Personal Loan Interest Rates - HDFC, SBI, Bajaj, ICICI Bank, All Banks

Personal loans are usually taken to meet short term needs. Generally the purpose of this loan is to pay off credit card debts, family vacation, wedding, medical emergency, etc. Personal loan rates are mostly fixed and higher than other loan types. So, loan should be taken only in case of emergencies. Also, you should have a plan that you can make all your repayments on time. If you have a low CIBIL score, then you should not apply in multiple banks for loan as each rejection will drop your CIBIL score.

You can apply in several ways. You can directly visit the bank branch and meet the sales person, contact a loan agent or apply online at any bank or NBFC’s website. You can also compare personal loan best interest rates of all banks online at MyLoanCare and apply for personal loan.

These are generally taken for a short period of time. Generally, the loan tenure is between 12 months to 60 months.

Apart from rate of interest, there are two types of charges being charged by the banks.

• Personal loan processing fee: This is charged when you apply for the loan. The processing fee charged is 2 – 3% of the loan amount and could be reduced if you can bargain.
• Personal loan preclosure fee: This is charged when you close your loan before the completion of loan tenure. Prepayment penalty charged upto 5% of the loan amount.

Personal loan CIBIL score is very important. Good CIBIL score indicates good repayment record and hence banks can offer you higher loan amount at low rate of interest. Bad CIBIL Score will result in either loan at higher interest rate or rejecting the loan application. So, make all your payments on time and maintain your CIBIL in order to get best personal loan rates.

Yes, you need to have at least one functional bank account in your name. It is even better if you have an account with the same bank from which you would like to get a loan.

Yes, you can apply jointly with a co-applicant (either be your spouse or your parents). This helps you to increase your eligibility and you can also avail for a higher amount of loan as your co-applicant’s income also gets added to your income and that total is taken into consideration for calculating the loan amount you will be eligible for.

Yes, if you fail to pay the loan on time then it will also affect your co-applicant as default in loan will affect his/her CIBIL rating as well.

These are unsecured loans so it has higher rate of interest. Personal loan lowest interest rate depends upon factors like loan amount, company category and your net income. High income and good company profile can lend you high loan amount at low interest rate. Personal loan interest rate for government employee and defence personnel may varies from private salaried employees.

Yes, if you are getting higher rate of interest and paying higher EMI than other banks, then you can opt for personal loan balance transfer and reduce your monthly burden.

Yes, you can get top up loan but terms and conditions vary from bank to bank.

Banks or NBFCs give loan to those borrowers about whom they are sure that he/she can repay the loan. You need to know few details if you don’t want your application to get rejected:

• Job stability is important. You need to be stable in your current job as too many job changes can impact negative at the time of loan approval
• You should not be having many loans running at one time. Banks can reject your application if you are already paying too many EMI’s at same time.
• Don’t give you landline number for tele-verification if you know that nobody else is there at home when you are at work. A typing mistake in apartment number can also put negative impact on lenders.
• Keep a good track record of credit card or loan repayment. Make all your payments on time. Delay in payments can create doubt in the mind of lender and can also lead to rejection of your application.
• Banks or lenders keep on adding these small things and reject your loan application.

Some possible reasons why your application gets rejected are already running multiple loans and hence a bank may be in doubt about your repayment ability of a new loan.

• In this case, if you have a spouse who is also working, you can add her as a co-applicant to boost the combined salary levels.
• Clear your old debts first so that your leverage levels come down.
• One more thing you can do is balance transfer of your existing loans so that the rate of interest on loans can come down and additional loan can be availed.

Yes, you can make payments outside India through netbanking facility provided by banks.