Are You In Need Of A Personal Loan
Before making the decision about getting a personal loan, assess your needs and your current situation and decide if it is right for you. Review your needs and determine if they currently require a personal loan. Consider things like what the loan is for, how you will repay it, how soon you need it, and what you need to do to qualify for the loan. Take note of your FICO score because the higher your credit score, the better interest rate you can receive.
Common reasons to get a personal loan include debt consolidation, making a large purchase, or a financial emergency.
How Are Aprs Determined For Personal Loans
An annual percentage rateor APRis the total annual cost of a loan, over the life of the loan. Stated another way, its the total cost of credit based on the interest rate, fees and length of the repayment term. Some lenders include origination fees in the advertised APRs, while others take them out of the loan amount at funding. The APR of a personal loan, therefore, will vary depending on your creditworthiness, the size of the loan, how long you have to repay the loan and the lender.
Kotak Mahindra Bank Personal Loan
Kotak Mahindra bank extends personal loans to only salaried persons. You can take a personal loan of Rs. 50,000 to Rs. 20 Lakh with an interest rate starting from 10.75%.
Kotak Mahindra Bank Personal Loan Interest Rates
10.75% to 24%
|Rs. 50,000 to 20 Lakh|
|Processing Fee||Up to 2.5% of the loan amount|
|Up to 12 months- not allowed> 12 months 5%|
- Personal loan from Rs. 50,000 to Rs. 20,00,000
- Quick approval in metro cities
- No preclosure before 12 months
- 3% per month late payment charges
|MNC, Public or Pvt limited company|
|Active resident of the city||At least 1 yearFor at least 1 year|
- 3 Month bank statement with income details
- Salary slip for the last 3 months
- 2-3 Passport size photograph
Don’t Miss: Chase Bank Motorcycle Loans
The Bankrate Guide To Personal Loans With Low Interest
Why trust Bankrate?
At Bankrate, our mission is to empower you to make smarter financial decisions. Weve been comparing and surveying financial institutions for more than 40 years to help you find the right products for your situation. Our award-winning editorial team follows strict guidelines to ensure the content is not influenced by advertisers. Additionally, our content is thoroughly reported and vigorously edited to ensure accuracy.
The loan details presented in the table below are current as of the publication date. Check the lenders websites for more current information. The lenders listed were selected based on factors such as credit requirements, APR, loan amounts and fees.
Home Equity And Home Improvement Loans
Access the money you need, when you need it
Home Equity Line of Credit
Put your home’s equity to work and gain easy, flexible access to a revolving line of credit and pay interest only on the amount you borrow.
The loan can go toward almost anything, such as:
- Home remodeling
Home Equity Loan
Use the equity in your home to secure a one-time lump sum for major purchases at a lower interest rate than most other banks.
You can use the money for whatever you need, including:
- Debt consolidation
Home Improvement Loans
Increase the value of your home with this unique loan offering competitive interest rates.
This is a good option for projects such as:
- Kitchen renovations
Also Check: Ibc Bank Wire Routing Number
Upstart: Best For Little Or No Credit History
Overview: Upstart aims to offer fast, fair personal loans. APRs for Upstart loans range from 4.37 percent to 35.99 percent, and loan amounts range from $1,000 to as much as $50,000. You can choose a loan term of either three or five years.
Why Upstart is the best for little or no credit history: While many loan applications are based on credit score and years of credit, Upstart applications also factor in an individuals education, job history and area of study.
Perks: Upstart can provide your rate in just five minutes. There are no prepayment penalties, and funds are available in as little as one business day.
What to watch out for: Upstart charges a one-time origination fee, which can be as much as 8 percent of your loan amount.
Impact on borrowers looking for low interest rates: The lowest interest rates are typically offered to those with excellent credit, but Upstart looks at more than just your credit score, giving you a better shot at qualifying for a low rate.
How Does A Personal Loan From Your Bank Work
Recommended Reading: Chase Quickpay Free
Personal Loans From Credit Unions
are good places for borrowers with fair or bad credit to get a personal loan because they may have softer requirements and lower interest rates. To apply for a loan, you must become a member first, which typically requires a small fee.
If You Need A Personal Loan Your First Thought May Be To Check With Your Bank But Depending On Your Financial Situation That May Not Be Your Best Option
Some personal loans from banks can come with benefits, like no origination fee and interest rate discounts for existing customers.
But depending on your bank, you may run into problems getting approved if your credit needs some work. And your bank may require collateral for the loan. Heres what you need to know before you apply.
Also Check: Ibc Bank Online Mobile
Best For Cosigners: Td Fit Loan
The lender allows for co-signers and doesnt charge any application fees.
