Personal Loan

Get a personal loan of up to Rs 40 lakh with interest rates starting at 10.5% p.a. Explore pre-approved offers from our partner lenders, featuring end-to-end digital processing and instant disbursals.

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Last updated: 29 November, 2024

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Find Best Personal Loan Offers

HDFC Bank
10 Second Disbursal*100% Digital Process*Quick Disbursal
Max. Loan Amt.Up to ₹40L
Rate of Interest10.85% - 24%
Tenure uptoUpto 6 Years
Processing Fee6500
Axis Bank
Low Processing fee
Max. Loan Amt.Up to ₹10L
Rate of Interest11.25% - 22%
Tenure uptoUpto 5 Years
Processing FeeUpto 2%
Kotak Mahindra Bank
Lowest Income requirement100% Digital Process*
Max. Loan Amt.Up to ₹40L
Rate of Interest10.99% - 36%
Tenure uptoUpto 6 Years
Processing FeeUpto 3%
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End-to-End Digital Process

What is a Personal Loan?

Personal loan is a short to medium term loan, which consumers can avail to meet both personal and business needs other than speculative purposes. They are usually unsecured in nature as consumers do not need to pledge any collateral or security to avail them.

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Personal Loan Interest Rate

The interest rates offered on a personal loan is determined based on the applicant’s credit profile and the lenders’ credit risk-based pricing model, cost of funds, etc. As the interest rate on personal loan primarily influences the total borrowing cost, loan applicants must always look for best interest rates available on their credit profile.

For this, individuals should first check offers from lenders with whom they already have deposit(s), credit card(s) and/or loan account(s). Then, they should visit online financial marketplaces to compare interest rates offered by other banks and NBFCs.

Interest Rates
SBI Personal Loan Interest Rates ICICI Personal Loan Interest Rates
HDFC Personal Loan Interest Rates Axis Bank Personal Loan Interest Rates
PNB Personal Loan Interest Rates BOB Personal Loan Interest Rates
Canara Bank Personal Loan Interest Rate IDFC Personal Loan Interest Rate
Yes Bank Personal Loan Interest Rate Indian Bank Personal Loan Interest Rate
Bank of India Personal Loan Interest Rate Tata Capital Personal Loan Interest Rate

Eligibility for Personal Loan

Personal loan eligibility criteria can vary from one lender to another due to their varying credit risk policies. It can also vary as per the loan variant and the occupation profile of the applicant. Here are some of the personal loan eligibility criteria used by most lenders:

  • Age: 18 - 60 years
  • Salary: At least Rs 15,000 per month for salaried customers
  • Income: At least Rs 5 lakh p.a. for self-employed customers
  • Credit Score: Preferably 700 and above as having higher credit scores improve chances of loan approval
  • Employment Stability: Usually 1 year with some lenders requiring longer work experience
  • Business Continuity: Usually 3 years of business continuity with some lenders requiring longer period of business continuity
  • Employment Type: Salaried employees working with reputed organizations, MNCs, Private and Public Limited Companies, Govt. organizations, PSUs, and large enterprises

Documents Required for Personal Loan

Personal loan lenders require documents from their applicants to establish their identity, income, loan repayment capacity and place of residence. These documents are more or less the same across lenders. Here are the few common set of documents that you will need to submit when applying for a personal loan:

Requirements Salaried Individuals Self Employed Professionals/Non Professionals
Proof of Identity Passport, Voter ID, Driving License, Aadhaar Card or PAN Card Passport, Voter ID, Driving License, Aadhaar Card or PAN Card
Proof of Residence Aadhaar Card, Voter ID, Passport or Utility Bills Aadhaar Card, Voter ID, Passport or Utility Bills
Proof of Income Salary Slips, Bank Statements, Form 16 Previous Years’ ITR, P&L Statement and Balance Sheet, Bank Statements

Processing Fees and Charges

While the fees and charges of personal loans can vary widely depending on lender and the credit profile of the loan applicants, the following table will give you a fair idea of the personal loan fees and charges levied by the lenders:

Particulars Charges
Loan Processing Fees 0.5% to 4% of loan amount
Prepayment/Part-prepayment/Foreclosure Charges For Floating Rate: NilFor Fixed Rate: Usually around 2% - 5% on the principal outstanding
Loan Cancellation Usually around Rs 3,000
Stamp Duty Charges As per actuals
Legal Fees As per actuals
Penal Charges Usually @ 2% per month; 24% p.a.
EMI/Cheque Bounce Around Rs 400 per bounce

Other fees and charges levied by the lenders include documentation charges, verification charges, duplicate statement charges and NOC certificate charges.

