 years.
Even if you read the entire list and find the perfect loan company, it will all be in vain if your credit history and credit score are affected in any way. When applying for a loan, each aspect must be thoroughly considered and analysed.
Money lenders not only lend you money, but they also offer you their trust. To have a good experience, you must take care of your loans and credit.
You can visit the Piramal Finance website for more details and explore their products and services.