Highlights of personal loans
|
Category |
Details |
|
Amount of loan |
Based on bank’s guidelines |
|
Rate of interest |
Starting from approximately 10% |
|
Tenure |
5 years to 7 years |
|
Processing fees |
Up to 3% of the loan amount |
Personal loans at low interest rates are the easiest way to tackle any urgent financial need. Whether it is for financing your child's wedding or to pay for booking a holiday, you can meet all your needs with the help of a personal loan.
How to get best personal loan online?
To make sure you get the best deal - you need to look for personal loans with low interest rates. It helps you repay the loan easily without putting much burden on your finances.
4 Best Strategies To Get The Best Personal Loan Online
1. Maintain a good credit score –
Your credit score reflects your credit status based on how effectively you have managed credit in the past. A credit score in the range of 700 or 750 may reflect well on you, especially when you are looking to apply for a personal loan. As a rule, if your score is high, it will always work in your favor. Lending institutions evaluate the repayment terms, decide the loan amount as well as the interest rate after looking at your credit score. You can have better negotiating terms when you have a better credit score with you.
2. Compare Lenders for Best Offer -
Some amount of research can help in getting personal loan online easily. You can compare different lenders offering personal loans online to find out the best interest rate on offer and the various features that are being offered. It can be time consuming, but it will help in making the right choice. Sometimes, you can get a personal loan with instant approval and get instant finance within 24 hours.
3. Explore Seasonal Offers -
Lending institutions always inform customers with special offers. It usually comes through SMS or email. You can keep an eye out for offers that will help make your loan affordable. The limited tenure waiver is handy for getting the interest rate on some personal loans. Such discounts are often available online, especially during festivals, so always be on the lookout.
4. Use your professional credentials for easy qualification-
If you earn a reasonable salary and are associated with a reputed company, it can help you to get a personal loan from any lender. Hence, you can use this to your advantage and negotiate with the lender for a better interest rate. Your firm's reputation and good reputation can help you get lower interest rates from lenders as they can be confident about your repayment capacity.
interest rates on personal loans
Here is a list of top NBFCs in India and the interest rates offered for personal loans.
|
Bank |
Interest Rate |
|
Starting from 9.75% |
|
|
10.50% and 24% |
|
|
10.50% to 21% |
|
|
13% onwards |
|
|
9.5 % - 11.50% |
|
|
10.50% - 19% |
|
|
9.99% and 16.49% |
Eligibility Criteria for Online Personal Loan
A personal loan is offered to individuals. Most of the lending institutions offer personal loans to individuals as well as professionals who are either salaried or self-employed. The eligibility criteria may vary among banks and other lending institutions and may depend on the category of the applicant. Here are some of the main eligibility criteria set by most of the lenders for personal loans:
|
Category |
Salaried |
Self-Employed |
|
Age |
21 - 60 years |
21 - 68 years |
|
Minimum Earnings |
Rs. 25,000 per month |
Rs. 3,00,000 per annum (gross) |
|
Employment |
Net experience- Minimum of 2 years Experience with the present organization- Minimum 1 year |
Current business experience of minimum 2 -3 years as per bank’s guidelines |
Key Features of Personal Loan
Personal loans come in the form of unsecured loans and usually have flexible end-uses. Their tenure usually ranges from 12 to 60 months. If you opt for a shorter tenure, each EMI payment could be higher. On the other hand, longer tenure can mean smaller individual EMIs. The key features commonly found in personal loans are as follows:
• No Collateral: When it comes to personal loans, you are not required to provide any security like a house or a car. Personal loans are sanctioned on the basis of your creditworthiness, credit score, total income, credibility or reputation of the employer etc.
• Flexibility of use: There are generally no restrictions on how the personal loan can be used. Whether it is for meeting expenses like medical emergencies, home renovation, loan withdrawal etc., it can be put to many uses without any limitation from the lender.
• Flexible Tenure: The tenure of the personal loan is flexible which can be from 12 to 60 months.
• Less Documentation: Online personal loans are available with minimal documentation. The main documents that an applicant needs to submit include proof of identity, proof of address and proof of income.
• Fast disbursement: Personal loans are usually disbursed very quickly and can be available within a few hours. That is, provided the application is approved. Some personal loans online may even be available within minutes if they are pre-approved.
• Flexible loan amount: Lenders usually sanction a personal loan based on an individual's repayment capacity after looking at credit score, monthly income, employer reputation and some other similar factors. The amount can be as low as Rs. 10,000 and in some cases, it is Rs. 40 lakhs.
final thoughts
This is the day and age of online services and the same applies to personal loans. Opting for an online personal loan is not only convenient but can also help you get the best interest rates. To find personal loans online, be sure to compare lenders, evaluate loan facilities.
FAQ - Which is the best way to get a personal loan online?
1. What is a personal loan?
Personal loan is a common purpose loan, in which loan can be sanctioned to meet any personal expenses of the applicant like marriage, medical emergency, education expenses, travel, home renovation etc.
2. What is the minimum age for personal loan eligibility?
The minimum age for personal loan eligibility is 21 years
3. What is the maximum tenure of the personal loan?
The maximum tenure of personal loan is 5 years to 7 years depending on the guidelines of the bank.
4. What is the minimum credit score required for personal loan?
The minimum credit score required for a personal loan is 750.
5. Can a person apply for a personal loan with a credit score of 650?
Some lenders offer personal loans even if the credit score of the applicant is 650 or less. However, the interest rate will be higher and the loan amount may be less.
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