Compare Personal Loans

Compare and Apply for Personal Loans Online 

Explore personal loan options with loan amounts exceeding Rs. 40 lakh, featuring competitive interest rates starting from 10.25% per annum. Enjoy flexible repayment terms extending up to 6 years.

Details About Personal Loans 

A personal loan is an unsecured borrowing option available from banks or financial institutions to meet your various financial needs.

Types of Personal Loans 

There are two primary categories of personal loan schemes:

• Unsecured Personal Loan: In this type of personal loan, you are not required to offer any collateral or security to the bank. Meeting eligibility criteria and maintaining a good credit score can enable you to secure an unsecured personal loan.
• Secured Personal Loan: This category of personal loans entails providing some form of security or collateral to the bank. For instance, business loans or gold loans fall into the secured loan category. To apply for a business loan, you may need to offer property as collateral, while gold is typically used as collateral for gold loans.

Leading Personal Loan Schemes and Promotions 

You have the option to either apply for a personal loan directly through the bank's official website or visit CredBharat website to compare various loan offerings and choose the one that aligns best with your needs.

Interest Rates for Personal Loans 

Personal loan interest rates typically range from 10.15% per annum to 36% per annum. The specific interest rate applied to your loan depends on factors such as the loan amount, your credit score, and the chosen repayment tenure. A strong credit score and a positive banking history may result in a reduced interest rate on your personal loan.

Personal Loan Applications 

A personal loan offers versatile use, making it suitable for various financial needs. This unsecured loan, free from collateral requirements, provides flexibility for multiple purposes. Common applications include:

• Debt Consolidation: Merge and manage other loan or credit card debts efficiently.
• High-Value Purchases: Fund significant expenses when immediate cash isn't available.
• Emergency Situations: Address unforeseen financial crises promptly.
• Business or Educational Expenses: Cover sudden costs related to education or business.
• Vacation: Finance your dream getaway or travel plans.
• Electronics or Appliances: Purchase high-end gadgets or household appliances.
• Wedding Expenses: Plan and execute memorable weddings without stress.
• Medical Emergencies: Manage unexpected medical bills or treatments.
• Home Renovations: Upgrade your living space with home improvement projects.
• Vehicle Purchase: Consider a personal loan if it offers lower interest rates compared to auto loans.

Please note that personal loans are not suitable for speculative investments or stock market ventures. Their versatility makes them a valuable tool for planned or unforeseen financial needs.

Personal Loan Eligibility Criteria 

Lenders evaluate your loan application based on the following factors. Meeting these conditions makes you eligible for a personal loan:

Personal Loan EMI Calculator 

Utilize the CredBharat Personal Loan EMI calculator to estimate your EMI in advance, enabling you to plan and manage your finances more effectively. This calculator also aids in assessing your loan eligibility and comparing loan options from various banks.

Simply input your loan details, including the desired loan amount, interest rate, tenure, and processing fee. Click "Calculate" to determine your EMI.

The calculator provides a comprehensive amortization table, offering a detailed breakdown of your repayment schedule.

Documents Needed for Personal Loan Application 

To facilitate the approval of your personal loan application, you are required to provide a specific set of documents. Here is an overview of the necessary documentation for a personal loan:

Required Documents for NRIs 

Applying for a Personal Loan If you are an NRI seeking to secure a personal loan, you will be required to furnish the following documents to the lender:

• Copy of your Passport
• Visa Copy
• Your official Email ID or the Email ID of the HR
• Bank Statements
• Salary Certificate or salary slips
• NRO/NRE bank statements for the last 6 months
• Proof of Identity, Residence, Income, and Assets
• Recent passport-size Photographs of yourself and the guarantors

Personal Loan Costs and Fees 

Personal loans from different institutions come with a range of charges and fees, including but not limited to:

• Processing fee
• Goods and Services Tax (GST)
• Verification charges
• Charges for duplicate statement issuance
• Penalties for defaults
• Penalties for pre-payment and part-payment of the loan

Additionally, lenders may impose fees for documentation, stamping, credit administration, collection, and more. The specific fees and rates for these charges vary from one lender to another. Prior to applying for a personal loan, it is advisable to review the fees and charges imposed by the leading lenders in India.

