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Personal Loan

Personal Loan

To meet the needs of various consumer sectors, Flocred offers personal loan options from more than 30 banks and NBFCs. In order to apply for the best loan choice based on their credit histories, clients can examine the important loan characteristics provided by leading lenders. Furthermore, we have formed unique alliances with a number of banks and NBFCs to provide pre-approved/pre-qualified personal loans with end-to-end digital processing and immediate disbursal.

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Updated: 5-01-2023 02:40:35 PM
Personal Loan Highlights
Interest Rate 10.49% p.a. onwards (through flocred.com)
Loan Amount Can go up to Rs 40 lakh; some lenders may offer higher loan amounts
Tenure Up to 5 years (some lenders offer repayment period till 7 years)
Processing Fees 0.5% to 4% of loan amount (may vary across lenders)

Personal Loan Interest Rates

At the moment, the starting annual percentage rate for personal loans given by flocred.com is 10.49%. Personal loans may be available from some public sector banks at lower interest rates. The final interest rate for personal loans that banks and NBFCs give will be determined by a number of variables, including the desired loan amount, credit score, income, etc.

Comparing Personal Loan Rates of Top Banks & NBFCs in India
Lenders Interest Rate (p.a.)
State Bank of India 10.90%-15.40%
HDFC Bank 11.00% onwards
Punjab National Bank 10.15%-16.70%
ICICI Bank 10.75% onwards
Bank of Baroda 10.60%-17.95%
Union Bank of India 11.15%-15.25%
Axis Bank 10.49% onwards
Bank of India 10.10%-14.60%
Indian Bank 9.75%-14.75%
Kotak Mahindra Bank 10.99% onwards
Central Bank of India 10.70%-12.30%
IndusInd Bank 10.49% onwards
IDBI Bank 11.00%-15.50%
Yes Bank 10.49% onwards
UCO Bank 12.30%-12.70%
Federal Bank 10.49%-17.99%
Bank of Maharashtra 9.25%-15.05%
IDFC FIRST Bank 10.49% onwards
Bajaj Finance 11.00% onwards
RBL Bank 17.50%-26.00%
Muthoot Finance 14.00%-22.00%
Citibank 10.75%-16.49%
Tata Capital 10.99% onwards
Standard Chartered Bank 11.49% onwards
HSBC 9.75%-16.00%
Navi Finserv 9.90%-45.00%
StashFin 11.99% onwards
Fullerton India 11.99% onwards
Faircent 12.00% onwards
KreditBee Up to 29.95%
MoneyTap 36.00% onwards
Dhani Loans & Services (Formerly known as Indiabulls Consumer Finance Ltd.) 13.99% onwards
Money View 15.96% onwards
PaySense 16.80%-27.60%
Home Credit 24.00% onwards
CASHe 27.00% onwards
HDB Financial Services Up to 36.00%

Features & Benefits

  • No-collateral loan
  • No end-use limitations
  • Interest rate starting from 10.49% p.a. (through flocred.com)
  • A maximum loan amount of Rs. 40 lakh may be granted at the lenders' discretion.
  • Repayment period of up to 60 months, however it may be extended in some circumstances.
  • Minimal documentation
  • Quick disbursals

Fees & Charges

Personal loan fees and charges typically vary from lender to lender and case to case. You may get a good idea of the costs and fees associated with personal loans from the table above:

Particulars 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

Additionally, lenders may impose documentation fees, verification fees, duplicate statement fees, NOC certificate fees, swap fees, and late fees on your personal loan.

Types of Personal Loans

  • Instant Personal Loans: are instantaneously accepted within a few minutes with zero to few document needs. Banks and NBFCs typically offer personal loans with instant disbursals to their chosen clients based on their credit profiles.
  • Short-term Personal Loans: have brief repayment terms that range from a few days to a year.
  • Pre-approved Personal Loans: are frequently provided by banks and NBFCs to their current clients based on their credit histories, income, employment histories, etc.
  • Consumer Durable Loans: can be used to buy any consumer durable items, like microwaves, sofas, and cellphones. The purchase price is divided into EMIs, which are repayable over the chosen duration. There might be a processing charge or down payment needed for some products but not others.
  • Personal Loan Balance Transfer: Borrowers have the option to transfer their outstanding personal loans to a new lender for better loan conditions or cheaper interest rates. Only transfer your outstanding personal loan, though, if doing so will save you more money than it will cost to do so.
  • Personal Loan Top Up: is made available to current borrowers of personal loans who require more money to meet their financial obligations. However, this lending facility is only made available to a small group of current borrowers of personal loans who have a sufficient history of loan repayment and/or have made a certain number of EMIs.
  • Personal loan for Education: A personal loan for higher education is available to people who need money to pay for higher education in India and abroad, vocational training, etc. but are unable to obtain a traditional education loan.
  • Debt Consolidation Loan: People who are struggling with various debt responsibilities may be able to combine them into one loan taken out at a lower interest rate or for a longer term. The main reason to apply for a debt consolidation loan is to lower the EMI and interest costs.

