Instant Personal Loan Online Apply
Get to Choose the Best Lender for Personal Loan Needs
A Personal Loan is one of the best remedies of modern life’s financial concerns. Today, almost everyone comes across cash crunch situations and financial requirements that need funds at the moment, while one can gradually pay them over the period of time, these requirements may vary from education for self or family, medical requirements, need to travel or fulfil a long wishlist of a gadget and several requirements.
While there are several ways to get access to funds, asking friends and family may be a risky proportion, thus the best bet is to opt for personal loans from financial institutions.
Some key benefits of Personal Loans?
- While business loans and property loans need collaterals. A Personal loan unlike these loans requires a person to have a decent credit profile against which credit is given.
- There is no requirement of multiple documentation and one needs not visit branches to submit physical documents for personal loans.
- A Personal Loan is quick and one needs not wait for a long time to get the loans processed. These days the entire process is online and transparent.
- A Personal Loan is not bound by a purpose and one can use the loan amount for any requirement as one needs.
What is eligibility of a Personal Loan?
There are some different eligibility options for several loans from various banks. The eligibility criteria for the salaried and even the self-employed are different.
|Age||23 years - 65 years|
|Profession Type||1. Employee|
|Credit score||Above 650|
|Minimum Monthly Income||1. Metros - ₹25,000
2. Non-Metros - ₹20,000
|Loan Eligibility||Upto ₹50 Lacs
As Per Applicant’s Credit Profile
|Work Profile||Continuation of 6 Months|
Different lenders have different eligibility criteria but more or less the same in the above-stated aspects.
Here are a few Dos and DONTs to improve personal loan eligibility.
- Before applying for a personal loan, check the eligibility. One can do that either by visiting different bank’s online portal or by visiting the LoansJagat.com. Complying with the eligibility criteria minimises the chances of getting the loan application rejected.
- Apply for the amount for which are eligible for on account of financial stats. To check for the eligible amount, use the online eligibility calculator.
- Pay the EMIs on time. This is essential for maintaining a good credit score.
- Keep credit utilisation ratio under 30% to enhance credibility.
- Avoid taking multiple loans simultaneously.
- Don’t forget to make the loan repayments on time.
- Avoid having a high credit utilisation ratio.
- Don’t apply for a loan with different lenders frequently.
What are the documents required for a personal loan?
Employees need the following standard documents and it may change as per the lender.
- Valid Identity Proof e.g. Voter ID Card, PAN Card
- Address Verification Proof e.g. Aadhar, Passport, DL and Utility Bills
- Previous 3 Months Bank Statements
- Latest Salary Slips
Self-Employed Professional often need following documents for a personal loan
- Proof of Identity like a Passport, Voter ID Card or Aadhar
- Proof of Address like a Passport, Aadhar Card or Utility Bills
- Age Proof like Birth Registration and School Certificates
- PAN Card
- Latest Bank Statements
- Past Income Tax Returns of Last 3 Years
- Balance Sheet and P/L Statements Audited by a registered Chartered Accountant
What is Personal Loan Comparison Table?
Here is the personal loan comparison table for various banks:
|Financial Institution||Interest (% P.A)||Loan Amount (INR Lacs)||Processing Fee (Up to % of Loan Amount)||Part Payment (Up To)||Pre Payment Charges||Lock-In (No. of Months)||Tenure (Up To Months)|
|IDFC First Bank||11.69 - 15||20||2||40% of Amount Annually||3% on Remaining Principal||3||60|
|HDFC Bank||10.99-20||40||2.5||25% of Remaining Principal||4% on Remaining Principal||12||60|
|Axis Bank||11.29-17||20||2.5%||25% of Remaining Principal||4||1||60|
|TATA Capital||12.5-19||20||2||25% of Remaining Principal||4%||6||72|
|Yes Bank||10.75-16.99||25||2.5||20% of Remaining Principal||NA||12||NA|
For instance, on a 10.99% APR in a personal loan of INR 10 lacs with a tenure of 5 Years, the monthly repayments or EMI stand out to be ₹21737 only.
