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Get a Personal Loan for Rs. 10 Lakh at Low Interest Rates

Updated on: 14 Dec 2021 // 21 min read // Personal Loans
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Personal Loans are an excellent way to pay off your debts or go for that vacation you had always dreamt about going to. Since the money, that you loan from the bank is not earmarked for a particular reason, you can spend the loan amount for any of your immediate needs. That is the advantage of taking a Personal Loan. Several banks offer Personal Loans in India, and you should choose the one that will provide you funds at a lower interest rate. 

As you are aware, Personal Loan Interest Rate is the amount you are required to pay on top of your loan amount; this rate of interest varies according to various factors including your salary, your credit score and your relationship with the bank from which you will obtain the loan. In this article, we will take you through the various bank offers for Rs. 10 Lakh Personal Loan. We will further explore how to get the amount at the lowest interest rate.

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What are the eligibility criteria for getting a Personal Loan?

In today’s financial world, almost everyone is eligible for a Personal Loan. However, a few eligibility requirements need to be fulfilled:

1. People who can take the Personal Loan

Salaried individuals (this can include doctors, employees in government and private firms, and so on).Self-employed individuals*

*eligibility criteria vary greatly

2. Minimum and Maximum age

The minimum age of the individual to apply for a Personal Loan should be 21 years, and at the time of maturity of the loan, the person must be 60 years. 

3. Minimum Salary

The person who applies for the loan should ideally have a minimum monthly salary of Rs. 15,000.

What are the documents an individual needs to furnish for a Personal Loan?

Even though a Personal Loan is very easy to get, you will need to furnish certain documents that will ensure that you get your loan quickly:

  • A duly filled application form for the loan
  • Three passport-size photographs (no older than three months)
  • Age proof (could be your driving license, PAN card, Passport, etc.)
  • ID proof (could be your driving license, PAN card, Passport, etc.)
  • Income Proof (salary slips of the last six months)
  • Residence proof (electricity, telephone or water bill of your residence)

Any bank will ask for the above documents whenever you apply for a Personal Loan. Submit these documents and your loan processing will be much easier and faster.

What does the interest rate depend on?

Various Personal Loan rates are applicable for any borrower. They can be as low as 10% and may go as high as 24%. Here are the factors that will affect your Personal Loan interest rate:

  • Your Credit Score

A good credit score indicates to the bank that you are a credible person and you have a history of credit good. From the bank’s perspective, with a good score, you will return the loan on time and hence are considered less risky for lending.

  • Defaults

If you have a number of defaults, you appear as someone who is not good with money and hence, you are not an ideal candidate for a Personal Loan. Even if you get one, your interest rate will be very high.

  • Relationship with the bank

If you are a loyal customer with the bank, in all probability you are going to get a good interest rate on Personal Loan.

  • Your Employer

Your employment with a good company indicates that you are steady in your occupation and you get timely salaries. You are stable in your work, and hence you will get a lower interest rate.

Now that you know what affects low-interest rates, here are the most popular banks in India that will offer you lower interest rates on your Personal Loan of Rs. 10 Lakhs:

1. Axis Bank:

The lowest interest rate that Axis Bank can provide you with is 11.25% (with a processing fee of 1.50% or 2%).

2. SBI:

SBI offers a low rate of interest at 12.50% (with a processing fee of 2% -3%).

3. HDFC Bank:

The lowest interest rate that HDFC Bank can offer is 11.25% (and process this in a minimum of 0.99%).

4. Bajaj Finserv:

You can get a Personal Loan from Bajaj Finserv at a rate of 11.99% and for a processing fee of up to 2.5%.

5. Kotak Mahindra Bank:

With Kotak, you can avail a Personal Loan starting at 10.99%, and processing fees can vary up to 2.5% of the loan amount.

All of these are leading banks that can offer you a Personal Loan for Rs. 10 Lakhs at an attractive interest rate. Further, you can carry out your research for the best rate by seeking profession loan advice.

Also Read: A Comprehensive Guide to Personal Loan Interest Rates in 2019

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