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| Personal Loan
Empower your financial journey with quick, flexible personal loans.
Lowest Interest Rates
Starting at 9.99% only
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Quick Disbursal
Funds with quick approvals and disbursals.
Flexible Tenure
Flexible repayment plan between 12 to 72 months.
2.3 Cr+
Satisfied Customers
95%
Instant Approval Rate
40+
Available Lenders
4.4 / 5
- Instant approval
- End to end digital journey
- Same Day Disbursal
You may get a loan from any of the NBFCs or banks listed below, who are partnered with Lending Service Provider (LSP) to provide loans.
Max Tenure6 - 48 Months
Best Rate15%
Processing Fee4%
- Instant approval
- End to end digital journey
- Same Day Disbursal
You may get a loan from any of the NBFCs or banks listed below, who are partnered with Lending Service Provider (LSP) to provide loans.
Features
- Instant approval
- End to end digital journey
- Same Day Disbursal
You may get a loan from any of the NBFCs or banks listed below, who are partnered with Lending Service Provider (LSP) to provide loans.
- Hero Fincorp Limited
- Liquiloans
- Aditya Birla Capital limited
- Poonawalla Fincorp
Pricing
- Processing fees: 4%
- Interest rate: 15% - 36%
- Installment Cycle: 5th of every month
Documents Required
- No documents required
- Minimum documentation
- No hidden fees
- Wide geographical presence
Max TenureNA
Best Rate1.58% P.M
Processing Fee2%
- Minimum documentation
- No hidden fees
- Wide geographical presence
Features
- Minimum documentation
- No hidden fees
- Wide geographical presence
- Informal documents are also accepted
- Service at your doorstep
- Cluster based lending
Pricing
- Interest Rate -22-29%
- Processing Fees-2-2.5%
Documents Required
- Identity proof (PAN, Voter ID, Passport)
- Address proof (Voter ID, Aadhar Card, Passport, Bank passbook copy with photo)
- Last 1 Year Bank account statement
- Business registration proof (any of the following) -
- Udyam Registration Certificate
- Shop and Establishment
- Trade License Certificate
- Small Scale Industry Certificate
- Export/Import Code Certificate
- Factory Registration Certificate
- Business Address proof (any of the following) -
- Any one of the Business Registration proofs from above with current business address
- Utility bills (Electricity, water or telephone bill in the name of business) not older than 2 months
- Disbursal in 116 seconds
- No foreclosure charges
- 100% Online Process
You may get a loan from any of the NBFCs or banks listed below, who are partnered with Lending Service Provider (LSP) to provide loans.
Loan Amount Upto 5 lakh
Max Tenure2 - 60 months
Best Rate15.96%
Processing FeeRS: 399/- to 2%
- Disbursal in 116 seconds
- No foreclosure charges
- 100% Online Process
You may get a loan from any of the NBFCs or banks listed below, who are partnered with Lending Service Provider (LSP) to provide loans.
Features
- Disbursal in 116 seconds
- No foreclosure charges
- 100% Online Process
You may get a loan from any of the NBFCs or banks listed below, who are partnered with Lending Service Provider (LSP) to provide loans.
- Earlysalary
- Northern Arc Capital Limited
- Incred Financial Services Limited
- HDFC Financial Services Limited
- Vivriti Capital Limited
- Parimal Finance Limited
- Aditya Birla finance limited
- Cholamandalam Investments and Finance Company Limited
- Tata Capital Limited
- Oxyzon Financial services limited
- Krazybee services privated limited
- Mirae Assets financial services private limited
- Kitsesu Saison finance (INDIA) Pvt Ltd
Pricing
- Processing Fees: 2.5%
- APR: 22.73% onwards
- PF with GST and Stamp Duty: 3% +GST+100
- Insurance with GST: 0.75%+GST
- Penal charges: 30% p.a.
- NACH failure charges: INR 250+GST
- NACH Bounce Charges: INR 500 per instance
- Late Payment Charges: INR 500.00 or 3% of overdue amount
Documents Required
- ID Proof
- Address Proof
- Income Proof (salary slip, bank statement)
By agreeing and accepting the terms and conditions set out herein, you provide your express consent to Social Worth Technologies Private Limited to access the credit bureaus and credit information report and credit score. You also hereby irrevocably and unconditionally consent to the usage of such credit information being provided by credit bureaus.
- 100% Online Process.
- No Foreclosure Charges.
Loan Amount Upto 7 lakhs
Max Tenure24 to 48 Months.
Best Rate12%
Processing Fee3%
- 100% Online Process.
- No Foreclosure Charges.
Features
- 100% Online Process.
- No Foreclosure Charges.
