Top 6 Banks For Personal Loan in India 2021

One of the most popular modes of financing fiscal emergencies in India is through personal loans. Banks and NBFCs in India offer personal loans at highly competitive rates. With increasing alternatives and enhanced facilities, getting a personal loan has become an easy task.

Personal loans can be highly beneficial for people who are looking to finance relocation expenses, consolidating credit cards, financing marriages, paying for tuition fees, etc. Personal loan is a type of unsecured debt, which means that collateral need not back the loan.

If you're someone contemplating taking a personal loan, you must analyze all your options before deciding, so that your borrowing experience is smooth. Here's a list of the features, description and eligibility criteria to apply for personal loans in the top ten banks in India.

If you need to borrow money to consolidate credit card debt, move cross-country, or even finance an adoption, a personal loan can help cover your needs - be it wedding expenses, vacation, or medical emergencies - without breaking the bank. You can also use the mymoneykarma personal loan EMI calculator to get an estimate of the repayment amount.

DCB Bank Personal Loan

First we will look at the personal loans offered by the DCB Bank. DCB Bank may not be as well-known as the industry big-shots like HDFC and HSBC. However, its personal loans are known for having a comparatively low interest rate.

Here are the details of the DCB Bank Personal Loan.
 

Right from the DCB Bank website:

Fees	Amount
Loan processing charges/fees (Non-refundable)	2% to 3% of the loan amount
Collection charges	For defaults in the repayment of loan dues, the bank will take a Collection Charges of Rs. 100 plus taxes per instance, and Rs. 250 plus applicable taxes.
Prepayment charges	5% of the outstanding principal
Penal interest	3% per month of overdue/irregular on account of delay in the payment of repayment/interest of principal amount
ECS/cheque swap charge	Rs. 500 per instance + taxes
Cheque bounce charge	Rs. 500 per instance + taxes

Fullerton India Personal Loans

The personal loans of Fullerton India are there to serve various needs and purposes, and thus are quite flexible in nature. These are perfect for both salaried as well as for self-employed people.

Fullerton believes that the need for cash can rise at any time, without warning. Life can throw a curveball at you any time. You may require money to meet various needs, or even to plan for things for the future. These can include child’s education, vacation, travel, a medical emergency, for buying a plane ticket, for debt consolidation, etc

Fullerton India’s USP is that it provides personal loans fast, perhaps faster than the rest. Customers can get till Rs. 25 lakhs. Terms are quite flexible. For instance, you can avail a term tenure till 60 months.  With the bank’s competitive rates, it is quite easy to pay off loans by EMIs. 

Features & Benefits
Let us now see the benefits of the personal loans from Fullerton India. 

1. Personal loans till Rs. 25 lakhs: If you need a loan urgently, Fullerton Bank’s Personal Loans may be exactly what the doctor ordered. Of course, there are eligibility factors as usual such as monthly income and currently loans.
   
   Attractive, flexible loan interest rates: Interest rates are considerably flexible in nature, depending on your eligibility. The starting interest rate is 12.99% while the maximum is 36%. This is the same for both salaried and self-employed customers.

2. Problem-free documentation process: Everyone hates the long documentation processes for getting loans. These are imperative, of course, but surely not something that people look forward to. Now, Fullerton makes this easier by making the documentation process as easy and fast as possible. There is no heavy paperwork involved at all.

3. Lightning-quick disbursal: Disbursal decisions are taken very fast post-approval. In fact, it will not be uncommon to get the funds within 30 minutes of signing up.

4. More benefits if you’re already a customer: The existing customers get more benefits when they ask for personal loans. Obvious needs include not needing to submit basic documents, since banks have them already. Apart from that, you get preferential interest rates, special offers, flexible terms, faster response, and more.

With all these benefits and awesome features, it’d be great to get a personal from Fullerton India, right? Yes but first you’ll need to qualify or be eligible for the loan. As with all loans, not everyone is eligible. It all depends on a host of factors. Below are all the eligibility factors that you need to know of while getting a Fullerton India personal loan.