Why should one choose LoansJagat.com for availing a Personal Loan?
- Choose the best Lender: LoansJagat provides one the facility to enter their requirements and get the terms and conditions of the top lenders to make an informed decision.
- Get the Best rate of Interest: One can make an informed decision and choose the lender with the best interest rate for their personal loan requirements.
- Access Information at One Place: Being a collaborative platform. Loans Jagat provides complete information at one place itself without any need of visiting multiple physical or digital branches.
- Simple Way to Apply: Applying for a Personal Loan on LoansJagat is simple as one can simply provide information, make a choice of the best lender as per their needs and fill a simple form for online personal loan application
- Online Facility: The entire process at LoansJagat is available online and one can also choose the offline process if they require the same.
- Assured Data Privacy: LoansJagat has strict data privacy policies with no spamming and data selling activities.
- Free For Life: Loansjagat being authorised partner of the top banks and NBFCs does not seek any fee from the consumers and all its services remain free for the loan applicants.
Personal Loan Application Process at LoansJagat.com?
LoansJagat offers a simple loan application process. Here are the top steps:-
Step 1. Eligibility Check : One can simply check their personal loan eligibility by entering their personal details, that include Name, Email, Mobile Number and PAN Number along with the requirement.
Step 2. Receive Offers : Based upon the requirements mentioned in the above steps and the loan eligibility one will receive offers from top Banks and NBFCs.
Step 3. Apply : Pick the best offer that suits personal loan requirements and simply apply online while a dedicated relation officer assists along with the entire journey
Step 4. Disbursal : The entire process is automated and transparent and one can track their approval status and the disbursal happens directly in the provided Bank Account.
- Rate of Interest varies between 10.75 to 28 per cent per annum
- Banks might charge a processing fee between 1 to 3% of the loan amount
- Generally, the tenure is up to 60 Months
- One may avail an amount up to 50 Lacs as per their profile
- While the new-age lenders do not charge pre-closure charges, some charge around 2% of the outstanding amount.
What are the constituents of personal loan?
|Interest Rates||10.75% - 28% p.a|
|Processing Fee||1%-3% on an average|
|Tenure||From 1 Year Up to 60 Months|
|Amount||Up to ₹50 lakhs|
|Lock-in period||Specific to Lender|
|Pre Payment Penalty||2% - 6% as per Leder|
|Guarantor Required||Specific to Lender|
The Best Type of Personal Loan in India:
|S. No.||Bank Name||Interest rate (p.a)||Loan Amount|
|1||Yes Bank||10.75% - 16.99%||₹1 lakh - ₹25 lakhs|
|2||ICICI Bank||11.50% - 16.75%||₹50k - ₹25 lakhs|
|3||HDFC Bank||10.99% - 17.00%||₹50k - ₹40 lakhs|
|4||Kotak Bank||10.75% - 18.00%||₹1 lakh - ₹30 lakhs|
|5||Tata Capital||12.5%-19.00%||₹75k - ₹20 lakhs|
|6||IndusInd Bank||11.49% - 20.00%||₹1 lakh - ₹20 lakhs|
|7||IDFC First Bank||11.69% - 15.00%||₹1 lakh - ₹20 lakhs|
|8||Bajaj Finserv||12.00% - 16.00%||₹1 lakh - ₹20 lakhs|
|9||IIFL||12.99% - 20.00%||₹1 lakh - ₹20 lakhs|
What is a Personal Loan?
A personal loan is an unsecured loan product which is offered by several lenders including banks, NBFCs and financial institutions. The borrower can use the loan amount to meet his financial emergencies like funding one’s education, business, medical expenses, vacation, home renovation projects, wedding, consolidating debts etc. The lender doesn’t hold any jurisdiction in how the loan amount will be used. A personal loan can be availed by both the salaried and self-employed individuals.