Pricing
- Interest rate: 1% P.M.
- Processing fee: Up to 3% exclusive of all charges
- Annual Percentage Rate (APR): 13.95%
Documents Required
- ID Proof.
- Address Proof.
- Bank Account Details with E-Mandate Facility.
Your application will be subjected to Bureau Enquiry.
- Instant approval
- End to End digital journey
- Same Day Disbursal
Max Tenure12-36 Months
Best Rate10.99% P.A.
Processing Fee2%
- Instant approval
- End to End digital journey
- Same Day Disbursal
Features
- Instant approval
- End to End digital journey
- Same Day Disbursal
Pricing
- Interest rate ranges from 15% to 26% per annum
- Processing Fees : 3%
Documents Required
- ID Proof
- Address Proof
- Income Proof (Bank statement, Salary Slip)
- Minimum documentation
- No hidden fees
- Wide geographical presence
Max Tenure10 - 60 Months
Best Rate30% P.A.
Processing Fee4%
- Minimum documentation
- No hidden fees
- Wide geographical presence
Features
- Minimum documentation
- No hidden fees
- Wide geographical presence
Pricing
- Processing fees: upto 2.5%
- Interest rate: 16%
Documents Required
- Pan Card
- Aadhaar Card
- Last 6 months Bank account statement
- Business registration proof
- Completely digital process
- Quick approval and disbursals
- Flexible repayment plans
Max Tenure12 - 36 Months
Best Rate19%
Processing Fee1.5%
- Completely digital process
- Quick approval and disbursals
- Flexible repayment plans
Features
- Completely digital process
- Quick approval and disbursals
- Flexible repayment plans
Pricing
- Processing Fees : 1.5% to 3%
- Interest rate ranges from 19% to 29% per annum
Documents Required
- ID Proof
- Address Proof
- Income Proof (Bank statement, Salary Slip)
- Loan options from 50K to 5 lakhs
- Tenure up to 36 Months
- Fully Digital Process
Max Tenure12-60 Months
Best Rate10.99%
Processing Fee2%
- Loan options from 50K to 5 lakhs
- Tenure up to 36 Months
- Fully Digital Process
Features
- Loan options from 50K to 5 lakhs
- Tenure up to 36 Months
- Fully Digital Process
- No Physical documents required
Pricing
- Interest Rate starting from 10.99% P.A
- Processing Fee: 3%+GST
Documents Required
- Employment Documents (If Required)
- Quick loan processing.
- Minimal documentation.
- Min Eligiblity Criteria.
Max Tenure 18 Months.
Best Rate28%
Processing Fee2000₹
- Quick loan processing.
- Minimal documentation.
- Min Eligiblity Criteria.
Features
- Quick loan processing.
- Minimal documentation.
- Min Eligiblity Criteria.
Pricing
- Interest rate - 20% to 30% P.A.
- Processing fee - From 2.5%.
Documents Required
- ID Proof.
- Address Proof.
- Salary slip and appoinment Letter (for amber Customers).
- Income proof (3 Months BS ).
We are an authorized sourcing partner for Shriram Finance Limited Personal Loan.
- Instant approval
- End to End digital journey
- Same Day Disbursal
Max Tenure12-36 Months
Best Rate10.99% P.A.
Processing Fee3%
- Instant approval
- End to End digital journey
- Same Day Disbursal
Features
- Instant approval
- End to End digital journey
- Same Day Disbursal
Pricing
- Processing Fees : 3%
- Interest rate starts from 18% per annum
Documents Required
- ID Proof
- Address Proof
- Income Proof (Bank statement, Salary Slip)
Ujjivan Personal Loan
- No collateral required
- Simplified documentation process
- Quick processing
Max Tenure5 yrs
Best Rate15.5%
Processing Fee2.0%
Ujjivan Personal Loan
- No collateral required
- Simplified documentation process
- Quick processing
Edelweiss Salaried Personal Loan
- Get 6 Times of Your Salary in Advance
- An exceptional service experience ensured by a dedicated relationship manager assisting you throughout the process
- Faster Repayment, Bigger Savings - Short term loan enables you to save more on total interest paid compared to longer tenure loans
Max Tenurenil*
Best Rate23.0%
Processing Fee2%
Edelweiss Salaried Personal Loan
- Get 6 Times of Your Salary in Advance
- An exceptional service experience ensured by a dedicated relationship manager assisting you throughout the process
- Faster Repayment, Bigger Savings - Short term loan enables you to save more on total interest paid compared to longer tenure loans
