The Money Fair

Personal Loan Highlights

Interest Rate	10.49% p.a. onwards (through TheMoneyFair.com)
Loan Amount	It can go up to Rs 40 lakh. Some lenders may offer higher loan amounts
Tenure	Up to 5 years (some financial institutions have a repayment period of up to 7 years)
Processing Fees	0.5% to 4% of loan amount (may vary by lender)

Personal Loan Interest Rates

Personal loan interest rates depend on many factors, including the loan amount, loan term, borrower's credit history, and lender. Generally, interest rates for personal loans range from 6% to 36%. Average interest rates on personal loans vary greatly depending on these factors, but usually he ranges from 10% to 25% for most borrowers.

Indian Top Bank And NBFC Interest Rate Comparison

Lenders	Interest Rate (p.a.)
State Bank of India	10.90%-15.40%
Axis Bank	10.49% onwards
HDFC Bank	11.00% onwards
ICICI Bank	10.75% onwards
Kotak Mahindra Bank	10.99% onwards
IndusInd Bank	10.49% onwards
Yes Bank	10.99% onwards
IDFC FIRST Bank	10.49% onwards
Standard Chartered Bank	11.49% onwards

Features & Benefits of Personal Loan

Features:

Fast and easy application process
No collateral required
Competitive interest rates
Flexible repayment terms
Quick funding

Benefits:

No need to tie up other assets as collateral
Can be used for any purpose
Helps cover unexpected expenses
Can help build credit
Offers a more affordable option for financing than high-interest credit cards

Fees and Charges

The Personal Loan fees and charges. The list shown below consists of the general fees and charges

Loan Processing Fees	0.5% to 4% of loan amount
Pre-payment/Part-payment/Foreclosure Charges	For Floating Rate – Nil For Fixed Rate – Usually around 2% – 5% on the principal outstanding
Loan Cancellation	Usually around Rs 3,000
Stamp Duty Charges	As per actuals
Legal Fees	As per actuals
Penal Charges	Usually @ 2% per month; 24% p.a.
EMI/Cheque Bounce	Around Rs 400 per bounce

Types of Personal Loans

Unsecured Personal Loan: This type of loan is not backed by any collateral and is usually issued based on the borrower’s creditworthiness.
Secured Personal Loan: This type of loan is backed by some type of collateral, such as a car, home, or other personal property.
Debt Consolidation Loan: This type of loan is used to consolidate multiple debts into one loan with a lower interest rate.
Home Improvement Loan: This type of loan is used to finance home renovation projects or repair.
Emergency Loan: This type of loan is used to cover unexpected expenses or to cover a financial emergency.
Personal Line of Credit: This type of loan is similar to a credit card and can be used for any purpose.
Student Loan: This type of loan is used to finance a student’s educational expenses.

Personal Loan Eligibility Criteria

In order to be eligible for a personal loan, you must meet the following criteria:

You must be at least 18 years old.
You must have a valid government-issued photo ID.
You must have a regular source of income.
You must have a good credit score (typically 600 or higher).
You must have an active bank account in your name.
You must be a resident of the country in which you are applying for the loan.

Documentation for Personal Loan

Identity Proof:Passport/PAN Card/ Voter’s ID/ Aadhaar Card/ Driving License
Address Proof:Passport/ Aadhaar Card/ Lease/ Property Purchase Agreement/ Utility Bills (not more than 3 months old)/ Passport/ Driving License
Income Proof For Salaried Individuals: Salary Slips/ Bank Account Statement/ Form 16
Income Proof For Self-employed Professionals:Previous Years’ ITR/ P&L Statement and Balance Sheet/ Bank Account Statement
Business Proof For Self-employed Individuals:Business Incorporation Certificate/ Professional Degree/ Certificate of Practice/ Partnership Deed/ GST Registration and Filing Documents/ MOA & AOA/ Shop Act License

How to Improve your Chances of Getting a Personal Loan?