Features of Personal Loan
- Flexible loan tenures.
- Easy repayment options.
- Minimal documentation.
- Quick processing, approval and disbursal.
- Competitive rate of interest.
Personal Loan Interest Rate
Personal loan interest rate is the rate which the lender charges on the principal loan amount. This rate of interest varies from lender to lender and is dependent upon several factors viz. credit score, loan amount, loan tenure, income etc. The rate of interest offered for a secured personal loan is lower than that offered on an unsecured personal loan.
Personal Loan - Documents Required
The lenders seek the following documents from the personal loan applicants. These documents can be submitted either as hard copy by physically visiting the bank or by uploading a scanned copy on the digital platform/website of the lender.
KYC or ‘Know customers’ are the basic documents pertaining to the identity, age, gender, address and physical appearance of the applicant. The lenders seek these documents to have the basic knowledge about the applicant whom they are offering the loan to. The applicants are required to submit any photo identity proof like Passport, PAN Card, Voter ID card, Aadhar Card, Driving License etc. For the proof of residence, the applicant can submit his passport, ration card or a copy of any of the utility bills.
The applicants are required to submit both the permanent and temporary(current) address proof (if both are different). For age proof, one can submit either their Driving license, Voter ID, passport or PAN Card. The applicants also need to submit the latest passport-sized photograph of them with the application form.
The lenders are mainly concerned about the repayment of the loan. Even though the CIBIL score may show past payment credentials, still the lenders seek certain financial documents to assure themselves of repayment capacity. For the same purpose, they seek proof of income and job continuity.
One can submit payslip and bank statement of the past 3 months as income proof. For proof of job continuity, one can submit their job offer letter, experience certificate of last job or employment certificate of the current job. The lenders also seek employment. Documents vary for salaried individuals and self-employed professionals.
Salaried individuals need to submit the following financial documents:
- Proof of income: The applicant needs to submit Form 16 along with the salary slip of last 3 months.
- Proof of job continuity
- Past 6 months bank statement.
- Sanction letter and payment track record of ongoing loans (if any).
Self-employed individuals (Professional and Non-Professional) need to submit the following financial documents:
- Proof of Office Address: The applicant can give either a copy of utility bills, maintenance bills or property documents as a proof of office address.
- Proof of Office Ownership: The applicant can give either a copy of electricity bills, maintenance bills or property documents as proof of office ownership.
- Proof of Existence of Business: For the same, the self-employed applicant can submit shop establishment or salary statement of 3 years.
- Proof of Income: The applicant needs to submit the IT return of last 2 years along with computation from CA.
NRIs need to submit the following documents to avail personal loan.
- Copy of VISA
- Copy of passport
- Identity proof
- Income proof
- Address proof
- Salary slips
- Bank statements
- NRO/NRE bank statements for the past 6 months
- Proof of assets
- Passport photograph of self
- Passport photographs of guarantors
Charges Associated with Personal Loan
The actual cost of the personal loan is not determined by the interest rate alone. There are few charges associated with the personal loan which the borrower is liable to pay. Aggregating all these charges together sums up the total cost of the loan.
- Processing charges
- Prepayment/foreclosure charges
- Verification charges
- Penalty charged against repayment defaults
Apart from these, the lenders may also charge on grounds of processing and collection of documents, stamping, issuance of duplicate statement etc. These additional fees and charges differ from lender to lender and hence it is always advisable to compare different lenders before opting for one.
How to enhance chances of availing a personal loan?
Keeping the following pointers in mind helps to better chances of availing a personal loan.
- Maintain credit score - credit score is a direct reflection of past repayments and hence every lender considers it before approving the loan. Thus, one must strive to better their credit score by making timely repayments of debts and credit cards. Higher credit score means quick loan approval.
- Increase debt to income ratio. A high income and lower debts ensure quick loan approvals.
- Apply with a co-applicant - In case of co-application, the lenders seek the credentials of both the applicants. If lag behind either on credit score or income aspects, can apply for the personal loan with a co-applicant having better credentials.