MyMoneyMantra Personal Loan
- Collateral free personal loan
- Best in the segment interest rate
- Loan Upto 50 lakhs
Max Tenure1-5 yrs
Best Rate10.75%
Processing Fee2%
MyMoneyMantra Personal Loan
- Collateral free personal loan
- Best in the segment interest rate
- Loan Upto 50 lakhs
RBL Personal Loan
- Simplified and quick documentation
- Attractive interest rates
- Hassle-free loan sanction and disbursal procedure
Max Tenure5 yrs
Best Rate13.99%
Processing Fee2%
RBL Personal Loan
- Simplified and quick documentation
- Attractive interest rates
- Hassle-free loan sanction and disbursal procedure
Moneyview Instant Personal Loan
- Loan Disbursal in 24 hours
- Minimal Documentation
Max Tenure3 – 60 months
Best Rate1.33% P.M
Processing FeeFrom 2%
HDB Personal Loan
- Loan for first time borrowers
- Approval within 48 hrs from collection of documents
- No security or collateral required to avail loan
Max Tenure1.6 yrs
Best Rate18%
Processing Fee2%
HDB Personal Loan
- Loan for first time borrowers
- Approval within 48 hrs from collection of documents
- No security or collateral required to avail loan
Mpokket Personal loan
- 100% Digital Process with Instant Disbursal
Max Tenure3-9 months
Best Rate3-9 months
Processing Fee4%
ICICI Bank Personal Loan
- Maximum loan - 20 lakhs (salaried)
- Maximum loan - 30 lakhs (self employed)
- Fixed interest rate
Max Tenure5 yrs*
Best Rate11.49%*
Processing Fee999₹*
ICICI Bank Personal Loan
- Maximum loan - 20 lakhs (salaried)
- Maximum loan - 30 lakhs (self employed)
- Fixed interest rate
Kredit Bee Personal Loan
- Completely digital process
- Quick disbursals
- No collateral required
Max Tenure7 months to 48 months
Best Rate1.41% P.M
Processing FeeUpto 5%
Kredit Bee Personal Loan
- Completely digital process
- Quick disbursals
- No collateral required
Paysense Personal Loan
- 100% Online Process
- Quick loan processing
- Minimal documentation
Max Tenure12 – 60 months
Best Rate1.5%
Processing Fee2.5%
My Shubh Life Personal Loan
- 100% Online Process
- Quick loan processing
- Minimal documentation
Max Tenure6 - 24 months
Best Rate2%
Processing Fee3%
My Shubh Life Personal Loan
- 100% Online Process
- Quick loan processing
- Minimal documentation
Finzy personal Loan
- Quick loan processing.
- No foreclosure charges.
Max Tenure6 to 36 Months.
Best Rate7.99% p.m
Processing Fee2%
SBI personal loan
- The interest rate varies from 9.60% p.a.- 15.65% p.a
- Pre Approved personal loans at low rates for customers with strong credit history and existing accounts with the bank
- Nil prepayment charges
Max Tenureup to 6 years
Best Rate15.65% p.a
Processing Fee1.50%
SBI personal loan
- The interest rate varies from 9.60% p.a.- 15.65% p.a
- Pre Approved personal loans at low rates for customers with strong credit history and existing accounts with the bank
- Nil prepayment charges
Navi Personal Loan
- Instant Personal Loans of up to ₹20 lakhs
- Interest rate starting at just 9.9% p.a.
- Complete digital process, without any paperwork, on the Navi mobile app
Max Tenure6 years
Best Rate9.9%-45% p.a.
Processing FeeNil
Navi Personal Loan
- Instant Personal Loans of up to ₹20 lakhs
- Interest rate starting at just 9.9% p.a.
- Complete digital process, without any paperwork, on the Navi mobile app
Incred Personal Loan
- Choice based loan offers available - Bureau Based & Banking Based
- ROI & Tenure will differ basis the loan offer chosen
- Disbursement within 24-28 Hours
Loan Amount Upto 10 lakhs
Max Tenure3 - 60 Months
Best Rate16% P.A.
Processing Fee2% - 5%
Incred Personal Loan
- Choice based loan offers available - Bureau Based & Banking Based
- ROI & Tenure will differ basis the loan offer chosen
- Disbursement within 24-28 Hours
MUTHOOT Personal Loan
- Quick loan processing.
- Minimal documentation.
- Affordable Rates & Charges.
Loan Amount Upto 10 lakhs
Max Tenure12 - 60 Months.
Best Rate12.96% P.A
Processing Fee2.5%
MUTHOOT Personal Loan
- Quick loan processing.
- Minimal documentation.
- Affordable Rates & Charges.
