Apply for Personal Loan in Hyderabad at Lowest Interest Rate

Personal loan is an unsecured loan facility, which can be availed by both salaried and self-employed individuals. Proceeds from the loan can be used to meet any personal and business-related financial requirements without any end usage restriction. Personal loan also comes with fewer documentation requirements, which enables quicker processing and disbursal than other credit options.

What is a Personal Loan?

Personal loan is a short to medium term loan, which consumers can avail to meet both personal and business needs other than speculative purposes. They are usually unsecured in nature as consumers do not need to pledge any collateral or security to avail them.

Personal Loan Interest Rate

The interest rates offered on a personal loan is determined based on the applicant’s credit profile and the lenders’ credit risk-based pricing model, cost of funds, etc. As the interest rates on your personal loan primarily influences the total cost of your borrowing, one must always look for best interest rates available on their credit profile.

For this, consumers should first check offers from lenders with whom they already have a deposit, credit card and/or loan account(s). Then, they should visit online financial marketplaces to compare interest rates offered by other banks and NBFCs.

Personal Loan EMI Calculator

Personal Loan EMI Calculator helps consumers determine the amount they will have to pay each month towards servicing their personal loans.

Using this online calculator, consumers can also quickly calculate the interest cost and total amount payable against various combinations of loan amounts, interest rates and loan tenures in no time.

The consumers can also determine the best possible tenure for their personal loans after considering their repayment capacity and plan their loan repayment better.

Factors Affecting Personal Loan EMI

An Equated Monthly Installment (EMI) is the amount you pay each month. This money goes towards paying back the loan amount and the interest. 3 major factors that influence your personal loan EMIs are:

 

    • Principal Amount: An increase in the principal amount leads to an increase in your EMI, provided the values for loan tenure and interest rate remain unchanged.

    • Interest Rate: Personal loan EMIs increase with every increment in the interest rates.

    • Tenure: Choosing longer tenure on your loans results in lower EMIs. However, it also leads to higher overall interest cost on the loan.

How to calculate EMI for a personal loan?

You can calculate the EMI on your personal loan using the formula: EMI = [P x R x (1+R)^N]/[(1+R)^N-1],

where,

 

    • ‘R’ denotes the rate of interest

    • ‘P’ denotes the principal amount

    • ‘N’ denotes the loan tenure

As manual calculations are prone to errors and can be complex and time-consuming, using an online personal loan EMI calculator would be preferable. The calculator requires just a few basic details for personal loan EMI calculation, including interest rate, loan amount and loan tenure.

Once all details have been entered, you get your loan EMI amount in less than a second. Moreover, besides calculating EMI amount, the calculator also displays the total interest amount and amortization schedule for its users.

Features and Benefits of a Personal Loan

Personal loan is a preferred credit option for financing lifestyle goals and fund shortages due to their easy accessibility, minimal documentation and quicker disbursals. Here are the key features and benefits of personal loans:

 

    1. Collateral-free loan

    1. No end-use restriction

    1. Loan amount of up to Rs. 40 lakh, which can exceed depending on lenders’ discretion

    1. Repayment tenure up to 60 months, which may exceed on case-by-case basis

    1. Top up loans for additional requirements are offered by many lenders

    1. Minimal documentation

    1. Quick disbursals

Types of Personal Loan

Apart from the regular personal loan schemes, several banks and NBFCs offer various personal loan variants to help their customers meet their unique financial requirements.

The broader features such as tenure, processing fees, etc. offered on these loan variants are more or less the same as those offered on regular personal loans. Here is a brief description of some of the personal loan variants.

 

    • Instant Personal Loan

Instant Personal Loan

Instant Personal Loans are usually pre-approved loans with instant disbursals. These loans are usually offered by banks and NBFCs to their select customers on the basis of their credit profiles.

Short Term Personal Loan

Short-term Personal Loans have short repayment periods usually ranging from a few days to 12 months. They are usually ideal for borrowing smaller loan amounts.

Such loans are usually offered through end-to-end digital process, thereby, ensuring quicker loan approval and disbursals to the applicants.

Pre-Approved Personal Loan

Pre-approved Personal Loans are usually offered by banks and NBFCs to their existing customers on the basis of their credit history, income, employer’s profile, etc.

Personal Loan Balance Transfer

Personal Loan Balance Transfer (PLBT) facility allows borrowers to transfer their outstanding personal loan to a new lender for lower interest rates or better loan terms. However, opt for this facility only when the savings made through the transfer outweighs the cost of the loan transfer.

Top Up Personal Loan

The top up is offered to existing personal loan borrowers who need additional funds to meet their financial requirements. This loan facility is usually offered to select borrowers having satisfactory loan repayment history and/or have completed a specified number of EMIs.

Personal Loan Eligibility

Personal loan eligibility criteria can vary from one lender to another due to their varying credit risk policies. The eligibility criteria can also vary as per the loan variant and the occupation profile of the applicant. Here are some of personal loan eligibility criteria used by most lenders:

 

    • Age: 18 – 60 years

    • Salary: At least Rs 15,000 per month for salaried customers

    • Income: At least Rs 5 lakh p.a. for self-employed customers

    • Credit Score: Preferably 750 and above as having higher credit scores improve chances of loan approval

    • Employment Stability: Usually 1 year with some lenders requiring longer work experience

    • Business Continuity: Usually 3 years of business continuity with some lenders requiring longer period of business continuity

    • Employment Type: Salaried employees working with reputed organizations, MNCs, Private and Public Limited Companies, Govt. organizations, PSUs, and large enterprises

Personal Loan Documents Required

Personal loan lenders require documents from their applicants to establish their identity, income, loan repayment capacity and place of residence. These documents are more or less the same across lenders. Here are the few common set of documents that you will need to submit when applying for a personal loan:

Requirements Salaried  Individuals Self Employed
Proof of Identity Passport, Voter’s ID, Driving License, Aadhaar Card or PAN Card Passport, Voter’s ID, Driving License, Aadhaar Card or PAN Card
Proof of Residence Aadhaar Card, Passport or utility bills Aadhaar Card, Passport or utility bills
Proof of Income Salary Slips, Bank Account Statement, Form 16 Previous Years’ ITR, P&L Statement and Balance Sheet, Bank Account Statement