There are many moments in life when we may need funds for an emergency. Hospital bills, surgery and other medical expenses are some examples of such needs. An instant personal loan can be extremely helpful at such an hour. In this borrowing facility, you can get up to Rs. 1 lakh. Borrowing amount is as low as Rs. 10,000. After applying for the loan online, you can expect approval of the application within a few minutes. Also, the disbursal takes place within 2 hours to 24 hours. Being a small amount borrowing, the tenure is also short between 1 month and 12 months.
Instant Personal Loan vs. Traditional Personal Loan
An instant personal loan is different than a traditional personal loan. The former is provided by Fintech firms and microfinance companies. The traditional loans are offered by banks and NBFCs. These are of higher quantum of finance, where borrowing amount is up to Rs. 25 lakhs or Rs. 40 lakhs, depending on a financial institution to another. The bank loan comes with a longer tenure as well. However, it takes 48 hours or more to approve the loan application, after which the disbursal takes place.
Be it an instant cash facility or one that takes a few days for disbursal, you can choose the suitable one as per your need. If you require instant money, then an instant personal loan is a better option than a traditional personal loan. Both the funding options are multi-purpose in nature and unsecured borrowings. There is no need for collateral. The funds can be used for any end purpose.
Personal Loans by Public Sector Banks
In India, public sector as well as private sector banks offer personal loans. The public sector banks providing personal loans are State Bank of India, Central Bank of India, United Bank of India, Punjab National Bank, Union Bank of India, Oriental Bank of Commerce, Bank of Baroda, IDBI Bank, State Bank of Travancore, Bank of Maharashtra, etc.
- State Bank of India
SBI provides personal loans with affordable rates of interest, the interest being charged on an everyday reducing balance. There are no hidden expenses or administrative charges while the processing charges are quite low compared to other banks. The bank needs minimum documentation for granting a personal loan and no security is needed.
Personal Loans offered by SBI are:
- SBI Saral Personal Loan
- Festive Loans
- SBI Pension Loan
- Xpress Credit Loan
- Central Bank of India
Central Bank of India provides a gamut of personal loans that have been designed to cater to various needs of people belonging to various categories. For instance, one type of personal loan is meant to serve teachers. This variant, known as Cent Teacher, is offered to permanent employees or teachers of schools, colleges, or universities, and other research or educational institutions. These borrowers need to have their salaries credited into accounts maintained with Central Bank of India. The rate of interest charged on this type of personal loan is calculated as Base Rate + 2.75%.
- Union Bank of India
The personal loan offered by Union Bank of India is known as Union Personal. It can be availed for different purposes so that the borrower can pay for things that they are unable to pay for at once on their own. No security, other than the undertaking and guarantees from employees, is needed. 2 guarantees are required.
If you are a first-time borrower, you can avail up to Rs 5 lakhs as personal loan. If you are an existing borrower with a flawless repayment history over 2 years, you can avail a personal loan up to Rs 10 lakhs. The borrowed sum needs to be repaid in full, 1 year prior to retirement, or within five years of taking the loan.
- PNB or Punjab National Bank
Personal loans offered by PNB are easily available and flexible as far as repayment is concerned, as the borrower is not penalized for pre-payment. The loan is offered to permanent employees of State and Central Governments, PSUs, officials of Military Headquarters, to name just a few categories. The minimum sum that is offered as personal loan is Rs 50,000.
- OBC or Oriental Bank of Commerce
OBC offers personal loans that can be used to meet family or personal expenses like hospital bills, education, wedding ceremony arrangements, travel, purchase of gold and consumer durables, purchase or renovation of house, etc. The entire loan amount needs to be repaid in 60 EMIs, subject to the remaining tenure of service.
- Bank of Maharashtra (BOM)
Personal Loan offered by BOM is called Maha Bank Personal Loan Scheme. The loan amount needs to be paid back in full within tenure of 36 months.
- Corporate Salary Account-Holders with a minimum income of Rs 3 lakhs the previous year.
- The applicant needs to have at least a 1-year relationship with the bank.
- Salaried individuals having a Loan for home with the bank
- Corporate Salary Account-Holders who have been in employment for at least 2 years
- Applicants need to have at least 1 year of experience in the present organization.
- Salaried individuals with existing home loans with the bank need to have an income of at least Rs 2.5 lakhs the previous year. The home loan can be availed by people between 21 years and 60 years of age.
- Corporation Bank
The minimum personal loan offered by Corporation Bank is Rs 1 lakh while the maximum is Rs 2.50 lakhs. The borrowers are not penalized if they opt for partial or total pre-payment of the loan amount. Salaried borrowers can repay the borrowed sum within 36 months while non-salaried borrowers can repay within 60 months.
Now that you understand the personal loan schemes by public sector banks, you can choose the one suitable for your requirement. If you want a higher quantum of finance and a longer tenure, then you can pick a traditional loan scheme. Otherwise, you can choose an instant personal loan, which you can receive within a matter of a few hours.