Key Highlights of Personal Loan |
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Interest Rate | Usually 10.49% p.a. onwards; some PSUs may offer lower rates |
Loan Amount | Can go up to Rs 40 lakh; some lenders may offer higher loan amounts |
Tenure | Up to 5 years (some lenders offer repayment period till 8 years) |
Processing Fees | 0.5% to 4% of loan amount (may vary across lenders) |
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Personal Loan Interest Rates Offered By Partner Banks & NBFCs
Banks/NBFCs | Interest Rates(p.a.) | |
Axis Bank | 10.49% onwards | Apply Now |
IndusInd Bank | 10.49% onwards | Apply Now |
IDFC First Bank | 10.49% onwards | Apply Now |
HDFC Bank | 10.50% onwards | Apply Now |
ICICI Bank | 10.65% onwards | Apply Now |
Kotak Mahindra Bank | 10.99% onwards | Apply Now |
Tata Capital | 10.99% onwards | Apply Now |
Bajaj Finserv | 11.00% onwards | Apply Now |
Federal Bank | 11.49% onwards | Apply Now |
DMI Finance | 12.00% - 40.00% | Apply Now |
L&T Finance | 12.00% onwards | Apply Now |
Kreditbee | 12.25% - 30.00% | Apply Now |
MoneyTap | 13.00% onwards | Apply Now |
Piramal Finance | 12.99% onwards | Apply Now |
Aditya Birla | 13.00% onwards | Apply Now |
Moneyview | 15.96% onwards | Apply Now |
Cashe | 27.00% onwards | Apply Now |
Note: Rates as of 1 December 2023
HDFC Bank
The personal loan interest rates of HDFC Bank start from 10.50% p.a. The tenure of the scheme can go up to 6 years whereas the loan amount can go up to Rs 40 lakh. The bank also offers pre-approved personal loans with ‘10 second disbursal’ to its select existing customers based on their credit profiles.
Interest Rate | 10.50% p.a. onwards |
Loan Amount | Up to Rs 40 lakh |
Tenure | Up to 6 years |
Minimum Monthly Salary | Rs 25,000 |
Age | 21-60 years |
Credit Score | At least 650 |
Processing Fee | Up to Rs 4,999 |

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ICICI Bank
ICICI Bank extends personal loan to cater to the varied financial requirements of its borrowers. The bank also offers Fresher Funding, a special scheme for funding immediate and other financial requirements of younger salaried individuals. For its select existing customers, the bank offers overdraft facility, pre-approved offers and top up loan facility. Its pre-approved offers feature minimal documentation and 3-second disbursals.
Interest rate | 10.65% p.a. onwards |
Loan Amount | Up to Rs 50 lakh |
Tenure | 1-6 years |
Minimum Monthly Salary | Rs 30,000 |
Age | Salaried: 23-58 years Self-employed: 25-65 years |
Processing Fee | Up to 2.5% of loan amount |

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Axis Bank
Axis Bank’s Personal Loan covers expenses related to wedding, home renovation, travel, medical emergency and much more. The bank also extends pre-approved offers to its select existing customers. Such offers have digital processing and instant approvals. Axis Bank has also collaborated with Paisabazaar to extend its select customers pre-qualified offers.
Interest rate | 10.49% p.a. onwards |
Loan Amount | Rs 50,000- Rs 40 lakh |
Tenure | 1-5 years |
Age | 21-60 years |
Minimum Monthly Salary | Rs 15,000 |
Processing Fees | 1.5% – 2% |

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Kotak Mahindra Bank
Kotak Mahindra Bank offers personal loans only to salaried individuals. Existing personal loan borrowers of other banks/NBFCs can avail balance transfer facility to transfer their outstanding loan to Kotak Bank at lower personal loan interest rates. Those exercising balance transfer facility can also avail top up loans of up to 100% of their loan amount. Kotak Mahindra Bank also offers overdraft facility, giving borrowers the flexibility of withdrawing their funds from their loan account anytime and repaying it as per their convenience.
Interest Rate | 10.99% p.a. onwards |
Loan Amount | Up to Rs 40 lakh |
Tenure | Up to 6 years |
Credit score | At least 700 |
Age | 21-60 years |
Processing Fees | Up to 3% of loan amount |
Minimum Monthly Income |
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IndusInd Bank
IndusInd Bank offers multiple personal loan schemes including wedding loan, home renovation loan, loan for medical expenses and loan for education. The bank also offers balance transfer facility to existing personal loan borrowers of other banks and NBFCs. For those requiring quick financing, the bank extends instant online personal loans with quick processing and loan approvals.
