A personal loan is an unsecured credit option that is simpler to procure owing to less paperwork and lack of guarantor or security. Common reasons for availing of a personal loan include –
∙ Wedding or other crucial social functions in the family.
∙ Debt consolidation
∙ Medical exigency for family or self
∙ Paying your credit card dues
∙ For financing your vacations
∙ For purchasing a high-end appliance
Whatever the reason for availing of a personal loan online, here are a few of the crucial tips you must consider for getting the best personal loan deal.
Compare the personal loan interest rates –
Suppose a bank approaches you with an offer of 14 per cent p.a. for a personal loan. Or you visit a bank with whom you share a long-lasting relationship in the form of a savings bank account to find out the interest rate that the bank may offer you is 16 per cent p.a. on a personal loan. In this case, what will you do? Will you go ahead with the first offer or the second one? Obviously, any smart person will consider the first offer, but as it holds a long-term relationship with the bank offering a 16 per cent p.a. interest rate, it will negotiate with the bank to bring down the rate to a suitable level.
However, many lenders may make attractive personal loan offers to entice you if you hold a good credit profile. For instance, the personal loan rate of interest HDFC may decrease to match your suitability if you have a good credit profile. There are various ways to do so – you can either conduct your own research by visiting the site of distinct banks and finding out their rates or by visiting online financial lending marketplaces to input your details and know the lenders as per your preference and suitability. Once you have selected the lender, you must use the HDFC personal loan calculator or calculator from any other lender to find out the appropriate EMI as per your repayment capacity and interest rate.
|Lenders||Rate of Interest (p.a.)||Processing charges (percentage of the loan)|
|HDB Financial Services||Up to 36 per cent||Up to 3 per cent|
|Cashe||27 per cent||Up to 1200 or 3 per cent|
|Home Credit||24 per cent||Up to 5 per cent|
|EarlySalary||18 per cent||2 per cent|
|PaySense||16.80 per cent||Up to 2.5 per cent|
|Money View||15.96 per cent||Starting from 2 per cent|
|Dhani loan and services||13.99 per cent||3 per cent onwards|
|Money Tap||12.96 per cent||2 per cent|
|KreditBee||12.24 per cent||Up to 6 per cent|
|Faircent||12 per cent||Up to 8 per cent|
|Fullerton India||11.99 per cent||Up to 6 per cent|
|StashFin||11.99 per cent||Up to 10 per cent|
|Navi Finserv||9.9 – 45 per cent||Nil|
|HSBC Bank||9.99 – 15.50 per cent||Up to 1 per cent|
|Standard Chartered Bank||11.49 per cent onwards||1 per cent|
|Tata Capital||10.99 per cent onwards||Up to 2.75 per cent|
|Citibank||9.99 – 16.49 per cent||Up to 3 per cent|
|Muthoot Finance||14.00 – 22.00 per cent||Up to 3.5 per cent|
|RBL Bank||17.50 – 26 per cent||Up to 3.5 per cent|
|Bajaj Finserv||13.00 per cent onwards||Up to 4 per cent|
|IDFC First Bank||10.49 per cent onwards||Up to 3.5 per cent|
|Bank of Maharashtra||10.35 – 13.70 per cent||Up to 1 per cent|
|Federal Bank||10.49 – 17.99 per cent||Up to 3 per cent|
|UCO Bank||10.95 – 11.20 per cent||Up to 1 per cent|
|Yes Bank||10.99 per cent onwards||Up to 2.5 per cent|
|Indian Overseas Bank||10.00 – 11.00 per cent||Up to 0.75 per cent|
|IDBI Bank||9.50 – 14.00 per cent||1 per cent (Minimum – Rs 2.500)|
|IndusInd Bank||10.49 per cent onwards||Up to 3 per cent|
|Central Bank of India||9.85 – 10.05 per cent||Up to 1 per cent|
|Kotak Mahindra Bank||10.99 per cent onwards||Up to 2.5 per cent|
|Indian Bank||9.40 – 9.90 per cent||Up to 1 per cent|
|Bank of India||10.25 per cent onwards||Up to 2 per cent (Maximum – Rs 10,000)|
|Axis Bank||10.25 per cent onwards||1.5 – 2.00 per cent|
|Union Bank of India||9.80 – 13.90 per cent||Up to 1 per cent (Maximum – Rs 7,500)|
|Bank of Baroda||9.20 – 16.55 per cent||2 per cent (Minimum – Rs 1,000 and Maximum – Rs 10,000)|
|ICICI Bank||10.50 per cent onwards||Up to 2.5 per cent|
|Punjab National Bank||8.80 – 15.35 per cent||Up to 1 per cent|
|HDFC Bank||10.50 per cent onwards||Up to 2.5 per cent (Maximum – Rs 25,000)|
|State Bank of India||9.80 – 13.80 per cent||Up to 1.50 per cent (Maximum – Rs 15,000)|
Compare the charges and fees.
Rate of interest is not just the only factor you must factor in to get the best deal on a personal loan. Also, you must consider various fees and charges incurred by banks. Charges generally linked with personal loans include – processing charges, cheque bounce fees, late payment fees, loan cancellation fees and service tax. Of this, the important charge to consider is the processing charges which may range anywhere between nil and 10 per cent of the loan amount.
Most personal loans come with partial or full pre-payment charges. It means if you are looking to repay your outstanding amount on loan for the entire tenure, you will have to pay a fee. Few banks may incur a foreclosure charge of anywhere between 2 and 5 per cent of the outstanding balance. This may assist you in lowering your thorough debt burden owing to the deduction of future interest constituents.
Figure out the loan EMI as per your repayment capacity
Before you avail of a personal loan, you must be completely sure that you will easily repay the EMI on time without incurring any late payment penalties. For this, you must estimate the EMI that you must pay on the amount that you borrow. Having knowledge about the approximate EMI is extremely simple when you take the help of the HDFC Personal Loan EMI calculator. EMI calculator permits you to factor in all the details like your loan amount, interest rate, repayment tenure, processing charges and pre-payment chances. By inputting the respective required value, which you have determined to borrow from the bank, you will get a fair idea about the amount that will be deducted from your bank account every month in the form of a personal loan EMI.