What is Personal Loan

What is Personal Loan

A personal loan is a type of unsecured loan that can be used for various purposes such as debt consolidation, home improvement, medical expenses, wedding expenses, travel, or any other personal expenses. Unlike secured loans, such as a mortgage or car loan, a personal loan does not require collateral.

Instead, the loan is approved based on the borrower’s creditworthiness and income. Personal loans typically have a fixed interest rate and a fixed repayment period, and the borrower is required to make regular monthly payments until the loan is fully repaid. Some personal loans may require a co-signer to help the borrower qualify for the loan. Personal loans can be obtained from banks, credit unions, and online lenders.

 Type Of Personal Loan

There are several types of personal loans, including:

1. Unsecured personal loans: These loans do not require collateral and are based on the borrower’s creditworthiness.
2. Secured personal loans: These loans require collateral, such as a car or property, to secure the loan.
3. Fixed-rate personal loans: These loans have a fixed interest rate for the life of the loan.
4. Variable-rate personal loans: These loans have an interest rate that can fluctuate over time.
5. Line of credit: A line of credit is a type of loan that gives you access to a certain amount of money, but you only pay interest on the amount you use.
6. Payday loans: These are high-interest, short-term loans that are designed to be paid back on your next payday. They are typically used for unexpected expenses and are considered a high-risk loan product.
7. Peer-to-peer loans: These loans are funded by individual investors, rather than banks or other financial institutions.
8. Co-sign personal loans: A co-sign personal loan is a loan that is cosigned by a person other than the primary borrower. This is typically used by people with poor credit or no credit history.
9. Debt Consolidation loan: Personal loans for debt consolidation can be used to pay off multiple outstanding debts with a single loan.

It’s important to note that the terms, rates, and fees for personal loans can vary widely depending on the lender and the type of loan. It is always best to shop around and compare offers before applying for a loan.

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Best Personal Loan company india

There are several personal loan providers in India, including:

1. State Bank of India (SBI): One of the largest banks in India, SBI offers personal loans for a variety of purposes, including medical expenses, home renovation, and travel.
2. HDFC Bank: HDFC is one of the most popular banks in India, offering personal loans at competitive interest rates.
3. ICICI Bank: ICICI Bank is another major player in the Indian personal loan market, offering loans for a variety of purposes, including home renovation, travel, and medical expenses.
4. Axis Bank: Axis Bank is one of the leading banks in India, offering personal loans for a variety of purposes, including home renovation, travel, and medical expenses.
5. Bajaj Finserv: Bajaj Finserv is a non-banking finance company (NBFC) which offers personal loans, it also has a pre-approved offer for its existing customers.
6. Kotak Mahindra Bank: Kotak Mahindra Bank is one of the leading private sector banks in India, offering personal loans for a variety of purposes, including home renovation, travel, and medical expenses.
7. Fullerton India: Fullerton India is a non-banking finance company (NBFC) that offers personal loans for a variety of purposes, including home renovation, travel, and medical expenses.
8. Tata Capital: Tata Capital is a non-banking finance company (NBFC) that offers personal loans for a variety of purposes, including home renovation, travel, and medical expenses.
9. RBL Bank: RBL Bank is a private sector bank which offers personal loans for a variety of purposes, including home renovation, travel, and medical expenses.

It’s important to note that the terms, rates, and fees for personal loans can vary widely depending on the lender, the type of loan and the individual’s credit score and income. It is always best to compare offers and read the fine print before applying for a loan.

Personal Loan Interest Rates 2023

Lenders	Interest Rate (p.a.)	Processing Fee (% of loan amount)
State Bank of India	10.90% – 15.40%	NIL till 31.01.2023
HDFC Bank	11.00%  onwards	Up to Rs 4,999
Punjab National Bank	10.15% – 16.70%	Up to 1%
ICICI Bank	10.75% onwards	Up to 2.5%
Bank of Baroda	10.60% – 17.95%	Up to 2% (Rs 1,000 – Rs 10,000)
Union Bank of India	11.15% – 15.25%	Up to 1% (Maximum Rs 7,500)
Axis Bank	10.49% onwards	Up to 2%
Bank of India	10.10% – 14.60%	Up to 1% (Maximum Rs 5,000)
Indian Bank	9.75% – 14.75%	Up to 1%
Kotak Mahindra Bank	10.99% onwards	Up to 3%
Central Bank of India	10.70% – 12.30%	Up to 1%
IndusInd Bank	10.49% onwards	Up to 3%
IDBI Bank	11.00% – 15.50%	1% (Minimum Rs 2,500)
Yes Bank	10.99% onwards	–
UCO Bank	12.30% – 12.70%	Up to 1%
Federal Bank	10.49% – 17.99%	Up to 3%
Bank of Maharashtra	9.25% – 15.05%	Up to 1%
IDFC FIRST Bank	10.49% onwards	Up to 3.5%
Bajaj Finance	11.00% onwards	Up to 3.84%
RBL Bank	17.50% – 26.00%	Up to 2%
Muthoot Finance	14.00% – 22.00%	–
Citibank	10.75% – 16.49%	Up to 3%
Tata Capital	10.99% onwards	Up to 3%
Standard Chartered Bank	11.49% onwards	Up to 2.25%
HSBC	9.75% – 16.00%	Up to 2%
Navi Finserv	9.90% – 45.00%	Nil (for loans of Rs 50,000 or above)
StashFin	11.99% – 59.99%	Up to 10%
Fullerton India	11.99% onwards	Up to 6%
Faircent	12.00% onwards	–
KreditBee	Up to 29.95%	Up to 6%
MoneyTap	36.00% onwards	Up to 2%
Dhani Loans & Services (Formerly known as Indiabulls Consumer Finance Ltd.)	13.99% onwards	3% onwards
Money View	15.96% onwards	2% – 8%
PaySense	16.80% – 27.60%	Up to 3%
Home Credit	24.00% onwards	Up to 5%
CASHe	27.00% onwards	Up to 3%
HDB Financial Services	Up to 36.00%	Up to 3%

 

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