Eligibility criteria 

1. The person needs to be an Indian citizen.
    

2. The person needs to be an employee of a private limited company or of a public sector undertaking, or should be self-employed.
    

3. The person should be between 21 to 60 years of age.
    

4. Salaried people should be making Rs. 25,000 per month if in Delhi and Mumbai, and Rs. 20,000 per month if living in the rest of the country.
    

5. If the applicant is self-employed, the minimum profit post-tax per year is set as per the specific profession or industry.

As for the documents you need to submit:

1. ID proof

2. Address proof

3. Proof of age

4. Signed application form

5. Salary slips of the last 3 months, if the applicant is salaried

6. Bank statements of the last 6 months

7. Proof of income or financial statements, if the applicant is self-employed

8. Form 16 or Income tax returns

And now, let us come to the most important part: the interest rates, charges, fees and foreclosure charges.

Interest Rates

Loan tenure	Up to 60 months
Lowest EMI per lakh	2,275 for 60 months
Prepayment charges	0% to 7%
Personal loan interest rate	12.99% to 36%
Processing fees	Up to 3% of loan amount

Loan Fees and Charges
 

Type of Fee	Applicable charges
Delayed EMI Payment Interest	As stated in the bank documents
Collection of cash and cheque	none
ECS/Cheque/NACH dishonored charges	Rs. 300 per instance
Swap charges for the replacement of post-dated cheques to ECS mode	Rs. 500
Processing fees	Till 3% of the loan amount
Loan cancellation charges	Rs. 5000

Foreclosure charges

Foreclosure charges	Personal loan (Salaried)	Personal loan (Self-employed)
0-6 EMIs paid	N/a	N/a
7-17 paid	7%	7%
18-23 EMIs paid	5%	5%
24-35 EMIs paid	3%	3%
From 36 EMIs onwards paid	NULL	NULL

Additional interest rates

Additional interest (for payment defaults)	Rate
Additional interest applicable for defaulted paymentss	2% of the overdue amount; it is calculated on a daily basis

HDFC Bank Personal Loans

HDFC Bank gives you instant personal loans. These loans are for meeting any circumstance, ranging from weddings, emergency situations, for meeting other payments, and medical needs. HDFC bank is ever ready to help you meet your dreams and goals. For all your requirements and dreams, here’s the HDFC Bank Personal Loans.

Features of HDFC Bank Personal Loans:

• Quick fund turnaround time: If you are a pre-approved HDFC customer, you get funds in 10 seconds of approval! In comparison, other customers can see the loan only after 4 hours. Either way, you get the loan amount on the same day that you submit your required documents.

• Faster online application process: Since the personal loan application process is completely online, the process is over faster. You can submit the application just with a couple of clicks.

• Get protected with insurance: When you take personal loans of this bank, you can get a Personal Accident cover till Rs. 8 lakhs for a very nominal premium amount. And the bank makes it easier for you to pay these premiums too! Should you choose to get this insurance, your monthly premiums will just be deducted from the loan amount. Of course, surcharges and taxes are extra.

• Secondly, you get Personal loan security in which you can secure the loan with Sarv Suraksha Pro. It comes with several benefits like an insurance cover equal to your outstanding loan amount, a hospitalization cover till Rs. 8 lakhs, and an accidental death or permanent disability cover of till Rs. 1 lakh.

• A personal loan for all your needs: You may need a personal loan for various things: from meeting a marriage expense to meeting the bills for a  medical emergency. The best part is that personal loans from HDFC are highly customizable. For instance, you can benefit from special rates, offers and charges. Apart from this, there is additional flexibility for picking a payment plan.

• Save more money now with personal loan balance transfer: When to transfer your personal loan to HDFC bank, you lower your loan EMI. Interest rates are as low as 10.75%. There is a flat processing fee of Rs. 1999 only.

• Get help anytime: HDFC offers you 24/7 assistance, anytime and anywhere. You can get help through Click2Talk, SMS, WebChat and PhoneBanking.

To get the loan though, you need to meet the criteria, as under. 
Eligibility Criteria

• The applicant needs to be from a private limited company or from a public sector undertaking.

