Best personal loan: Which bank is offering the best personal loan? Know the details!
Personal loans are the most common financial option nowadays, but it is very important to choose the right bank and loan scheme. Major banks like HDFC, SBI, ICICI, Bajaj Finserv, and Axis Bank offer great personal loan options.
Personal loans have become very common nowadays. You can easily get this loan for your needs without pledging any property. Be it for holidays, for a medical emergency, or any home improvement. But the question arises, which is the best personal loan? Which bank will be best for you to take a loan from? In this article, we will try to answer this question.
What is a personal loan?
A personal loan is a rights-based loan, in which you do not need to mortgage your property (such as a home or car). It is available without any security, and you have the freedom to use it for any personal expenses, education, health, marriage, or holidays.
What to consider before taking a personal loan?
1. Interest rate
The most important feature of a personal loan is its interest rate. Usually, the interest rate on a personal loan ranges from 9% to 15%, depending on the bank and your credit history. You can get a lower interest rate if you have a good credit score (750 or above).
2. Loan tenure
The tenure of a personal loan usually ranges from 1 to 5 years. Over a longer tenure, your EMIs may be lower, but the interest you may have to pay may be higher. So keep in mind how much budget you have available for EMIs while deciding.
3. Processing fee
The processing fee is also an important factor. It is usually 1-3% of the loan amount. However, many banks waive or reduce this fee if you are their loyal customer.
Which banks and financial institutions are best for personal loans?
Now let's know from which bank it will be best for you to take a personal loan:
1. HDFC Bank
HDFC Bank is a leading bank that offers personal loans at attractive interest rates. Its interest rate starts from 10.5%. The maximum loan limit in HDFC Bank is up to ₹ 40 lakh. Apart from this, the loan process of the bank is digital, so that you can get a loan in a very short time.
2. SBI (State Bank of India)
SBI is the largest government bank in India and its personal loan scheme is very affordable. Its interest rates start from 9.60%, and the loan tenure ranges from 1 to 6 years. SBI has a very strong customer support system, so that you do not face any problem during the loan.
3. ICICI Bank
ICICI Bank's personal loan program is also very flexible. It offers loans up to ₹ 10 lakh, and its interest rate starts from 10.99%. One of the major advantages of ICICI Bank is that it gives very quick approval of personal loan through a digital process.
4. Axis Bank
Axis Bank is also a strong name in providing personal loans. Its interest rate starts from 11.25%, and it offers loans up to ₹15 lakh. The process of taking a loan from Axis Bank is also quite straightforward and hassle-free.
Process of taking a personal loan
First of all, check if you meet the eligibility criteria set by the bank.
Documents required for a personal loan include income certificate, identity proof, address proof, and credit report.
Many banks and financial institutions accept online applications, making the process even easier.
If your eligibility is right, the bank approves the loan after checking your documents.
After the loan is approved, you have to decide the EMI amount. It should be according to your monthly income and budget.
(FAQs)
1. What is the minimum credit score required for a personal loan?
Usually, a 750+ credit score is required for a personal loan.
2. Is a guarantor required for a personal loan?
No, a personal loan can be availed without a guarantor as long as you have a good credit history.
3. In how many days does it take to get the money for a personal loan?
If all the documents are in order, a personal loan is usually approved within 2-3 working days.
Disclaimer: This content has been sourced and edited from nebio. While we have made modifications for clarity and presentation.
