Personal Loan

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HDFC Bank
10 Second Disbursal*100% Digital Process*Quick Disbursal
Max. Loan Amt.Upto 40L
Rate of Interest10.9% - 24%
Tenure uptoUpto 6 Years
Processing Fee6,500
ICICI Bank
100% Digital Process*Quick Disbursal
Max. Loan Amt.Upto 50L
Rate of Interest10.8% - 16.5%
Tenure upto1-6 Years
Processing FeeUpto 2%
Axis Bank
Low Processing fee
Max. Loan Amt.Upto 10L
Rate of Interest10.49% - 22%
Tenure uptoUpto 6 Years
Processing FeeUpto 2%
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What is a Personal Loan?

A Personal loan is a short to medium term loan offered by Banks and NBFCs that can be used for any personal or business need. This loan is repaid in the form of EMIs over a pre-determined tenure, that usually goes up to 7 years. Personal loan is usually unsecured in nature as consumers do not need to pledge any collateral or security to avail them.

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At Paisabazaar, our aim is to make access to consumer credit easy, transparent and convenient for Bharat. For over a decade, we have been offering a wide choice along with seamless digital processes, to help consumers from varied segments access the best and most-suited lending solutions with ease. Backed by the trust of 50 million+ customers, Paisabazaar provides you with a superlative experience that is fast, secure and tailored to your needs.

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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

Personal Loan Interest Rate

The interest rate offered on a personal loan is determined on the basis of the eligible applicant’s credit profile and also the lenders’ policy (based on credit risk-based pricing model, cost of funds, etc.) As the interest rate on a personal loan primarily influences the total borrowing cost, applicants must always look for the 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). They should also visit online financial marketplaces like Paisabazaar to compare interest rates offered by other banks and NBFCs. Consumers are advised to always compare offers before applying for any kind of credit to make an informed choice.

Eligibility Criteria for Personal Loans in India

Personal loan eligibility criteria usually  vary from one lender to another. It can also vary as per the loan variant and the occupation profile of the applicant. Do note that most Banks have a more stringent eligibility criteria for consumers that do not have any relationship with the Bank (usually referred to as ‘New to Bank’). Existing consumers (‘Existing to Bank’) are provided with a more relaxed eligibility criteria with respect to minimum income, credit score etc.

Here are some of the personal loan eligibility criteria used by most lenders:

  • Salary: At least Rs 15,000 per month. However, the minimum income required at leading banks such as HDFC Bank, ICICI Bank, Kotak Mahindra Bank is usually Rs 25,000-30,000 a month. The income criteria may also vary on the basis of your relationship with the bank and geographical location. So, the customers in non-metro cities may be eligible with a lower income compared to the customers from metro cities.
  • Income: The minimum net annual income required for self-employed customers is Rs 2 lakh p.a. The income requirement may also vary among self-employed professionals and non-professionals.
  • Credit Score: A CIBIL score of  750 and above is considered a strong score and improves the chances of loan approval. A score of less than 700 would make it challenging to get a personal loan
  • Employment Stability: Lenders usually prefer their personal loan applicants to have a total work experience of at least 1 to 2 years with some requiring at least 1 year of work experience in the current organisation.
  • Business Continuity: Usually 3 years of business continuity is required with some lenders requiring a longer period of business continuity. However, lenders may require longer post-qualification experience from self-employed professionals.
  • Employer Profile: Salaried employees working with government, public sector undertakings, MNCs and other reputed corporates are usually preferred by lenders. Among self-employed applicants, professionals such as Architects, CA, Doctors, etc. have higher chances of securing a personal loan.
  • Age: For salaried applicants, the age limit is usually 18-60 years. However, for self-employed applicants, it may extend up to 65 years. The age limit may also vary as per loan scheme. For instance, in Bank of Baroda Loan to Pensioners, the maximum age for consumers is 75 years.

