In this article, we will discuss tips and tricks for a personal loan that you should follow in 2023. A personal loan is very helpful in times of need and it can be used for a variety of purposes. Preparing your profile well before applying for a personal loan highly increases the chances of faster loan approval.
Tips and Tricks for Personal Loan
- Apply for a personal loan only when you need it. Yes, you read it right. A loan is a financial liability that needs to be paid back. Assess your financial needs and apply for a loan only for important/emergency needs.
- Calculate your existing payments/EMIs – Take a look at your existing obligations. This may include loan repayments, EMIs, utility bills, credit card bills, etc. If your expense-to-income ratio is already above 30%, there is a high chance that your application for a personal loan will be rejected. It is better to reduce and pay off existing obligations before you apply for a new one.
- Check your credit score – Having a high credit score tremendously improves your chances of getting a personal loan approved. Keeping a check on your credit score will reduce the chances of loan rejection. If your credit score is 750+, go ahead and apply for a personal loan. But if it is less than 700, you might want to improve the score and then apply for a loan.
- Compare all personal loan offers – Personal loans are offered by banks, NBFCs, fintech lenders, etc. make sure you check the interest rates, loan amount, repayment period, processing charge, and all other charges before you choose to apply for a particular loan.
- Check for a pre-approved loan offer – Banks offer pre-approved personal loans to their loyal customers with a good credit history. Since the loan is offered by the bank, there is a good chance that the interest rate will be low. Negotiating power of the applicant also increases in such cases. The bank might waive other charges in case of a pre-approved loan.
- Check the eligibility criteria – Before you apply for a personal loan, it is best to check the eligibility criteria for age, minimum income, nationality, etc. It makes sense to apply only if you meet the eligibility criteria. An outright rejection on your loan application can be avoided as it can bring your credit score down.
- Check the documentation process – It is always better to check and submit all the documents requested by the lender. Personal loans require very few documents so it is advised that you keep the required documents ready before applying for the loan.
- Avoid multiple loan applications – Applying for multiple loans at once can affect your credit score. Assess how much loan you need, check eligibility and documentation criteria, interest rates, and tenure, and then apply for the loan that best meets your requirements.
- Double-check the information provided – Lenders will ask for minimal information from the applicant. It is best to check the information asked and furnish the correct details. Wrong details can lead to the rejection of the personal loan application.
Personal Loan Rates by Top Banks
| Banks | Loan amount | Interest Rate |
| HDFC personal loan | Up to Rs. 40 lakhs | 11% to 21% |
| ICICI personal loan | Rs. 50,000 to Rs. 25 lakhs | 10.75% to 19% |
| IDFC personal loan | Up to Rs. 1 crore | 10.49% onwards |
| SBI personal loan | Rs. 24,000 to Rs. 20 lakhs | 10.55% to 13.55% |
| Tata Capital personal loan | Rs. 75,000 to Rs. 35 lakhs | 10.99% to 24% |
| Kotak personal loan | Rs. 50,000 to Rs. 25 lakhs | 10.99% onwards |
| Citibank personal loan | Rs. 10,000 to Rs. 30 lakhs | 10.5% to 14.99% |
| InCred personal loan | Rs. 75,000 to Rs. 15 lakhs | 16% to 36% |
| Standard Chartered bank personal loan | Up to Rs. 50 lakhs | 11.49% onwards |
| Bank of Baroda personal loan | 1 lakh to 20 lakhs | 10.20% to 17.55% |
Eligibility Criteria for Personal Loans from Top Banks
| Age (in years) | Income | |
| HDFC | 21-60 | Minimum Rs. 25,000 |
| ICICI | 23-58 | Minimum Rs. 30,000 |
| IDFC | 25-55 | Not Available |
| SBI | 18-76 | Minimum Rs. 15,000 |
| Tata Capital | 22-58 | Minimum Rs. 15,000 |
| Kotak | 21-60 | Minimum Rs. 25,000 |
| Citibank | 21-60 | Minimum Rs. 25,000 |
| InCred | 21-55 | Minimum Rs. 15,000 |
| Standard Chartered bank | 22-58 | Minimum Rs. 22,000 |
| Bank of Baroda | 21-65 | Not Available |
The Application Process for a Personal Loan via CreditMantri
- Go through the options available for personal loans. Click on “Know More” to check interest rates and charges.
- Click on “CHECK ELIGIBILITY”.
- Fill in details like Email ID, Mobile number, Loan amount requested, Full name as per PAN, Date of birth, Residence pin code, Residence city, gender, marital status, etc.
- Click on “Next”
- Proceed to complete the rest of the application.
Conclusion
Personal loan application is quick and needs minimum documentation. With a few tips and tricks, an applicant can easily get a personal loan approved. Make sure before applying you check the interest rates, eligibility, and documentation. Apply for loans that you really need and keep your credit utilization ratio under 30%. Keep your outstanding clear and you should have no trouble in obtaining a personal loan.
FAQ of 8 Best Personal Loan Tips and Tricks that You need to Follow in 2024
1:What is the fastest way to repay a personal loan?
The fastest way to pay your personal loan is to always pay the EMIs in full. You can also shorten the tenure of your loan if you can manage a higher EMI.
2:Can I get a personal loan with a credit score of 700?
Yes, you can. ICICI Bank, IDFC Bank, and Standard Chartered Bank are some of the lenders that will provide a personal loan with a credit score of 700.
3:Which bank gives instant personal loans?
HDFC Bank, Yes Bank, and IDFC First can give instant personal loans within 10 seconds to 2 minutes.