Interest Rate | 10.49% p.a. onwards |
Loan Amount | Rs 30,000-Rs 50 lakh |
Tenure | 1 to 5 years |
Age | Salaried: 21-60 years Self-employed: 25-65 years |
Processing Fees | Up to 3% of the sanctioned loan amount |
Minimum Monthly Salary | Rs 25,000 |

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Federal Bank
Federal Bank’s FedPremia Personal Loan caters to the personal financing needs of only salaried individuals. The bank also has collaboration with Paisabazaar to offer pre-approved loan offers to its select customers with quick disbursal.
Interest rate | 11.49% p.a. onwards |
Loan Amount | Up to Rs 25 lakh |
Tenure | Up to 5 years |
Age | 60 years at the time of loan maturity |
Processing Fees | Up to 3% |
Minimum Monthly Salary | Rs 25,000 |

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IDFC First Bank
Borrowers can avail IDFC First Bank Personal Loan to meet any of their personal financing requirements. Existing personal loan borrowers of other banks and NBFCs can avail balance transfer facility to transfer their outstanding loan to IDFC First Bank at lower interest rates. The bank also offers instant personal loans with paperless digital loan processing.
Interest rate | 10.49% p.a. onwards |
Loan Amount | Up to Rs 1 crore |
Tenure | Up to 5 years |
Age | Salaried: 23-60 yrs./retirement age, whichever is earlier Self-employed: 25-60 years |
Credit Score | At least 700 |
Processing Fees | Up to 3.5% of the loan amount |
Bajaj Finance
Bajaj Finance offers personal loans to both salaried and self-employed individuals, with special variants being offered for doctors and Chartered Accountants. Those requiring overdraft facility can also avail Bajaj Finance’s Flexi Personal Loan. For its select existing customers, the NBFC offers pre-approved offers. The loan features instant approval, minimal documentation and same-day loan disbursals.
Interest Rate | 11% p.a. onwards |
Loan Amount | Up to Rs 55 lakh |
Tenure | Up to 8 years |
Credit Score | 685 or higher |
Age | Salaried: 21-80 years Self-employed: 24-70 years |
Processing Fee | Up to 3.93% of loan amount |
Minimum Monthly Salary | Rs 25,001 |

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Tata Capital
Tata Capital provides multiple personal loan schemes to cover expenses related to wedding, travel, education, select medical facilities and home renovation. It also extends customized schemes for salaried employees, government employees, doctors and women applicants; a pre-approved facility with instant disbursal to select customers and an overdraft facility to applicants seeking higher flexibility in loan repayment.
Interest Rate | 10.99% p.a. onwards |
Loan Amount |
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Tenure | Up to 6 years |
Age | 21-58 years For Home Renovation: 24-65 years For Education: 16-26 years |
Minimum Monthly Salary | Rs 20,000 (Rs 15,000 for Government Employees, Salaried Employees, Doctors, Women, Education, Travel Loan) |
Processing Fees | Up to 3.5% of loan amount |

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Piramal Finance
Piramal Capital and Housing Finance Ltd., also known as Piramal Finance, offers personal loans to only salaried individuals. These loans can be availed for covering various personal expenses related to wedding, travel, home renovation, debt consolidation, etc. Piramal Finance Personal Loans come with minimal documentation and quick loan disbursals. The lender also has a tie-up with Paisabazaar.com to extend pre-qualified offers to its select customers.
Interest rates | 12.99% p.a. onwards |
Loan amount | Up to Rs 50 lakh |
Loan tenure | Up to 5 years |
Processing Fees | Up to 4% of the loan amount |
L&T Finance
L&T Finance Holdings Ltd. provides personal loans to both salaried and self-employed individuals to finance their expenses related to home renovation, festivals, marriage, education and medical needs. It also offers micro loans to low income women borrowers. L&T Finance Personal Loan features digital application process, minimal documentation and quick approval process.
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DMI Finance
DMI Finance offers personal loans at 12% p.a. onwards. The loan tenure offered ranges from 2 months to 5 years and the loan amount can be anywhere between Rs 1,000 and Rs 25 lakh. The loan is offered through channel partners have end-to-end digital process and are entirely paperless.
