What factors affect personal loan interest rates and EMI?

Many things can affect the interest rate and EMI of your personal loan, some of which include credit score, monthly income, type of employment, amount of loan, repayment tenure, existing debt, and more.

Can I get instant approval for a personal loan?

Yes, some banks and NBFCs provide instant approval for a personal loan to eligible customers. In most cases, approval and disbursement can take place within a few hours depending upon the bank/NBFC's policy and verification process.

How do I check my eligibility for a personal loan?

You can check your personal loan eligibility online by giving basic details like your age, nature of employment, monthly income, city of residence, and other necessary details. Banks and NBFCs may consider your credit score and repayment ability before giving you eligible personal loan offers.

How much personal loan can I get?

Your personal loan amount depends on various factors, including your monthly income, repayment capacity, EMI, credit score, and other factors. At Paisabazaar, you can compare personal loans up to Rs. 50 Lakh based on your eligibility.

What is the minimum salary required for a personal loan?

There is no fixed minimum salary requirement as such, as this differs from one lender to another. The income requirement of the lenders may differ from city to city, the profile of the company you work for, and even from the loan amount that you apply for.

How much personal loan can I get on a Rs. 60,000 salary?

It's difficult to decide the loan amount on the basis of salary alone. Your EMIs, ability to repay, credit rating, job stability, and other factors come into consideration while the lenders decide how much loan amount you can get.

Can I apply for a personal loan if I already have an ongoing loan?

You can apply for another loan even if you're currently paying one off. Lenders are perfectly fine with this, provided your credit score is strong and your income can comfortably handle the extra financial weight.

Can I get a personal loan if I am self-employed?

Self employed individual scan get a personal loan, though the approval process looks a bit different since you don't have traditional monthly salary slips. Lenders will just want to see that your business has been stably operating and profitable for at least two to three years. To get approved, you'll just need to provide your recent income tax returns and clean bank statements to show a record of steady income.

What is the minimum CIBIL score required for a personal loan?

There is no set minimum CIBIL score requirement for a personal loan. This varies from one lender to another. But a good CIBIL score of 760 and above increases your chances of loan approval.

Is a 700 CIBIL score good for a personal loan?

Lenders prefer to give personal loans to consumers with a credit score of 760 and above. However, if you have a lower credit score, you can still get a personal loan from select banks or NBFCs, but at a higher interest rate.

How much personal loan can I get on a Rs. 30,000 salary?

The personal loan amount is not determined solely by the monthly salary. It depends on your overall profile, including repayment history, monthly income, existing debt, and more.

Does applying for multiple personal loans affect my CIBIL score?

Yes, applying for too many personal loans can negatively affect your CIBIL score because multiple hard inquiries will be made by the lender in your credit report.

Can I get a personal loan using only my PAN Card?

Some lenders might provide personal loans with minimum documents that could even include the PAN card alone; however, further documents might be needed based on the lenders and eligibility criteria.

What documents are required for a personal loan?

The common personal loan documents are identity proof, address proof, PAN card, proof of income, and bank statements. Salaried consumers would need to show their salary slips, whereas self-employed consumers will need to submit their ITRs/bank statements and business proofs.

Can I get a personal loan without a salary slip?

Yes. It is possible for you to apply for a personal loan without presenting salary slips in case you have other proof of income like bank statements, Form 16, or Income Tax Return (ITRs).

Which bank is best for a personal loan?

The right bank for you to approach depends on several criteria like interest rate, processing fee, loan amount, repayment period, and your overall eligibility. Therefore, instead of considering only the interest rates, compare all the loan offers available in the market.

Which bank offers the lowest interest rate on a personal loan?

If you apply for a loan from Paisabazaar now, the low interest rate is 9.99% per year. It is offered by Kotak Mahindra Bank.

What are the benefits of choosing an instant personal loan over a traditional personal loan?

Personal loan with instant disbursal provides a very fast and completely online application procedure. An approved applicant is guaranteed to receive his/her loan instantly, which makes it a great solution when one urgently needs money. Whereas a traditional personal loan has a longer process of verification and, sometimes, additional documentation is needed.

How can I get an instant personal loan?

