Personal Loan Interest Rates and Other Charges: SBI vs. HDFC Bank vs. ICICI Bank

A sudden cash crunch can happen at any time. You might require funds to tackle a sudden emergency, or for other personal need. After all, emergencies and requirements do not announce their coming. What do you do? You, of course, start looking at Personal Loans and comparing Personal Loan interest rates of various banks. There are many banks and non-banking financial corporations in India that provide Personal Loans. Of all these, probably the most sought-after and reliable are the SBI Personal Loan, HDFC Personal Loan and ICICI Personal Loan.

What is a Personal Loan?

An unsecured loan that banks and non-banking financial corporations provide to borrowers for any personal reason or emergency is called a Personal Loan.

What are the reasons for getting a Personal Loan?

You should consider applying for a Personal Loan for various reasons. You can get a Personal Loan to payoff other debt, for the sudden financial crisis, for your personal needs you wish to keep confidential, for starting your new business or injecting cash into an already existing one and many other things. Essentially, a Personal Loan can get you everything money can buy. Up until a few years ago, taking a Personal Loan was a risky proposition, but these days, lenders provide attractive Personal Loan Interest Rates to woo the borrower.

Where can you get a Personal Loan from?

You can apply for a Personal Loan from the various banks and NBFCs that are currently providing Personal Loans. Getting information about these loans and their interest rates, charges and terms have become very easy over the internet through the lender’s website.

What are the terms and interest rates and costs of Personal Loans provided by banks?

The terms and conditions, eligibility for getting a loan, the rate of interest and bank charges, all vary from one bank to the other. Let us discuss some of the details and requirements of Personal Loans provided by SBI, HDFC Bank and ICICI Bank:

  1. SBI Bank Personal Loan: Being one of the most popular banks in India, SBI is also much sought after when it comes to Personal Loans. SBI will, under special circumstances, loosen their eligibility requirements so that funds are available to those that need them. Usually, their loan turn-around period is 1-7 working days. They charge a 1% processing fee plus all the taxes that are applicable. They provide 3 kinds of Personal Loans:
  1. Xpress Credit Loan: Currently this loan is provided to salaried employees maintaining a salary account with the bank. You can get a minimum loan of Rs. 25,000 going up to Rs. 15,00,000 with a Rs. 5,00,000 overdraft facility. The effective interest rate is around 12.05%-15.55% currently. The interest is charged on a daily reducing balance system.
  • SBI Pension Loan: This loan is only for Central, State Government and Defence Personnel Pensioners who are not more than 76 years old. There is a nominal processing fee which is reduced to nil for Defence Pensioners. The interest rate is 12% p.a. The minimum amount that can be applied for is Rs. 25,000 while the maximum goes up to Rs. 14,00,000, subject to eligibility conditions. The EMI is debited from the pension account.
  • Xpress Power: This Personal Loan is for salaried employees who do not have a salary account with the bank. The minimum amount that can be applied for and availed is Rs. 25,000. This amount goes up to a maximum of Rs. 15 Lakhs. The current rate of interest ranges from 12.15%-14.30%.
  • HDFC Bank Personal Loan: The benefit of this loan is the amount of time it takes. Pre-approved HDFC Bank customers can apply for and get a Personal Loan cleared within 10 seconds of completing the application. For non-bank account holding customers, the time is 4 hours. The loan amount is transferred to your account within one day of completing application procedure and getting approval. The age range is from 21 to 60 years old. The applicant should have held a steady paying job for the past 2 years. The minimum salary per month should not be less than Rs. 15,000 with the amount going up to Rs. 20,000 for some cities. The rate of interest ranges from 11.25%-22% currently. There is also a Loan Processing Charge of up to 2.50% for salaried employees. There are some charges involved if prepayment is done before completion of payment of 12 EMIs.
  • ICICI Bank Personal Loan: The Personal Loan provided by ICICI is the costliest of all the three, but it provides a tenure of up to 60 months. The interest is charged on a monthly reducing basis and can be paid easily through multiple means. You can apply for and avail loans of up to Rs. 20 Lacs. The rates of interest range from around 11.25% to 22% with a loan processing charge of 2.25% of the loan amount plus all applicable charges. They too have different Types of ICICI Personal Loans:
  1. Wedding Loan: A Personal Loan specially crafted to meet your wedding expenses needs.
  2. Holiday Loan: A Personal Loan that has been crafted in a way that it is suitable to plan that holiday you always wanted to go to.
  3. Home Renovation: This Personal Loan from ICICI is designed for your home renovation needs.
  4. Top Up Loan: The Top Up Loan from ICICI is lent to borrowers so that they can meet their shortage of funds.
  5. Fresher Funding: This loan is provided to the newly employed. You can get a loan up to Rs. 1,50,000 with quick disbursal and minimum documentation and procedures.

So, which lender is suitable for you?

Well, your choice of the lender should first depend on the hard facts, like, your salary, credit score, loans, age and all other things bank look for. Other than that, you should understand your needs and requirements and carry out your proper research and choose a lender that best suits your needs. All these three lenders have their different advantages like SBI will provide loans at the lowest rates, while HDFC Bank provides the fastest disbursal of the loan amount and ICICI Bank lends according to what best suits your personal needs.