Best Personal Loan to apply in 2022

Personal Loan This is an unsecured financial services offered by banks and non-banks and there are many personal loan options available in the market. For availing the services of this product, we have to contact the bank online or offline. The person applying for this credit score minimum is 600+ then he gets the loan on providing some documents. But if your credit score is 800 plus then you can get it at low rate of interest with minimum documents.

Personal loan can be taken for any other purpose like home renovation, marriage purpose, medical emergency, urgent education needs, travel, urgent hospitalization, to meet the shortfall of funds, etc. To apply, you have to provide address proof, photo ID proof and income proof. Let's see the details. Let us see which bank is providing what facilities.

 Best Personal Loan to apply in 2022

# Types of Personal Loan

1- Personal Loan to Salaried Individual

2- Personal Loan to Self Employed Professionals

3- Salary account with in-build overdraft facility

4- Pension account with in-build overdraft facility to customers IDBI Bank Ltd.

# Features of Personal Loan

Personal loan comes without any collateral, in which you do not need to guarantee anything or give any security deposit.

Banks give you a fixed term, in the same term you have to pay your EMI.

Minimum documents are required to take this type of loan.

If you have a credit score of 750+ and have a good relationship with your bank, then you can get a good loan amount with low interest.

In this, instant loan is available at many places, this means on your credit history, if you have taken loan in the past and have paid it on time, then there will be many such banks which will give you loan.

 

All salaried customer and self employed customer. All Confirmed/permanent employees of State/Central/ PSU/ Departments, Multi National Companies, Listed Companies, Reputed Pvt Ltd Companies with or without existing relationship with IDBI Bank.

Bank/Lnder	Interest Rate P. A.	Processing Fee	Loan Amount
HDFC Bank	10.25% – 22.00%	Rs. 999 or upto 2.5% of Loan amount	Min Rs. 50,000 – Max 7,50,000
IDBI Bank	9.5% -14%	2500 or 1% of Loan amount Taxes Extra	Min Rs. 25,000 – Max Rs.5,00,000
Allahabad Bank	9.05% - 13.65%	Rs. 1228 or 1.22% of Loan amount	Min Rs. 50,000 – Max 7,50,000
Andra Bank	8.9% -13%	2500 or 1% of Loan amount Taxes Extra	Min Rs. 25,000 – Max Rs.5,00,000
Axis Bank	10.49% -17.25%	4900 or 1% of Loan amount Taxes Extra	Min Rs. 50,000 – Max Rs.15,00,000
IDFC First Bank	10.49% -23%	3.5% of Loan amount Taxes Extra	Min Rs. 20,000 – Max Rs.4,00,0000
Bank of Maharashtra	9.45% -14%	1% of Loan amount Taxes Extra	20% of Gross salary – Max Rs.20,00,000
Canara Bank	10.2% -13.9%	0.5% of Loan amount, Subject to min and max Rs. 1000 Taxes Extra	6month gross take home salary or – Max Rs. 3,00,000
State Bank of India	9.60% -15.65%	1.5% of Loan amount Taxes Extra	Upto Max Rs. 30,00,000
DCB Bank	13.00% -25.00%	2.00% - 3.00%	Max Rs. 5,00,000
PNB Bank	8.90% -14.45%	1.8% of Loan amount Taxes Extra	Min 50,000 – Max Rs. 10,00,000
RBL Bank	14.00% -23%	3.5% of Loan amount Taxes Extra	Min Rs. 1,00,000 – Max Rs.20,00,000
Kotak Mahindra Bank	10.25% onward	2.5% of Loan amount Taxes Extra	Upto Max Rs.20,00,000
Bandhan Bank	10.99 – 18%	1% of Loan amount Taxes Extra	Min Rs. 50,000 – Max Rs.15,00,000

# What is the document requirement for personal loan?

A - Salaried Person

# Passport size photo

# Photo Id proof

Xerox Copy of Aadhar Card, Pan Card, Passport, Voter ID, Driving License, Ration Card with Photo, Photo Credit Card,

# Address proof

Xerox Copy of Passport, Aadhar Card, Electricity Bill, Water Bill, Ration Card, Current Passbook of Bank, Rent Agreement, Post Paid Mobile Bill, Voter ID Card, Gas Connection Copy, Landline Telephone Bill