Also Read: Tips to Improve Your Personal Loan Eligibility

Documents Required for Quick Approval of 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 a 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

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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 broad range 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: 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.

Features and Benefits of Personal Loan

Personal loan is a preferred credit option for meeting  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

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. These are offered to select segments, with a strong credit profile and disciplined repayment history.

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Pre-approved Personal Loan

Banks and NBFCs offer these loans exclusively to their select existing customers having a good credit profile. These loans do not need any documentation and are disbursed instantly.

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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 less and lower loan amounts are on offer, making it an ideal option for individuals seeking smaller amounts with greater repayment flexibility. Short Term Personal have a more relaxed eligibility criteria, but come with high interest rates.

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Personal Loan for Travel

Individuals can use personal loans to cover their travel and vacation related spends. According to a Holiday Loan Report by Paisabazaar, around 30% of consumers who take a personal loan between April and June, took it for vacation travel.

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Personal Loan for Medical Emergency

When facing medical emergencies, individuals can avail personal loans to cover costs related to hospital bills, diagnosis, consultations, treatments, etc.

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Debt Consolidation Loan

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

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Top Pre approved Personal Loan Offers

At Paisabazaar, we offer pre-approved personal loan offers from top lenders like Axis Bank, IndusInd Bank, Aditya Birla Capital, Hero FinCorp, Moneyview and more - all in one place. These loans do not need any documentation and are disbursed instantly - ideal for individuals with urgent money needs.
Compare interest rates of pre-approved personal loans available on Paisabazaar.

Interest Rates (p.a.)
Aditya Birla Capital 12.99% onwards
Federal Bank 12.00% onwards
Axis Bank 14.00% onwards
SMFG India Credit 14.00% onwards
IndusInd Bank 15.00% onwards
Piramal Finance 16.00% onwards
Tata Capital 18.00% onwards
Hero Fincorp 20.00% onwards

Also Read: 6 Key Things You Should Know About Pre-Approved Personal Loans

How an Instant Personal Loan Solves Your Urgent Money Needs

An instant personal loan can be your go-to credit solution when you’re dealing with unexpected financial exigencies. Whether it's a medical emergency, last-minute travel plan or urgent home repairs, these loans help you tackle short-term fund requirements without letting you compromise on your emergency fund or crucial financial investments.

Key benefits offered by these loans:

  • Instant disbursals
  • 100% digital process
  • No collateral requirement
  • Zero documentation

Instant Personal 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

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 a longer tenure on your loans results in lower EMIs. However, it also leads to higher overall interest cost on the loan.

5 Tips to Increase Your Chances of Availing 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 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 credit/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
  • Compare the offers available from banks and NBFCs before finalising 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 period

Also Read: CIBIL Score and Personal Loans: What’s the Connection?

Things to Know Before You Apply for 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 750 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 loan. 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 loan.

Tips to Get Instant Personal Loan Approval

The following are the key steps to take before applying for a personal loan:

  1. Check personal loan offers of banks and NBFCs with which you have deposit, loan or credit card accounts.
  2. Visit online financial marketplaces such as Paisabazaar to compare personal loan interest rates & other loan features offered by other banks and NBFCs.
  3. Check whether the tenures offered by lenders suit your repayment capacity.
  4. Compare processing fees and/or admin/login fees charged by various lenders.
  5. Compare the prepayment/foreclosure charges and restrictions on making prepayments/foreclosures, if any, by various banks/NBFCs.
  6. Check whether the turnaround time for loan disbursement meets your needs.

What is the Maximum Personal Loan Amount You Can Get?

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.

Best Banks for Personal Loan in India

Given below are a few personal loan schemes offered by some of the leading banks and NBFCs in India:

HDFC Bank

The interest rate of HDFC Bank personal loan starts from 10.90% 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 loans with ‘10 second disbursal’ to its select existing customers based on their credit profiles.

