Personal Loan

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

Personal Loan Fees & Other 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:

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

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:

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:

• Step 1: Enter your basic details Name & Mobile Number and check eligible offers instantly.
• Step 2: Select the best-suited loan offer and upload your documents digitally.
• Step 3: Receive the funds in your bank account within 24 hours of loan approval.

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

Last updated: 3rd July 2026

Compare multiple loan offers from different lenders provided below to understand how you can manage to get the most affordable EMI at the lowest total interest possible.

Compare Personal Loan Principal Amounts

Your EMI and total repayment amount depend directly on the principal amount you borrow. To keep the overall cost of the loan low, you should borrow only what you need, not the total amount you are eligible for.

Expert Tip

Compare Loan Tenures

Select the most suitable loan tenure that matches your affordability without significantly increasing the overall cost of the loan.

*Illustration based on a ₹5 lakh personal loan at 10% p.a.

Which Tenure should You Choose?

Choose a Shorter Tenure if you:

• can comfortably afford a higher EMI.
• want to pay less total interest.
• prefer becoming debt-free sooner.

Choose a Longer Tenure if you:

Compare Interest Rates from Different Lenders

Your total borrowing cost can significantly increase even with a small difference in the interest rate.

*Illustration based on a ₹5 lakh personal loan availed for a tenure of 3 years.

Expert Tip

Compare EMI vs Total Interest

A lower EMI often comes at the cost of paying more interest over time. Select the most suitable option after considering the following:

Which Personal Loan Option is the Best for You?

Important Points To Remember

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

Factors Affecting Personal Loan EMI

An Equated Monthly Installment (EMI) is the amount you pay each month. This money goes towards paying back the loan amount and the interest. 3 major factors that influence your personal loan EMIs are:

Instant Personal Loan

This 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:

What is the maximum loan amount I can get on my personal loan?

Lenders usually offer personal loans between Rs 5,000 and Rs 50 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.

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

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

Will checking my loan offers on Paisabazaar impact my CIBIL score?

No, your credit score is not impacted when checking pre-approved offers and comparing rates on Paisabazaar as it is considered a "soft inquiry" and does not feature in your credit report.

Read the full The Personal Loan Story report by Paisabazaar to gain deeper insights into personal loan borrowing trends, purposes and consumer behaviour across India.

Consumer Research & Industry Insights

Two years ago I faced a medical emergency at my home. I had an emergency fund but soon I ran short of it too. I then applied for a personal loan through the Paisabazaar app and got instant reply from the customer executive. They guided me through the entire loan process, helped me get the loan in time.

Manish Singh - For Home Renovation

I have a 20 year old home which required immediate repair and maintenance. Though I had enough savings but did not want to exhaust them. So I applied for a personal loan of Rs. 10 lakh for a tenure of 5 years through Paisabazaar. The team was extremely cooperative and helped me in getting the lowest interest rates possible with loan disbursal in no less than 24 hours.

Manoj Sharma - Pre-approved Offer

When I checked through the Paisabazaar app, I found myself eligible for pre-approved loan. I applied for a pre-approved personal loan from a bank with zero documentation. The process was hassle-free, quick and I got my loan disbursed within a few minutes.