- Don’t go overboard with the loan amount - Apply for only that much loan amount that is actually required and not what are eligible for.
- Choose the lender wisely - Personal loan providers have different offerings, terms and conditions. Thus before choosing personal loan provider, it is important to compare different lenders on account of their eligibility criteria, interest rate, processing charges, terms and conditions etc and finally opting for the one which best meets needs and requirements.
Nowadays, various fintech like LoansJagat offers an excellent platform wherein the borrowers can compare different lenders before finally opting for one.
Pre-Payment in Personal Loan
When one opts for a personal loan, the loan tenure is decided. On the basis of it, monthly instalment is drafted which are liable to pay throughout the loan tenure. One can, however, choose to pay their personal loan debt before the end of the loan tenure. This is referred to as pre-payment of the loan or foreclosure of the loan.
One can either opt for making the pre-payment either fully or partly.
- Full Pre-Payment - Herein the borrower completely pays off the outstanding debt before the end of the loan tenure. This helps in saving a lot of money which would otherwise have gone as interest.
- Part Pre-Payment - Herein the borrower pays off a part of the outstanding amount before the end of the loan tenure. It helps in greatly reducing the EMI as the principal amount decreases. One also saves on the interest.
It must be noted that few lenders charge a pre-payment penalty and hence it is important to opt for the lender which allows for the same without any additional charges. Foreclosing the loan by paying penalty charges may end up being a bad deal and may have to pay more than what were supposed to.
Modes of Personal Loan Repayment
The different modes of personal loan repayment are:
- Electronic Clearance System (ECS)
- Post Dated Cheques (PDCs)
- National Automated Clearing House
- Debit mandate or standing instructions
One can opt for any of these on account of their financial stability. Also one must check with the personal loan providers for the repayment options available with them.
Things to Consider After Closure of Personal Loan
Once have closed personal loan, there are a few things which must look into.
- Attaining No-dues certificate (NDC)- After have duly paid off the loan, the lenders issue a No-dues certificate to validate complete repayment of the loan. This is one important document which the borrower must attain immediately and maintain for future records. NDC comes handy when one wishes to avail another loan as the new lender asks for it to be sure of the previous debt repayment. can either collect this document in person from the bank or get it delivered at address.
- The Statement of Account (SOA)- The Statement of Account (SoA) is issued by some lenders as a validation of complete repayment of the loan. It is required to get credit score updated in case of any discrepancy.
- Checking credit score- Once the loan is paid off completely, it is advisable to check credit report to see if all the transactions have been correctly entered and whether credit score has been updated or not. This is important if wish to get a loan in the near future.
- Taking back all the unused cheques- Collect all the unused cheques back from the lender once close loan account.
Checking Status of Personal Loan Application
Once the applicant submits the personal loan application along with the documents, the processing begins at the lender’s end. They check and verify the credentials of the applicant before approving the same. This takes a little time which varies from lender to lender. The applicant is given an application number using which they can check the status of their personal loan application either online or offline. To check the status of the personal loan application online, the applicant can access the digital platform or website of the lender and enter name and application number. If wish to check the status offline, then can visit the physical branch of the lender and check for the same in person by sharing application number.
How to attain a personal loan statement?
A personal loan statement encompasses all the information about personal loan including the repayments, interest paid etc. One can get hold of the same either by visiting the lender in person and requesting for the same, by accessing their loan account on the digital platform of the lender or via phone banking. In all the cases, the borrower needs to request for the statement. The lenders either mail it as a PDF file on one’s email or deliver it as a hard copy.
How to avoid rejection of personal loan application?
The foremost thing to get the personal loan application approved is to duly fill the application form with the correct information and attach all the supporting documents alongside.
Lenders are very particular about the eligibility criteria they define for their loan products. Failing to comply with it can result in rejection of the personal loan application outright. The eligibility criteria are defined on factors like age, income, employment, and credit score. The parameters differ from one lender to another and thus it is advisable to study the same for the lender want to opt for before applying for the personal loan.
