Personal loans in Chennai are offered by some of the top banks and NBFCs in the country. All banks offer secured and unsecured personal loans. In the case of unsecured loans, banks offers loans ranging between Rs.50,000 to Rs.40 lakh without any collateral. Personal loans are offered to customers based on their annual income, the company their employed, etc. Some of the top banks offering personal loans are ICICI Bank, HDFC Bank, Axis Bank, Kotak Mahindra Bank, etc.
Personal Loans offered by Various Lenders in Chennai
A few of the prominent banks and non-banking financial companies (NBFCs) that offer personal loans in the city include:
- State Bank of India (SBI)
- Aditya Birla
- Tamilnad Mercantile Bank
- Tata Capital
- ICICI Bank
- Indian Bank
- Andhra Bank
- Axis Bank
- HDFC Bank
- Kotak Mahindra Bank
- Fullerton India
- Oriental Bank of Commerce
- Standard Chartered Bank
- Citibank
- Syndicate Bank
- Punjab National Bank
- Corporation Bank
- Karur Vysya Bank
How do I get a Personal Loan with the lowest interest rate in Chennai?
When availing a personal loan most people go for the bank holding their salary account as the paperwork becomes a lot more relaxed and the process faster. While for some this might work perfectly, looking out for loans offered by numerous banks and NBFCs offering loans at the best interest rates is the best way forward. Other than that, there are a few other factors that will positively affect your loan interest rate. If you’re availing a loan, listed below are a few areas you need to look into or take care of if you wish to get the lowest interest rate on your loan:
Credit score – Ensuring that your credit score is optimum is imperative when availing a personal loan. Having a high credit score will result in you getting a loan at a lower interest rate and vice versa. A credit score above 750 is satisfactory when availing a personal loan .
Make a down payment – Putting down a sizeable down payment is sure to get you a better interest rate on your loan. Anything upward of 20% of your loan amount will surely positively affect the interest rate that is offered to you.
Debt-to-income ratio – Making sure that you have a stable debt-to-ratio will firstly decide whether your loan will be approved and secondly will affect the interest rate on your loan. Debt-to-ratio is the amount one earns against his/her credit bills, loans, etc.
Look around for the best loan interest rates on offer – Facilitating the use of financial portals will help you when shopping around for loans offering the best interest rates. The website compares the loan interest rates of all its partner banks and makes it easier for customers to make a decision.
Tenure – Choosing your tenure directly reflects on the interest rate added to the loan amount. Choosing a shorted tenure will result in you having a much less interest rate – though the EMIs will considerably low. The interest rate increases with the length of the payback period.
Employee stability and the company you work for – The number of years of experience and the company you work for plays a vital role whether firstly your loan will be approved and secondly the interest rate on the loan. Working for an established company only increases the bank’s trust of you repaying the loan.
Always negotiate – While most people readily agree to the interest rate on the loan offered by the bank, negotiating on the interest rate is a necessity. If you’re a customer availing a loan from the bank holding your salary, you have a better chance of making a negotiation.
Personal Loan Interest Rates in Chennai 2018
| Bank | Interest Rate Range | Processing Fee Range | Loan Amount | Tenure |
| ICICI Bank | 11.59% – 18.49% (Fixed) | 2.25% (min. Rs.1149) One time fee | Rs.20 lakh (Max) | 1-5 Years |
| CitiBank | 10.99% – 15.99% (Fixed) | 1% to 2.5% | Rs.30 lakh (Max) | 1-5 Years |
| Kotak Mahindra Bank | 10.99% to 24% p.a. | Up to 2.5% of the loan amount along with GST or service tax | Rs.50,000 to Rs.15 lakh | 1 to 5 Years |
| Fullerton India | 11.99% to 23.99 p.a. | Information not provided. | Up to Rs.20 lakh for salaried and up to Rs.30 lakh for self-employed individuals | 1 to 4 Years |
| Bank of Baroda | 11.35% – 14.35%Fixed | Rs.1,000 to Rs.10,000 (One time fee) | Rs.20,000 – Rs.2 lakh | 4 Years (Max) |
| State Bank of India | 11.85% to 14.70% p.a. | 1% | Rs.25,000 to Rs.15 lakh | Up to 84 months |
| Aditya Birla | 14% to 26% p.a. | Nil | Rs.25,000 to Rs.15 lakh | 6 to 36 months |
| Allahabad Bank | Information not provided | 1.06% of loan amount | Information not provided. | 1 to 5 Years |
| Yes Bank | 14% (Fixed) | Up to 2%One time fee | Rs.20 lakh (Max) | 1-5 Years |
Salary requirements to avail Personal Loans in Chennai
When availing a personal loan in Chennai, the salary requirements change from bank to bank. When looking for the bank offering the best interest rates, make sure to look out for the minimum salary requirement of the bank as well.
- For salaried individuals – Banks have a minimum salary requirement between Rs.7,500 and Rs.50,000 for salaried individuals.
- Self-employed individuals – Those having their own business should provide proof of income and most banks have an income requirement of Rs.1 lakh to Rs.2 lakh (profit) annually.
Chennai Personal Loan FAQs
- What is the tenure range of personal loans? Most banks offer loans for a tenure of 1 to 5 years. The tenure decides the interest rate, the EMIs to be repaid to the bank monthly, etc.
- What documents are required when applying for a personal loan?You will need to submit your regular KYC documents (address and identity proof) – Passport, Aadhaar card, Voter’s ID, driving license, any government employee card, etc. Apart from that, you will have to submit your pay slips, last two years IT Returns, last six months bank statements, etc.
- Are there any additional charges for personal loans? You will have to pay the processing fee upfront when availing a loan. Apart from this there are no additional charges unless a prepayment is made.
- Will the loan be disbursed at once or in stages? Once your loan application has been approved by the bank or NBFC, the loan will be disbursed all at once. There is no option of splitting the disbursal.
- Can I prepay a loan after a couple of months? Most prepayment requirement for most banks is six months from the point of disbursal. Pre closing the loan in two months would not be a possibility. You would have to pay prepayment charges on the outstanding balance.