Personal Loan in Bangalore

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.

Banks

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%

NBFCs

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.

Offline Application

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.

Online Application

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.

Conclusion

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.