Interest rate | 12%-40% p.a. |
Loan amount | Rs 1,000 to Rs 25 lakhs |
Repayment tenure | 2 months to 5 years |
Processing fee | Up to 4% of the loan amount |

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MoneyTap
MoneyTap Personal Loan can be availed for covering expenses related to home renovation, education, travel, weddings, medical emergencies, etc. This loan facility is offered in the form of credit line, thereby offering higher repayment flexibility to the borrowers.
Interest Rate | 1.08% per month (12.96% p.a.) onwards |
Loan Amount | Rs 3,000 to Rs 5 lakh |
Loan Tenure | 2 months to 3 years |
Processing Fees | Up to 2% of the total amount |
Age | 23-55 years |
Minimum monthly income | Rs 30,000 |
Aditya Birla Finance Ltd.
Aditya Birla Finance Limited offers fixed rate personal loans to salaried individuals to finance varied personal requirements including medical emergencies, child’s education, wedding, travel, home improvement, purchase of electronic and household goods, etc.
Interest rate | 13% p.a. onwards |
Loan Amount | Up to Rs 50 lakh |
Tenure | Up to 7 years |
Age | 23-60 years |
Processing Fees | Up to 3% of the loan amount |
Money View
Money View Personal Loan comes with end-to-end digital process and quick disbursals (within 24 hours of loan approval). The lender has developed an alternative credit-scoring model to increase the loan eligibility for applicants having low credit scores. Money View has also tied-up with Paisabazaar.com to provide pre-approved offer with quick disbursal to select applicants.
Interest Rate | 1.33% per month onwards |
Tenure | Up to 5 years |
Loan Amount | 5k to 10 lakhs |
Loan processing charges | 2% – 8% of approved loan amount |
Age | 21-57 years |
Credit Score | CIBIL score of at least 600 or Experian score of at least 650 |
Minimum Monthly Income |
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CASHe
CASHe is an app-based lending platform offering instant short-term personal loans to young salaried people, including to those without a formal credit history. It uses an AI-based credit scoring model to assess their borrowers’ creditworthiness.
Interest Rate | 2.25% per month onwards |
Loan Amount | Rs 1,000 to Rs 4 lakh |
Tenure | 90 days to 540 days |
Processing Fee | Up to 3% of the loan amount |
Age | 23-58 years |
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KreditBee
KreditBee is an online loan platform, which claims to offer personal loan schemes from various banks and NBFCs with instant disbursal. The lending platform claims to offer disbursals (within 10 minutes) with minimal documentation.
Interest Rates | 12.25% p.a. onwards |
Tenure | 62 days to 2 years |
Loan Amount | Rs 1,000 to Rs 4 lakh |
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Minimum Net Monthly Income |
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Calculate Personal Loan Payments
Monthly EMI ₹ 15,622
Total Amount Payble ₹ 5,62,395(Principal + interest)
Principal Amount ₹ 5,00,000
Total Interest Payble ₹ 62,395
Features and Benefits of 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:
- Collateral-free loan
- No end-use restriction
- Interest rate usually starts from 10.49% p.a.
- Loan amount of up to Rs. 40 lakh, which can exceed depending on lenders’ discretion
- Repayment tenure up to 60 months, which may exceed on case-by-case basis
- Top up loans for additional requirements are offered by many lenders
- Minimal documentation
- Quick disbursals
Fees & Charges
While the fees and charges of personal loans usually 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 |
Pre-payment/Part-payment/Foreclosure Charges | For Floating Rate – Nil For 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.
Types of Personal Loans
Apart from the regular personal loan schemes, several banks and NBFCs offer various personal 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.
- Instant Personal Loans are usually pre-approved loans with instant disbursals. These loans are usually offered by banks and NBFCs to their select customers on the basis of their credit profiles.
- Short-term Personal Loans have short repayment periods ranging from a few days to 12 months.
- Pre-approved Personal Loans are usually offered by banks and NBFCs to their existing customers on the basis of their credit history, income, employer’s profile, etc.
- Consumer Durable Loans can be used to purchase any consumer durable items like smartphones, furniture, microwave, etc. The purchase amount gets divided into EMIs and can be repaid within the tenure decided. Some products may require a down payment or a processing fee while others may not.
- Personal Loan Balance Transfer facility allows borrowers to transfer their outstanding personal loan to a new lender for lower interest rates or better loan terms. However, opt for this facility only when the savings made through the transfer outweighs the cost of the loan transfer.