MANAPPURAM Personal Loan
- Loans starting from Rs. 50,000
- Faster processing
- Simple and minimum documentation
Max TenureNA
Best Rate12%
Processing Fee2%
MANAPPURAM Personal Loan
- Loans starting from Rs. 50,000
- Faster processing
- Simple and minimum documentation
Faircent Personal Loan
- Lower Interest Rates.
- 100% Online Process.
- Minimal documentation.
Loan Amount Upto 10 lakhs
Max Tenure6 - 36 Months.
Best Rate14.04% P.A
Processing Fee4%
Faircent Personal Loan
- Lower Interest Rates.
- 100% Online Process.
- Minimal documentation.
Olyv Personal Loan
- Minimal Documentation Required
- Quick approval and disbursals
- No Collateral Required
You may get a loan from any of the NBFCs or banks listed below, who are partnered with Lending Service Provider (LSP) to provide loans.
Max Tenure12 Months
Best Rate15% P.A
Processing Fee2%
Olyv Personal Loan
- Minimal Documentation Required
- Quick approval and disbursals
- No Collateral Required
You may get a loan from any of the NBFCs or banks listed below, who are partnered with Lending Service Provider (LSP) to provide loans.
Tata Capital Personal Loan
- 100% Digital Process
- No Income Documents Required
- Offers Upto 10 Lakhs
Loan Amount Upto 35 lakhs
Max Tenure12-72Months
Best Rate11.04% P.A.
Processing Fee3%
Tata Capital Personal Loan
- 100% Digital Process
- No Income Documents Required
- Offers Upto 10 Lakhs
IndusInd Bank Personal Loan
- Maximum loan - 20 lakhs
- Attractive Interest Rates
- Quick and easy approval process
Max Tenure5 yrs
Best Rate12.99%*
Processing Fee0.5%*
IndusInd Bank Personal Loan
- Maximum loan - 20 lakhs
- Attractive Interest Rates
- Quick and easy approval process
Axis Bank Personal Loan
- Minimal Documentation.
- Quick loan Processing.
Loan Amount Upto 15 lakhs
Max Tenure12 - 60 Months.
Best Rate12.96% P.A.
Processing Fee1%
ZYPE Personal Loan
- Seamless onboarding
- Instant transfer
- Flexiable repayement option
Max Tenureup to 12 Months
Best Rate18.00% p.a
Processing Fee2.00%
YES Bank Personal Loan
- Hassle free Process.
- Flexibility of Repayment.
- No end use requirement.
Loan Amount Upto 50 lakhs
Max Tenure12-72 Months.
Best Rate11.05% P.A.
Processing Fee1.0%
YES Bank Personal Loan
- Hassle free Process.
- Flexibility of Repayment.
- No end use requirement.
IDFC FIRST BANK Personal Loan
- Instant Approval
- No income document program
- Disbursal in 3 Days*
Max TenureNA
Best Rate16%
Processing Fee2.49%
IDFC FIRST BANK Personal Loan
- Instant Approval
- No income document program
- Disbursal in 3 Days*
PNB Personal Loan
Max Tenurenil*
Best Rate10.95%
Processing Feenil*
Citibank Personal Loan
Max Tenurenil*
Best Rate10.99%
Processing Feenil*
Kotak Mahindra Bank Personal Loan
Max Tenurenil*
Best Rate11.50%
Processing Feenil*
Bank of Baroda Personal Loan
Max Tenurenil*
Best Rate11.60%
Processing Feenil*
Union Bank of India Personal Loan
Max Tenurenil*
Best Rate14.40%
Processing Feenil*
Bank of India Personal Loan
Max Tenurenil*
Best Rate10.99%
Processing Feenil*
Canara Bank Personal Loan
Max Tenurenil*
Best Rate12.60%
Processing Feenil*
IDBI Personal Loan
Max Tenurenil*
Best Rate9.50%
Processing Feenil*
Bank of Maharashtra Personal Loan
Max Tenurenil*
Best Rate9.70%
Processing Feenil*
Karur Vysya Bank Personal Loan
Max Tenurenil*
Best Rate11%
Processing Feenil*
Tamilnad Mercantile Bank Personal Loan
Max Tenurenil*
Best Rate10.40%
Processing Feenil*
HSBC Bank Personal Loan
Max Tenurenil*
Best Rate10.99%
Processing Feenil*
Central Bank of India Personal Loan
Max Tenurenil*
Best Rate11.50%
Processing Feenil*
UCO Bank Personal Loan
Max Tenurenil*
Best Rate11.45%
Processing Feenil*
Indian Bank Personal Loan
Max Tenurenil*
Best Rate9.65%
Processing Feenil*
Federal Bank Personal Loan
Max Tenurenil*
Best Rate11.75%
Processing Feenil*
Aditya Birla Personal Loan
Max Tenurenil*
Best Rate11.75%
Processing Feenil*
Indian Overseas Bank Personal Loan
Max Tenurenil*
Best Rate14.05%
Processing Feenil*
South Indian Bank Personal Loan
Max Tenurenil*
Best Rate10%
Processing Feenil*
HDBFS Personal Loan
Max Tenurenil*
Best Rate13.99%
Processing Feenil*
Credy Personal Loan
- Full approval in real time, Amount disbursed in 24 hours
- Paperless process - no cheques / photocopies of documents needed
- Loans upto Rs 1 lakh & duration upto 1 year
Max TenureNA
Best Rate1%
Processing Fee3.0%
Credy Personal Loan
- Full approval in real time, Amount disbursed in 24 hours
- Paperless process - no cheques / photocopies of documents needed
- Loans upto Rs 1 lakh & duration upto 1 year
India Bulls personal Loan
- Industry best interest rates - All your dreams and aspirations can now come true with Indiabulls Dhani personal loans starting at 11.99% per annum
- Money in your account instantly - Get loans starting from Rs. 50,000 to Rs. 15 lakhs disbursed in your bank account instantly.