How Can I Apply for a Personal Loan Online?

Get up to ₹40 Lakh in 5 Simple Steps

Step 1: Enter your mobile number in the application form

Step 2: Provide your personal details

Step 3: Enter OTP to verify your mobile number

Step 4: Select the loan purpose and loan amount

Step 5: Compare offers and apply for the best-suited loan

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Types of Personal Loan

Several banks and NBFCs offer various loan variants to help their customers meet their unique financial requirements. The broader features such as tenure, processing fees, etc. offered on these loan variants are more or less the same as those offered on regular personal loans. Here is a brief description of some of the personal loan variants.

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Personal Loan Balance Transfer

Many lenders allow existing loan borrowers of other banks/NBFCs to transfer their outstanding loans at lower interest rates and/or better loan terms.

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Pre-approved Personal Loan

Banks and NBFCs offer these loans exclusively to their select existing customers having good credit profile with instant disbursals and at preferential rates.

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Top Up Personal Loan

Various banks and NBFCs offer this loan facility to their existing loan borrowers to avail additional loan over and above their outstanding loan amount.

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Short Term Personal Loan

This type of loan has a short tenure of 1 year or lower, making it an ideal option for individuals seeking smaller amounts with greater repayment flexibility.

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Personal Loan for Travel

Individuals seeking loans to finance their travel/holiday plans can use this loan facility to cover their various domestic & international travel related spends.

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Personal Loan for Medical Emergency

When facing medical emergencies, individuals can avail this loan facility to cover costs related to hospital bills, diagnosis, consultations, treatments, etc.

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Debt Consolidation Loan

Existing borrowers can avail this loan to consolidate their multiple high interest rate loans/credit card dues into one at lower rates and/or for longer tenures.

Features and Benefits Personal Loan

Personal loan is a preferred credit option for financing lifestyle goals and fund shortages due to their easy accessibility, minimal documentation and quicker disbursals. Here are the key features and benefits of personal loans:

  1. Collateral-free loan
  2. No end-use restriction
  3. Loan amount of up to Rs. 40 lakh, which can exceed depending on lenders' discretion
  4. Repayment tenure up to 60 months, which may exceed on case-by-case basis
  5. Top up loans for additional requirements are offered by many lenders
  6. Minimal documentation
  7. Quick disbursals

How to Calculate EMI for a Personal Loan?

You can calculate EMI on your personal loan using the formula: EMI = [P x R x (1+R)^N]/[(1+R)^N-1],

where,

  • ‘R’ denotes the rate of interest
  • ‘P’ denotes the principal amount
  • ‘N’ denotes the loan tenure

As manual calculations can be time-consuming and prone to errors, using an online personal loan EMI calculator would be preferable. The calculator requires just a few basic details for EMI calculation, including interest rate, loan amount, and tenure. Once the details are entered, the calculator will display the EMI, total interest amount and amortization schedule basis which you can compare various personal loan offers based on your loan repayment capacity.

Factors Affecting Personal Loan EMI

Three major factors that influence your personal loan EMIs are:

  • Principal Amount: An increase in the principal amount leads to an increase in your EMI, provided the values for loan tenure and interest rate remain unchanged.
  • Interest Rate: Personal loan EMIs increase with every increment in the interest rates.
  • Tenure: Choosing longer tenure on your loans results in lower EMIs. However, it also leads to higher overall interest cost on the loan.
EMI Calculators
SBI Personal Loan EMI Calculator ICICI Personal Loan EMI Calculator
HDFC Personal Loan EMI Calculator Axis Bank Personal Loan EMI Calculator

5 Tips to Increase your Chances of Getting a Personal Loan

The unsecured nature of personal loan increases credit risk for lenders as it leaves them with no collateral or security to compensate their losses in case of a loan default. To mitigate this risk, banks and NBFCs factor in various aspects of their applicants’ credit profiles and follow strict eligibility policies when evaluating their loan applications. Those planning to avail personal loan can improve their chances of approval through these tips:

  1. Maintain your CIBIL score above 700
  2. Check for inaccuracies in your credit report, as they might adversely impact your credit score and thereby, reduce the chances of loan approval
  3. Compare the personal loan offers available from banks and NBFCs before finalizing any loan deal
  4. Apply for the loan from a bank/NBFC where you have the highest chances of approval
  5. Avoid making multiple loan applications within a short period

Things to Know Before Getting a Personal Loan

Before applying for a personal loan, here are a few things you should know:

  1. Many banks and NBFCs offer pre-approved instant personal loan offers to their existing customers: Many lenders provide pre-approved offers to their select existing customers based on their credit profiles. Such pre-approved offers feature quick disbursals and require minimal to no documentation. Many lenders also offer lower interest rates to their existing customers.
  2. Having a higher credit score increases your chances of loan approval at lower interest rates: Banks and NBFCs prefer sanctioning personal loans to those having higher credit scores of 700 and above. Many lenders also set lower interest rates for such applicants. Having higher credit scores also increases an individual’s eligibility for pre-approved loan offers.
  3. Increase your EMI affordability by choosing longer tenure: Longer tenure leads to lower EMIs. Hence, consumers wanting to increase their EMI affordability can select longer tenures and/or lower loan amounts when making the loan application.
  4. No charges are levied on prepaying or foreclosing floating rate personal loans: RBI has barred banks and NBFCs from levying prepayment/foreclosure charges on floating rate personal loans. In the case of fixed rate, lenders can choose to levy these charges.
  5. Making multiple loan applications within a short span might reduce your chances of loan approval: Lenders fetch credit reports of every loan applicant as part of their loan evaluation process. Such lender-initiated credit report requests are known as hard enquiries. Having multiple hard enquiries within a short period can lead to a sudden decline in your credit score, thus, reducing your chances of availing personal loans.

Instant Loan vs Regular Personal Loan

The differences between an instant personal loan and a regular personal loan are as below:>

Instant Personal Loan Regular Personal Loan
Disbursed in a few minutes or seconds Usually takes 2-4 days’ time for loan disbursal
Usually pre-approved and offered to select existing customers having good credit profiles Offered to new individuals as well as existing customers
Can avail only till the sanctioned loan amount Can avail higher loan amounts based on their repayment capacity

What is the Maximum Loan Amount I Can Get on My Personal Loan?

Personal loans offered by lenders can range anywhere between Rs 10,000 and Rs 40 lakh. Some lenders may offer higher loan amounts, depending on their discretion and the applicant’s loan repayment capacity. Some banks and NBFCs use the Multiplier Method, wherein the eligible loan amount is calculated on the basis of a predetermined multiple (ranging between 10 and 24 times) of an applicant’s net monthly income.

Other lenders use the EMI/NMI Ratio, wherein the EMI of the proposed loan cannot exceed a predetermined proportion of the applicant. Some lenders also use a combination of both of these methods to find the loan amount eligible of the applicant.

Avail Personal Loan For All Your Needs

What Can a Personal Loan Be Used For?

Personal loans can be availed for any purpose, except for speculation or illegal activities. Borrowers can use the loan proceeds for covering medical emergencies, home renovation, wedding, vacation, business operations, etc. The loan can also be used for managing everyday expenses or for covering higher education costs (including courses not eligible for education loan) and for consolidating multiple high-interest debts.

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What our customers say

5/5

Happy Customer

Wanted to fund my travel expenses with a loan. Paisabazaar helped me choose the right lender as per my eligibility. Got my loan approved and disbursed from Yes Bank within 3 days. Thanks a lot Paisa.

icon image of avatarGargi
5/5

Best Customer Advice

Wanted to keep my EMIs low and was thinking of opting for a very long tenure. Paisa\'s customer friendly team guided me on how a balance between tenure and loan amount could help me save significantly on interest in the longer run. Got my personal loan from Yes Bank at a good rate and with an optimum repayment tenure. Thanks Paisa.

icon image of avatarVijay Narang
5/5

Helpful Team.