# Income Proof

Salary slip for 3 Months, 6 Months Bank Statement, ITR and Form 16

#B - Self Employed

 passport size photo

# Photo Id Proof

Xerox Copy of Aadhar Card, Pan Card, Passport, Voter ID, Driving License

# Address Proof

Xerox Copy of Passport, Aadhar Card, Electricity Bill, Water Bill, Lease Agreement, Voter ID Card, Rent Agreement, Maintenance Bill

# Age Proof

Xerox Copy of Aadhar Card, Pan Card, Passport

# Income Proof

ITR Last 3 Years, 6 Months Bank Statement of Current Account, Audited Financial Account as Balance Sheet, Profit and Loss Account.

# Eligibility Criteria to Apply

The minimum age should be 21 and maximum age depends on bank's personal loan policy

# Tenure for Personal Loan

The minimum tenure for personal loan is twelve months and maximum tenure is depends on bank to bank

# CIBIL Credit Score

>600 - You may not qualify for the loan.

>750 - good score approved with low interest rate

>800 - Very good score, gets fast approval and low interest rate.

# Disbursal Time

Disbursal Time is dependent bank to bank normally it takes few hours like 6 hours and also it depends on applicant

# Processing Fee

Processing fee is depends on bank normally few banks charge 0.5% to 3.5%

# Late Payment Fee

Late payment fee is normally bank charge 2% every month and it varies bank to bank. There are some banks which charge Rs 500 to 3% charges.

# Check Bounce Charges

Every bank has different check bounce charges. These check bounce charges start from Rs.250 to Rs.500.

# Loan Cancellation Charges

Banks charge Rs.3000 plus 18% GST if you have canceled the loan from the first month EMI.

 

# GST

GST 18% is applicable for processing all types of loans.

# Pre payment charges for closure of loan

If you are closing the loan prematurely, then the bank can also levy a penalty on it which can be from 1% to 4% on your total remaining outstanding.

# Respect Charges

There are default charges, instrument return charges, stamp duty charges, duplicate statement issuance charges, duplicate amortization schedule issuance charges, etc.

# Example

1 - Mr. Dhooni is a self-employed by profession, he has a shop of optical lenses, he needs a personal loan of Rs 5 lakh, which he needs for personal use, in which he has to marry his daughter with this amount. They will have to pay 18% interest on Rs 5 lakh loan, if it is for three years, then what will be their EMI. The monthly EMI of Mr. Dhoni will be Rs 18076. The total interest amount for three years will be Rs 1,50,743. Their total principal and loan amount will be 6,50,743.

2- Andrew Russell is an Indian IT professional, he needs a personal loan of Rs.3 lakh. They need this amount so that the family can enjoy the holiday in Mauritius together. If they take a loan of 3 lakhs at 13% interest rate for 2 years, then what will be their monthly EMI, let's see.

Mr. Andrew Russell's monthly EMI will be Rs 14,263. The total interest amount for three years will be Rs 42,301. Their total principal and loan amount will be 3,42,301.

FAQs

1- Which bank gives the best personal loan?

Answer - Look at the details given above, you will get the best and lowest interest loan bank.

2- What documents will be given for the salaried person?

Answer- According to the information given above, the salary will give income proof, photo ID proof and address proof to the person. Check above for details.

3- Which bank gives the lowest interest personal loan?

Answer- Indra Bank offers most affordable and low rate of interest personal loans.

4- Which CIBIL score is good for availing a personal loan?

Answer - If your CIBIL score is 750 plus then your score is very good. In this you will not have difficulty in taking loan and will get it quickly. But if your score is 800 plus then your score is very good, in this you will get less rate of interest, more loan and loan will be very fast.

5- How much is the processing fee of the loan?

Answer – The processing fee of personal loan ranges between 0.5%-3.5%. In this, the processing fee of Canara Bank is 0.5%.

6- What are the check bounce charges for Salaried?

Answer – Check bounce charges range between Rs.250- Rs.500.

7 - Does personal finance news recommend any bank?

Answer- No. Because loan loan always man takes according to his need. Not on anyone's recommendation.

8- What are the hidden charges of personal loan?

Answer - Different banks have their own hidden charges. Therefore, whenever you apply for a loan, take all the information about it.