Availability limited to residents of only 15 states
You might have to visit a branch to complete the application process
Low credit scores wont qualify
- Minimum/maximum you can borrow: $2,000 to $50,000
- Fees: No origination fees or application fees
- Minimum recommended credit score: 660
- Other qualification requirements: In addition to your creditworthiness, your employment history and income may be taken into account.
- Repayment terms: 36 to 60 months
- Time to receive funds: As soon as the next business day
- Restrictions: May need to complete the application process in person. Loans cannot be used for business or education purposes. Eligibility is limited to residents of Washington, D.C. and the following states: Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Vermont, and Virginia.
Read the full review: TD Bank Personal Loans
Compare Offers To Find The Best Loan
When searching for a personal loan, it can be helpful to compare several different offers to find the best interest rate and payment terms for your needs. With this comparison tool, you’ll just need to answer a handful of questions in order for Even Financial to determine the top offers for you. The service is free, secure and does not affect your .
Editorial note: The tool is provided and powered by Even Financial, a search and comparison engine that matches you with third-party lenders. Any information you provide is given directly to Even Financial. Select does not have access to any data you provide. Select may receive an affiliate commission from partner offers in the Even Financial tool. The commission does not influence the selection in order of offers.
Read Also: How Much Can I Overdraft Td Bank
How To Qualify For Bank Loans
Bank loans may offer benefits for their customers, but they typically have tougher credit score requirements than online loans.
Some financial planners say having an existing relationship with employees at your bank whether it’s a small local bank or a large national bank can help your chances of qualifying. But getting approved often comes down to how you look on paper. Consider these tips for the best chance at qualifying.
Build your credit. At least a few years of credit history showing on-time payments and no delinquencies will help your application, but avoid opening new accounts right before you apply . Check your credit report for errors that may be hurting your score and dispute any errors online.
Review your credit score. Many banks have a minimum credit score they’ll accept from a borrower, but aim above the minimum requirement for the best chance at a low rate. You can get your free credit score with NerdWallet.
Boost your income and pay down debt. Lowering the percent of your income that goes to debts, also called your debt-to-income ratio, will be viewed favorably by most lenders. In many cases, lenders want to see that you make at least enough income to cover your existing obligations, plus the loan you’re applying for. Still, the lower your DTI, the better.
Increase your savings, if you can. Showing a lender that you’ve got enough money in the bank to cover a difficult time can boost their confidence that you’ll make payments on time.
Types Of Loans Available
Personal loans may seem scary and intimidating to some, but these banks make the process so much easier! Some of the different types of personal loans available from these types of lenders include installment loan products and bad credit loan options. The banks are also not limited by geography or state, so everyone can take advantage of the lending opportunities!
Personal loans are a fantastic way to have access to cash when you need it. Whether your emergency is job loss, unexpected medical bills, or even just splurging on a vacation with the kids, its important that you have the right kind of personal loan for you. Here are seven great banks that offer loans designed specifically to meet your needs.
Don’t Miss: How To Send Money From Us Bank To Wells Fargo
What Are Alternatives To Bank Loans
While many banks offer personal loans, there are some limitations. As noted above, many require you to have an account with the bank before taking advantage of a personal loan. Others might take longer to get you your loan. You might want to explore the below alternatives to banks for personal loans.
- If you have less-than-stellar credit, you may want to reach out to near you for personal loans. While many require an account with the credit union to be open first, many are competitive with APRs and low amounts to borrow. This is helpful if you dont need to borrow too much to cover an emergency.
- Online lenders: Many online lenders, or non-brick-and-mortar banks, give you quick and easy access to personal loans. You can see if you prequalify before applying, which doesnt hurt your credit. If you do decide to apply, you can do so within a few minutes online, rather than visiting a branch in-person. After approval, you can usually get funds fairly quicklysometimes within a day. The best online lenders offer little to no fees, flexible repayment terms, and competitive APRs.
Banks Have Reputations To Stand On
The personal loan industry is full of legitimate lenders, but there are also scammers out there looking to take advantage of you. By going with a bank that you know and trust, youll probably feel more confident that youre not handing over your personal information to a scammer or paying an advance fee for loan funds youll never see.
How do you spot a personal loan scam? For starters, legitimate lenders will never guarantee approval before you apply for a loan. Also, origination fees are typically deducted from your loan funds so if someone asks you to pay them a fee upfront to get the loan, its likely a scam.
Another red flag: You cant find a physical address for the lender online, or its email offer has a bunch of spelling and grammatical errors. If youre not sure, do some research to see if the lender is licensed and has a positive track record. The Consumer Financial Protection Bureau has contact info on its website for financial institution regulators by state.
Recommended Reading: Is Jp Morgan Chase The Same As Chase Bank
Hdfc Bank Personal Loan
You have an option to borrow from Rs. 50,000 to Rs. 40 Lakhs as a personal loan from HDFC Bank. The loan is available for a salaried individual across corporate, PSUs and government institutions.