Had no idea about the logistics involved in availing a personal loan. The Paisabazaar team guided me about the whole process including the eligibility criteria, documentation requirement, selecting the right lender, loan amount and tenure as per my need and repayment ability. Got my loan approved and disbursed from YES Bank within 72 hours without any hassle. Thanks Paisa.

icon image of avatarKritika Chauhan
5/5

Best Financial Marketplace

Wanted to get a loan for my daughter\'s wedding. Paisabazaar helped me get one from Yes Bank at the best interest rate in the market. They also helped me choose the right loan amount and tenure as per my repayment ability. Thanks Paisa!

icon image of avatarAnuj Narang
5/5

The Paisa Advantage!

Wanted to get a personal loan to renovate my house. Paisabazaar helped me get one at the lowest possible rate and least hassle without even stepping out of my home.

icon image of avatarNeha Garg
5/5

Paisabazaar is the best

Was looking for a Rs. 20 lakh loan. Didn\'t know where to start from. Paisabazaar not only guided me through the entire process and documentation requirement but also provided personal loan offers from various lenders based on the chances of approval. Got my loan from Federal Bank with the best possible interest rate. Thanks Paisa.

icon image of avatarJassi Gill
5/5

Best Rates

Wanted a loan to travel abroad. Paisabazaar helped me get a loan from Federal Bank at the best interest rate and minimal documentation without even stepping out of my house.

icon image of avatarAnil Goyal
5/5

Hassle-free loans

No complicated procedures and no hidden costs. Paisabazaar helped me get a personal loan from ICICI Bank with the least possible documentation and best possible interest rate in the market.

icon image of avatarKunal Kamra
5/5

Paisa Rocks!

Wanted to get a loan for my sister\'s wedding but didn\'t know where to start from. Paisabazaar helped and guided me throughout the entire process. I was able to get a loan from ICICI Bank at a reasonable rate of interest with the least hassle.

icon image of avatarGargi Sharma
5/5

Never going anywhere else!

Being an NRI I was unsure if I could get a loan. With Paisabazaar\'s good assistance I not only managed to get a personal loan from ICICI Bank but also secure one at a good interest rate.

icon image of avatarDivya Kumar
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FAQs on Personal Loan

While you can apply for a personal loan directly with banks/NBFCs, making direct loan applications with multiple lenders can significantly reduce your credit scores and thereby, reduce your chances of getting the loan. >

To avoid this, you should visit online financial marketplaces like Paisabazaar, which allows you to compare personal loan offers from multiple partner lenders without adversely impacting your credit scores.

Personal loan interest rates offered by leading banks and NBFCs start from 10.49% p.a. depending on the credit profile of their loan applicants. However, some public sector banks may offer lower interest rates to their personal loan applicants.

For most individuals, a lender offering the lowest interest rate on personal loans would be the best as it will help them save on the overall interest cost of the loan. However, besides considering the interest rates, parameters such as the loan amount, tenure, processing fees and the time taken for loan approval and disbursal must also be considered when looking for the best bank for availing a personal loan.

Applicants with a credit score of 700 and above usually have higher chances of availing personal loans. However, many banks and NBFCs offer loans to individuals with low CIBIL score/credit score but charge higher interest rates to compensate for the higher credit risk associated with those lenders.

Banks and NBFCs check an applicant’s personal loan eligibility based on his age, credit score, income, loan repayment capacity, occupation profile, employer’s profile, etc. Due to varying credit risk policies, the eligibility criteria may vary across lenders.

Therefore, applicants would have to check their eligibility by individually visiting the branch or website of various banks and NBFCs.

The tenure of a regular personal loan usually ranges from 1 year to 5 years. However, some lenders offer maximum loan tenure for 6 to 8 years.

The EMI on Rs 5 lakh personal loan will depend on the interest rates charged by the lender for the loan tenure availed by you. Hence, use an online EMI calculator to calculate your EMI for different tenure and interest rate values.

Instant personal loan is a personal loan variant, which is usually disbursed within a few minutes of making the loan application. This loan facility is usually pre-approved in nature and lenders usually offer this facility to their select existing customers having a good credit profile.

Regular personal loan schemes, on the other hand, have the same features as instant personal loans except that regular personal loan schemes have turnaround time of 2-7 days for loan disbursal and the eligible loan amount is usually higher than what is offered through instant personal loan by the same lender.

