Here is the next part of our two-part series on the top 10 personal loan providers in India.
You can read the first part of the series here.
So far, we have covered:
- Bank of Baroda (BoB) Personal Loan Scheme
- Indian Overseas Bank Clean Loan to Salaried Class (Personal Loan)
- State Bank of India Loan to Salaried Customers Not Maintaining Salary Account with SBI
- Punjab National Bank PNB Personal Loan Scheme for Public
- Axis Bank Personal Loan
In this post, we cover:
- Canara Bank Budget Loan
- Indian Bank Clean Loan to Salaried Class (Personal Loan)
- UCO Bank Cash Loan (Personal Loan)
- Union Bank of India – Union Personal – Salaried Loan
- YES Bank Personal Loan Scheme
Let’s get started.
Canara Bank Budget Loan
This loan is meant to meet any personal or domestic needs of the applicant. It provides borrowers with financial assistance to meet their urgent financial needs. Canara Bank offers two sub-categories of the loan:
- Canara Budget-Prime
- Canara Budget-Delight
The Canara Budget-Prime loan can be given to:
- Salaried employees of central and state governments, public sector units and reputed private sector companies
- Individuals working in defence, paramilitary and autonomous central and state govt. bodies
The Canara Budget-Delight loan can be given to:
- Salaried employees of reputed corporates, MNCs, public and private limited companies
- Employees of private institutions, universities, reputed schools and colleges, reputed hospitals and IT/BT companies
The Canara Budget Loan can be sanctioned based on salary credits if the salary for the last one year was credited to the salary account maintained with the bank. It can be taken as an overdraft and the bank offers the option to keep the EMI fixed during the entire loan period for the term loan.
- The maximum amount offered under Canara Budget-Prime loan scheme (for govt. and public sector employees) is up to 25 months’ gross salary of the borrower subject to a maximum of Rs 30 lakh. The bank may offer a higher loan amount based on a case-to-case basis
- The maximum amount offered under Canara Budget-Delight loan scheme (for private sector employees) is up to 25 months’ gross salary of the borrower subject to a maximum of Rs 20 lakh. Higher loan amount is considered on a case-to-case basis
- With salary tie-up, the interest rate applicable on this loan ranges from RLLR of 9.25% plus a 1.40% spread to RLLR and a 6.40% spread (the interest rate range comes to 10.65% to 15.65%)
- Without salary tie-up, the interest rate applicable on this loan ranges from RLLR plus a 2.40% spread to RLLR plus a 6.40% spread (comes to 11.65% to 15.65%)
Canara Budget-Delight: For this, the bank needs a salary tie-up and the interest rate is RLLR+2.40% (i.e. 11.65%)
Indian Bank Clean Loan to Salaried Class (Personal Loan)
The Indian Bank Clean Loan to Salaried Class is meant for permanent employees of Public Sector Undertakings, Central Government, State Government units, and reputed national and multinational companies with at least two years of service who need financial assistance to meet urgent personal needs other than speculative purposes. The loan can be given to:
- Borrowers whose salary is credited to an Indian Bank account without any undertaking or check-off,
- To those whose salary is not credited to an account with the bank but can offer an undertaking or check-off, or
- Those who have taken a home loan from the bank and the account is regular
This is a collateral-free loan but needs the guarantee of your spouse or the nominee in your pension fund or gratuity plan if the salary is not credited to an Indian Bank account.
- If salary is credited to an Indian Bank account
- For overdrafts, the maximum limit is Rs 2 lakh or up to 1-month gross salary, whichever is lower
- Maximum loan amount is Rs 50 lakh or up to twenty times the monthly gross salary of the borrower, whichever limit is lower. This limit applies to both the overdraft and term loan
- If salary is not credited to an Indian Bank account
- The maximum loan amount offered under this loan is up to a maximum of twenty times the monthly gross salary of the borrower
The interest rate for personal loans has not been specified for April 2023 but the earlier rates ranged from around 9.50% to 15%+
UCO Cash (Personal Loan)
The UCO Cash (Personal Loan) is designed to help permanent/confirmed employees of Public Sector Undertakings, Central Government, State Government units, and reputed national and multinational companies having salary accounts with UCO Bank get financial assistance to meet their personal needs.