Prepayment and Partial Payment in Personal Loans 

When you obtain a personal loan, it comes with a predetermined loan repayment tenure. During this period, you are required to settle the loan through equated monthly installments (EMIs). However, should you choose to repay the loan before the scheduled loan tenure concludes, it is referred to as prepayment or foreclosure.

Types of Pre-Payment 

Pre-payment of personal loans can take two forms: full pre-payment and part pre-payment.

• 1. Full Pre-Payment:

• Full pre-payment involves settling the entire outstanding loan amount before the scheduled loan tenure ends.

• Advantages:
  • Avoid hefty interest payments on the loan.
  • Eliminate the debt entirely if you have the means to do so.
  • Save on pre-payment interest if your lender does not charge for early loan repayment.
• Disadvantages:
  • Some lenders impose a penalty for full pre-payment, potentially requiring a significant upfront payment.
  • Carefully consider other factors before foreclosure, as paying off a personal loan in one lump sum may not always be the best choice.
  • 2. Part Pre-Payment:
  • Part pre-payment entails repaying a portion of the outstanding loan amount before the loan's scheduled completion.
• Advantages:
  • Reduce your outstanding principal amount, leading to a lower effective EMI.
  • Significantly decrease the total interest paid over the loan tenure.
• Disadvantages:
  • Delayed part payments may limit potential savings.
  • Some lenders may charge fees for part pre-payment, resulting in additional expenses.

Methods of Loan Repayment 

Lenders offer various repayment modes, although these methods may vary from one lender to another. The most common repayment modes can be summarized as follows:

• Electronic Clearance System (ECS):
  • ECS is a widely used electronic repayment method facilitating fund transfers between banks.
• Post Dated Cheques (PDCs):
  • PDCs are cheques issued for future dates, allowing the lender to deposit or encash the specified amount on the mentioned date.
• National Automated Clearing House (NACH):
  • Offered by the National Payment Corporation of India (NPCI), NACH enables real-time transaction processing and can be utilized for loan repayments.
  • Debit Mandate or Standing Instruction:
  • Under this method, you instruct your bank to make regular payments to another bank or account at specified intervals. This standing instruction, or debit mandate, ensures your bank automatically pays the agreed-upon amount towards loan repayment on a recurring basis.

  Various Categories of Personal Loans in India

  Personal loans can be employed for any legal purpose. Nevertheless, some lenders offer different loan products categorized by the borrower's stated purpose in the loan application. In terms of utilization, here are the distinct types of personal loans available in India:

  Types	Definition
  Personal Loan for Wedding	As the name suggests, a loan which is offered particularly for the purpose of meeting the expenses of a wedding is a wedding loan.
  Personal Loan for Home Renovation	A home renovation loan allows you to pay for repairs or renovations to your home.
  Personal Loan for Vacations	A holiday loan is specially designed for vacations. You can avail a holiday loan and pay off the expenses on a later day through easy EMI payments.
  Personal Loan for Pensioners	A loan which is specifically offered to pensioners is known as a pension loan.
  Personal Loan for Festivals	Certain lenders offer a personal loan exclusively for festivals. If you are looking for a loan to make arrangements for a festival, you can apply for a festival loan.
  Medical Emergency Personal loans	Medical loans are basically loans taken out for the purpose of financing medical care.

  Note: Be sure to review the eligibility requirements for various types of personal loans before submitting your application.

  Personal Loan Top-Up 

  Existing personal loan customers have the option to access an additional loan amount through the top-up facility. The specific terms and conditions governing this top-up are determined by the financial lender. The interest rate for the top-up may align with the existing loan rate or be up to 1% higher. The tenure of the top-up personal loan corresponds to that of the existing personal loan.

  Key Features and Advantages

  • Customers with existing personal loans are eligible for loan top-ups if they have a track record of consistent EMI payments and no outstanding dues. 
  • Fast or immediate disbursal of top-up loan funds. 
  • Minimal documentation requirements. 
  • Some lenders offer zero processing fees. 
  • No need for collateral.

  Personal Loan Balance Transfer 

  The personal loan balance transfer option allows customers to move their current loan to a different financial institution. This can be advantageous if the new lender offers a more attractive interest rate, greater flexibility in the loan tenure, the desire for a top-up on the existing loan, and other benefits.