The minimum monthly salary required to avail a personal loan varies from lender to lender. However, for large lenders like private and public sector banks, the minimum income eligibility is Rs 15,000 per month and above.

Yes, you can get a personal loan without providing salary slips. You can submit your bank account statement/ a copy of Form 16/ employee certificate from the employer, etc. as proof of income to fulfill the eligibility criteria.

However, it is always recommended to confirm the list of required documents with the lender as it may vary from one bank to another.

Yes, you can apply for a personal loan even if you already have a home loan. However, the chances of getting the loan approved will depend on whether you have adequate repayment capacity to repay the proposed loan.

Lenders are free to levy prepayment/foreclosure charges on personal loans availed at fixed interest rates. However, the RBI has barred the lenders from levying these charges on loans availed at floating interest rates.

In some cases, you may cancel a personal loan after disbursal subject to the terms and conditions of the lender. Loan cancellation will lead to cancellation charges and processing fees.

Please note that all banks do not allow loan cancellation once the amount is disbursed. However, you can always prepay the loan amount as per the terms and conditions of the bank and save on the interest component.

Some lenders use EMI/NMI ratio while some may use a multiplier method to determine their applicant’s eligible loan amount. As these ratios may differ across lenders, the maximum loan amount that you can avail on Rs 60,000 salary would also vary.

Traditionally, personal loans are unsecured loans, which implies that the borrower does not need to pledge collateral or security to avail the loan. However, some lenders also offer secured personal loans wherein the borrower needs to provide security or collateral to avail the loan.

An applicant should opt for the secured loan facility only when he is ineligible for availing unsecured loan or is charged very high interest rates for it.

Pros: Personal loan comes with several benefits like no restrictions on end usage (other than speculation), no collateral/security requirements, minimal to no documentation and quick processing.

Cons: The interest rates are usually higher than its secured alternatives like gold loan, loan against property, etc. Also, its short repayment period/tenure (usually till 5 years) leads to higher EMIs, which in turn reduces the EMI affordability and overall loan amount eligibility of the borrower.

The minimum income requirements set for availing personal loans vary across lenders. While the minimum monthly salary requirements set by top lenders usually ranges between Rs. 15,000 and Rs 30,000, some lenders also offer loans to applicants having lower monthly income.

Yes, you may avail personal loans from multiple lenders at the same time, provided the lender of your second personal loan is satisfied with your repayment capacity. However, it is better to take a single loan of a larger amount from the lender providing lower interest rates and/or better terms and conditions.

Yes, the proceeds of a personal loan can also be used for financing various business requirements except for any speculative activities.

You can make personal loan EMI overdue payments online through the bank’s internet banking platform, mobile application, UPI app or other digital payment systems such as NEFT/RTGS, digital wallets (e-Wallets) and payments apps.

You can also visit the lender’s branch to make overdue payments through offline modes like cash, cheque and demand draft (DD).

Lenders offer personal loans to pensioners in the form of pension loans. However, these loans are offered only to those pensioners who maintain their pension account with the respective bank.

Checking personal loan offers on Paisabazaar will make the process faster, easier and more convenient. Here are a few more reasons to apply for personal loans through Paisabazaar:

  • Check and compare personal loan offers from 30+ partner banks and NBFCs without adversely affecting your credit score
  • Get pre-approved offers with instant disbursals
  • Know your chances of loan approval based on your credit score and other aspects of your credit profile
  • Apply for a personal loan online through end-to-end digital process

Those who had availed their personal loans at higher interest rates and are now eligible for lower interest rates due to their improved credit profile should avail balance transfer facility.

However, before making the transfer, they should calculate the net savings from the transfer after factoring in various costs associated with the transfer. If the savings are not significant, then they should continue with their existing loan.

Your existing lender will provide you with a no-dues certificate after the complete repayment of your personal loan.

Students can apply for personal loans only if they satisfy the various eligibility requirements related to age, income, credit score, etc. set by the lenders.

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4 Comments

Verified user posts about Personal Loan

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Tannu 28 November, 2024

personal loan or credit card which is better

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Vishal 28 November, 2024

how much personal loan can i get with 30000 salary

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Priya Yadav 15 November, 2024

Is it better to have a loan or credit card debt when applying for a mortgage

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