- Use your Pan Card and address proof for instant verification - Using your Pan Card and address proof you can get a personal loan almost instantly.
Max Tenurenil*
Best Rate11.99%
Processing Fee2.5%
India Bulls personal Loan
- Industry best interest rates - All your dreams and aspirations can now come true with Indiabulls Dhani personal loans starting at 11.99% per annum
- Money in your account instantly - Get loans starting from Rs. 50,000 to Rs. 15 lakhs disbursed in your bank account instantly.
- Use your Pan Card and address proof for instant verification - Using your Pan Card and address proof you can get a personal loan almost instantly.
Common Mistakes While Applying For A Personal Loan
Explore personal loan offers from 15+ trusted lenders with CreditMantri. Compare, choose, and apply with ease—all on one platform.
Quick Links To Handle Your Personal Loan
What is a Personal Loan?
A personal loan is a type of credit issued by a bank or financial institution to an individual based on certain conditions. These conditions are referred to as pre-qualified eligibility criteria that the lender sets to obtain the desired loan. Individuals take personal loans to address various financial contingencies, such as home renovations, higher education, wedding expenses, medical emergencies, and other similar needs.
Personal Loan Interest Rate
Personal Loans are considered the most expensive type of loan as they do not have any collateral. Therefore, lenders face a high risk due to the lack of collateral associated with these loans. The personal loan interest rate is based on several factors, including credit score, loan type, and existing relationship with the bank. In the case of fixed interest, it remains constant throughout the loan's lifetime, whereas in the case of variable rates, it fluctuates according to market conditions.
Eligibility Criteria for Personal Loans in India
Various banks and financial institutions offer personal loans. However, banks have eligibility criteria that are periodically updated to assess whether an individual qualifies for a loan. Most banks and financial institutions follow similar eligibility criteria. Some of the eligibility criteria that banks look inside an individual include:
Some of the eligibility criteria that banks look inside an individual include:
Credit Score:
A good credit score is one of the key eligibility criteria that banks and lenders consider when approving a personal loan for an individual. A credit score of 750 or higher is regarded as a good credit score.
Income:
Lenders typically verify the minimum monthly income of the individual before granting a personal loan. This monthly income varies between a salaried and self-employed professional because lenders want to ensure that you have the income required to repay the loan.
Age:
Most banks specify a minimum age of 21 years and a maximum age of 60 years to grant a personal loan. But this age might vary between lenders and banks.
Career:
Banks ensure you have a stable job with a regular income by granting a personal loan. Some banks even ask for your work experience and the minimum tenure you have worked with your current organization.
Debt-To-Income Ratio:
This ratio is nothing more than the relation between your income and expenditure. Most banks tend to have a DTI ratio of 35% or lower to process a personal loan.
Educational Qualification:
This is also one of the most essential criteria that banks investigate when awarding personal loans.
Residential Location
Some banks may have limited reach in terms of geographical location. So, personal loans are awarded to individuals residing in specified cities.
Documents Required for Quick Approval of Personal Loan
There are some prerequisite documents that an individual must provide to obtain a personal loan from the lender. If you are a pre-approved customer, you do not need to submit any of the documents stated.
Identity Proof:
Some standard proofs of identity accepted, along with a credit card, include the Aadhaar card, PAN card, Driving license, Voter ID card and Passport.
Address Proof:
Your Aadhaar card, utility bills (such as gas and electricity bill), rental agreement, passport, ration card, and property documents can all serve as proof of address.
Income Proof:
Your recent salary slips, Form 16, IT returns, and bank statements are some valid proofs of your income.
