Bangalore Personal Loan - An Overview
The country's start-up capital, Bangalore, is always on the go. The basic idea behind a personal loan in Bangalore is simple. Let the people of Bangalore direct all their focus on experimenting with innovative ideas and creating remarkable businesses while a personal loan takes care of all their family needs.
Personal loan finance in Bangalore can help with any and every financial need. This includes family weddings and ceremonies, foreign vacations, urgent medical expenses, and sponsoring a dream car. The collateral-free loan is not only easy to apply but is also quick to approve. In this blog, you can find full details regarding the application process, eligibility criteria, documentation process and the host of features a personal loan offers.
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Punjab National Bank Personal Loan in Bangalore starting at.
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HSBC Personal Loan in Bangalore starting at.
Key Features of Personal Loans in Bangalore
Instant personal loan in Bangalore is one of the most consumer-friendly financial assistance extended by banks and other lending institutions. Some of its highlighting features are listed below in detail.
- Raise Solid Capital: Personal loans allow an individual to gain financial assistance from Rs 50,000 to Rs. 40 lakhs within hours, offering immediate relief and assistance to any monetary requirement.
- Flexible Usage: A personal loan is also called a multi-purpose loan. It is so because lending institutions offer great freedom in their usage. With no end-use restriction, the loan amount can be used to meet any expense.
- Collateral Free: Personal loan finance in Bangalore is an unsecured credit. Hence, it does not require the applicant to pledge any security to the lender. Instead, the loan is sanctioned to the applicant against their own financial stability and creditworthiness.
- Interest Rates: These loans are offered at various interest rates. Different lending institutes charge different interest rates on personal loans extended by them. The interest rates usually vary from25%-35%.
- Widely Accessible: Personal loans can be accessed by salaried and self-employed individuals. Barring slight differences in the documentation process, a personal loan offers all borrowers the same flexibility of usage and application.
- Multiple Ways to Apply: An applicant can use offline and online ways to seek personal loan financing in Bangalore. The lender’s local branches in the city and their official website can be used to apply for personal loans.
Easy Repayment: A personal loan can be easily repaid through EMIs, post-dated cheques, prepayment and foreclosure options. However, one must be mindful of any charges, such as the prepayment charge levied by the bank.
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Interest Rate Charged Over Personal Loans in Bangalore
Loan providers makes money over the amount they lend to their clients through interest charged on their principal value. Personal loan interest rates in Bangalore range from 9.25% to 35%. These interest rates are not uniform and change from one lender to another.
Top Lenders Offering Personal Loans in Bangalore
Personal Loans in Bangalore are offered by banks and Non-Banking Financial Companies (NBFCs). You can choose the cheapest personal loan in Bangalore with the help of the following guide.
|Loan Provider||Amount (Rs.)||Tenure||Interest Rates (per annum)||Processing Fee|
|Canara Bank||Up to 30 lakhs||Up to 7 years||9.25%-14.65%||100% waived|
|Karnataka Bank||Up to 5 lakhs||Up to 5 years||12%-17%||As per the bank’s T&C|
|Kotak Mahindra Bank||50,000 to 40 lakhs||Up to 6 years||19.99%||3%|
|Bank of Baroda||50,000 to 20 lakhs||Up to 5 years||10.99%-11.40%||1%-2% + GST (Except for govt. employees with salary accounts in Bank of Baroda)|
|HDFC Bank||Up to 40 lakhs||Up to 5 years||10.5%-21%||2.5%|
Some of the popular NBFC personal loans in Bangalore are listed below. You can choose the suitable option at your convenience.
|Loan Provider||Amount (Rs.)||Tenure||Interest Rates (per annum)||Processing Fee|
|Poonawala Fincorp||Up to 30 lakhs||Up to 5 years||9.99%||2%|
|L&T Finance||50,000 - 7 lakhs||Up to 4 years||12% onwards||2% + GST|
|Mannapuram Finance||50,000 - 50 lakhs||2-20 years||12% onwards||As per the T&C|
|KreditBee||5,000 - 4 lakhs||Up to 2 years||As per T&C||As per T&C|
|Bajaj Finance||Up to 40 lakhs||Up to 8 years||11%-35%||3.93%|
Eligibility Criteria for Personal Loan in Bangalore
While salaried as well as self-employed individuals can apply, certain basic criteria listed below must be met to apply for personal loan financing in Bangalore.