You can consider instant personal loan options offered by select banks and NBFCs after assessing your eligibility online. After comparing the offers, filling out an online application form and submitting required documents, you can get an instant personal loan.

How can I calculate my personal loan EMI?

Your personal loan EMI can be calculated through the Paisabazaar EMI calculator available online. All you need to provide is the loan amount, interest rate, and tenure.

Can I change my EMI schedule?

Yes. You can change your EMI payment date even after taking a loan from them. But all lenders may not provide this facility for all loan schemes. You can ask your financial institution for better clarity.

How can I close my personal loan early?

You can repay your personal loan earlier than its tenure by making payments under the pre-payment or foreclosure option, depending upon the policy of your lender.

How can I settle a personal loan?

If you find yourself in a position where you cannot make the repayment of your personal loan due to financial problems, you can apply for a loan settlement with your lender. In case of loan settlement, the lender accepts a lower sum as the final repayment. But loan settlement should be considered only as a last resort as it has the potential to damage your credit score.

Are there any additional charges applicable for personal loan pre-closure?

Yes, many lenders charge a foreclosure or prepayment fee on the closure of personal loans before the expiry of the loan tenure period. These charges vary from bank to bank.

What happens if I miss my personal loan EMI once?

Missing even one EMI of your personal loan means that you will have to pay late payment charges and may also affect your credit score. Missing your EMI can affect your eligibility for availing future loans as well.

Why was my personal loan application rejected?

There could be various reasons why your personal loan application gets rejected, such as a bad credit score, lower income, too much debt already, unstable employment, and not meeting the eligibility criteria of the bank. Giving incorrect or incomplete information in your loan application could also lead to rejection of your loan application.

What is the minimum and maximum loan amount available through Paisabazaar?

You can get a personal loan of as low as Rs. 10,000 and a maximum loan amount of Rs. 50 lakh. The final approval depends on your eligibility and the lender’s policies.

Where can I check my personal loan status?

If you have already applied for a personal loan through Paisabazaar, you can check your application status in your Paisabazaar account or with customer care. Also, you can check it directly on the lender's website and mobile app.

Can I transfer my personal loan to another bank?

Yes, you may consider applying for a personal loan balance transfer, which allows you to switch to another bank or NBFC that offers lower interest rates and better repayment terms. Also, some banks offer a top-up loan as well along with a loan balance transfer.

Where can I get my no-dues certificate?

The no-dues certificate is provided by the lender once you have paid off the total loan amount and settled all your dues. You may either request it from the lender's branch office, customer care, website, or mobile app.

Personal Loan

Compare personal loan offers from 30+ top banks and leading NBFCs and apply for the best personal loan on Paisabazaar. Avail loans of up to 50 Lakh at an interest rate starting from 9.99% p.a. Check personal loan eligibility online, compare & apply for the most suited personal loan with minimal documentation through a quick and seamless online application process.

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Instant Personal Loan Online: Paisabazaar

A personal loan is a type of unsecured loan that helps you meet your financial needs for various purposes. It can help you cover expenses for medical emergencies, marriage, home renovation, travel, higher education, and more. You can repay the borrowed amount in easy monthly instalments as per your preferred tenure.

Whether you're salaried or self-employed, Paisabazaar helps you compare personal loan options, including instant personal loans, based on your eligibility and credit profile. If you need funds urgently, you can also explore instant personal loan options offered by select banks and NBFCs.

Explore personal loan offers of up to Rs. 50 Lakh from 30+ leading banks and NBFCs on Paisabazaar. You can choose from repayment tenures of up to 84 months. The interest rates start at 9.99% p.a. Compare & apply for a personal loan from top banks and NBFCs below to check interest rates, processing fees, maximum loan amount, and processing time, all in one place before applying.

Calculate Your Personal Loan EMI

Select Your Bank

Enter Loan Amount

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5K1Cr

Rate of Interest (Yearly %)

8%30%

Loan Tenure

1Y 7Y

Your Monthly EMI Payment

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Principal Amount₹0

Interest Amount₹0

Total Amount₹0

How is Personal Loan EMI Calculated?

A personal loan EMI depends on three key factors - loan amount, applicable interest rate, and repayment tenure. While Paisabazaar’s Personal Loan EMI Calculator gives you instant results, it is important to understand how it is calculated.