The bank offers a 0.25% concession in interest rate to women borrowers. This is a collateral-free loan and does not need any insurance coverage.
- Employees of Central And State Governments: UCO Bank offers a loan upto twenty times the borrower’s Gross Monthly Income subject to a maximum of Rs 15 lakh
- Other Borrowers: Maximum loan amount offered is upto ten times the Gross Monthly Income of the borrower or Rs. 10 lakh, whichever is less
The interest rate applicable to this loan is defined as the sum of two factors: UCO Float Rate and a Spread factor. As of April 2023, this float is 9.40% per annum and the spreads are 3.15% per annum for employees of central and state governments and 3.40% per annum for other borrowers.
Since UCO Bank offers a 0.25% concession for women, here are the rates based on where you work and your gender:
- Employees of Central and State Governments
- Female borrowers: 12.30% per annum
- Male borrowers: 12.55% per annum
- Employees of other organisations, private sector employees
- Female borrowers: 12.55% per annum
- Male borrowers: 12.80% per annum
Union Bank of India – Union Personal Salaried Loan
The Union Bank of India Personal Salaried Loan is designed to help permanent/confirmed employees of reputed private companies, institutes or organisations get financial assistance to meet their personal needs. Borrowers can also avail of this loan scheme to pay off their debts.
Union Bank has classified borrowers into two categories: Scheme A or Tie-Up and Scheme B or Non Tie-Up. For Scheme A (Tie-Up), applicants may or may not have their salary account with Union Bank but for Scheme B (Non Tie-Up), the applicant must have a salary account with the bank.
- Scheme A (Tie-Up): The maximum loan you can get is Rs 15 lakh
- Scheme B (Non Tie-Up):
- If you are borrowing for the first time, you can get a maximum of Rs 5 lakh only
- If you have borrowed before from the bank or have an existing banking relationship with Union Bank, then you are eligible to apply up to the full limit of Rs 15 lakh
The actual loan amount sanctioned by the bank depends on a case-to-case basis. For instance, borrowers who maintain a salary account with the bank can get a higher quantum of loan as compared to borrowers who do not have an existing relationship/salary account with Union Bank.
The interest rate for this loan is defined as the sum of two factors: External Benchmark Lending Rate (EBLR) and Credit Risk Spread. The spread varies based on your credit score.
As of April 2023, the EBLR of Union Bank of India is 9.30% and the interest rates are as below:
- Scheme A (Tie-Up)
- Credit Score of 700 or Above: EBLR and a spread of 4.10% taking the interest rate to 13.40% per annum
- Credit Score Below 700: EBLR and a spread of 4.20% taking the interest rate to 13.50% per annum
- Scheme B (Non Tie-Up)
- Credit Score of 700 or Above: EBLR and a spread of 5.10% taking the interest rate to 14.40% per annum
- Credit Score Below 700: EBLR and a spread of 5.20% taking the interest rate to 13.50% per annum
YES Bank Personal Loan Scheme
The loan is specifically designed for salaried employees of govt. organisations and reputed private organisations to help them get funds to meet their urgent financial needs. This personal loan can also be repurposed into a consolidation loan to pay off their high-interest credit card debts and loans.
- The maximum loan amount offered under this loan scheme is up to Rs 40 lakh
- The minimum amount you can apply for is Rs 1 lakh
The applicable interest rate on this loan depends on different factors such as income level, credit history, employment status, and capacity for repayment. As of April 2023, the interest rates range from 10.99% to 20.00%
To Conclude and Why These 10 Banks
This brings us to the end of the 2-part series on the Top 10 Personal Loan Providers in India. The list was prepared based on certain criteria such as:
- The top banks in India (SBI, PNB, BoB),
- Banks that have a sizeable regional or demographic presence, especially after the recent mergers (Canara Bank, UCO Bank, Union Bank, Indian Overseas Bank and Indian Bank), and
- The private sector banks that are a rung below the top two (i.e. ICICI Bank and HDFC Bank) and are showing strong growth in personal and other loan numbers to increase their presence in the Indian banking space. This is why we included Axis Bank and Yes Bank
We hope you found the information relevant to your needs. Each loan has been hyperlinked to specific pages of the loan on our main site. These pages will give you more information if you require the same.