Apply for Personal Loan Online

Benefits of Appyling Personal Loan with Paisabazaar

• Compare offers from 30+ lenders side by side
• Personal Loan Interest rates starting from 9.98% p.a.
• Loan amount from Rs. 10,000 to Rs. 50 lakh
• Flexible repayment tenure from 12 to 84 months
• 100% online process (no branch visit needed)
• Earn Rs. 1,000 cashback on your first EMI

Personal loan interest rate offers on Paisabazaar start from 9.98% p.a. The interest rate on a personal loan is determined on the basis of an applicant’s credit profile and the lender’s policy (credit risk-based pricing model, cost of funds, etc.). Before applying for a personal loan, ensure to compare interest rates along with other charges offered by various Banks and NBFCs to find the most suitable personal loan, according to your eligibility.

Note: Rates are indicative and subject to change. Final rate offered depends on your credit profile.

Last updated:  11th May 2026

Choosing the best-suited offer is about finding the best balance between eligibility and cost (EMI, interest cost, fees etc). The key is to compare personal loan offers, find the most suited ones based on approval chances and choose one based on total loan cost. Applying without considering your chances of approval would only lead to rejection, adverse impact on credit score and make approval harder for the future - especially for those who don’t have a strong credit profile or stable income or employment.

Here are some general guidelines you should follow when looking for a personal loan:

• Low EMI does not mean cheaper loan - if tenure is long, it means overall more interest cost. Always check total repayment cost, including processing fees
• Comparing offers to find the lowest interest rates, but check eligibility and approval chances before applying
• A Credit score of 750+, particularly from CIBIL, is considered strong and improves your approval chances. Scores below 700 reduce approval chances drastically
• Before choosing offers that promise instant disbursal, check interest rates on offer.

Use Paisabazaar's free personal loan EMI calculator to plan your repayments before you apply. Enter your loan amount, interest rate, and tenure to instantly see your monthly EMI.

EMI Formula Explained

The EMI (Equated Monthly Instalment) for a personal loan is calculated using the reducing balance method:

EMI = [P x R x (1+R)^N] / [(1+R)^N - 1]

Where: P = Principal loan amount | R = Monthly interest rate (Annual rate / 12 / 100) | N = Loan tenure in months

Sample EMI Calculation

Example: You borrow Rs. 10,00,000 at 12% p.a. for 4 years (48 months)

• Monthly rate R = 12/12/100 = 0.01
• EMI = [10,00,000 x 0.01 x (1.01)^48] / [(1.01)^48 - 1]
• EMI = Rs. 26,334 per month
• Total repayment = Rs. 12,64,032 | Total interest paid = Rs. 2,64,032

Quick EMI Reference Table

Personal loan are offered to borrowers to fulfill their financial requirements for varied purposes. Here is a list of various personal loan types available in India:

Instant Personal Loan

Instant personal loan is designed for quick approval and disbursal, often within hours and is best for emergencies. It requires minimal documentation and relies heavily on your credit profile.

Flexi Personal Loan

Flexi loans are an overdraft-style facility where the applicant gets a credit limit approved and can withdraw as needed. Interest is charged only on the amount used. This can be a preferred option for managing irregular expenses.

Pre-approved Personal Loan

These loans are offered to existing bank customers based on their credit and relationship history. They come with pre-set loan amounts and faster processing times and available to select borrowers with good credit profiles.

Top-up Loan

An additional loan amount is offered on top of an existing personal loan to eligible borrowers. These loans are available after a certain repayment history and are useful when you need extra funds without taking a fresh loan.

Personal Loan Balance Transfer

These loans allow you to transfer your existing personal loan to another lender at a lower interest rate to reduce your EMI or total interest burden. These are most effective when done early in your loan tenure.

You can use a personal loan for different financial needs. Here are the most common purposes:

Choose the Right Loan Amount

Lenders evaluate multiple factors before approving your personal loan application. Here's what you need to qualify:

For Salaried Individuals

For Self-Employed Individuals

Also Check: Personal Loan Eligibility for all banks & NBFCs

Your CIBIL Score is a critical factor that not only determines your loan approval but also the rates and loan terms. Let us understand how CIBIL score impacts loan approval.