Personal Loan EMI Formula & Calculation

The EMI (Equated Monthly Instalment) for a personal loan is calculated using the reducing balance method. The standard formula used by banks and NBFCs is:

EMI = [P × R × (1 + R)^N] ÷ [(1 + R)^N − 1]

Where:

P = Principal loan amount

R = Monthly interest rate (Annual Interest Rate ÷ 12 ÷ 100)

N = Loan tenure in months

Example: Personal Loan EMI Calculation

Suppose you take a personal loan of Rs. 10 Lakh at an interest rate of 12% p.a. for a repayment tenure of 4 years. The EMI calculation is as follows:

Loan Amount: Rs. 10 Lakh
Annual Interest Rate: 12% p.a.
Loan Tenure: 4 years = 48 months
Monthly Interest Rate: (12 ÷ 12) ÷ 100 = 0.01 (1%)
EMI: [10,00,000 x 0.01 x (1.01)^48] / [(1.01)^48 - 1] = Rs. 26,334
Total Repayment: Rs. 26,334 × 48 = Rs. 12,64,032
Total Interest Payable: Rs. 12,64,032 − Rs. 10,00,000 = Rs. 2,64,032

Personal Loan EMI Reference Table

The table below shows the monthly EMIs for different loan amounts, interest rates, and repayment tenures.

Loan Amount	10% p.a. (3 Years)	12% p.a. (4 Years)	15% p.a. (5 Years)
Rs. 2,00,000	Rs. 6,453	Rs. 5,267	Rs. 4,758
Rs. 5,00,000	Rs. 16,133	Rs. 13,167	Rs. 11,895
Rs. 10,00,000	Rs. 32,267	Rs. 26,334	Rs. 23,790
Rs. 20,00,000	Rs. 64,534	Rs. 52,668	Rs. 47,580

Note: The above EMIs are indicative and may vary depending on the lender's applicable interest rate, loan tenure, and other loan terms.

Compare Personal Loan Offers from India's Top Banks & NBFCs

Personal loan interest rates start from 9.99% p.a. on Paisabazaar. Here is a comparison of personal loan offers from India's top banks and NBFCs to help you choose the right loan based on interest rates, loan amount, and other key features.

Bank / NBFC	Interest Rate (p.a.)	Max Loan Amount	Max Tenure	Processing Fee
Axis Bank Personal Loan	9.99% onwards	Rs. 40 lakh	84 months	Up to 2%
Bajaj Finance Personal Loan	10.00% - 30.00%	Rs. 55 lakh	108 months	Up to 3.93%
Federal Bank Personal Loan	12.00% - 22.50%	Rs. 25 lakh	60 months	Up to 2%
HDFC Bank Personal Loan	9.99% onwards	Rs. 50 lakh	84 months	Up to Rs. 6,500
ICICI Bank Personal Loan	9.99% onwards	Rs. 50 lakh	72 months	Up to 2%
IDFC FIRST Bank Personal Loan	9.99% onwards	Rs. 15 lakh	60 months	Up to 2%
IndusInd Bank Personal Loan	10.35% onwards	Rs. 5 lakh	48 months	Up to 3.5% (2% for instant loans – limited period)
Kotak Mahindra Personal Loan	9.99% onwards	Rs. 1 crore	72 months	Up to 5%
Moneyview Personal Loan	14.00% onwards	Rs. 10 lakh	60 months	2% onwards
Tata Capital Personal Loan	10.99% onwards	Rs. 35 lakh	72 months	Up to 3.5%

Note: Rates are indicative and subject to change. Final rate offered depends on your credit profile. Last updated: 17th July 2026

Key Features & Benefits of Personal Loans

Here are some of the key features and benefits of personal loans:

Feature	Benefit
No Collateral Required	Personal loans are unsecured, so you don't have to provide any collateral to avail the loan.
Flexible Loan Amount	Depending on your eligibility and the lender's policy, you can avail a loan amount of up to Rs. 50 Lakh.
Flexible Repayment Tenure	You can select the number of months that suit you, up to 84 months, to repay your personal loan.
Quick Approval & Disbursal	Eligible applicants may receive loan approval and disbursal within a few hours, subject to the lender's verification process.
100% Digital Application	You can compare offers, check eligibility, and even apply for a personal loan online without visiting a bank branch.
Fixed Monthly EMIs	You can repay the loan through fixed monthly instalments, making it easier to plan your finances throughout the loan tenure.
Balance Transfer & Top-up Facility	Some lenders allow you to transfer your existing personal loan to another lender at better terms or avail an additional top-up loan.

