Personal loan in Bangalore

Bangalore, the IT Capital of the country is home to over 1 crore individuals. The city’s pleasant weather coupled with friendly locals makes it an attractive destination for millions of migrants. As the case with any modern metropolis, Bangalore boasts of amazing public transport, top hospitals, and some of the best educational institutions.

Residents of Bangalore have easy access to thousands of Banks and NBFC’s where they can easily apply for a personal loan. In this article you will learn about everything you need to know before you apply for a personal loan in Bangalore.

Features & Benefits of a Bangalore Personal Loan

A Bangalore Personal Loan has many advantages as well as benefits in comparison to other credit lending schemes. Let’s take a look at some of the key points that make a personal loan an attractive option:

  • No guarantee required – You aren’t required to put up any assets or collateral to avail a personal loan
  • Fixed Rate of Interest – The rate of interest for the period of your loan repayment is fixed
  • Choose your tenure – You have the freedom to choose a loan repayment tenure. (Max 5 years)
  • Monthly or quarterly installments – You decide the installments via which you wish to repay the loan amount
  • Loan Eligibility Calculator – An effective tool to help you determine your eligibility for a personal loan in Bangalore
  • Loan EMI Calculator – Know the monthly installments you’ll have to pay for your required loan amount using this banking tool
  • Freedom of use – You can use the loan amount for any purpose without restrictions
  • Minimal documentation – The documents required are far lesser in comparison to a home/auto loan
  • Fast processing – Loan applications are processed faster and amounts disbursed within 24-48 hours post approval
  • Competitive Interest Rates

Documents required for a Personal Loan in Bangalore

The documentation required along with your personal loan application are minimal. However, there is a slight difference between a salaried and a self-employed individual.

Salaried Self-employed
Photo I.D proof (Passport, driving license,  voter ID and PAN card) Photo I.D proof (Passport, driving license,  voter ID and PAN card)
Proof of Residence (rental agreement, water/electricity bills not older than 3 months) Proof of Residence (rental agreement, water/electricity bills not older than 3 months)
Salary slips (last 3 months) Audited financials for the last two years
2 passport size photographs Address proof of office
Latest 3 months bank statement  (where salary income is credited) Proof of business continuity

Eligibility for a Bangalore Personal Loan

Before you can apply for a personal loan in Bangalore, make sure you meet all the necessary eligibility criteria, as stated below:

  1. Salaried Individuals
  • Be between the age of 21-65
  • Minimum monthly income of INR 15,000
  • Not have too many pending loan repayments
  • Have a CIBIL score of at least 750
  • Max Loan amount granted is INR 15 Lakhs
  • Interest Rates vary between 12.99% – 15.50%
  1. Self-Employed Individuals
  • Between the age of 25-65
  • INR 15-40 Lakhs Turnover
  • In current business for at least 5 years (3 for doctors)
  • Interest Rates vary between 12.99 % – 20 %

Bangalore Personal Loan Interest Rates

Interest Rate 12.99% – 20%
Processing Charges & Fees 0.5% – 2.5%
Pre-payment Charges 2% – 5%
Average Loan Tenure 1-5 Years

Personal Loan in Bangalore

Personal loans can be applied by those individuals who are in sudden financial distress and are in need of an immediate loan. A personal loan is easy to apply for and does not require any collateral or assets to be put up. The documentation and fast processing make a personal loan the go-to credit lending option in many scenarios.

Bangalore has a number of banks and NBFC’s that offer a personal loan. You can apply for it online on their website or by visiting your nearest branch.

Various Lenders offering a Bangalore Personal Loan

The various banks/NBFC’s offering a personal loan in Bangalore are given below:

  • Axis Bank Personal Loan
  • Bajaj Finance Personal Loan
  • HDFC personal loan
  • SBI personal loan
  • ICICI personal loan
  • Bajaj Finserv personal loan
  • Citibank personal loan
  • Fullerton India personal loan
  • Canara bank personal loan
  • Kotak personal loan
  • Bank of India personal loan

Getting a low Interest Rate Personal Loan in Bangalore

As a personal loan does not require any assets or guarantee to be put up front, lenders tend to charge higher interest rates on them. Hence it is important to know the effective ways you can reduce the rate of interest on your Bangalore personal loan.

  • Maintain a good CIBIL/Credit Score (Around 750)
  • Good Debt-Income Ratio (No more than 40% of income should go toward debt payments)
  • Loan EMI Calculator – Use online tools to calculate best Interest rate amounts for you
  • Employment History – Good employment records translate to better Interest rates
  • Choose a shorter loan repayment tenure

Bangalore Personal Loan Interest Rates (2018)

Bank Interest Rates (Fixed) Processing Fee Max Loan Amount Personal Loan Tenure
ICICI Bank 11.59% – 18.49% 2.25% (min. Rs.1149) Rs.20 lakh 1-5 Years
CitiBank 10.99% – 15.99% 1% to 2.5% Rs.30 lakh 1-5 Years
Kotak Mahindra Bank 11.49% – 20.15% Up to 2% Rs.15 lakh 1-5 years
Fullerton 17.25% – 37% 1.5% to 6.0% Rs.15 Lakh 1-4 Years
Bank of Baroda 11.35% – 14.35% Rs.1,000 to Rs.10,000 Rs.20,000 – Rs.2 lakh 4 Years (Max)
State Bank of India 12.90% – 14.90% 1% Rs.24,000 – 15 lakh 5 Years
Aditya Birla 11.5% – 13.25% Nil Rs.30 lakh 1-5 Years
Allahabad Bank 13.10% 1.22% Rs.50,000- Rs.7.5 lakh 1-5 Years
Yes Bank 14% Up to 2% Rs.20 lakh 1-5         Years

Monthly Income Requirements for Bangalore Personal Loan

Every Bank/NBFC looks at your monthly income as a benchmark to assess your personal loan amount as well as eligibility. In order to ensure your personal loan application goes through, your salary needs to be within the required range.

  1. For Salaried Individuals – INR 15,000 – INR 50,000 (on Average)
  2. For Self-Employed Individuals – INR 1 – 2 Lakhs profit per annum

FAQ’s for Bangalore Personal Loans

  • What is the minimum CIBIL score required to avail a personal loan?

It is advised to have a CIBIL score of at least 750 before you apply for a personal loan

  • What are the factors that determine my personal loan interest rate?

Your CIBIL score, previous loans, pending loan repayments, average monthly income, and employment history are used to determine the personal loan interest rate

  • Will failure to pay my EMI affect my CIBIL score?

Yes. Your score will take a hit if you fail to keep up with your monthly loan repayments.

  • Can I prepay the remaining loan amount before the end of the loan period?

Most Banks allow full or partial repayment with minimal charges