Note: The information provided above is only indicative and actual results may vary.

Tip: Check your FREE CIBIL score on Paisabazaar website before applying for personal loan online. This is a soft inquiry and does not affect your credit score.

Salaried Employees

• KYC: Aadhaar Card, PAN Card, Passport, Voter ID (any one)
• Address Proof: Aadhaar, Utility Bill, Rent Agreement
• Income Proof: Last 3 months' salary slips
• Bank Statement: Last 6 months with salary credits
• Employment Proof: Offer letter or ID card
• Photograph: 1–2 passport-size photos

Self-Employed Individuals

• KYC: Aadhaar Card, PAN Card
• Business Proof: GST registration, trade licence, MSME certificate
• Income Proof: Last 2 years' ITR with computation
• Financial Statements: Audited P&L and Balance Sheet (2 years)
• Bank Statement: Last 12 months for business account
• Address Proof: Business address proof

Also Check: Complete list of documents required for a Personal Loan.

Applying for a personal loan via Paisabazaar Personal Loan App or website is quick, hassle-free, and completely free - taking less than 5 minutes.

1. Check Eligibility: Enter your mobile number, income, and basic details to see your personalised loan offers from 30+ lenders.
2. Compare Offers: Review interest rates, EMIs, processing fees, and disbursal duration side by side. Choose the best match for your needs.
3. Select Lender & Amount: Choose your preferred lender, loan amount, and tenure. Click 'Apply Now'.
4. Upload Documents: Upload your KYC, income, and bank statement documents digitally.
5. Loan Disbursal: After lender verification, funds are credited directly to your bank account in as little as a couple of hours.

Also Check: Personal Loan App

Before apply for a personal loan understand all the charges involved in a personal loan:

Also Check: all applicable fees and charges for the personal loan

Existing customers of a bank or NBFC with a strong credit profile get pre-approved personal loan offers. These loans come with:

• Instant approval as no additional underwriting is needed
• Minimal or zero documentation
• Competitive interest rates based on your existing relationship
• Funds in your account within hours

Check your pre-approved offers from multiple lenders on Paisabazaar. These loan offers are generated instantly based on your credit profile and without impacting your CIBIL score.

Also Check: Aadhaar Card Loan

Lenders offer personal loans to applicants based on their credit profile and repayment capacity. While an applicant can be eligible for the most suitable offer from a lender, the same loan offer may not be the best for other borrowers.

Finding the right personal loan shouldn’t be about accepting the first offer from a lender, but it should align with your income, credit profile, and the urgency of your requirement.

You should check your eligibility for the best personal loan offers at Paisabazaar where you get to compare offers from 30+ lending banks and NBFCs instead of checking multiple offers individually and make an informed borrowing decision faster.

Salary-based Recommendations for Personal Loans

Your monthly income plays an important role in helping lenders decide your repayment capacity. Lenders generally follow the 55% FOIR (Fixed Obligations to Income Ratio) criteria to decide on the loan amount.

Let us understand the recommended personal loan depending on your salary.

Rs. 15,000 to Rs. 25,000

Rs. 25,000 to Rs. 50,000

Rs. 50,000 and above

At Paisabazaar, an applicant gets offers only from those lenders where the salary eligibility criteria is met, helping reduce the rejection rate significantly.

Credit Score-based Recommendations for Personal Loans

Lenders assess your credit score to decide the approval chances, interest rate and loan terms. Applying for a personal loan without knowing your credit score can land you with a rejection or a sub-optimal loan offer.

Excellent Credit Score (800 and above)

Very Good Credit Score (760 - 799)

Good Credit Score (700 - 759)

Average Credit Score (650 - 699)

Low Credit Score (Below 650)

Note: The score range is indicative. Actual ranges may vary depending on the credit bureau.

Bank vs NBFC Comparison for Personal Loans

Both banks and NBFCs offer personal loans, but the right loan offer depends on the profile of the applicant.

Instead of choosing manually, compare best offers from both banks and NBFCs at Paisabazaar and select the most suitable option based on your profile.