  Key Features and Advantages 

  • Secure a lower interest rate for the current loan balance. 
  • Opportunity to obtain additional funds through a top-up loan. 
  • Access flexible repayment alternatives. 
  • Enjoy perks like zero processing fees, EMI waiver benefits, and more. 
  • Experience enhanced customer care services.

  How to Enhance Your Chances of Securing a Personal Loan? 

  Credit Improvement: Lenders heavily consider your credit score when evaluating personal loan applications. A higher credit score makes it easier to obtain a personal loan. If your score is low, review your credit reports for potential errors that may negatively affect your rating. Report any discrepancies to credit bureaus like CIBIL.

  Debt-to-Income Adjustment: Lenders request proof of income to assess your debt-to-income ratio when you apply for a personal loan. To boost your annual income, consider selling liquid assets such as stocks or increasing your earnings through part-time employment. This will improve your debt-to-income ratio and enhance your loan eligibility.

  Co-signers/Guarantors: If securing a personal loan on your own proves challenging, you can apply with a co-signer or guarantor. The chosen individual should have a strong credit score and commits to guaranteeing loan repayment. However, they also bear responsibility for loan repayment if you cannot fulfill it. Selecting a co-signer with a credit score exceeding 750 significantly boosts your chances of approval.

  Borrowing Wisely: Requesting more money than necessary to meet your financial objectives can be risky. Calculate your specific needs and apply only for the required amount.

  Select the Right Lender: Each lender sets its own credit score and income requirements. When seeking personal loans, choose a lender whose eligibility criteria align with your financial situation. Applying with multiple lenders can negatively impact your credit score since each inquiry results in a minor score reduction.

  How to Prevent Personal Loan Application Rejections 

  Approval of a personal loan application depends on multiple factors. To increase the likelihood of approval, ensure that you meet all the necessary criteria when applying for a loan. While eligibility requirements for personal loans may differ among lenders, certain common criteria include the applicant's age, income, credit score, employment status, and more. Before submitting your loan application, verify that you satisfy all eligibility criteria. This proactive approach helps minimize the risk of application rejection. While alternative options exist if your loan application is denied, it's advisable to double-check and meet all prerequisites before applying to reduce the chances of rejection.

  How to Monitor the Progress of Your Personal Loan Application? 

  You can check the status of your loan application through two primary methods, with most lenders offering both online and offline options for tracking.

  Online Method: 

  Many lenders provide access to their official website, allowing you to monitor your loan application's status. You can use the application number or reference number provided by the lender for this purpose. If you applied for the loan through a third-party aggregator like CredBharat, you can log in to their website to directly track your application's status.

  Offline Method: 

  If you prefer not to use online platforms, you can also check the status of your personal loan application offline. You can visit your lender's branch office in person to inquire about your application's status. Alternatively, you can contact your lender via telephone using their helpline or customer care number.

  In both cases, you'll need to provide basic details such as your name and the application or reference number. For more information on how to track your personal loan status, visit CredBharat.

  How to Obtain Your Personal Loan Statement? 

  Obtaining your personal loan statement is a straightforward process that can be done through your lender's online portal or in-person.

  Online Method:

  • Log in to your lender's official website using your online credentials.
  • Provide your loan account number to access your account.
  • Request a loan statement, which is typically delivered to your registered email address or provided as a downloadable PDF file.

  Offline Method:

  • Visit your lender's branch office where you originally secured the loan.
  • Make a request for your personal loan statement in person.

  Phone Banking: 

  You can also request your personal loan statement by contacting your lender's customer service through phone banking.

  Regardless of the method you choose, you will need to provide essential information to verify your identity and loan account details.

  Tips for a Successful Personal Loan Application 

  When seeking a personal loan, it's essential to consider several key factors. Here's a list of valuable tips to guide you through the personal loan application process:

  • Evaluate Your Loan Need
  • Research to Secure the Best Interest Rate
  • Review Your Credit History
  • Carefully Examine the Loan Agreement's Fine Print
  • Determine the Loan Tenure Based on Your Repayment Capacity
  • Opt for an Affordable Interest Rate
  • Select the Loan Amount Convenient for Your Needs
  • Scrutinize Your EMIs (Equated Monthly Installments)
  • Compare Processing Fees Across Lenders
  • Choose Between Fixed or Variable Interest Rates Based on Your Preference

  By following these tips, you can enhance your chances of a successful personal loan application and make an informed financial decision.