- Personal Loan Top Up is offered to existing personal loan borrowers who need additional funds to meet their financial requirements. This loan facility is usually offered to select borrowers having satisfactory loan repayment history and/or have completed a specified number of EMIs.
- Personal Loan for Education is for individuals requiring funds for pursuing higher education in India and abroad, vocational courses, etc., and are unable to get a conventional education loan.
Personal Loan Eligibility Criteria
Personal loan eligibility criteria can vary from one lender to another due to their varying credit risk policies. The eligibility criteria can also vary as per the loan variant and the occupation profile of the applicant. Here are some of 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 750 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 organisations, MNCs, Private and Public Limited Companies, Govt. organisations, PSUs, and large enterprises
Documentation Required for Personal Loans
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:
- Identity Proof: Passport/ PAN Card/ Voter’s ID/ Aadhaar Card/ Driving License
- Address Proof: Passport/ Aadhaar Card/ Lease/ Property Purchase Agreement/ Utility Bills (not more than 3 months old)/ Passport/ Driving License
- Income Proof For Salaried Individuals: Salary Slips/ Bank Account Statement/ Form 16
- Income Proof For Self-employed Professionals: Previous Years’ ITR/ P&L Statement and Balance Sheet/ Bank Account Statement
- Business Proof For Self-employed Individuals: Business Incorporation Certificate/ Professional Degree/ Certificate of Practice/ Partnership Deed/ GST Registration and Filing Documents/ MOA & AOA/ Shop Act License
How to Improve your Chances of Getting a Personal Loan?
The unsecured nature of personal loan increases the 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:
- Maintain your CIBIL score above 750
- Check for inaccuracies in your credit report, as they might adversely impact your credit score and thereby, reduce the chances of loan approval (Check Your Credit Score for FREE)
- Compare the personal loan offers available from banks and NBFCs before finalizing any loan deal
- Apply for the loan from a bank/NBFC where you have the highest chances of approval
- Avoid making multiple loan applications within a short span of time
How to Apply Online for a Personal Loan?
Paisabazaar.com allows customers to compare personal loan offers from 30+ banks and NBFCs and apply for the best-suited offer online with ease. The steps for the same are as below:
- Enter your mobile number.
- Enter personal details like desired loan amount, employment type, net monthly income, current residing city, bank where you receive your salary and company name.
- Provide OTP for verification and check for available pre-approved offers.
- For viewing other offers, provide more details like total EMI you pay currently, PAN, total work experience, tenure in current organisation, etc.
- Compare various offers and apply for the one that best suits your requirements.
Why Should I Avail Personal Loans from Paisabazaar?
While looking for a personal loan, prospective borrowers should compare offers from as many lenders as possible. While one can check personal loan offers by individually visiting websites of various banks and NBFCs, however, checking it on an online financial marketplace like 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 personal loan online through end-to-end digital process
FAQs on Personal Loan
What is a Personal Loan?
Ans. Personal loan is a short to medium term loan, which consumers can avail to meet both personal and business needs other than speculative purposes. Personal loans are usually unsecured in nature as consumers do not need to pledge any collateral or security to avail them.
How to Get a Personal Loan?
Ans. Consumers can get a personal loan at any nearby branch of their preferred bank or NBFC. With many lenders offering these loans through end-to-end digital processes, consumers can consider availing these loans through such lender’s official website.
Those planning to avail personal loans from banks/NBFCs with whom they have an existing banking relationship can apply for it through the respective bank/NBFC’s mobile application or internet banking platform. Alternatively, consumers can also get a personal loan through online financial marketplaces.
How Can I Apply for Personal Loan?
Ans. Individuals can apply for a personal loan by visiting the nearby branch of their preferred bank or NBFC. They can also apply for the loan through lenders’ official website or through their respective internet banking platform and mobile applications.
How much CIBIL Score is Required for a Personal Loan?
Ans. Applicants having credit scores of 750 and above usually have higher chances of availing personal loans. However, many banks and NBFCs offer personal 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.
What is the Interest Rate on Personal Loan?
Ans. 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.
What is the Maximum Loan Duration for a Personal Loan?
Ans. The tenure of a regular personal loan usually ranges from 1 year to 5 years. However, some lenders offer maximum personal loan tenure for 6 to 8 years.
Read more: How to build/improve your credit score using Step UP Credit Card co-branded with SBM Bank India Ltd.
Can I Cancel Personal Loan After the Loan Amount is Disbursed?
Ans. 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.
What is the Minimum Salary Required to Get a Personal Loan?