• The applicant should be between 21 and 60 years.

• The applicant should have had a job for 2 years at least, and with a minimum of 1 year at the current office.

• The applicant should be earning Rs. Rs. 15,000-20,000 minimum in net income.

Interest rates and charges

Fee	Amount to be paid
Rack interest rate	10.75% to 21.30% for salaried people
Loan processing charges	Up to 2.50% of the loan amount, to to a minimum of Rs. 2,999 & a maximum amount of Rs 25,000 for salaried customers
Prepayment in Part or full	For Salaried people- No pre-payment in part or in full permitted until the repayment of 12 EMIs.   Part-payment is allowed up to 25% of the principal outstanding amount.
Pre-payment charges (on principal outstanding)    Or   Part-payment charges  [on part-payment amount]	For salaried people- If 13 to 24 months - 4% of the  principal outstanding If 25-36 months - 3% of the principal outstanding If more than 36 months - 2% of principal outstanding
Loan closure letter	NIL
Duplicate loan closure letter	NIL
Solvency certificate	N/A
Overdue EMI interest	2% per month on EMI / principal overdue
Floating rate	N/A
Charges for changing from floating to fixed rate of interest	N/A
Stamp duty and other statutory charges	According to the state’s laws
Credit assessment charges	N/A
Non-standard repayment charges	N/A
Amortization schedule charges	Rs. 200
Loan cancellation charges	NIL
Cheque bounce charges	Rs. 550 per check bounce
Legal/incidental charges	At actual

Documents required

• ID proof

• Address proof

• Latest salary slips of the past 2 months

• Bank statement of the last 3 months

Personal loans from ICICI Bank

Facing an emergency or an unplanned event in your life? Need money for these things? If so, then your best bet can be the personal loans from ICICI bank. These can help you to meet any financial emergency that life throws at you. Planning for a dream vacation or seeking to fund a lavish wedding for your child? No problem! 

Here’s how to apply

All you need to do is to visit the ICICI Bank website, fill up the forms and then wait for your approval. The personal loans can be as much as Rs. 20 lakhs. And now...for the benefits!

Benefits:

There are many benefits of ICICI Bank loans, such as: 

• You’ll be able to get your funds in less than 3 seconds!

• The interest rate remains the same throughout the tenure.

• There is minimal documentation to worry about.

• Payment period is flexible, ranging from 12 months to 60 months.

Let’s talk about the eligibility next: 

Eligibility

Criteria	Salaried	Self-employed
Age	23 to 58	28 to 65
Net Salary/Minimum Turnover	Minimum salary should be Rs. 17500	Minimum turnover should be Rs. 40 lakh for non-professionals and Rs. 15 lakhs for professionals
Minimum profit after tax	n/a	Rs. 2 lakh for proprietorship and Rs. 1 lakh for non-professionals
Total years in the same profession	2 years	n/a
Number of years at the current residence	1 year	n/a
Business stability	n/a	5 years for professionals and 3 years for doctors
Current relationship with the bank	n/a	1 year minimum liability

Interest Rates

Types of credit	Charges
Personal loan interest rate	11.25% to 22.00% per year
Processing charges	Till 2.25% of loan amount plus GST
Prepayment charges	5% on principal outstanding plus GST
Additional interest on late payment	24% per annum
Repayment mode swap charges	Rs. 500 per transaction plus GST
Loan cancellation penalty charge	Rs. 3000 plus GST
EMI Bounce Charges	Rs. 400 per bounce plus GST

By now, you have got the full picture of what you need to do to get a personal loan from ICICI Bank.

Now, we’ll look at another bank: the Yes Bank. It may not be the top bank (and which is, anyways?), but it is a popular bank trusted by many.

Yes Bank Personal Loans

You can get a personal loan of Rs. 1 lakh to Rs. 40 lakhs from Yes Bank. These are available at attractive rates and their tenure ranges from 12 months to 60 months. As you can see, the tenure is longer than some other banks. This is to ensure that you can pay back the loan on time. It reduces a great deal of pressure on your monthly budget as the money to be given back is spread over many months.

