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Top 10 Personal Loan Providers in India: Interest Rates and Eligibility

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Whether you need a financial boost for a grand wedding, a swanky new toy, or simply to escape the dastardly clutches of debt, we have got you covered with this list of the top 10 personal loan providers in India.

Bank of Baroda (BoB) Personal Loan Scheme

The Bank of Baroda Personal Loan is meant for borrowers who need financial assistance to meet urgent needs.

The bank offers this loan to salaried applicants with a minimum continuous service of one year and self-employed professionals who have experience or practice of at least one year. Salaried or self-employed applicants who have maintained a satisfactory account relationship with the bank for at least 6 months are eligible for this loan and get a lower interest rate than new customers.

Loan Amount

The maximum loan amount offered under this loan scheme is Rs. 10 lakh for metro and urban areas and Rs. 5 lakh for semi-urban and rural areas

Interest

  • The applicable interest rate on this loan is defined as the sum of three factors namely, Baroda Repo Linked Lending Rate (BRLLR), Strategic Premium (SP) and Credit Risk Premium
  • For Existing Customers: The interest rate applicable on this loan may range anywhere from BRLLR + SP + 3.00% to BRLLR + SP + 6.00%
  • For New Customers: The interest rate applicable on this loan may range anywhere from BRLLR + SP + 5.00% to BRLLR + SP + 8.00%

Indian Overseas Bank Clean Loan to Salaried Class (Personal Loan)

The Indian Overseas 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. The individuals must have had at least three years of service. The loan cannot be used for speculative purposes. Like all other regular personal loans, this is a collateral-free loan.

Loan Amount

  • The maximum loan amount offered under this loan scheme is up to a maximum of ten times the monthly gross salary of the borrower or Rs. 15 lakh, whichever is lower
  • The loan amount sanctioned is determined by IOB after reviewing the application and checking the monthly income, repayment capacity, credit score, and other details of the borrower

Interest

  • 12.50% for Category A personal loans*
  • 13.00% for Category B personal loans*
  • 13.50% for Category C personal loans*
  • There is a 1.00% concession for borrowers with a credit score of 800 or above

*Note: The bank has not clarified the different categories of borrowers.

State Bank of India Loan to Salaried Customers Not Maintaining Salary Account with SBI

This is a special loan (also called SBI Quick Loan) designed for salaried employees of govt. organisations. The intent of the loan is to help them get funds to meet their urgent financial needs. This personal loan can be repurposed into a consolidation loan to pay off high-interest credit card debts and loans. The bank also offers a provision for a second loan based on the borrower’s needs.

Loan Amount

  • The maximum loan amount offered under this loan scheme is up to Rs. 20 lakh

Interest

  • The interest rate applicable to this loan is defined as the sum of two factors: 1-year Marginal Cost of Funds based Lending Rate (MCLR) and a Spread factor

Punjab National Bank PNB Personal Loan Scheme for Public

The Punjab National Bank PNB Personal Loan for Public is given to permanent employees of Public Sector Undertakings, Central Government, State Government units, and reputed national and multinational companies who have work experience of at least 2 years. The borrowers must have their salary account with PNB to be eligible for this loan. The loan can be taken either as a term loan or as an overdraft. There are no pre-payment charges for this loan.

Loan Amount

  • The maximum loan amount offered under this loan scheme is up to a maximum of 24 times the gross monthly salary of the salaried employees or Rs. 20 lakh, whichever is less

Interest

The interest rate applicable for PNB’s personal loan is defined as the sum of three factors:

  • Repo Linked Lending Rate (RLLR): 9.00%, as of April 2023
  • BSP of 0.25%
  • Spread Factor that ranges depending on the applicant’s credit score

The overall interest rate as of April 2023 ranges from 11.40% for defence and paramilitary personnel to 16.95% for employees under check-off facility.

After looking at these four public sector banks, let’s take a look at one private sector bank.

Axis Bank Personal Loan

The Axis Bank Personal Loan is meant for permanent/salaried employees of Public Sector Undertakings, Central Government, State Government units, and reputed national and multinational companies who need financial assistance to meet their urgent personal needs. This loan can also be used as a consolidation loan to pay off high-interest credit card debts and loans. This is an unsecured loan.

Loan Amount

  • You can apply for a loan for as low as Rs 50,000
  • The maximum loan amount you can apply for is Rs 40 lakh

Interest

  • The interest rate applicable to this loan is defined as the sum of two factors: the 1-year Marginal Cost of Funds based Lending Rate (MCLR) and a Spread factor
  • As of April 2023, the 1-year MCLR stands at 8.95% and the spread ranges from 4.65% to 13.65%, which takes the interest rate range from 10.49% to 22.00%

We cover the next five banks that make up the Top 10 Personal Loan Providers in India in the next post. Find the next 5 of the top 10 personal loan providers in India here.

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