  • Interest Rate: 10.90% p.a. onwards
  • Loan Amount: Up to Rs 40 lakh
  • Tenure: Up to 6 years
  • Minimum Salary: Rs 25,000 per month
  • Age: 21-60 years
  • Credit Score: At least 650
  • Processing Fee: Up to Rs 6,500

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: 10.80% p.a. onwards
  • Loan Amount: Up to Rs 50 lakh
  • Tenure: 1 to 6 years
  • Minimum Salary: Rs 30,000 per month
  • Age: 20-58 years (for salaried); 23-65 years (for self-employed)
  • Processing Fee: Up to 2% of loan amount

Axis Bank

Axis Bank 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: Up to Rs 10 lakh
  • Tenure: 6 months to 5 years
  • Age: 21 to 60 years
  • Minimum Monthly Salary: Rs 15,000
  • Processing Fee: Up to 2% of loan amount

Kotak Mahindra Bank

Kotak Mahindra Bank offers loans only to salaried individuals. Existing borrowers of other banks/NBFCs can avail balance transfer facility to transfer their outstanding loan to Kotak Mahindra Bank at lower 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 an 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 35 lakh
  • Tenure: Up to 6 years
  • Credit Score: At least 730
  • Age: 21-60 years
  • Minimum Monthly Salary: Rs 25,000 (for corporate borrowers); Rs 30,000 (for non-corporate salary borrowers)
  • Processing Fees: Up to 5% of loan amount

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 borrowers of other banks and NBFCs. For those requiring quick financing, the bank extends instant personal loan online with quick processing and loan approvals.

  • Interest Rate: 10.49% p.a. onwards
  • Loan Amount: Up to Rs 50 lakh
  • Tenure: 1 to 7 years
  • Age: 21 to 60 years (for salaried); 25 to 65 years (for self-employed)
  • Processing Fee: Up to 3.5% of the sanctioned loan amount
  • Minimum Salary: Rs 25,000 per month

Personal Loan Overdraft Facility

Personal loan overdraft is a credit facility offered by bank and financial institutions that allows you to withdraw funds up to a pre-approved limit. You pay interest only on the utilized loan amount from the assigned limit and can be withdrawn multiple times.

Closing Your Personal Loan Early

Borrowers having surplus might want to close their personal loans early. Below are a few points that can help you in prepaying your personal loans early and smartly:

  • Prepay wherever you have surplus: When prepaying a personal loan, borrowers have the option to either reduce tenure or EMI. To close your personal loan sooner, opt for tenure reduction. Decreasing your loan tenure will also lead to higher savings on the overall interest cost. As per RBI guidelines, personal loan lenders are not allowed to levy prepayment penalty on prepayments of floating-rate personal loans. However, fixed-rate personal loans may attract the prepayment and foreclosure charges. Therefore, before making a prepayment, check for the prepayment/foreclosure  penalties and related conditions.
  • Balance transfer at lower interest rates: Transferring your outstanding personal loan amount to another lender at lower interest rates would help in reducing your EMI and also the overall interest cost. During this process, opting for the same EMI may allow you to close your personal loan earlier than its original loan maturity..
  • Increase your EMI: With increase in income try increasing your personal loan EMI. Doing so will help you in paying your personal loan early.

Also Read: Dos and Don’ts of Personal Loan Prepayment

How Having a High CIBIL Score Helps in Getting the Best Personal Loan Offer?

Having a CIBIL score of 750 and above can help you in the following ways:

  • Improves loan eligibility: Lenders prefer offering personal loans to those having CIBIL scores of at least 750. This is because such loan applicants tend to have greater financial discipline and thus, are less likely to default.
  • Helps in availing lower interest rates: The reduced credit risk for lenders further allows them in offering lower interest rates to applicants having high credit scores.
  • Pre-approved offers: Lenders usually extend pre-approved approved offers to their select existing customers having good credit profiles, which also includes having high credit score. Such offers feature instant approval, zero documentation, quicker disbursals.