Sounds amazing?

It’s host of features are too!

Features

• No collateral: Personal loans are unsecured loans, which means that you do not need to place any properties as security.

• Flexible repayment:  One of the best things about getting personal loans from Yes Bank is that you get the benefit of flexible repayments. You can repay the EMIs at a calculated repayment schedule that suits you best!

• Approval in 1-minute: On the Yes Bank website, you can check your eligibility in just a minute by entering your eligibility details.

• Quick disbursal: Once your loan is sanctioned, you do not need to wait for too long to get your funds. Unlike other banks, at Yes Bank your loan will be credited in your hands within a few hours. The bank makes the process fast as it understands that the customer may need it for emergencies.

• Low interest rates: You’ll be glad to know that you can get the best rates in the industry from this bank. In fact, you can get as little as 10.99%.

• Applying online is very easy: When you apply online, not only do you need to worry about minimum documentation, but you can also get the loan much faster than by going to the bank physically.

• Fast approval: After you have submitted all your documents, the bank will let you know its decision in as little as 5 days whereas most other banks take a longer time to decide.

• Loan transfer: Customers have the choice of transferring an existing loan of another bank to Yes Bank. Doing so gives them a lower interest rate. Additionally there are more benefits like top-up funding.

• Doorstep banking: Why go to the bank when the bank comes to you? Whenever you need, a representative of the bank will come to you take care of all your needs.

• Part-prepayment plans: Last but not least, you have the benefit of having a part prepayment plan. This way, customers are able to pay off faster if they come across unforeseen funds like an office bonus etc.

Eligibility factors

Criteria	Salaried	Self-employed
Age	21 to 60 years	21 to 60 years
Income	Rs. 25,000 each month if the customer lives in a tier 1 city   Rs. 18,000 each month if the customer lives in a tier 2 city	-
Credit score	700 onwards	700 onwards
Loan amount	Rs. 1 lakh to Rs. 40 lakhs	Rs. 1 lakh to Rs. 40 lakhs
Loan tenure	1 to 5 years	1 to 5 years
Rate of interest	10.99% per annum	10.99% per annum
Processing fees	Till 2.5% and the minimum is Rs. 999	Till 2.5% and the minimum is Rs. 999
Prepayment charges	After the payment of 12 EMIs, 4% of the outstanding principal amount along with Service Tax.	After the payment of 12 EMIs, 4% of the outstanding principal amount along with Service Tax.

Other particulars about the loan:

Interest rate	Onwards from 10.99% per annum
Loan amount	Till Rs. 40 lakhs
Loan tenure	12 to 60 months
Processing fees	Till 2.5% (Minimum of Rs. 999 plus GST)

IDFC Bank Personal Loan

IDFC Bank personal loans come with a host of benefits. These include: 

• Competitive Interest Rates

• Flexibility in Repayment

• Balance Transfer Benefits

Eligibility factors and documents required 

IDFC Bank gives you a personal loan, regardless of whether you are salaried or self-employed. To start with, let us look at the documents needed.

Documents needed for self-employed:

1. Proof that the business is 3 years old at least.

2. The businesses Profit After Tax or PAT needs to be positive for the previous 2 years.

3. The minimum age is 28 while the maximum age is 68 at the time of taking the loan.

Documents needed for salaried people:
1. Photo Identity Proof, such as:

• Passport

• Pan Card

• Voter Identity Card

• Driving License

• Aadhaar Card

2. Address Proof, such as:

• Ration Card

• Passport

• Electricity Bill

• Aadhaar Card

• Bank Account Statement

• Driving License

• Telephone Bill

3. The minimum age needs to be within 23 to 58 at the time of loan maturity.

4. Property purchase agreement or Sale Deed

4. Income Proof

5. Bank statement of the last 2-6 months 

6. Latest Salary Slip

For Self-Employed Individuals:

1. 2 year's P&L and ITR, and balance sheet for the last 2 years along with the last 6 month's bank statement.

