Personal Loan

Compare on Paisabazaar

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.

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.

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.

 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.

• For travel expenses
• For wedding expenses
• For medical exigencies
• For home renovation
• For educational expenses

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.

Credit Score

Your credit score displays your creditworthiness, repayment capacity and financial discipline to lenders.  Lenders usually prefer a credit score of 750 and above for extending a personal loan. A higher credit score can also fetch you better rates.

Income and Employment Stability

Lenders thoroughly assess your income levels and employment history while determining personal loan interest rates. A high-income and stable job with a renowned company or organization helps improve your chances of getting lower interest rates and bigger loan amounts.

Loan Amount and Tenure

Your loan amount and tenure will directly influence the interest rate on your loan. Larger loans with longer tenure usually attract higher interest, while smaller loans with shorter tenure are considered less risky and carry lower interest rates.

Relationship with the Lender

If you have been associated with a bank for a while, whether through a savings account, current account or an existing loan and have a good repayment track record, there’s a good chance that the bank may offer you lower interest rates. Existing to Bank consumers also often have a lower eligibility criteria and may get loans at lower interest rates.

External Factors

Interest rates also shift with the broader economy and several macro aspects. Regulatory changes, inflation, or the lender’s internal policies can all affect the rate you finally get.