Common Personal Loan Terms You Should Know

Common Terms Description
Annual Percentage Rate (APR) The APR is annualised cost of borrowing which includes not just the personal loan interest rate but the charges associated with the loan. The charges may include processing fees, verification charges, etc, levied during the loan application process. APR gives a more accurate comparison between loan offers.
Processing Fees A one-time, usually non-refundable fee charged by the lender to process your loan application.
Prepayment Penalty Penalties are charged for repaying the loan before the end of the repayment tenure. Some lenders allow partial or full prepayment after a payment of a specified number of EMIs. So it’s important to check these terms before borrowing.
Late Payment Fees A penalty is charged when you miss or delay your EMI payment beyond the due date. Regular late payments can negatively affect your credit score.
Cooling Off/Look Up Period Period within which you can cancel the loan without incurring any loan cancellation charges and other penalties, if any.
EMI-to-NMI Ratio The percentage of your net monthly income that goes towards paying existing EMIs and the proposed loan EMI. Lenders prefer it to be within 50-55%.

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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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.

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.

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.

Yes, you can get an instant personal loan online. However, it is subject to pre-approved offers based on your credit profile and other eligibility requirements. To check offers, you can either contact the banks/NBFS directly or you may check instant personal loan offers at Paisabazaar. Here, you can compare rates and charges across multiple lenders without a any impact on your credit score.

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.

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.

If your EMI bounces, the lender may charge penalty fees, EMI bounce charges, or cheque bounce charges. Additionally, the default can be reported to credit bureaus, which may negatively impact your credit score.

Personal loan insurance can provide financial security by covering your outstanding loan repayments in case of unforeseen circumstances like death, serious illness or disability. However, purchasing this insurance is not mandatory while availing personal loan. If your existing life insurance policy already offers adequate coverage for loan repayment, you may not need to purchase additional loan protection policies.

To get a personal loan from any financial institution, you would need to provide them with a legitimate income proof, comprising Bank Statement, Salary slips, Letter of Employment from employer etc. You would not be able to avail a personal loan from a Bank or NBFC without income proof. In case of a pre-approved loan, where the lender already has proof of your income, there may be no need to re-submit income proof.

Repo rate is the rate at which the RBI lends to Banks. It has a direct impact on the Bank’s lending rates. If repo rates go up, interest rates for personal loans are also likely to increase.

No, insurance for personal loans is not mandatory. The insurance, however, can protect you in case of unforeseen circumstances like death, disability or select circumstances that result in loss of income. Personal loan insurance provides coverage to manage EMIs during these difficult times. Usually, this insurance is provided by the lender’s partner only and cannot be taken separately. If you take insurance for a loan, the premium is usually added to your loan EMI.

No, personal loan or any kind of loan is not treated as your income, and is not taxable.

Some lenders use a multiplier method to calculate your eligibility, where your net monthly income (NMI) is multiplied by a pre-decided number (usually between 10 to 24) to calculate eligibility. If the number, for example is 15, then you may get upto Rs 4.5 lakh. But your existing debt also plays a big part in determining how much personal loan you can get. Do note, lenders prefer that the EMI to NMI should not be more than 50%-55%. So even if you have no debt, lenders would prefer to offer a loan amount and tenure that would keep your EMI around Rs 15,000 (for a salary of Rs 30,000).

With a CIBIL of 600, it would be very difficult to get a personal loan. Banks usually prefer offering personal loans to consumers with a CIBIL Score of 750 and above. Even with a score of over 700, you may have options. But at 600, you should opt for secured options like Gold Loan. Also, work on your score to ensure you have more options in future.

Yes, you can close your personal loan before the tenure of the loan ends. But you would need to pay pre-closure charges to the lender Bank or NBFC. Pre-closure charges vary lender to lender and is usually 2%-5% of the outstanding loan amount. Generally, the earlier you close your loan, higher the pre-closure charges. For instance, HDFC Bank charges 4% of the principal outstanding if you close the loan in the first 24 months, 3% of in case of 24-36 months and 2% if you close after paying 36 months of EMIs. Do note you also pay GST on the pre-closure charges.