2. Business proof (Qualification Certificate/Certificate of Practice, Shop Act License, Sales Tax, Vat registration Partnership Deed).

Finally, let’s come to the…

Fees Structure

Fee	Amount
Processing Fees	Processing fees will be taken from the loan amount at the moment of fund disbursal to a maximum of 3.5%.
EMI bounce charges	Rs. 400
Charges for repayment instrument swap	Rs. 500
Statement of account	Rs. 500
Rebooking and cancellation charges	1% from the loan amount and the interest from the date of disbursal till the receipt of cancellation request. The cancellation request should be received within 30 days from the booking date or from the 1st EMI presentation date, whichever date is earlier. After these dates, the cancellation will be deemed as foreclosure.
Stamping charge	As per actual
Physical repayment schedule	Rs. 500
Document retrieval charge (per retrieval)	Rs. 500
Collection charges (EMI pickup)	Rs. 500
Overdue interest	2% of unpaid EMI or Rs. 300, whichever sum is higher
Part prepayment fees - Simple personal loan	n/a
Part prepayment fees - Smart personal loan	You can make part-payment of 40% of the total amount. This option is there only after the payment of the first 3 EMIs. If you take this option, there will be a 2% charge on partial payments.
Simple and Smart personal loans	5% of the outstanding principal amount
Interest rate	The interest rate will be applicable at the time of the signing of the loan documents. EMIs will be charged according to the EMI cycle loan outstanding on a daily basis for each day of the month.
Registration charge	The charge will be on the actual, and will be deducted from the loan amount at the time of loan disbursal.

Andhra Bank Personal Loans

Andhra bank provides personal loans to those who require these for urgent circumstances. The benefits of taking loans from here are several.

• Simple conditions and documentation

• Zero prepayment charges

• Competitive interest rates

• You can get special schemes and discounts if you are an employee of a large company

Features

• The loan is for both salaried and self-employed people alike

• The loan is for those between 21 and 55 years of age

• The Loan amount ranges from Rs. 50,000 to Rs. 5,00,000.

• The tenure is from 12 months to 60 months

• The rate of interest is from 11.55% to 13.05%

• The lowest EMI is Rs. 2202

Fees

Fees	Amount
Processing fees	Case to case basis
Pre Closure fees	Nil
Prepayment charges	Nil
Other charges	EMI bounce charges, Late EMI payment charges, and loan cancellation charges as disclosed by the bank at the time of signing the loan agreement

Documents needed

Documents you need are:

• A completed application form

• 2 passport size photos

• ID proof

• Income tax PAN document copy

• Proof of residence

• Proof of income

Axis Bank Personal Loan

Now, let us look at the personal loan details of Axis Bank. Axis Bank is one of the biggest banks in India, whose branches you can see all over the country. It offers a large variety of products and services, including personal loans. You can apply for an Axis Bank personal loan for reasons like weddings, meeting emergency situations, or just about anything.

From the bank, you can between Rs. 50,000 to Rs. 15,00,000. There are benefits like minimal documentation and speedy approval. If you already have a personal loan under another bank, you can also do Balance Transfer to bring it to Axis Bank to get a lower interest rate. 

Features and Benefits

What are the many features and benefits of Axis Bank personal bank? Let’s find out!

Its benefits:

• Never let the lack of funds hold you back!: Meet all your monetary needs as and when you need

• Choose your loan amount: Choose anything between Rs. 50,000 to Rs. 15,00,000.

• You’re in charge of the tenure: Pick any repayment tenure from 12 months to 60 months

• Get the best interest rate: Rates start from 15.75%

• Easy Balance Transfer: To lower the interest rate of a personal loan from another bank, you can now transfer it to Axis bank and avoid the high interest rate.

• Get Axis Bank eDGE reward points: Get these each time you transact and redeem these when the points are over 500.

Now, let’s look at the documents you need to submit.

Basic documents you need to provide:

To make the loan repayment easier, you are free to opt for EMIs, whose repayment range is between 12 months to 60 months. If you are already an Axis Bank customer, you can expect the best personal loan rate! How cool is that!

