Personal Loan

1. Compare offers

Check each offer’s rate range, tentative EMI, maximum loan amount, expected disbursal time, and mandatory documents. Shortlist 2–3 that balance cost and speed.

2. Check offers from banks/NBFCs you already bank with

Existing relationships (salary/savings account, FD, credit card) can mean pre-approved limits, quicker KYC, and sometimes better rates or lower processing fees. It is advisable to check with these lenders and see if you can avail better offers.

3. Compare total cost, not just the interest rate

Confirm processing fees, foreclosure lock-in, part-prepayment rules, and all penalties: late payment, cheque/mandate bounce, ECS return, statement charges, etc. Be thorough to avoid any mishap later.

5. Choose what fits your need and repayment capacity

Pick the shortest tenure you can comfortably afford to cut interest outgo, but leave room for emergencies. Prefer lenders that allow free/low-cost part-prepayments so you can reduce tenure later.

• Many banks/NBFCs provide instant personal loans to existing customers.
• Require minimal to no documentation.
• Quick disbursal process.
• Often come with lower interest rates for loyal customers.

Higher Credit Score = Lower Interest Rates

• A credit score of 750+ is preferred by lenders.
• Higher scores mean:
  • Better chances of loan approval
  • Lower interest rates
  • Eligibility for pre-approved offers
    

Increase EMI Affordability with Longer Tenure

• Longer tenure means lower EMIs but total interest paid goes up.
• Helps manage monthly cash flow.
• Choose longer tenure and/or smaller loan amounts to make EMIs affordable.

Prepayment & Foreclosure Rules

• No charges on floating rate personal loans (RBI mandate).
• On fixed-rate loans, lenders may levy charges for prepayment/foreclosure.

Am I eligible to get a personal loan?

To determine your eligibility for a personal loan, visit the lender's official website and review the eligibility criteria provided by the lender. Generally, lenders consider applicants within the age range of 21 to 60 years, with a credit score of 750 or above and a minimum monthly income of Rs. 15,000.

Compare interest rates of pre-approved personal loans available on Paisabazaar.

Apply for a personal loan based on your Salary

You can apply for a personal loan based on your salary, as lenders assess eligibility primarily on your income and repayment capacity. Higher salary often improves loan amount eligibility and chances of approval.

Salaried employees looking for a personal loan can choose from multiple Banks and NBFCs on Paisabazaar. Salaried individuals with strong credit profiles and stable employment usually have higher chances of personal loan approval. Government employees and those working in large private organisations are the most preferred due to high job security.

Personal Loan for Self-employed Individuals

Lenders also offer unsecured loans to self-employed individuals, to meet their personal as well as business requirements. Interest rates offered to self-employed individuals is likely to be higher, due to lesser income certainty and higher risk involved. The documentation process for self-employed individuals is also slightly extensive as compared to the salaried employees.

Personal Loan for First Time Borrowers

Individuals with no credit history may find it challenging to avail credit for the first time. Salaried consumers can connect with the Bank that holds their salary account for a personal loan.
Some fintech companies also offer loans to first time borrowers, usually salaried. However, the ticket size of these loans are generally small and interest rates are comparatively higher.

Personal Loan for Pensioners

Most PSU banks and a few NBFCs extensively offer personal loans to pensioners having their pension accounts with them. Most PSU banks generally waive off the processing fees waived off for pensioners. Like personal loans, loan proceedings can be used by pensioners to meet their personal requirements, such as travel, medical emergencies, etc. with no end-usage restriction. Individuals can connect with these PSU banks online or through a branch for their personal loan requirements.

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 requires 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 offers. 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.