- Minimum Salary: The applicant must have a monthly minimum income of Rs.10,000. However, it may vary from one lender to another.
- Age: Personal loans are typically issued to applicants between the ages of 21 and 60.
- Work Experience: Any certificate showcasing at least 1 year of previous work experience and proof of stable employment for at least a few months at the current organisation.
- Citizenship: Personal loans are issued only to Indian citizens.
- Solid Credit Score: A credit score of 750 is generally the benchmark for several lenders when considering personal loan applications.
Documents Required While Applying for a Personal Loan in Bangalore
Personal loan financing in Bangalore requires the borrower's submission of the following documents to the lender.
- Application form filled by the applicant
- Identity proof- Aadhar Card/Voter ID/Driving License
- Address Proof- Utility Bills/Aadhar Card/Driving License
- PAN Card
- Employment Proof- Employment Certificate/ Employee ID Card
- Income Proof- Salary Certificates/ Form No 16
- Passport size photographs
- Co-obligation of the applicant’s spouse (in specific cases)
How to Apply for Personal Loans in Bangalore?
Banks offer offline and online ways to apply for instant personal loans in Bangalore. However, some NBFCs may offer only online application services to their applicants.
An individual can apply for a personal loan offline by visiting a bank’s nearest branch and contacting bank agents. The agents are trained to assist the customer in applying for a personal loan by clarifying all the terms and conditions of the loan to the applicant. The bank agents also help the applicant with document verification. If you are somebody for whom a one-on-one interaction is essential to establish trust and security, visiting a bank’s branch is the best way to apply for a loan.
Further, a bank’s website can be used to obtain the toll-free numbers they provide to address loan-related queries specifically. A customer can contact the bank through these numbers to clarify doubts or seek guidance regarding personal loans.
Banks and NBFCs offer personal loans through websites and mobile applications. The simple steps below can be followed to apply for a personal loan.
- Sign in using the mobile application or log on to the bank’s website
- Under the Personal Loan category, click on ‘Apply Now’
- Enter name, Aadhar details, PAN details, mobile number, email address and OTP, among other details asked by the portal
- Choose the desired amount, interest rate and time duration of the loan
- Upload the documents for digital verification and submit the application
The loan provider notifies the applicant on the registered mobile number or email address upon the disbursal of the loan.
How Quickly Will A Personal Loan in Bangalore Be Approved
Typically, lenders approve and sanction personal loans within 1-5 working days after application, provided the applicant showcases strong credibility and produces genuine documents. Some banks offer instant approvals on digital applications where the loan amount is disbursed within a few minutes. Individuals can also apply for pre-approved loans with a bank for quick approvals. A pre-approved personal loan is only provided to applicants if they already have an account with the concerned bank. These are easily approved, hassle-free loan options with little documentation required.
Tips To Follow While Applying For Personal Loans in Bangalore
- Maintain good credit score: A good credit score is essential to avail of credit facilities from any lending institution. Banks offer swiftly approved credits and several exciting benefits to applicants with solid financial credibility. Maintaining financial stability and good repayment records can help achieve a strong credit score.
- Co-obligation Requirements: Not every lender asks for a co-obligation certificate. It is a requirement that is specific to certain banks under particular conditions. Hence, one must check with their bank or NBFC if a co-obligation certificate is needed or not to apply for a personal loan.