Employment Proof:
Employment ID card, Appointment Letter, or Experience Letter from the previous employer.
In the case of self-employed professionals, you must specify certain specific documents related to business property documents, business address proof, letters of incorporation, and so on.
Processing fees
The processing fee is a one-time, refundable fee imposed by lenders when processing a personal loan application. The processing fees are included in the loan amount. The processing fee covers the time spent assessing the borrower's creditworthiness, verifying documents, conducting background checks, and processing the loan amount. It covers all the administrative costs that the lender takes to process the loan for the borrower. The following are key points to remember as a borrower when handling processing charges. They are:
The following are key points to remember as a borrower when handling processing charges. They are:
Most Banks and financial institutions charge a processing fee ranging from 0.5% to 4% of your loan amount.
Public banks typically charge lower fees compared to private banks.
Processing fees are non-refundable even when your loan application is rejected. It remains the same even if you decide to cancel the loan after approval.
Processing fees for defense and pensioners are nil compared to those offered to regular salaried or self-employed professionals.
How Can I Apply for a Personal Loan Online?
The following steps outline the process for applying for a personal loan online. They are:
1
2
Compare various loan offers and select the one that fits your requirements.
3
Fill out the online application with the desired loan amount and tenure.
4
Upload the required documents like ID proof, address proof, employment proof, and income proof.
5
Complete the eKYC verification as required.
6
Finally, the loan is approved and deposited into your bank account within minutes.
Different Types of Personal Loans in India
Personal loans are a versatile financing option designed to meet different financial needs and credit profiles. They are typically repaid in convenient monthly installments, with interest rates that can be either fixed or floating. Below is a list of the different types of personal loan options you can choose from.
Unsecured Personal Loans:
An unsecured personal loan is granted to individuals who have a good credit score and an excellent credit history. These loans are offered without collateral and often carry a higher interest rate.
Secured Personal Loans:
secured personal loan is backed by collateral. This collateral comes in the form of fixed deposits. Lenders do not hesitate to grant loans to individuals with an average credit score.
Debt Consolidation Loans:
These loans help individuals pay off their outstanding balances available in multiple accounts. It helps in repaying these loans and paying the balances faster.
Joint Loans:
Joint loans are the ones that you take with a friend or family member. This comes into play when you do not qualify for the loan but your co-signer has a good credit score. The lender will approve your loan based on your co-signer credit score.
Features and Benefits of Personal Loan
Taking out a personal loan will offer significant benefits and advantages to you, apart from fulfilling your financial needs. You can reap tax benefits and improve your credit score with a personal loan. The following is the list of benefits that can be reaped from a personal loan.
The following is the list of benefits that can be reaped from a personal loan.
Instant Funds with Minimal Documentation
You can secure a personal loan immediately with minimal documentation. The entire process is digital, saving you the trouble of visiting the bank. Moreover, the funds get credited into your account within 24 to 48 hours.
Flexible Usage
The funds allotted from Personal Laon can be used for multiple purposes. Some of these include home renovation, wedding expenses, higher education, overseas vacations, medical expenditures, and more.
High Loan Amount
A personal loan comes with a high loan amount and is disbursed as a single, large lump sum. This helps you to manage the funds allotted effectively.
Predictable Repayment Schedule
One of the most beneficial features of a personal loan is its predictable repayment schedule. Your EMI schedule is provided to you beforehand, which helps you plan your funds accordingly.
Boosts Credit Score
When you are maintaining good financial discipline by repaying your monthly EMIs on personal loans, it will help you to boost your credit score accordingly.
Quick Access to Funds
During emergencies, personal loans come in very handy and aid you out of your financial crisis.
Instant Personal Loan vs Regular Personal Loan
The following are some of the differences between an Instant Personal Loan and a Regular Personal Loan.
Features
Instant Personal Loan
Regular Personal Loan
Eligibility
Instant
Available for selected customers.
Regular
Eligibility criteria apply.
Approval Time Taken
Instant
Instant
Regular
1 to 2 day
Documentation
Instant
None is Required
Regular
Income Proof, Address Proof, ID Proof, or any other mentioned by the bank.
Application Process
Instant
Digital Process
Regular
Offline and Online Process
Credit Score
Instant
High Credit Score
Regular
As evaluated during the application process.
Flexibility
Instant
Less flexible in terms
Regular
Flexible in Tenure
Loan Recipients
Instant
Offered Basically from the bank where the accountholder is maintaining his account.
Regular
All Banks, NBFCs, and various Fintech platforms provide such loans.
How to Calculate EMI for Personal Loan?