Personal Loan Eligibility Criteria

  • Age: 18 – 60 years
  • Salary: At least Rs. 15,000 per month for clients who are salaried
  • Income: At least Rs. 5 lakh per year for clients who are self-employed
  • Credit Score: preferably 750 or higher, as loans with higher credit scores are more likely to be approved.
  • Employment Stability: For salaried positions, at least 2 years with at least 1 year in the same position
  • Business Continuity: At least two years of business continuity for independent contractors
  • Employment Type: Salaried workers for reputable companies, multinational corporations, private and public limited companies, government agencies, public-sector utilities, and huge businesses

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 can you increase your chances of receiving a personal loan?

There are a few techniques to raise your chances of getting a personal loan approval:

  • Maintain your CIBIL score above 750
  • Check your credit record for errors as they could negatively affect your credit score and decrease the likelihood that a loan will be approved.
  • Before agreeing to any loan terms, compare the personal loan offers from banks and NBFCs.
  • Apply for the loan from a bank or NBFC where your chances of approval are higher.
  • Refrain from submitting several loan applications quickly.

How can I apply online for a personal loan?

Customers can compare personal loan offers from more than 30 banks and NBFCs on flocred.com, and they can easily apply for the best offer online. The following are the steps to follow:

  • In the personal loan application, include your cell phone number.
  • Enter your personal information, including the desired loan amount, your job status, your net monthly income, your current place of residence, the bank where you get your salary, and the name of the employer.
  • Give your OTP for verification and look for personal loan offers that have already been pre-approved.
  • Give further information, such as the total EMI you presently pay, your PAN, your overall job history, how long you've been with your current employer, etc., to view more personal loan options.
  • Compare personal loan offers and submit an application for the one that best fits your needs.

FAQ

Depending on the lender's eligibility requirements. For a personal loan, the majority of lenders do not set a minimum credit score. Although some lenders may lend to applicants with poor credit scores (less than 750), the interest rate that applies in these circumstances is typically higher.

According to the terms and conditions of the lender, you may in some circumstances cancel a personal loan after it has been disbursed. Cancelling a loan will result in processing and cancellation fees. Please be aware that once the money has been disbursed, no bank permits cancellation of a loan. However, you can always prepay the loan amount in accordance with the bank's terms and conditions to avoid paying interest.

Each lender has a different minimum monthly salary requirement for personal loans. However, the minimum monthly income requirement for large lenders like private and public sector banks is Rs. 15,000 and more.

If you have a pension account with one of the top banks, you can obtain a personal loan even as a retiree. You should, however, confirm that the bank where you get your pension funds allows personal loans to retirees and that you meet the requirements set forth by your potential lender.

In general, because a reliable source of income and a high credit score are requirements, students are not eligible for personal loans. However, you can simply apply for a personal loan provided you have a reliable monthly income and meet the lender's other qualifying requirements.

Yes, you are still eligible to apply for a personal loan if you also have a mortgage. However, your ability to repay the requested personal loan will determine if you have a good enough likelihood of getting the loan granted.

You can obtain a personal loan without submitting pay stubs, yes. As proof of income, you can meet the eligibility requirements by providing your bank account statement, a copy of Form 16, an employee certificate from your workplace, etc. The list of required documents should always be confirmed with the lender, though, as it may differ from one bank to another.

Yes, since personal loans have flexible end uses, you can use them to cover marriage-related expenses. Some lenders also offer personal loans designated specifically as marriage/wedding loans.

You may obtain personal loans simultaneously from two separate lenders, yes. However, doing so is not recommended because it will both lower your credit score and increase your EMI payment. It will be wiser to take out one larger-amount personal loan as opposed to two smaller-amount loans. By doing this, you can cut your EMIs over a longer period of time while simultaneously raising your credit score. You will also avoid paying processing fees and other loan-related costs.

Once your personal loan has been disbursed, you cannot cancel it. You can, however, prepay the borrowing sum. Nevertheless, depending on the lending terms of the lender, prepaying the personal loan may result in prepayment or foreclosure fees. Some lenders might additionally prohibit personal loan prepayment or foreclosure until a predetermined number of EMIs have been paid.

On fixed rate personal loans, prepayment fees of up to 5% are assessed in addition to any applicable taxes. According to instructions from the RBI, there won't be any prepayment or foreclosure penalties for personal loans with floating rates.

Personal loans are often unsecured loans, meaning the borrower is not required to put up any collateral or security in order to obtain the loan. However, some lenders also issue secured personal loans, which require a security deposit or other kind of collateral in order to be approved. When a borrower cannot obtain an unsecured personal loan or is charged extremely high interest rates, he or she should choose a secured personal loan.

A typical personal loan has a term of between one and five years. However, several financial institutions, including SBI, Tata Capital, and Bajaj Finance, offer personal loans with terms of up to seven years.