  Do's	Don'ts
  Do proper research before you apply for a loan	Do not sign your loan documents without understanding every point
  Do read the fine print carefully	Do not make multiple inquiries regarding loans from different banks
  Do save your money carefully when you are repaying	Do not take a personal loan without any serious purpose
  Do pay your loan instalment promptly every single time	Do not be in a hurry to end your loan comparison process
  Do evaluate your credit score thoroughly	Do not forget to pay your loan instalments
  Do apply for an affordable loan amount	Do not accept bad loan products

  Post-Closure Actions for a Personal Loan 

  After successfully repaying or foreclosing your personal loan, your responsibility towards the loan isn't entirely finished. There are certain important steps you should take:

  • Obtain a No Dues Certificate (NDC):
  • An NDC is a crucial document provided by your lender upon loan repayment. Keep it safe as proof of repayment.
  • Retain this certificate, as you may need it to demonstrate that your previous loan has been settled when applying for future loans.
  • The NDC is typically issued immediately by your lender if you make the final payment in cash. If you pay via other methods like checks or NEFT, the lender will send it to your registered address or ask you to collect it from their branch.
  • Secure a Statement of Account (SoA):
  • The SoA, when available from your lender, complements the NDC and can help verify that your debts were fully paid and on time.
  • Use the SoA to cross-check your credit score for any discrepancies. If any issues arise, the SoA can support necessary corrections.
  • Retrieve Unused Cheques:
  • Collect any unused cheque leaves associated with the loan.
  • The combination of the NDC and unused cheques typically signifies the loan closure process's conclusion.
  • Monitor Your Credit Score:
  • While not mandatory, it's advisable to check your credit score after closing the loan.
  • Ensuring your credit score is accurate is important, especially if you plan to apply for another loan within a year or two of repaying your current one.

  By following these steps, you can effectively wrap up your personal loan and ensure you have the necessary documentation to support future financial endeavors.

  Personal Loan Disbursement 

  Personal loan disbursal refers to the process where the financial institution transfers the approved loan amount into the customer's bank account. This occurs once the customer has submitted the necessary documents, and the financial institution has completed the verification and approval process. The speed of personal loan disbursal varies among lenders, with some offering near-instant disbursal, while others may take several hours or even a few days to transfer the approved loan amount following the approval process.

  How to Repay Your Personal Loan 

  You have several options for repaying your personal loan, including:

  • Electronic Fund Transfer (EFT)
  • Cheque Payment
  • In-Person Payment at the Lender's Branch
  • Setting Up a Standing Instruction for Automatic Deductions from Your Account 

  Personal Loan Risks and Considerations 

  Here are some risks and considerations associated with personal loans:

  • High Interest Rate: If you have a low credit score, you may be charged a higher interest rate, as lenders see you as a higher risk. Late payments or defaults on previous loans can also lead to higher interest rates on personal loans in the future.
  • Debt Burden and Financial Implications: Taking a personal loan means taking on debt that must be repaid. Failing to make timely repayments can result in penalties and additional costs, which can strain your finances. It's crucial to borrow an amount you can comfortably repay.
  • Impact on Credit Score: Delinquent payments on a personal loan can negatively affect your credit score, making it harder to qualify for future loans. It's advisable to clear existing debts and maintain a good credit score before applying for a personal loan.
  • Hidden Fees and Charges: Besides processing fees, some lenders may impose additional charges such as prepayment fees, cancellation fees, and more. It's essential to inquire about all potential fees and charges before choosing a personal loan.
  • Potential for Fraud: Be cautious of fraudulent loan offers promising guaranteed approval without verifying your credit score or employment status. Only deal with reputable banks and lenders, and verify the legitimacy of any loan providers. Avoid clicking on suspicious links and conduct thorough research before applying for a loan.

  Loan Repayment Terms: Ensure you understand the terms and conditions of the personal loan, including the interest rate, repayment schedule, and any prepayment options. This knowledge will help you make informed decisions and manage your loan effectively.