Once the documentation is complete, your personal loan will be disbursed within 4 hours. The existing HDFC customers can get personal loan approvals in 10 seconds.
Along with loan, you can also avail an accident or loan insurance cover at a nominal premium.
HDFC Personal Loan Interest Rates
Ranging between 10.40% to 21.13%
Other Personal Loan Details
|Minimum Rs. 2,999 and Maximum Rs. 25,000|
|Up to 12 months- not allowed13-24 months 4% of principal outstanding25-36 months 3% of principal outstanding> 36 months 2% of principal outstanding|
Part-payment allowed only once in a financial year and twice during the loan tenure.
Part-payment allowed up to 25% of the principal outstanding.
- Up to Rs. 40 Lakhs of personal loan
- 2% pre-closure charges is lower than other banks
- Zero hidden charges, and convenient repayment options
- Minimal paperwork and documentation.
- Interest rate is comparatively on the higher side.
- Up to 2.5% processing fees
|Pvt Ltd, PSU including central, state and local bodies|
|Age||Between 21 and 60 years|
|Work Period||Job for at least 2 years,with a minimum of 1 year with the current employer|
|Net income||Person having HDFC bank salary account Minimum Rs. 25,000Non- HDFC Bank salary account holder Minimum Rs. 50,000|
Freedomplus: Best For Quick Approval
Overview: FreedomPlus loans are available for consolidating debt, making large purchases, making home improvements and more. FreedomPlus APRs start at 7.99 percent and go up to 29.99 percent. Loan amounts range from $7,500 to $50,000, while terms vary from two to five years.
Why FreedomPlus is the best for quick approval: The FreedomPlus loan process can be very quick, with same-day approval and funds in your account in as little as 48 hours.
Perks: FreedomPlus allows you to have a co-borrower, which could get you a lower rate than youd qualify for on your own.
What to watch out for: Personal loans from FreedomPlus include an origination fee of 1.99 percent to 4.99 percent, with 4.99 percent being the most common.
Impact on borrowers looking for low interest rates: FreedomPlus may not have the lowest interest rates around, but the company’s fast funding means it’s a competitive option if you need a low-interest loan quickly.
Don’t Miss: How Does The Irs Find Your Bank Account
How Personal Loans Work
Personal loans are known for their versatility and flexibility. They can be used for consolidating credit card debt, launching small businesses, implementing home repairs, refinancing student loans, funding vacations, and a number of other expenses both necessary and discretionary.The way it works: You borrow money at a fixed interest rate for a fixed period of time, and you pay it off with a fixed monthly payment. Most personal loans are unsecured, meaning they dont require collateral, such as your house or car, for loan approval.
Potentially lower interest rates, combined with fixed payment terms, can make personal loans more attractive than credit cards. If youve got multiple credit cards that are all over 20% interest, and you can get a personal loan at 10%, then a lot of times I see people using that loan to save money on interest, Torabi explains.
The terms of personal loans can vary based on your creditworthiness. To get the best interest rate, you will need to have a good to excellent credit score and a strong credit history that shows lenders that you will not be a risky investment for them.
Apply Online Or In Person
Eventually, you’ll settle on one personal loan. At that point, you can apply either online or at a bank branch. Applying online typically gives you the fastest decision, since it’s automated. But applying in-branch may plug you right into an automated system, too. And you’ll have the expertise of a banker with you.
Don’t Miss: What Is Chase Zelle
Best Place To Get A Personal Loan
You can get personal loans from three types of institutions:
- Online lenders. These are often technology-based non-bank companies that offer a small range of lending products, including personal loans. Online lenders typically offer low interest rates, loans that are available nationally and can provide funds within 24 to 48 hours.
- Banks. Many local and national banks offer personal loans in addition to other financial products, such as checking and savings accounts. If you have an existing relationship with a bank, you may want to consider opening your personal loan through that bank.
- These are local to your community and tend to offer applications both online and in person. Credit unions require membership, so be sure to check if youre eligible.
The best place to get a personal loan is where you can access the most favorable terms and loan limits that fit your needs.
Personal Loans From Online Lenders
Online lenders typically offer the fastest way to get a personal loan, with some loans approved and funded within a day or two. Most online lenders also let you pre-qualify and see your rate and term before you formally apply. The pre-qualification process involves a soft credit check and allows you to compare loans from multiple lenders without impacting your credit.
Some online lenders target good- or excellent-credit borrowers by offering high loan amounts and low interest rates. Others cater to fair- or bad-credit borrowers . Rates are higher, but a lender may consider other factors beyond your score, such as education or employment.
» MORE:Best bad-credit loans
Also Check: How To Get Approved For A Lowes Credit Card