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Personal Loan in Chennai

Chennai is the main commercial centre of the southern part of India. Chennai has been the main centre of the automobile industry for many years in addition to being a cultural and education centre of south India. Due to these factors, many financial institutions have their presence in the city.

Personal Loan Banks in Chennai

Personal loan in Chennai is provided by Banks as well as Non-Banking Financial Companies (NBFC). The major NBFCs active in Chennai are Bajaj Finserv, Fullerton, Tata Capital. Amongst the banks providing personal loans in Chennai, major one are HDFC Bank, Standard Chartered Bank, IndusInd Bank, Kotak Mahindra Bank and ICICI Bank.

The personal loan is an all season product because a major part of the personal loans is taken for the purpose of meeting emergency situation like sudden hospitalisation or for meeting unplanned expenses like holidays abroad.

Personal Loan Interest Rates in Chennai

The personal loans are provided without any security or guarantee of any kind so are priced higher than other secured loans like the loan against property or loans against shares and securities due to inherent risk. The personal loans are generally given on fixed rate of interest so the tenure of loan and the amount of EMI is known at the time of disbursement of the loan itself. The rate of interest on a personal loan in Chennai varies between 11% to 33% depending on from whom you are borrowing.

The interest rate for personal loans is lower for the personal loan from banks as compared to NBFC as banks lend very conservatively. Moreover, people with better credit history and working for reputed employer also get lower interest rates.

A CIBIL score of 750 or more is considered as basic eligibility for getting a personal loan in Chennai. In addition to the interest payable for a personal loan, the lenders generally charge a processing fee also for processing application for a personal loan. The same is payable upfront and ranges between 0% to 3%.

Personal Loan Eligibility in Chennai

While applying for personal loans in Chennai one has to submit some documents with your application. The basic documents which every borrower has to submit are the KYC (Know Your Customer) documents for proof of identity as well as for address. Documents like Aadhaar card, passport, driving licence and voter card serve both the purposes. In addition to the basic KYC documents, one may have to submit salary slip for few months and a copy of form No. 16 for latest two/three year in case one is employed with any organization. The self-employed have to submit copies of their Income Tax Return, profits and loss account with the balance sheet with an application form.

The personal loans in Chennai are available for a minimum tenure of one year and a maximum tenure of 5 years. A few of the NBFC provide the personal loan repayable over 6 years. The higher repayment schedule helps the borrower get higher loan eligibility or lower EMI towards repayment of the personal loan. While selecting longer tenure for the personal loan, one should be aware of the fact that you may have to pay a prepayment penalty in case you want to prepay the outstanding personal loan either partly or fully before its tenure. The fee is lower for part prepayment as compared to full prepayment of the personal loan. This ranges between 4% to 5% of the amount being repaid.