- Repay Timely: Banks offer several repayment options for the borrower's comfort. Repaying the loan amount with timely EMI payments or post-dated cheques to settle the principal amount along with interest within the time duration of the loan raises an applicant’s credit score. It also provides a solid reputation to the borrower to seek any further credit from the bank in the future.
- Check Eligibility: Before visiting a branch, a candidate can check their eligibility easily using Online Eligibility Calculators available on the lender’s website. This helps the borrower clarify the amount and interest charges best suited for them.
- EMI Calculators: Banks also provide Online EMI Calculators where the loan amount to be repaid is divided into monthly EMIs and a rough idea of the repayment schedule is clarified to the applicant without additional costs.
- Beware of Additional Charges: While levying additional charges is a common and legal practice in the financial sector, one must be aware of them. Banks charge additional fees for providing their services, such as processing fees, stamp duty, GST, cheque bounce charges, and prepayment charges. An applicant must know the rates at which these are charged and how the lenders expect them to be paid.
- Pre-Approved Loans: As discussed earlier, banks offer pre-approved loans to their existing customers. These loans offer quick approvals with minimum documentation. A pre-approved loan can eliminate the document verification hassle because the banks already have verified applicant information in their database.
The city’s popular banks and other lending institutions readily offer personal loan financing in Bangalore. Through a personal loan, an individual can raise Rs. 40 lakhs within a few hours without keeping any collateral or security with the lender. Depending upon the requested loan amount, a personal loan is offered at different interest rates with great repayment flexibility. EMIs, post-dated cheques and mobile applications can be used to settle the loan account easily. With no restriction on its expenditure, people can use the loan amount to plan their vacations, organise family functions, or, best, build their startups. Personal Loans in Bangalore are an easy and reliable aid to an applicant’s dreams and goals.
How long does it take for a personal loan to be approved in Bangalore?
An applicant can obtain funds within 1-5 working days of applying for a personal loan through offline channels. Some banks also offer instant disbursement on digital and pre-approved loan applications.
Can I get a personal loan with a bad credit score in Bangalore?
A lender offers a personal loan to an applicant with a poor credit rating only if the applicant successfully convinces the lender of their trustworthiness and loan repayment abilities. Banks may also charge higher interest rates and additional fees & charges while granting a personal loan to a borrower with a bad credit score.
Can I prepay or foreclose a personal loan in Bangalore?
Yes, prepayment and foreclosure facilities can be used to settle a personal loan. However, it is suggested that the applicant check with their banks beforehand if prepayment options are available. Banks must also be contacted for any applicable prepayment charges.
What happens if I default on my personal loan in Bangalore?
On regular failure of scheduled repayments, loan providers keep adding payment penalties over the loan amount. After 180 days of default on the loan, the banks can take legal action against the borrower under the law. The borrower’s name is finally added to the defaulter’s list, which affects their credit score and makes it difficult for them to apply for loans in the future.
Can I get a personal loan in Bangalore from multiple lenders at the same time?
While you can apply at more than one place for a personal loan, it is not advisable to do so. Applying to multiple lenders makes the applicant seem too desperate and puts them under suspicion. It also lowers the applicant’s credit ratings, and the lender will be extra cautious before approving the loan request.
Is a personal loan in Bangalore available to self-employed and freelancing individuals?
Yes, a self-employed individual or a freelancer can be issued a personal loan. The only essential requirement to apply for a loan is to fulfil the eligibility criteria and convince the lender of one’s loan repayment capabilities.
Can I transfer my personal loan to another lender in Bangalore?
Yes, a personal loan account in Bangalore can be transferred to another lender. The interest rate offered by the new lender, the previous lender’s policies around the transfer of the loan and any charges involved in the process should be carefully noted.
How to close a personal loan account in Bangalore?
Repaying the principal amount and interest charges through EMIs, post-dated cheques, or foreclosure services usually closes a loan account. An applicant, however, should also ask for acknowledgement of the account’s closure in the form of a No Dues or No Objection certificate from the lender.