Once you pay the pre-closure charges along with the full outstanding amount of the personal loan, ensure you get a no dues or loan closure certificate from the lender.

Paisabazaar.com offers personal loans through a fully digital process with minimal to no documentation, thereby facilitating maximum convenience and faster disbursals. For pre-approved offers, the loan amount can be credited on the same day of application – subject to the applicant’s credit profile.

Instant personal loans are usually pre-approved by lenders and offered to their select existing customers based on their credit profiles. Since the lender already holds the customer’s KYC details—such as proof of identity, address and income – no fresh documentation is usually required during loan processing.

Prospective borrowers can start by checking personal loan offers from banks or NBFCs where they already have deposit, loan, or credit card accounts. This is because most lenders offer preferential interest rates to their existing customers. Additionally, they can visit online financial marketplaces like Paisabazaar to compare personal loan rates and other loan features offered by various banks and NBFCs. Then, they should use the Personal Loan APR Calculator to compare the actual borrowing cost after factoring in the interest rates, processing fees, login fees, etc.

The primary objective of transferring personal loan to other lenders at lower interest rates is to generate savings in interest cost. However, some also transfer personal loans due to service issues or reduce their EMI burden by opting for longer tenure than the residual tenure of the original loan. Hence, the best bank for personal loan balance transfer would depend on the needs of the borrower. The best way to find the optimum personal loan balance transfer option is to visit online financial marketplaces like Paisabazaar and compare personal loan balance transfer options offered by multiple lenders.

Banks and NBFCs usually offer pre-approved personal loans to their select existing customers based on your credit profile. Such pre-approved loans are usually disbursed within a few seconds or minutes of making the loan application.

You can pay your personal loan EMIs by issuing Standard Instructions (SI)/ NACH/ECS mandate to your bank or by submitting post-dated cheques to your lender. Some lenders also require the employers to deduct the EMIs from their employee’s (borrower’s) salary.

Choosing the right tenure for your personal loan is crucial as it directly impacts your EMIs as well as the total interest cost of the loan. Note that your EMI decreases with the increase in the loan tenure and vice-versa whereas longer loan tenure results in higher total interest cost and vice-versa. Thus, opt for longer tenure only when you lack adequate repayment capacity after considering your monthly contributions for your unavoidable financial goals. Otherwise, opt for a shorter tenure.

Your chances of loan approval may vary from one lender to another based on the varying credit risk assessment of the applicants and the internal credit risk policies of the lenders. On rejection of your personal loan application, first approach banks/NBFCs with whom you maintain your deposits, loans and/or credit card accounts as many lenders prefer to lend personal loans to their existing customers. Then, visit online financial marketplaces to compare the personal loan offers from other lenders and then, apply for the loan accordingly.

Lenders offer personal loans to retired individuals in the form of pension loans. Just like personal loans, pension loan proceeds can be used for various personal financial needs like children’s marriage, home renovation, medical bills, etc. However, unlike personal loans, retirees can avail pension loans only from banks with which they maintain their pension accounts.

Yes, you can avail 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.

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.

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.

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.

Many lenders offer pre-approved personal loans with instant disbursals to their select existing customers having good credit profiles. Thus, consumers should first check for such pre-approved offers with banks and NBFCs with whom they have an existing banking relationship.

After checking for pre-approved offers, visit online financial marketplaces to compare personal loan offers from various banks and NBFCs offering quick disbursals, preferably within the same day of making the loan application.

Personal Loan EMI Calculator helps consumers determine the amount they will have to pay each month towards servicing their personal loans.

Using this online calculator, consumers can also quickly calculate the interest cost and total amount payable against various combinations of loan amounts, interest rates and loan tenures in no time.

The consumers can also determine the best possible tenure for their personal loans after considering their repayment capacity and plan their loan repayment better.

