Loans

Are PSU banks improving their digital services and profitability? Should we still judge them based on past issues? Is the value gap between them and private banks actually closing, or am I missing something?

You’re on the right track. In India, credit card debt and high-interest loans can get out of control quickly. Follow these steps:

Prioritize improving your CIBIL score over increasing credit. A better score secures better deals. Consider consolidating debt into a lower-interest loan. Discuss lower rates with your bank. Emphasize steady repayments to boost your score. Avoid seeking new credit until your score improves.

That’s a really smart move to check. Most Indian bank loans are either on MCLR or RLLR. The main difference is that MCLR only updates every few months, so it’s a bit slow to change. RLLR (repo-linked) is much more transparent — it moves almost immediately when the RBI changes rates.

Since rates are going up right now, knowing which one you have helps you plan for your future EMIs. If you're still on MCLR, it might be worth asking your bank to switch you to a repo-linked rate. It could end up saving you a good chunk of interest in the long run.

Thanks for getting back to me, but doesn’t the urgent need for cash (due to high debt) practically force many people to take out new, high-interest loans first, despite the long-term risks to their credit scores and financial stability?

Considering the strict age, income, and documentation requirements, wouldn’t it be more practical to first confirm the minimum credit score and the exact debt-to-income ratio that HDFC evaluates before submitting all the documents and paying the processing fee?

Thanks for the detailed explanation. But, if the policy documents are missing, doesn't the lack of official insurer details and coverage in the statement make proving the policy's existence virtually impossible?

If the main advantage of an offset loan is its liquidity, could it be that a traditional mortgage with a low interest rate, paired with a separate high-yield savings account, provides a more straightforward and transparent solution for maximizing savings and flexibility?

Use online EMI calculators (such as HDFC, BankBazaar, or Groww) to check your monthly repayment based on the tenure and interest rate. Keep your total EMI within 30–40% of your monthly income for better cash flow. Compare loan offers from multiple banks and NBFCs for the best interest rates

There are some government-sponsored schemes available. Central Sector Scheme for Interest Subsidy (if you fulfill the requirements), then there is the Vidya Lakshmi scheme; under this, you can apply for the educational loans. Non-banking financial companies can also give educational loans, but they have their criteria.

You can take a loan from both public sector banks as well as private sector banks, which provide the best interest rates on home loans.

Public sector banks like State Bank of India (SBI) and Bank of Baroda (BoB) are known for their competitive interest rates and stability. State Bank of India (8.50% to 9.65% per annum) and Bank of Baroda (8.50% to 9.20%) are the best options.

Private sector banks such as HDFC Bank and Axis Bank often provide attractive interest rates and expedited processing. HDFC Bank (8.55% to 9.50%) and Axis Bank (8.60% and 9.60%).

All these banks offer good, competitive interest rates and have some processing fees. To get the special interest rate offers, your CIBIL score should be 750 points or more.

There are some criteria set by banks, that you need to fulfill before applying for a home loan:

Good credit score more than 750. Regular income proof (salary slips, ITR). Age criteria, which is 21-65 years. Your Debt-to-Income Ratio should not exceed 40-50% (including the new loan EMI). Clear legal property documents are essential.

These are the documents that you need to provide to the bank while applying for a loan. Different banks may ask for more proof, but these are the main documents that are essential.

Most banks don't approve the loans if you are not filling out your ITR, as banks require your income proof to verify your ability to repay the loan. So it's difficult for you to get the loan. However, certain banks or digital lenders may be able to provide a small loan amount based on your savings account transactions. You can try non-banking financial companies (NBFCs); they give you loans without ITR.

Bajaj Finserv gives you a loan at a lower interest rate than SBI. Bajaj Finserv is an excellent choice for you, as they credit your loan within 24 hours of approval. It is also the best option for flexible terms.

Both banks provide the same interest rate and offer nearly identical services. Both banks approve loans within hours for pre-approved customers who meet certain eligibility criteria.
The processing fees primarily depend on the desired loan amount. HDFC processing fee ranges from ₹1,000 to ₹6,500 + GST.
And the processing fees at ICICI Bank are 2% of your loan amount.

So compare processing fees and choose the best one.

To know the best bank, check out this article:

https://fincuss.com/topic/135/which-bank-offers-me-loans-with-a-low-cibil-score/2

With this CIBIL score, you can easily get the low-interest personal loan.

SBI gives a personal loan at just 9.60% per annum. HDFC Bank gives personal loans at 10.75% per annum. Axis Bank gives you a loan at an 11.50% interest rate. PNB provides loans at a 9.90% interest rate. Bank of India provides personal loans at a 10.25% interest rate.

All the banks provides flexible repayment terms, which ultimately give you the facility for early repayments.
HDFC Bank and Axis Bank give you a faster loan than any other bank.

Yes, you are eligible for an agricultural loan on your land. There are many banks that can give you an agricultural loan at good interest rates.

SBI: Interest rates for the loan start at 9.75% per annum. It offers you a loan on crops; with the help of the Kisan Credit Card scheme, farmers can easily get the loan. ICICI Bank: Interest Rate: The loan is available at an interest rate of 10.50% per annum. The bank offers loans for land, agricultural pursuits, and various other purposes. National Bank for Agriculture and Rural Development (NABARD): Interest Rates: 7% - 16.05% p.a. There are various government-funded schemes that primarily focus on rural development. Punjab National Bank: Interest Rate: This loan offers a 7% annual interest rate. Have the facility of KCC crop loans.

You need the following documents to apply for a Mudra Loan:

Identity Proof: Aadhar Card, PAN Card, or Driving License. Mudra Loan Application Form. Address Proof. Business proof includes a business license or tax registration. Your business plan. Your income proof. Bank Statements Passport-size photographs.