Salaried employees particulars:

These include salaried doctors, employees of local bodies, employees of private and public limited companies, and employees of government sector companies

• They need to be at least 21 years of age.

• The maximum age is 60 at the time of loan maturity.

• The minimum net monthly income should be Rs. 15,000.

Documents needed for salaried individuals:

• KYC documents

• Duly filled application form

• Loan agreement duly signed and Standing Instruction (SI) Request / ECS Forms

Next, rates and charges for your personal loan.
Rates:

Fixed rate loan	1 year MCLR	Spread over 1 year MCLR	Effective ROI	Reset
Personal loan	8.10%	3.90% to 15.90%	12% to 24%	No reset

Interest rates and Charges of personal loans of repayment period less than 36 months:

Rate of interest	12% to 24%
Instrument return charges or Repayment instruction charges	Rs, 500 per instance + GST
Swap charges	Rs. 500 per instance + GST
Penal Interest	At 24% per year on overdue installment
Duplicate statement issuance charge	Rs. 250 per instance + GST
Duplicate amortization schedule issuance charge	Rs. 250 per instance + GST
Credit Information Companies Report Issuance Charges	Rs. 50 per instance + GST
Duplicate NOC	Rs. 500 per instance + GST
Stamp duty charges	As per state stamp act

Interest rates and Charges of personal loans of repayment period more than 36 months:

Rate of interest	12% to 24%
Instrument return charges or Repayment instruction charges	Rs, 500 per instance + GST
Swap charges	Rs. 500 per instance + GST
Penal Interest	At 24% per year on overdue installment
Duplicate statement issuance charge	Rs. 250 per instance + GST
Duplicate amortization schedule issuance charge	Rs. 250 per instance + GST
Credit Information Companies Report Issuance Charges	Rs. 50 per instance + GST
Duplicate NOC	Rs. 500 per instance + GST
Stamp duty charges	As per state stamp act

Canara Bank Personal Loans

Need funds urgently? Look towards Canara Bank!

There are several benefits of taking personal loans from here.

• No prepayment charges

• Easy and fast approval

• Many ways of repayment

• Special discounts and schemes for employees of large companies

Features:

• The loan is for both salaried and self-employed professionals

• Borrowers need to be within 21 and 60

• The loan is from Rs. 1 lakh to Rs. 3 lakhs

• The loan tenure is from 12 months to 48 months

• The interest rate is from 13% to 14%

• The lowest EMI is Rs. 2683 per lakh

Processing fees: 0.50% of the total principal

Preclosure charges: Nil

Part-payment charges: Allowed at

Other charges: This includes EMI bounce charge, late EMI payment charges, loan cancellation charges, all of which are disclosed by the bank at the time of you signing the loan agreement document.

Special schemes: One can get customized personal loan interest schemes and rates if one is from a special category of borrowers. This includes borrowers who work in reputed companies, are government employees or work in banks, etc. There are likewise special schemes for salaried individuals.

Charges

• Part-payment: Is allowed after one month at

• Pre-closure fees: In case you wish to repay your total loan amount before the end of the tenure time, you have to pay this charge. In Canara Bank, you are allowed preclosure after you pay one month’s EMI.

• Processing fees: The processing fees for your personal loan is 0.50% along with applicable taxes. For most banks, this is non-refundable.

• Other charges: There are separate charges for late payments, loan cancellation, EMI cheque bounce and others.

Documents you need

If you are a salaried person:

• Filled-up application form

• Income tax PAN copy

• 2 passport size photo

• ID proof

• Residence proof

• Income proof

RBL Personal Loans

You can get a personal loan from the RBL Bank, but only if you are a salaried individual. Unfortunately, RBL Bank does not offer it to self-employed individuals at this moment. However, for salaried individuals, its rates and conditions are attractive enough.

Salaried individuals can get personal loans of Rs. 1 lakh to Rs. 20 lakhs and the interest rate is from 14% to 23% per annum. Customers are free to choose a repayment tenure from 1 year to 5 years. 