Improve Your Credit Score: Before you apply for a personal loan, check your credit score and work to improve it. Paying bills on time and reducing your credit card balance can help you raise your credit score, which may improve your chances of getting approved.
Shop Around: Different lenders have different requirements and interest rates. Research various lenders and compare interest rates, fees, and repayment terms.
Have a Co-Signer: Having a co-signer with good credit can help you secure a loan with a lower interest rate.
Have a Steady Source of Income: Lenders are more likely to approve your loan if you have a steady source of income.
Offer Collateral: Offering collateral, such as a car or a house, can help you secure a loan with a lower interest rate.

How to Apply for a Personal Loan online?

Check your credit score: Before you apply for a loan, it is important to check your credit score. This will help you determine which lenders may be willing to work with you and what type of loan you may be eligible for.
Compare lenders: Once you have a good idea of your credit score, compare lenders to find the best rate and terms for your loan. Consider online lenders, banks, and credit unions to get the best deal.
Gather necessary documents: Before you apply for a loan, be sure to have all the necessary documents ready. This could include your driver’s license, pay stubs, bank statements, and proof of income.
Fill out the application: Once you’ve found the best lender and gathered all the necessary documents, you can apply for the loan online. Be sure to fill out all the required information and submit any requested documents.
Wait for the lender’s decision: Once you’ve submitted your application, the lender will review it and make a decision. They may request more information or documents before making a final decision.
Sign the loan agreement: Once your loan is approved, you’ll need to sign the loan agreement. Make sure to read the agreement carefully and ask questions if necessary before signing.

FAQ

1. What is the minimum credit score required to get a personal loan?

The minimum credit score required to get a personal loan varies from lender to lender. Generally, most lenders require a credit score of at least 600 to be approved for a personal loan.

2. Can I cancel a personal loan after the loan amount is disbursed?

Yes, you can cancel a personal loan after the loan amount is disbursed, though there may be a fee associated with the cancellation. It is important to check the terms of your loan agreement before you cancel, as you may be subject to early repayment or pre-payment charges.

3. What is the minimum salary required to get a personal loan?

The minimum salary required to get a personal loan will depend on the lender and the amount of the loan. Generally, banks and other lenders require applicants to have a minimum income of around $25,000 per year or more to qualify for a loan.

4. Can I get a personal loan being a pensioner, if I have a pension account with one of the leading banks in India?

Yes, you can get a personal loan as a pensioner if you have a pension account with one of the leading banks in India. However, the terms and conditions may vary depending on the bank. You should contact your bank to discuss the specific details of the loan.

5. Can a student apply for a personal loans?

Yes, some lenders may offer personal loans to students, depending on the student's credit history, income, and other factors.

6. Can I get a personal loan if I have a home loan?

Yes, you can get a personal loan if you have a home loan. However, your ability to qualify for a personal loan will depend on your credit score, income, and other factors.

7. Can I get a personal loan without a salary slip?

Yes, there are lenders that offer personal loans without a salary slip. However, these types of loans are typically offered to borrowers with good credit who may have other sources of income such as self-employment income, investment income, or retirement income.

8. Can I use a personal loan for marriage purposes?

Yes, you can use a personal loan for marriage purposes. You can use the loan to cover wedding expenses such as venue costs, catering, decorations, and other wedding-related expenses. However, it is important to remember that personal loans typically come with higher interest rates and shorter repayment terms, so it is important to be sure that you can afford the loan before taking one out.

9. Can I take a personal loan from two different banks at the same time?

No, you may not take out two personal loans from two different banks at the same time. Each bank will have its own policy regarding multiple loans to the same borrower, and the borrower may be required to pay off the first loan before taking out a second one. Additionally, taking out multiple loans could impact your credit score negatively, so it is best to avoid taking them out simultaneously.

10. How do I cancel my personal loan after the loan is disbursed?

If you wish to cancel your personal loan after it has been disbursed, you should contact your lender to discuss your options. Depending on your lender’s policies, you may be able to pay off the loan early or refinance it. Additionally, you may be able to negotiate an extended repayment plan with your lender or find another lender that may be willing to refinance your loan at a lower rate.

Personal Loan

Check your Personal Loan eligibility