A Personal Loan EMI calculatoris an online calculator that will help you calculate the monthly EMI amount you need to pay for the loan. This EMI calculator enables you to manage your expenditures and plan your finances effectively, avoiding a cash crunch situation.
The general formula that is used to calculate a personal loan EMI amount is: [P x R x (1+R) ^N]/ [(1+R) ^ (N-1)]
Where P stands for the Principal or the total loan amount, R is the rate of interest, and N is the number of years of the loan.
If the total Personal Loan is Rs. 25,00,000, the Rate of Interest is 18%, and the loan tenure is 5 years. Your monthly EMI is calculated as follows:
[25,00,000 * 18/100/12 * 19 ^ 60]/[(19^59)]
EMI Amount = Rs. 63,426.00
Things to Know Before You Apply for a Personal Loan
The following is the list of things you need to know before applying for a personal loan. They are:
1. Need Vs. Want? Choose Wisely:
Personal loans are often referred to as quick loans, but it is a wise idea to use them only in case of emergencies. Personal loans come with a high interest rate attached, and taking a loan is a financial commitment that you need to shoulder until you repay it.2. Assess Your Existing Commitments:
Do you have too many financial commitments? Does your monthly financial bandwidth accommodate another loan? You need to ask yourself these questions before applying for a loan.3. Check Credit Score:
It is good practice to check your credit score before taking out a personal loan. Your credit score is an indicator of your ability to repay loans. Most banks and financial institutions grant loans to individuals with a credit score of 750 or higher.4. Check Multiple Offers:
Many banks and NBFCs offer personal loans, and the interest rate varies from one bank to another. Moreover, these loans are accompanied by special offers. Therefore, review the various options available and select the best one that suits your needs and requirements.5. Check the Eligibility Criteria:
Almost all lenders have some basic eligibility criteria that must be met before applying for a loan. This eligibility criterion differs between lenders. Before starting the documentation process, ensure you meet the eligibility criteria of the loan.6. Right Documentation:
When you submit your personal loan application form to a lender, ensure that you provide the required documentation from your end to facilitate approval.7. Lower ROI:
Go with the bank that offers you a lower interest rate, as personal loans typically come with a higher interest rate. Always opt for financial institutions that provide a lower ROI along with added benefits.8. Avoid Multiple Loans:
Do not apply for multiple personal loans simultaneously. One thing you will find is that managing your expenses is crucial, and another thing is that your credit score might decrease.9. Authenticated Information:
Ensure that you submit and share only authenticated documents and information about yourself. If the information shared with you is not authenticated, there is a possibility that your loan content may be rejected.10. Early Repayment and Closure Charges:
As per RBI guidelines, no prepayment or foreclosure fees apply to floating rate loans. However, fixed-rate borrowings may attract certain charges if closed before the end of the tenure. The exact cost depends on the lender’s policy and the loan agreement terms.Tips to Get Instant Personal Loan Approval
The following are some tips to consider for instant personal loan approval. They are:
1. Maintain a Healthy Credit Score:
Maintaining a credit score of 750 or above will help you qualify for an instant personal loan. Lenders will consider you a low-risk and responsible customer. This credit score will earn you faster approvals with lower interest rates.2. Grab Instant Personal Loan Offers:
Banks offer various pre-approved deals based on transactions in your account with them. They offer pre-approved loan terms to these premium customers, providing the best conditions.3. Use Trusted Fintech Platforms:
It is a digital world. Utilize leading fintech platforms to secure instant loan approvals. You can utilize real-time eligibility checks, quick KYC, and disbursements. This will minimize paperwork and help you avoid branch visits.4. Utilize the Employer and Bank Tie-Ups:
Corporations will maintain a good rapport with the bank where they conduct their financial transactions. Try to leverage your employer's bank tie-ups to your advantage and consider taking out a personal loan. This will also help you get attractive loan offers with quick disbursals.5. Maintain a Diversified Portfolio:
Having a healthy credit mix is a clear indicator of responsible credit behavior. A properly planned and balanced mix of credit cards and loans makes your credit profile more diversified. This can increase your loan application's chances of being approved by the lender.6. Don’t Miss Festive Offers:
Banks often roll out special loan offers during festive seasons, such as Diwali, Christmas, Ramadan, and New Year's. Watch out for these festive seasons and take advantage of the opportunity to secure a personal loan with the best terms and conditions.7. Ensure Steady Income:
Ensure a consistent flow of income. Lenders approve personal loans for individuals who have a history of consistent income for more than a year. They approve loans for people based on their salary slips, bank statements, and IT returns. If you do not have a consistent income, the chance of your loan application being rejected is high.What is the Maximum Personal Loan Amount You Can Get?