Eligibility criteria is quite simple as well. Firstly, individuals need to be between 25 years and 60 years at the time of making the loan application. As for charges, there is a late payment charge of 2% per month, and 5% as a foreclosure charge.You can  Below is a table with details of all these factors.

Criteria	Salaried
Interest rate	14% to 23% per year
Processing fee	4% of the total loan amount
Loan tenure	12 to 60 months
Loan amount	Rs.1 lakh to Rs.20 lakh
Salary or income	Rs. 25,000 per month minimum
Employment status	Salaried. 3 years' total experience and 1 year experience in the current company.
Credit score	750
Lowest EMI per lakh	Rs.2,405
Prepayment and Foreclosure charges	Prepayment is allowed only after the payment of 12 month EMIs. From 13 to 18 EMIs - 5% of Principal outstanding. More than 18 EMIs - 3% of Principal outstanding No charges -  If the minimum of 12 EMIs is paid without foreclosure or bounce, charges are to be paid from their own funds.
Overdue interest rate	2% per month of the overdue amount

Documents to be submitted:

• bank statement

• credit reports

• identity and address proof

• PAN card and passport-size photographs.

Next, let’s look at personal loans from HDB Bank!

HDB Bank Personal Loans

Are you planning for a wedding? Want to admit your kids to a good school but do not have the cash at hand right now? Need funds to meet a medical emergency? Or maybe you want to go on that exotic vacation which you have always wanted? HDB Bank is there to take care of all your needs.

Features and benefits

• You can get loans till Rs. 20 lakhs.

• Loan tenure is flexible, from 12 to 60 months

• No security nor guarantor is needed

• Doorstep service

• Fast processing service

• Attractive interest rate

• Minimal documentation

• Special offers for the employees of selected companies

Eligibility criteria

Firstly, let us look at the criteria for...

Salaried Individuals:

They include:

1. Salaried Doctors

2. Chartered Accountant

3. Employees of selected Public and Private limited companies

4. Government Sector employees including those of public sector undertakings

Their eligibility criteria is as follows:

• Minimum age is 21 years at the time of taking the loan.

• Maximum age at loan maturity is 60 years or retirement, whichever comes earlier. For Government employees, the max age limit is 65 years.

• Criteria for minimum time in employment is 1 year in employment along with minimum 1 month salary credit in the present company.

• The minimum net monthly salary needs to be Rs. 20,000 for all metro cities, and Rs. 15,000 for other locations.

Secondly, we will look at…

Self employed Professionals:

These include:

• Self-employed Doctors

• Architects

• Chartered Accountants

• Company Secretaries

Their eligibility criteria is:

• The minimum age is 22 years

• The maximum age at the time of loan maturity is 65 years

• Minimum 3 years in business

• The minimum yearly income is Rs. 1,00,000 per year for all metro cities and Rs. 75,000 per year for all other locations.

We will now come to a similar category...

Self-employed (Individuals)-

This category includes:

• Sole proprietors

• Directors & Partners Trading or Services, and in the Business of Manufacturing

Their Eligibility Criteria is as under: 

• The minimum age is 22 years.

• The maximum age at loan maturity is 65 years.

• Minimum years in business is 4 years and minimum years in the same business is 2 years.

• The minimum income level is Rs. 1,00,000 per year for metro cities and Rs. 75,000 per year for other areas.

Finally, let’s come to..

Self-employed (Private Companies and Partnership Firms)-

This category includes:

• Manufacturing Services Companies and Partnership firms

• Trading or Services Companies and Partnership firms

The Eligibility Criteria is as under:

• The minimum age is 22 years

• The maximum age is 65 years at the date of loan maturity

• Minimum years in business is 4 years and minimum years in the same business is 2 years.

• The minimum income level is Rs. 1,00,000 per year for metro cities and Rs. 75,000 per year for other areas.

• The business must be making profit for the past 2 years

Documents needed

Below is a list of images taken from the HDB Bank’s site regarding the documents needed for various categories. And as it is from the bank’s site directly, you can bet the information is the latest.

