As per the Axis Bank website, “Personal loan is a financial instrument that helps you to get money for multiple uses. Like any regular loan; when you opt for a personal loan, you get a specific loan at a specified interest rate. The amount is paid and can be repaid through a fixed repayment period.”
A personal loan application generally needs to determine the borrower’s funding requirement, eligibility for funds, and ability to repay the loan as it provides advances without collateral.
As a result, to qualify for a personal loan, applicants must typically employ people who provide documentation of their personal and employment information.
5 Banks Offering Cheapest Personal Loan Interest Rates
| banks | personal loan amount | tenure | ROI (%) |
| IDBI Bank | >=25000 more | 12 – 60 months | 8.90% – 14.00% |
| city union bank | >=5000 more | 12 months | >=9.50% |
| Indian Bank | >=50000 more | 12 – 36 months | 9.40% – 9.90% |
| Karur Vysya Bank | up to 10 lakhs | 12 – 60 months | 9.40% – 19.00% |
| Punjab National Bank | up to 10 lakhs | up to 60 months | 9.35% – 15.35% |
Source: Compiled by ETIG; Data as on 28 July 2022
Minimum CIBIL Score Required for Personal Loan
Credit score is a number that you get from credit bureaus which ranges from 300 to 900 such as CIBIL. The higher the score, the more likely your loan application will be approved.
As per the Axis Bank website, “If your credit score is high then you may get higher loan amount or even lower loan rate. However, a score below 750 can reduce your chances of getting a personal loan or offer you a lower amount or a higher interest rate. If your score is less than 600, try to find out why your credit score is low. This may be due to past behaviour, such as frequent missing or delaying of previous EMIs, excessive purchases on credit, or applying for loans or credit cards with multiple banks, etc.
Important FAQs on Personal Loan as per Kotak Mahindra Bank
How is the personal loan processing fee calculated?
The personal loan processing fee is calculated based on the loan amount. For example, suppose you have taken a loan of Rs 1 lakh and the processing fee for a personal loan is 2.5%, the fee will be Rs 2500 plus GST.
Do I have to pay any additional charges for personal loan?
You have to pay the processing fee for the personal loan when you apply for the loan. Other charges will depend on the service requests you raise on the loan.
How is the interest rate, processing fee, pre-closure fee determined on personal loan?
The personal loan interest rate is calculated on the outstanding balance of the loan amount. Pre-closure charges are also levied on the outstanding loan amount as on the date of foreclosure. On the other hand, the processing fee is calculated on the loan amount taken by you.