Personal Loan Top-Up
Top up means adding of the extra loan amount on the ongoing personal loan. This facility can only be availed by the borrowers who have been regular in repayment of their loan and do not hold any pending EMI. The existing lender may offer different or same offerings or terms on the top-up as on the basic personal loan. This is complete jurisdiction of the lender.
A personal loan top up entails minimum documentation processing and fast disbursal. Most lenders do not charge any processing fee on the same.
Personal Loan Balance Transfer
A personal loan balance transfer is an excellent option to reduce the burden of outgoing interest. This service is offered by several loan providers which allow the borrowers to transfer their existing loan from current lender to a new lender.
The switch can be initiated if the borrower finds a better interest rate deal, flexible loan tenure or if they wish to avail top up on their current loan. This service can, however, be availed only after the borrower has repaid the loan with the current lender for a certain period of time. This time period varies from lender to lender.
Disbursal of Personal Loan
Disbursal of personal loan is the last step in the loan processing where the lender remits the loan amount into the account of the borrower. Loan disbursal occurs post loan approval once the lender has verified the credentials of the borrower.
The process of loan disbursal for a personal loan is rather quick in comparison to secured and unsecured loan products. Instant personal loans are approved and disbursed within seconds. Some lenders may, however, take a time of few hours to days for disbursing the loan amount.
LoansJagat is India’s foremost marketplace and an end to end offering for Personal Loans. One can easily apply and get offers from the top lenders including Banks and NBFCs. Simply compare and choose the best offer.
Types of Personal Loans
- Marriage Loan A personal loan may be used to overcome are the marriage related expenses and make big event a memorable one with the marriage loan.
- Medical Emergency Loan We may never know when we need some additional funds for medical emergencies, a personal loan will help us to sail through such emergencies using a medical loan.
- Education Loan Personal Loan can be used to sponsor education for self or someone in the family using the education loan.
- Vacation Loan While it becomes difficult to save for a vacation, a personal loan becomes handy as one can avail a vacation loan and repay later.
- Car Loan One can buy a car using a Car Loan, which is a form of personal loan and plan their lives better both in form of mobility and financially.
- Home Improvement Loan While one can get a Home Loan to buy the house of their dreams, it may become a distant dream to renovate the home, for which one may go for a Home Improvement Loan in form of a Personal Loan and fulfil their home improvement requirements.
Compare and Apply Personal Loans with Best Intereset Rates in India
How can I use a Personal loan?
Yes, lenders do not place a boundation on specific usage of personal loans. However, it should not be for unlawful purposes.
How to avail a Personal Loan?
Visit LoansJagat.com enter personal details and requirements, choose the best lender and fill a simple form to apply.
Can I know my loan eligibility?
Loan eligibility depends upon the individual’s credit profile, which includes credit rating, work type, location and several parameters.
What is an average repayment tenure?
It could be between 1 year to 5 years as per the terms for the loan.
Can I know the amount?
The amount is directly proportional to the credit profile and one’s ability to repay that includes income and existing debts.
What is the time take for the application?
While the traditional lenders take weeks or even months to process, one can get a personal loan in just a few days with the fintech enablers like LoansJagat.
How to compare lenders?
LoansJagat provides a unique platform where one can compare the top Banks and NBFCs and choose the lender that offers the best terms as per requirement.
How to Repay?
While the most common method is the EMIs where one can pay in instalments every month, some lenders also have flexible repayments and payments are generally made through ECS or auto-debit to the bank accounts.
LoansJagat offers free facilities for loan seekers to check loan eligibility, find the best lender and apply at their convenience. LoansJagat also offers dedicated relationship managers to assist throughout the entire process of a Loan. With multiple awards, top partnerships and proven customer service, the advantages are manifolds.
Is a guarantor necessary?
No, the personal loans offered by LoansJagat are collateral-free and do not require any guarantor.