You may wonder what the maximum personal loan amount you can get is based on your salary. The higher your salary, the higher your personal loan amount is. If you have a monthly salary of Rs. 1,00,000, banks may offer you a loan amount of Rs. 20,00,000.
At the same time, the maximum cap amount of personal loans will also vary between banks and financial institutions. Some banks may not offer personal loans exceeding Rs. 20,00,000, while others may extend up to Rs. 40,00,000. Verify with the bank before applying for the loan.
Personal Loan Foreclosure Procedure
Personal loans are taken when you have a sudden financial contingency, but you then move to a better financial position with sufficient funds in your account. Your first and foremost step is to repay the loan. The following points should be considered when foreclosing a personal loan.
Closing a personal loan earlier than the said tenure will help you to save the remaining interest on the loan and, at the same time, relieve you of financial liability.
Your credit score will increase when you foreclose a loan.
Banks will charge a foreclosure fee in addition to paying off the outstanding balance.
Once a foreclosure has been completed, banks will return to you all the original documents that you surrendered when taking out the loan.
Additionally, some banks will provide you with payment receipts, a no-dues certificate, a NOC, and a personal loan closure certificate.
How to Foreclose a Personal Loan?
01. Visit the financial institution from where the personal loan was taken
02. Fill in all the forms and submit the completed application for foreclosure.
03. The bank will verify your document set and calculate the outstanding dues, including foreclosure charges, along with the details of the amount.
04. Clear the dues, and the bank will return all foreclosure documents to you.
Best Practices for Personal Loan Repayment
It is always a good habit to follow timely repayments when it comes to personal loans. One benefit is that your credit score will increase, and another is that you can avoid penalties due to non-payment. The following are some of the best practices that need to be followed for right personal loan. They are:
Stay Committed to Repayment:
Ensure you do not miss any EMI repayments. One way to ensure this is to set an auto-debit for the monthly EMIs that need to be paid to the bank.Merge Your Loans:
If you have multiple loans, it can be challenging to manage them all. Having the loans clubbed as one with a lower rate of interest will save you money rather than maintaining multiple loans.Go in for Balance Transfer:
If you are paying a higher ROI with a personal loan, consider transferring the loan to another bank with a lower interest rate. This will help you save money.Go in for Partial Prepayment:
Whenever you have surplus funds in your account, consider using them to make a partial prepayment of your loan. You can pay the loan much faster and save money.Go in for Higher EMIs:
The EMI amount you pay for the loan consists of the principal and interest. So, opting for a higher EMI will help you to repay the principal faster. This will ultimately help you close the loan earlier.Choose the Affordable Ones:
Always compare interest between lenders and go in for a personal loan with a lower ROI. Choose the one that will help you repay the loan much more quickly.Additional Income:
You can generate additional income by taking on extra freelancing work or part-time jobs and using the funds to repay the loan.Use Annual Bonuses:
Utilize additional funds that come in the form of bonuses and interest accruals. You can use them to prepay your loan. This will reduce your principal balance, thereby reducing your interest as well.Try Restructuring Your Loan:
If you find it difficult, you can consider restructuring your loan. Many lenders allow you to extend the loan tenure or increase your monthly EMI according to your convenience.How to Choose the Right Personal Loan
The following are some key considerations to keep in mind when selecting the right personal loan. They are:
Maximum Loan Amount:
You need to be clear about your loan requirements. Keep in mind the additional costs that come with the loan, such as processing fees and other expenses. These will be deducted from the loan amount only.Check Interest Rates and Fees:
Interest Rates and Fees are the factors that will make your loan more affordable than others. Compare the APR of the loan to the interest rates and fees associated with it.Provide a Co-Applicant:
When you have a co-applicant with a high credit score for your loan, you can improve your chances of getting approved with a lower interest rate loan. The co-applicant is also liable for the loan.Leverage Existing Relationships:
Maintaining a long-standing relationship with a bank or financial institution will earn you a personal loan with good terms and conditions.Check Lender Reputation:
Verify the lender's authenticity before selecting them. You need to check their reliability and goodwill in the market. You should verify their track record, customer reviews, and regulatory compliance before choosing them.Loan Amount and Flexible Tenure:
Choose the right lender that meets your needs and requirements. Select the loan amount and repayment period that best suits your situation.Digital Tools and Loan Applications:
Try hands-on experience with the lender’s digital platform and test its intuitiveness and responsiveness. This will help you save a significant amount of time, as most loan applications are approved online.Transparency and Fees:
Verify whether the lender you are considering is transparent about its charges. Choose the one who is clear and upfront on the extra charges that you might incur while taking out the loan. This will help you manage your finances more effectively.Awards & Recognitions
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