Best Personal Loans 2020| North Loop Official Blog
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North Loop
21 Sep 2020

Best Personal Loans 2020

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A personal loan is an unsecured loan that you can take from a bank to meet your personal financial needs. It is not secured against any asset and can be availed quicker than other loans. Since the perceived risk for personal loans is usually greater as compared to those for home, car or gold loans, the interest rates offered by lenders are also higher.

Before we list the best personal loans of 2020, let us try and understand some key points about personal loan interest rates and their method of calculation.

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What are the types of personal loan interest rates?

There are two types of personal loan interest rates – Fixed Rate of Interest and Floating Rate of Interest.

Fixed-Rate of Interest – The rate of interest, in this case, remains constant throughout the loan tenure and the monthly EMI amount also stays fixed during the entire repayment period.

Floating Rate of Interest – Here, the rate of interest does not remain fixed. It gets linked to external benchmarks or market conditions that make it a variable rate of interest. As it is prone to periodical changes, it often leads to an increase or decrease in loan tenure or monthly EMI payouts depending on its upward or downward movement.

What are the personal loan interest-rate calculation methods?

Personal loan interest rates can get calculated in the following two ways –

Flat Rate – Interest gets calculated on the total loan amount initially borrowed over the entire tenure of the loan.

Reducing Balance Method – In this method, interest is calculated on the decreasing loan amount and not the total amount initially borrowed. The principal loan amount keeps on decreasing as parts of the loan amount and interest get paid off with monthly EMIs.

What is the formula for the different personal loan interest-rate calculation methods?

The formula to calculate EMI based on the Flat rate method is –

EMI = (Principal + Total Interest Payable) / Loan Tenure in Months

Where, Total Interest Payable = Principal x Interest Rate x Loan Tenure/100

The formula to calculate EMI based on the Reducing Balance method is –

[P x R x (1+R)^N]/[(1+R)^ (N-1)]

Where, P = Principal loan amount
R = Rate of interest every month
N = Loan repayment tenure in months

Best Personal Loans Interest Rates 2020

   
Loans   
   
Interest rates   
   
North Loop Personal Loan   
   
3.99% onwards   
   
SBI Personal Loan   
   
10.50% onwards   
   
HDFC Bank Personal Loan   
   
10.50% onwards   
   
ICICI Bank Personal Loan   
   
10.75% onwards   
   
Bajaj Finserv Personal Loan   
   
12.99% onwards   
   
Citibank Personal Loan   
   
10.90% onwards   
   
IDFC First Bank Personal Loan   
   
12.00% onwards   
   
Axis Bank Personal Loan   
   
10.99% onwards   
   
IndusInd Bank Personal Loan   
   
11.00% onwards   
   
Kotak Bank Personal Loan   
   
10.75% onwards   
   
RBL Bank Personal Loan   
   
13.99% onwards   
   
Andhra Bank Personal Loan   
   
11.55% onwards   
   
YES Bank Personal Loan   
   
10.45% onwards   
   
Standard Chartered Personal Loan   
   
11.50% onwards   
   
IDBI Bank Personal Loan   
   
12% onwards   

North Loop offers the lowest interest rate on personal loans – 3.99% onwards. Popular Indian bank loans like the HDFC personal loan, SBI personal loan, Axis Bank personal loan have interest rates beginning from 10.50%. They are not only considerably higher but also less transparent as compared to North Loop personal loan.

Eligibility criteria –

The general criteria that you must fulfil to apply for personal loans depend on age, occupation, and loan repayment capacity. Some of the main factors that determine eligibility for personal loans are –

Profession – You can be a salaried person working in a government, private or multi-national company or a self-employed professional like a doctor, CA, CS, architect etc.

Eligible age – 21 years to 60 years.

Minimum Income – Your monthly income should be at least Rs.25000 if you are a salaried individual. For professionals, the gross annual receipts should be Rs.5 lakh.

Work Experience – You should ideally have a work experience of 3 years or more.

Documents Required –

Identity proof
Address proof
Age proof
Income proof

How to get the lowest interest rate personal loans?

As you can see from the interest rate table above, North Loop offers the lowest rate interest on personal home loans. You can get instant loans on the App by signing up and placing a request. The process is paperless and 100% digital. Unlike all the other banks mentioned above, you can get an instant personal loan with North Loop even if your monthly income is Rs.10000 per month. The CIBIL score requirement is also considerably lower as compared to HDFC loan and others. You can even access a personal loan calculator on the App to help calculate your EMIs. Currently, it is the best choice to get low-interest personal loans In India with easy, affordable and transparent EMIs.

To sign up with North Loop, click here.

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This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended be advice. You must obtain professional advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from North Loop or its affiliates. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. All opinions expressed do not reflect the views of North Loop nor are endorsed by North Loop.