Personal Loan In Bangalore

Bengaluru, also known as Bangalore, is the capital of the state of Karnataka. The state is in India’s southernmost region. This city is well-known for being a leading information technology (IT) hub, home to numerous multinational corporations (MNCs), parks, lakes, and pubs. Bengaluru has a population of around 10 million people, making it a megacity. You could take out a personal loan in Bangalore if you need money to meet various needs such as to buy something or any medical emergency like covid-19. There are numerous lenders in Bengaluru who offer low-interest personal loans for any purpose. When applying for a personal loan, you are not required to provide any collateral or security. You can apply for these loans either online or in person.

If you intend to apply online, you can do so through official lender websites or third-party financial websites. Before you apply for a personal loan online, compare different interest rates. This will help you get a good loan deal.

Personal Loan Offered by Various Banks in Bangalore

Some of the leading banks and NBFCs offering personal loans at the best interest rates are listed below:

  • Standard Chartered Bank
  • Tata Capital
  • Aditya Birla
  • ICICI Bank
  • HDFC Bank
  • Axis Bank
  • CitiBank
  • Kotak Mahindra Bank
  • Oriental Bank
  • Fullerton

How do I get a Personal Loan with the Lowest Interest Rate in Bangalore?

When applying for a personal loan in Bengaluru or any other city, there are a few important guidelines to follow in order to get a good rate of interest. You will also be required to conduct thorough research before applying for a loan. Some of the most important considerations for obtaining a low interest rate are as follows:

Credit score Having a credit score that is above average will allow you to obtain a loan at a reasonable interest rate. The lower the interest rate added to the loan, the better your CIBIL score, and vice versa.

Down payment Making a down payment of at least 20% of the loan amount will result in a loan with a lower interest rate. The lower the interest rate, the larger the down payment.

Debt-to-income ratio – Always keep in mind that your EMIs, credit bills, and other debts should not exceed 40% of your annual or monthly income. Having a low debt-to-income ratio increases your chances of getting a low-interest loan.

Loan shopping – Financial portals are extremely useful when looking for a loan. Individuals can compare loan interest rates offered by BankBazaar’s partner banks on the BankBazaar website and narrow down on a loan with the best interest rate relative to the tenure – one that fits their budget.

Your employment and experience – This is one of the factors that banks and NBFCs consider when approving or rejecting a loan application. If you’ve had a consistent income and worked for a reputable company, you should be able to negotiate a reasonable interest rate.

Make sure you negotiate – Negotiating the interest rate on your loan is a must. Most people simply accept the numbers set by banks and NBFCs, but negotiating will benefit you in the long run.

Tenure – Choosing your tenure has a direct impact on the interest rate that is added to the loan amount. Choosing a shorter tenure will result in a much lower interest rate, though the EMIs will be significantly lower. The interest rate increases with the length of the payback period.

Name of the BankInterest Rate RangeProcessing Fee RangeLoan AmountTenure
ICICI Bank10.50% – 19.00% (Fixed)2.50%Rs.25 lakh (Max)1-6 Years
CitiBank9.99% – 16.49%1% to 2.5%Rs.30 lakh (Max)1-5 Years
Kotak Mahindra Bank10.25% onwardsUp to Rs.20 lakhRs.50,000 to Rs.15 lakh1 to 5 Years
Fullerton India11.99% p.a. to 36% p.a.Between 0%-6% of the loan amountUp to Rs.25 lakh1 to 5 Years
Bank of Baroda10.50% – 12.50%2% of the loan amount subject to a minimum of up to Rs.1,000 and maximum of up to Rs.10,000 (One time fee)Rs.50,000 – Rs.15 lakh5 Years (Max)
State Bank of India9.60% – 15.65%Up to 1.50% of the loan amount (One time fee)Up to Rs.20 lakh1- 6 Years
Aditya Birla14% – 26%2% of the loan amountRs.15 lakh (Max)1-3 Years
Allahabad BankInformation not provided1.06% of loan amountInformation not provided.1 to 5 Years
Yes Bank10.99% p.a. onwardsUp to 2.50% of the loan amount (One-time fee)Rs.1 lakh to Rs.40 lakh1 to 5 Years
Union Bank of India8.90% to 13.00% p.a.At the discretion of the bankUp to Rs.15 lakhUp to 5 Years

Salary Requirements to Avail Personal Loans in Bangalore

Every bank and NBFC has a minimum salary requirement that customers must meet in order to be approved for a loan. Aside from considering factors such as interest rate, processing fees, prepayment, and so on, double-check the bank’s minimum salary requirement. As previously stated, the salary requirement varies by bank.

For salaried individuals– The minimum salary requirement varies depending on the bank from which the loan is obtained. Generally, the minimum salary requirement ranges between Rs.7,500 and Rs.50,000.

Self employed– Individual must provide proof of income for the previous two fiscal years. In general, the income requirement for obtaining a loan ranges between Rs.1 lakh and Rs.2 lakh (profit).

Documents Required to Avail Personal Loans in Bangalore

1. Photo ID and age proof

2. Signed application form with photograph

3. Residence proof

4. Last 6 months bank statement

5. Documentation for salaried applicants:

Last 3 months salary slips

Form 16 or Income Tax Returns

6. Documentation for self-employed applicants:

  • Last 3 years Income Tax Returns with computation of Income
  • Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account

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