What is a Personal Loan?
A personal loan is a non-collateral loan offered by banks, NBFCs, and fintech companies for various needs like weddings, travel, education, medical emergencies, or debt consolidation. Loan eligibility depends on factors like age, income, employment stability, and credit score. A CIBIL score of 750+ is ideal, though loans may still be approved with 600–749 scores at higher interest.
Applicants must have a bank account, valid KYC (PAN, Aadhaar, address proof), and income documents (salary slips, ITRs, bank statements). The ideal debt-to-income ratio should be below 40%.
Loan amounts typically range from 12–24 times monthly income, with tenures of 6–60 months. Interest rates vary from 9% to 36%, with processing fees of 1%–3%. Foreclosure charges can be 2%–5%, and late EMI penalties may range from ₹500–₹1,000.
Disbursement may take 2 hours to 7 days. Early repayment and balance transfers are allowed after 6–12 EMIs, with applicable fees. Always borrow only what you need, avoid missing EMIs, and stay cautious of fraud apps. Reading all terms carefully is essential for safe borrowing.
Am I Eligible for a Personal Loan?
Age
Salaried individuals (21–60 years) and self-employed persons (25–65 years).
Employment Type
A personal loan can be availed by a salaried or a self employed person.
Credit Score
A CIBIL score of 750+ is ideal, though loans may still be approved with 600–749 scores at higher interest.
Monthly Income
Most lenders require ₹15,000–₹25,000/month in Tier-2 cities and ₹25,000–₹35,000/month in Tier-1 cities. Some lenders may go as low as ₹12,000.
Loan Amount
You can avail a Personal Loan from as low as
Rs. 50,000/- (Fifty Thousand) all the way upto Rs. 1,00,00,000/- (One Crore)
How do I Apply for a Personal Loan?
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Fill Personal Details
Check Eligibility
Submit Documents
Decision on Loan
Details of Loan
Disbursal of Loan
Fill in your personal details like name, no., email.
Get to know if you are eligible for a loan.
Submit the required documents like PAN, Aadhar, etc.
After a preliminary screening, get to know the status of your loan.
In 24h, check the details of your loan such as RoI, Tenure, EMI, etc.
Sign the 'E' agreement and the loan amount will be credited to your account.
Which Documents do I need to Apply for a Personal Loan?
I am a Salaried Employee
Identity Proof
Any one of the following
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PAN Card (Mandatory)
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Aadhar Card (Mandatory)
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Driving License
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Voters ID
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Passport
Address Proof
Any one of the following
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Passport
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Utility Bill
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Aadhar Card
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Driving License
Other Docs
Mandatory Documents
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Application Form
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Photograph
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Salary Slips (3 months)
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Form 16 (3 Years)
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ITR (3 Years)
I am Self Employed
Identity Proof
Any one of the following
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PAN Card (Mandatory)
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Aadhar Card (Mandatory)
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Driving License
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Voted ID
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Passport
Address Proof
Any one of the following
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Passport
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Utility Bill
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Aadhar Card
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Driving License
Other Docs
Mandatory Documents
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Application Form
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Photograph
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Salary Slips (3 months)
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ITR with Computed income (3 Years)
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CA Certified Balance Sheet and P&L (3 Years)
Bank Policy
Company | Rate of Interest | Processing Fee | Loan Amount | Foreclosure Conditions and Charges | Part Payment Option | Disbursal TAT | Minimum Monthly Income | Tenure |
|---|---|---|---|---|---|---|---|---|
HDFC Bank | 10.75%–14.00% | Rs 4129–Rs 7670 | Rs. 1 Lakh-Rs. 70 Lakhs | 4% of loan amount < 10 lakhs after 1 EMI and NIL charges for loan amount more than 10 lakhs (allowed after 12 EMIs) | Yes | 2–3 Working Days | Rs 25,000 | 1-6 Years |
Kotak Mahindra Bank | 10.80%–16.99% | 0.99%–2% | Rs. 1 Lakh-Rs. 30 Lakhs | Zero (if loan amount is > 10 lakhs) else 4% | Yes | 3–4 Working Days | Rs 25,000 | 1-5 Years |
IDFC Bank | 10.50%–16.99% | 1%–1.50% | Rs. 1 Lakh-Rs. 1 Cr | 4%; Allowed after 9 EMIs | No | 1–2 Working Days | Rs 20,000 | 1-7 Years |
ICICI Bank | 10.75%–17.50% | Rs.4999 for Special offers otherwise 1% - 1.5% | Rs. 1 Lakh-Rs. 1 Cr | Nil charges after 12 EMIs. Else 4 % in case of closure before 12 EMIs | No | 1–2 Working Days | Rs. 25,000 | 1-6 Years |
Bajaj Finance | 10.75%–15.00% | 1% | Upto Rs. 50 Lakhs | 4% charges (allowed after 1 EMI) | Yes | 24 Hrs | Rs 40,000 for Metro and Rs 25,000 for Non Metro | 1-8 Years |
Tata Capital | 11.99%–17.00% | 1.50%–2% | Rs. 75k-Rs. 15 Lakhs | 4% charges (allowed after 1 EMI) | Yes | 1–2 Working Days | Rs. 25,000 | 1-6 Years |
SMFG | 11.99%–26.00% | 1%–2% | Rs. 50k-Rs. 15 Lakhs | 7% before 12 EMIs and 5% after 12 EMIs | No | 4–5 Working Days | Rs 20,000 | 1-5 Years |
IndusInd Bank | 10.50%–17.00% | 0.5%–2% | Rs. 1 Lakh-Rs. 40 Lakhs | 4% charges (allowed after 12 EMIs) | No | 6 Working Days | Rs 25,000 | 1-5 Years |
Axis Bank | 10.75% –16.99% | 1%–2% | Rs. 1 Lakh-Rs. 40 Lakhs | 4% charges (allowed after 1 EMI) | Yes | 3–4 Working days | Rs 20,000 | 1-7 Years |
Frequently Asked Questions
How do I reduce my interest rate on a personal loan?
Improve your credit score, maintain a low DTI ratio, choose a shorter tenure, or go for a balance transfer if lower interest is available elsewhere.
Can I take more than one personal loan at a time?
Yes, you can, as long as your debt-to-income (DTI) ratio remains healthy. But it may increase your overall EMI burden and risk.
Will checking multiple loan offers hurt my credit score?
Yes, too many hard inquiries in a short time can reduce your score. Use soft-check platforms or pre-approved offers where possible.
Can I top-up my existing personal loan?
Yes, if you’ve paid a few EMIs on time, many banks allow a top-up loan with quicker processing and lower documentation.
What happens if I miss an EMI?
Missing EMIs leads to penalties, higher interest, and a drop in your credit score. Repeated defaults can lead to legal notices and loan recovery action.