Salaried individuals: CAs, salaried doctors, employees of private and public limited companies, employees of government sector companies and of public sector undertakings come within this category.

Documents they need:

1. Address proof and ID proof
   - Driving license
   - Voters ID
   - PAN Card
   - Passport
   - Aadhar card or proof of possession of the same
   - Photo
   - Job card given by NREGA signed by a State Government officer
   - a letter given by the National Population Register giving details of name and address
   - Utility bills

2. Birth Certificate or Birth proof documents

3. Bank statements

4. Salary slips of the last 3 months

Self-employed professionals:
This category includes self-employed professionals like CAs, doctors, company secretaries and architects.

Documents they need:

• Address proof and ID proof
  - Driving license
  - Voters ID
  - PAN Card
  - Passport
  - Aadhar card or proof of possession of the same
  - Photo
  - Letter of allotment of accommodation from the employer or leave and license agreements with the employers giving official accommodation
  - Utility bills

• Birth Certificate or Birth proof documents

• Bank statements

• The latest ITR along with a computation of income

• Proof of continuation like Establishment documents, latest statements and bank passbook updated within 90 days

• Other mandatory documents for Proprietorship Concern, including registration certificate, licence issued under Shop and Establishment Act, Income tax and Sales returns, VAT/CST/GST, complete IT returns and utility bills.

Self-employed private companies and partnership firms::

These include partnership firms and private companies in the manufacturing sector, the services sector and the trade sector.

Documents needed:

• Address proof and ID proof
  - Driving license
  - Voters ID
  - PAN Card
  - Passport
  - Aadhar card or proof of possession of the same
  - Photo
  - Registered rental agreement or letter of allotment of accommodation from the employer, license and leave agreement the employers giving official accommodation
  - Utility bills

• Date of birth proof documents like passport copy, PAN card, driver’s license etc.

• PAN card of the private firm or the partnership firm. It is mandatory.

• Partnership firm’s registration certificate

• Bank statements

• Power of attorney granted to managers, partners, employees or officers of the firm or company to transact business on its behalf

• Complete Income Tax return in the name of the partnership firm

• Proof of continuation

• Other important documents as told by the banks

For private limited companies

They need documents like:

• Certified copy of Certificate of Incorporation

• Updated memorandum and the articles of association

• Certified copy of REsolution of the Board of Directors to open an account and the identification of those who have the authority of operating the account, signed by two directors or one company secretary

• Form 32/DIR 12 signed by the Registrar of Companies.

Interest Rates and Charges
This is perhaps the most important part of any loan. After all, a loan is seldom if it’s not without interest and charges, right? Well, let’s look at the interest rates and charges for HDB Bank personal loans.

Charge name	Charges in Personal Loan
Application fee for each asset	Nil
Processing Fee	2%
ECS/Cheque bounce charge (per bounce)	Rs. 750
Interest charged on EMI payments per month on outstanding EMI amount or interest amount	3%
ECS/PDC charges per swap	Rs. 750
Charges for statement of accounts	Rs. 500
Document Retrieval Charges	Rs. 750
Additional repayment schedule	Rs. 500
Loan Cancellation Charges	Rs. 1000
CERSAI Fees (per property)	Nil
Prepayment/foreclosure charges	0-6 months- Nil 6-12 months- 4% 12-36 months- 4% More than 36 months- 8%
Interest rate	36%. It will be based on Market conditions, Risk parameters, and Cost of Funds.

To Sum Up

Usually, borrowers only acknowledge the interest rate before applying for personal loans and are mostly unaware of all other fees and charges applicable on such loans. Thus, borrowers end up paying more money than the amount they signed up for.

It is essential to extensively research on the alternatives available and factor in all the costs that you might incur before applying for a personal loan, so that your money doesn't get drained due to misinformation or less information. You can always refinance to another bank if you find a better rate of interest.

You can compare various types of personal loans offered by Indian banks and apply for a loan online with the help of mymoneykarma. mymoneykarma matches your credit profile to lenders criteria, and our algorithm recommends lenders based on your loan preferences!