Festive season always calls for gaiety. It will be raining offers this Diwali season with every business enterprise, financial institutions are nowhere an exception. Many consider Diwali as an auspicious beginning and plan for the purchase of new car, mobile, home appliances, and travel on a pilgrimage; Banks lure you with best offers to get a personal loan to fund for the festivities. The festival season is the best time to make use of getting funds at comparatively lesser costs.
Comparative analysis of personal loan offers
| Description | Yes Bank Personal loan | HDFC Personal loan | Kotak Mahindra Bank Personal loan |
| Personal loan products | Personal Loan for HolidayPersonal Loan for WeddingPersonal Loan for Home Renovation | Marriage LoanPersonal loan for SalariedPersonal loan for Medical EmergencyPersonal loan for CovidPersonal loan for WomenPersonal loan for Home RenovationPersonal loan for GovernmentPersonal loan for teachersTravel loan | Personal loan for all type of personal expensesPersonal loan Overdraft |
| Eligibility | Age – 21 years to 60 years.Salaried employees working with reputed companies.Minimum net monthly income – Rs 18,000 | Age – 21 years to 60 years.Salaried employment experience of at least 2 years.Minimum net monthly income Rs 25,000 | Age – 21 years to 60 years.Salaried employment experience of at least 1 year.Minimum net monthly income – Rs 30,000 |
| Documentation | Identity ProofAddress ProofIncome Proof2 Passport size photographs.Doorstep banking service for collection of documents for personal loan. | Identity ProofAddress ProofIncome Proof2 Passport size photographs | Identity ProofAddress ProofIncome Proof2 Passport size photographs |
| Amount of loan | Rs 1 lakh to Rs 40 lakhs | Rs 50,000 to Rs 40 lakhs | Rs 50,000 to Rs 25 lakhs |
| Interest rate | Starts from 10.99% | Ranges from 11% to 21%.Flat and adjustable interest rate. | Starts from 10.99%.Personal loan OD starts from 12.75%Fixed or flat interest rateAdjustable interest rate where the rate of interest is changed whenever there is a policy change by RBI. |
| Processing fees | Up to 2.5% of the loan amount | Up to Rs 5,000 | Up to 3% of the loan amount |
| EMI tenure | 12 months to 60 months | 12 months to 60 months | 12 months to 60 months |
| Processing time | Within 5 days from the date of application and receipt of supporting documents. | HDFC bank customers can get a personal loan within 10 seconds. Non-HDFC bank customers can get it within 4 hours.Existing customers can apply through internet banking, ATM or Loan Assist App. | Within 48 hours of application and submission of documents. Easy online application is available. |
| Features | One minute in-principle loan approval by YES BANK mPower Bot.Transfer of existing personal loans from other banks to Yes Bank at lower interest rates.Top-up loans are also available. | Personal accidents cover up to Rs 8 lakhs with nominal premium.Personal loan security | Debt consolidation loans where all your existing personal loans are repaid and converted into a single loan with Kotak Bank. Overdraft facility is available on personal loans of Kotak to overdraw up to a specified limit.Top-up loans after 9 months of original loan. |
| Prepayment | Foreclosure can be done post payment of 12 EMIs.Foreclosure charges range between 2% and 4% depending on the period taken after 12 months’ EMI. | Foreclosure charges range between 2% and 4% depending on the period taken after 12 months’ EMI. Part payment up to 25% of outstanding and only once in the financial year. | Lock in period of 12 months for loan tenure of more than 18 months and 50% of the tenure for less than 18 months. Foreclosure charges from 2% to 4% based on the time of repayment. |
- Yes Bank is providing festive offers for personal loans. The borrowers can get personal loans at attractive interest rates.
- HDFC Bank has introduced “FESTIVE TREATS” offer on personal loan for this Diwali. The offer is valid till 31st October 2022. The interest rates start from 10.50%. You can check your eligibility in 5 minutes and get the loan disbursement in 24 hours. Door step documentation is also available as part of this offer. The disbursal is done in 10 seconds for selected customers of HDFC Bank.
- Kotak Mahindra Bank promises quick disbursal of personal loans to meet the various festival expenses.
- ICICI Bank is waiving off pre-closure charges when the loan is closed after 12 EMIs.
- Jammu & Kashmir Bank is offering personal loans from Rs 5,000 to Rs 75,000. There is no penalty and processing charges for foreclosing the personal loan.
- IndusInd Bank provides personal loans up to Rs 50 lakhs for tenure up to 72 months.
Conclusion:
Festive loans are offered for a limited period of time. It is important to know the deadline for offers and apply beforehand. Having a good credit score can also help to achieve more attractive offers. Festive loans are catchy with respect to the reduction in interest and processing charges. But ensure to read the terms and conditions in between the lines. Borrow only if you need and plan for prompt repayment of the loan. Let the festival of lights bring home prosperity, wealth and lots of happiness.