Ans. 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.
Can a Pensioner Get Personal Loan?
Ans. Lenders offer personal loans to pensioners in the form of pension loan. However, these loans are offered only to those pensioners who maintain their pension account with the respective bank.
Can a Student Apply for a Personal Loan?
Ans. 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.
Can I Get a Personal Loan if I have a Home Loan?
Ans. 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.
Can I Get a Personal Loan without a Salary Slip?
Ans. 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 fulfil 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.
Can I Use Personal Loan for Marriage Purposes?
Ans. Yes, you can avail a personal loan or its variants like wedding loan and marriage loan to finance various marriage-related expenditures.
Can I Take Personal Loans from two Different Banks at the Same Time?
Ans. Yes, you may avail personal loans from two different 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.
Are there any Charges for Prepaying Personal Loan?
Ans. 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.
Do I Need to Provide any Security or Collateral to Apply for a Personal Loan?
Ans. 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 personal loan or is charged very high interest rates for it.
How to Calculate EMI for a Personal Loan?
Ans. Banks and NBFCs generally use the reducing balance method to calculate personal loan EMI. And as for individuals, there are several personal loan EMI calculators available online on lenders’ websites and other websites. These EMI calculators also use the reducing balance method for calculating the EMIs.
What is the Maximum Loan Amount I Can Get on My Personal Loan?
Ans. Lenders usually offer personal loans between Rs 10,000 and Rs 40 lakhs. However, the amount that they approve of is primarily dependent on your income and existing loan repayment obligations, if any. 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 pre-determined proportion of the applicant. Some lenders also use a combination of both of these methods to find the loan amount eligible of the applicant.
How much Personal Loan Can I Get on 40000 Salary?
Ans. Some lenders use EMI/NMI ratio while some may use a multiplier method to determine their applicant’s eligible personal loan amount. As these ratios may differ across lenders, the maximum personal loan amount that you can avail on Rs 40,000 salary would also vary. Hence, to know your eligible personal loan amount, you have to contact the lender individually. Alternatively, you can visit online financial marketplaces, which will show eligible personal loan amounts from multiple lenders based on your repayment capacity, interest rate and loan tenure.
How to Calculate EMI for Personal Loan?
Ans. You can calculate the 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 are prone to errors and can be complex and time-consuming, using an online personal loan EMI calculator would be preferable. The calculator requires just a few basic details for personal loan EMI calculation, including interest rate, loan amount and loan tenure.
Once all details have been entered, you get your loan EMI amount in less than a second. Moreover, besides calculating EMI amount, the calculator also displays the total interest amount and amortization schedule for its users.
How to Check Personal Loan Eligibility?
Ans. 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 set for personal loans may vary across lenders.
Therefore, applicants would have to check their eligibility for a personal loan by individually visiting the branch or website of various banks and NBFCs. Alternatively, they can visit online financial marketplaces like Paisabazaar.com to check and compare personal loan offers from multiple banks and NBFCs on the basis of their credit profiles.
Is Personal Loan Taxable?
Ans. The government does not levy any taxes on availing personal loans or on its EMIs. However, banks and NBFCs levy GST on various charges of personal loans like processing fees, late payment fee, foreclosure/prepayment charges, etc.
What are the Documents Required for Availing a Personal Loan?
Ans. Personal loan lenders usually require their applicants to furnish the proof of their identity, income and address at the time of loan application. The documents required as the proof of identity and address are more or less the same for all applicants and across all lenders.
The list of documents required as income proof, however, is different for salaried and self-employed applicants. Salaried applicants usually need to furnish their salary slips and bank statements as income proofs.
Self-employed applicants, on the other hand, need to furnish their bank statements of their current/savings accounts, audited financial statements (balance sheet and profit & loss account) and income tax returns at the time of loan application.
Is a Personal Loan Secured or Unsecured?
Ans. Traditionally, personal loans are unsecured loans. However, some lenders also offer secured personal loans wherein the borrower needs to pledge security/collateral in form of gold jewellery/ornaments, fixed deposits, bonds, debentures, shares, etc. to avail the loan. Some lenders also offer personal loans for purchasing consumer durables wherein the borrower has to make a margin/down payment contribution and a hypothecation is created on the purchased durables.
Can I Get a Personal Loan if my Salary is 12000?
Ans. 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 personal loans to applicants having lower monthly income. Hence, individuals having low salary should visit online financial marketplaces to check if they are eligible for any personal loan offers based on their current income.