Most lenders highlight low interest rates and quick approval in their loan offer. However, the interest rate is not the only determinant to evaluate a personal loan offer. Let us understand what lenders may not often disclose until asked about the loan offer.

Processing Fee

The interest rate is not the only cost involved in the loan offer. Lenders do charge a processing fee to cover the expenses of loan approval.

Paisabazaar allows you to compare the processing fee of all lenders thus helping calculate the overall loan cost.

Prepayment or Foreclosure Changes

Prepayment or foreclosure charges may be levied when the borrower pays the loan partially or fully before the term ends.

Hence, a low interest loan may still cost high if you plan to prepay early and a cost benefit analysis needs to be done. At Paisabazaar, you can compare such charges before applying for the loan and save on your loan cost in future.

Insurance Charges

While RBI has not mandated purchasing insurance bundled with the loan, many lenders do pitch it to applicants.

Check if the insurance is compulsory, the premium amount and option to opt out from the bundled products. At Paisabazaar, clear breakdowns are provided helping borrowers know exactly what they need to pay.

Ignoring these factors can increase your overall loan cost even when the interest rate is low.

1. Low CIBIL Score: Scores below 650 can lead to rejection immediately. You should improve your score by paying EMIs on time, reducing credit utilisation, and clearing outstanding dues.
2. High FOIR (Fixed Obligation to Income Ratio): Lenders may reject applications when the fixed income to obligation ratio breaches the 50-55% mark including the EMI of the proposed loan. You should therefore either prepay existing EMIs or apply for a lower loan amount.
3. Unstable Employment History: Frequent job changes or a duration of less than 6 months to a year in the current job can raise red flags for the lender. You should apply for a loan after stabilising your current employment for at least 12 months.
4. Incomplete or Incorrect Documents: Name, address, or income details mismatch can lead to the loan rejection. Double-check all details, match them from your PAN and Aadhaar and keep additional proof ready if required.
5. Multiple Recent Loan Applications: Every application initiates a hard enquiry. Multiple hard enquiries in the credit report can signal credit desperation. Instead of applying with multiple lenders, you can compare offers from them at Paisabazaar and apply for a loan that meets your requirements the most
6. Loan Amount Higher than Eligibility: Repayment capacity plays an important role in loan approval. Applying for a loan beyond the repayment capacity can trigger rejection. Instead, use an EMI calculator to assess the right loan amount based on your ability to repay,

Also Check: 6 Reasons For Personal Loan Rejection

1. Maintain a CIBIL score of 760+: CIBIL score above 760 portrays lower risk and in turn best rates, quick approval and relaxed loan terms.
2. Keep your FOIR below 50%: Make sure your existing obligations along with the EMI of the new loan is lower than 50-55% of your monthly income.
3. Apply for an Optimal Loan Amount: Higher loan amounts carry higher risks thus need stricter scrutiny. Apply for a feasible loan amount with low risk to prevent from loan rejection.
4. Choose the Right Lender: Lenders follow their set of rules while approving a loan application. Compare offers on Paisabazaar and check for “Chances of Approval” to select the most suitable lender who is most likely to approve your application.
5. Keep Documents Ready Beforehand: Check for documents required by a lender before applying for the loan. Keep salary slips, bank statements, KYC documents, etc. ready to speed up the verification process.

Consider all factors mentioned above to get your application approved without any difficulties.

Existing borrowers paying high interests on their personal loans can balance transfer their personal loan outstanding balance to a new lender offering lower rates and reduce their EMI burden and total interest paid significantly.

When Does Balance Transfer Make Sense?

• Your current rate is 2-3% higher than what new lenders are offering
• You are early in the loan tenure (high interest amount is still left for deduction)
• Your credit score has improved considerably since you took the original loan
• The new lender’s processing fee is offset by the interest savings on your loan

Example: On a Rs. 10L loan, moving from 18% to 12% rate in year 2 of a 5-year loan can save over Rs. 80,000 in total interest. (indicative figures only)

Paisabazaar offers personal loans to eligible borrowers in more than 860 cities in India including all metro and Tier - I cities: