Banks such as ICICI, Standard Chartered, HSBC and Kotak Mahindra Bank are aggressively marketing their personal loans either directly or through direct sales associates.
An attractive feature of these loans is that they can be used for any purpose. No guarantors or security is required and loans are available at convenient repayment options.
Banks, apart from doorstep service, have also simplified the documentation part.
Many private banks have set up shop in Gujarat in recent years. It all started with the HSBC opening its main branch on the CG Road two years back and the Standard Chartered adding more branches in the state.
Citi Bank has also started focussing on the personal loan segment. The latest addition in this list is Kotak Mahindra Bank which opened its first branch in Ahmedabad last month.
The bank has opened a branch in Vadodara, which is considered to be a potential market for personal loans. It is also set to open a branch in the Law Garden area of Ahmedabad. The bank is also in the look out for a suitable space in Rajkot to open another branch shortly.
All these banks offer loans in the range of Rs 20,000 to Rs 10 lakh, depending on the profile of the customer.
The rate of interest varies from 21 per cent to 24 per cent under reducing balance. Under fixed rate, the rates varies between 10.5 per cent and 12 per cent.
Loans can be availed of for 12 months to 36 months. If the profile of the customer is good, than the tenor can be extended to 48 months or even 60 months, a senior official at a foreign bank said.
A customer must be at least 21 years of age to avail of a loan from Kotak Mahindra Bank. For ICICI Bank, the age limit is 25 years.
