Which Bank Should I Apply to if I Want a Personal Loan?
Getting a personal loan can be one of the best ways to take care of some of your most important needs when finances are tight. A personal loan can consolidate debt or pay for large purchases like furniture or appliances that you need right away but that you cannot pay in cash out of your bank account at once. If you’re interested in applying for a personal loan, it helps to do your research and shop around so you can find the right bank and loan terms that will fit your budget and needs. There are many options available in the personal loan market that vary widely in terms of interest rates, repayment periods, and eligibility requirements. With so many different banks and institutions out there, though, it can be difficult to choose which bank offers the best personal loan option for you. Let’s find out!
SBI
In India, personal loans are offered by several banks and NBFCs. The most prominent among them is the State Bank of India (SBI), which offers loans up to Rs 15 lakh. The annual interest rate ranges from 9.6% to 11%. To qualify for a loan, the applicant must have an annual income of not more than Rs 12 lakhs and not more than 60% of the value of the property used as collateral.
HDFC Bank
HDFC offers a range of personal loans through HDFC Bank Personal Loan. The HDFC Bank Personal Loan is an unsecured, revolving credit facility with multiple features that are tailored to suit your needs. HDFC Bank will offer you an interest rate of 10.75% per year if you earn over INR 50,000. If you earn more than INR 35,000 and up to INR 50,000, it will rise slightly to 11.1–11.10%. Features like flexible tenures, lower interest rates, and free accidental death coverage can be availed with an HDFC Bank Personal Loan.
ICICI Bank
ICICI is a leading Indian private-sector banking and financial services company. The corporation provides banking, investment, life insurance, and equity research services. For eligible candidates, it offers a rate of 10.75%, whereas corporate employees and top executives can get a rate of 10.99–15.50%. As a result, government employees can expect to pay an interest rate between 11.29 and 13.50 percent. ICICI Bank has over 5400 branches in India and more than 190 branches outside of India in countries such as the US, China, Canada, and the UK.
Axis Bank
This is another one of the leading banks in India that offers loans at reasonable rates. Axis Bank has been a leading financial services company since 1867, and it’s one of the top ten banks in the world. You can apply for a Personal Loan for up to Rs. 50,000. An approval rate of 40,0000 was achieved with minimal documentation and speedy approval. Personal loan start at 10.25% for 12 to 60 months of tenure. Axis Bank offers a wide range of products and services like wealth management, credit cards, investment banking, and commercial banking.
Bajaj Finserv
If you’re looking to avail yourself of a personal loan from the bank, there are many options at your disposal. Bajaj Finserv offered personal loans at 13.00% or above for a fixed term. Bajaj Finserv has been in the market for more than two decades and has served more than 10 million customers during this time.
Kotak Mahindra Bank
Kotak Mahindra bank offers personal loans at the best interest rates, with flexible tenures up to 60 months and the lowest processing fees in the industry. There is no security requirement if you are self-employed. Currently, the interest rate at the bank is only 10.75% per annum for 3 years. If the loan term exceeds three years, the interest rate will rise to 10.85–10.99% per year.
Tata Capital
Choosing the right lender can help you get a better interest rate and make the process easier. The interest rate at the bank is only 10.75% per annum for 3 years. We’ve put together a list of our top five lenders in India that offer personal loans to help you find one near you.
Processing fees for different lenders
Lenders can charge processing fees as a percentage of the loan amount or as a flat amount. It can be different from another bank. They also add 18% GST to the processing fee. The processing fees for different banks,
- HDFC bank has 2.50%+GST
- ICICI Bank has a minimum of 1999 and a maximum of up to 2.25% + GST
- SBI has 1.5% + GST
- Bajaj Finserv has Up to 4%
- Axis has 0.5% to 2.5%
Tips to choose the best bank for a personal loan
If you want to know which bank is the best for a personal loan, then there are a few things that you will need to consider.
- Compare the interest rates and APRs offered by the banks and non-bank financial institutions that offer personal loans.
- Before you apply for a personal loan, verify that you qualify.
- Ask about all charges the lender may try to conceal from you.
- Ensure all required documents are attached to the loan application.
- When considering a loan, also think about the timeframe for loan approval and disbursal.
- Ensure the information you provide to the lender is accurate and verified.
Conclusion
In conclusion, you need to compare different banks and consider many factors before applying for a personal loan. You need money but don’t want to resort to taking on high-interest credit card debt. When considering which bank offers the best personal loan option, there are many factors to keep in mind. Your desired interest rate, length of the loan, monthly payment schedule, and credit score can all affect your decision. While other banks may offer better rates at first glance, they may be more expensive in the long run or charge fees that you weren’t aware of until after you signed on the dotted line. So, if you have any quotes about it, please visit our site, Piramal Finance, and don’t hesitate to contact us.