Consumers can check instant loan offers straight away from the respective mobile apps of the bank/NBFC with which they have/had a banking relationship. Here we have listed top 10 instant loan apps in India, which individuals can use to apply for instant personal loan online:

1. Paisabazaar App
2. HDFC Bank Loan Assist App
3. IDFC First Bank Limited
4.KreditBee
5. Money Tap
6. PaysSense
7. CASHe
8. YONO SBI
9. Open by Axis Bank App
10. SMFG India Credit InstaLoan App

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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5 Comments

Verified user posts about Personal Loan

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Nikita Semwal July 08, 2025

My experience with Paisabazaar is good👍🏻 user-friendly platform and helpful customer support.

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Anshula July 08, 2025

Applied for a personal loan…very easy process and quick approval…

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Lakhan singh July 01, 2025

Good

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What our customers say

Get instant loan

Great customer service taking personal loan from there

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Rohit Dec 6, 2024

Awesome Experience

Experience was very nice. I got the best interest rate over my lersonal loan, with the hassal free process. I strongly recommend paisabazaar for all the loans.

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Shagun GoswamiNov 29, 2024

Best Experience

At Paisabazaar, I &#x27;ve compared multiple options in just click and got best offer. Throughout the process it was best experience I got from the Team and got the amount in time.

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SourabhNov 29, 2024

Get Loan from paisa bazaar

Get Loan from paisa bazaar. Easy and fast process.

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MansiNov 27, 2024

Easy process

Applying for a personal loan via Paisabazaar was really very easy. The helpful team made the entire process very hassle free.

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Reena SharmaOct 24, 2024

Highly recommend

It was a smooth experience while getting loan from Paisabazaar.

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PoojaOct 24, 2024

Hassle Free Process

I applied for a personal loan via Paisabazaar. In no-time, Jatin from the PL team called me and assisted me He was very supportive

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MehrOct 17, 2024

Personal Loan

I took a personal loan from Paisabazaar. My overall experience was good. I received the loan amount on time.

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Shruti SharmaOct 17, 2024

Smooth &amp;Easy loan experience

I took a personal loan from Paisabazaar, and honestly, it was a smooth process. Their team was super helpful and cooperative, made everything easy.

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Mohit KumarOct 16, 2024

Got my free Credit Report

I wanted a free credit report so that I can know whether my loan will be approved or not. I got my credit score from CIBIL and experian. I got it for free and hopefully will get it every month from now on. Really liked the seamless experience.

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Sunny SharmaNov 24, 2023

Kudos

PRABHU. Y EMP ID( EW22000) I recently took a loan from Paisabazzar in Kotak Bank. One of the employees his name is Prabhu just helped me out of the box and made the transition smoother. He &#x27;s definitely a kind person and never hesitates to clarify my doubts and never said no to anything. This man &#x27;s works is really appreciatable. Kudos to his work and thanks for help in a timely manner.

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Ganapathy ManokaranJul 10, 2023

Good services for loans

I tried comparising the personal loan services at paisa bazaar and found it really very useful.

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Vijay ThakurFeb 28, 2022

Excellant Platform!

Got my HDFC Bank personal loan disbursed within 48 hours. Thanks Paisa!

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Ratan SoodJul 28, 2021

Satisfaction

This is best service provider company they know very well about sales and customer needs.. Employees is good productive they give the best solution to the customer.. I give 5stars to this company

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Vijay Kumar GautamJul 2, 2019

loan processing charges

Loan processing charges were waived off when I applied using online application.

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Awdhesh KumarMay 21, 2019

prepayment charges

There are no prepayment charges on my personal loan using floating interest rate.

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Siva PrasadMay 21, 2019
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Last updated: 9 July, 2025

Vandana Punj profile
Written ByLinkedIn icon
Vandana Punj
Shamik Ghosh profile
Reviewed ByLinkedIn icon
Shamik Ghosh

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