Avail Personal Loan for
All Your Needs

Instant Personal Loan: How It Works

An instant personal loan is an unsecured personal loan that is issued much quicker than other loans, with the complete digitalisation of the application process. As per the lender's criteria and your eligibility, the process can be completed in a few hours. An instant personal loan is typically borrowed for an urgent need for cash, such as a medical situation, house repair, or any other sudden expenditure.

Instant Personal Loan vs Regular Personal Loan

Feature	Instant Personal Loan	Regular Personal Loan
Application Process	Fully digital	Online or through a bank/NBFC branch
Approval Time	Within minutes to a few hours, subject to eligibility and the lender's policies	Usually takes longer, depending on the lender's verification process
Documentation	Minimal or digital documentation	May require additional documentation
Disbursal	Usually within a few hours after approval, subject to the lender's policies	May take a few working days after approval, subject to the lender's policies
Best Suited For	Urgent financial requirements	Planned financial needs

Instant Personal Loan Options by Loan Amount

Depending on your eligibility and the lender's policies, select banks and NBFCs may offer instant personal loans. You can explore instant personal loan options by loan amount below:

Instant Personal Loan Amount
Rs. 5,000 Personal Loan	Rs. 10,000 Personal Loan
Rs. 20,000 Personal Loan	Rs. 50,000 Personal Loan

Types of Personal Loans

Lenders offer different types of personal loans for varying financial needs. Given below are some common types of personal loans offered according to your financial needs:

Short-Term Personal Loan (STPL)

A Short-Term Personal Loan is basically for short-term financial needs, with repayment periods ranging from a couple of months to a few years, depending on the lender.
Such loans are considered to be beneficial for meeting short-term expenses like medical bills.
Since the repayment tenure is short, the interest payout is lower compared to long-term loans; however, the monthly instalments (EMI) would be relatively higher.

Pre-approved Personal Loan

A Pre-approved Personal Loan is extended to select customers of banks and NBFCs.
Such loans are sanctioned considering the applicants’ credit profile, income, repayment behaviour, and relationship with the lender.
Since the lender already knows the customer’s credit behaviour, pre-approved loans come with minimal documentation and faster processing.

Flexi Personal Loan

A Flexi Personal Loan offers comparatively more flexibility in borrowing and repayment.
Instead of receiving the entire sanctioned loan amount at once, you can withdraw funds as and when required within the approved limit, depending on the lender's terms.
You pay interest only on the amount you use, making it a suitable option if you need funds from time to time.

Top-up Personal Loan

A Top-up Personal Loan allows you to borrow an additional amount over and above the current loan. It is generally offered to borrowers with a good repayment track record and can be used for any personal financial requirement.
Since the lender already has your loan history, the approval process may be quicker than applying for a new personal loan.
The final approval, however, depends on the lender's eligibility criteria.

Personal Loan Balance Transfer

A Personal Loan Balance Transfer lets you transfer your existing personal loan from one lender to another, usually to get benefits of a lower interest rate, reduced EMIs, better repayment terms, etc., or avail an additional loan amount through a top-up loan.
Before opting for a balance transfer, compare the overall savings with the applicable processing fees and other charges to make an informed decision.

Personal Loan Eligibility & Documentation

It is important to check if you meet the lender's eligibility criteria while applying for a personal loan and also keep the documents handy for quick approval.

Personal Loan Eligibility Criteria

The eligibility criteria for a personal loan may vary depending on the lender. However, the basic personal loan eligibility criteria are as follows:

Age: 21 to 65 years (may vary depending on the lender)
Monthly Salary: At least Rs. 15,000 for salaried applicants
Annual Income: At least Rs. 5 Lakh p.a. for self-employed applicants
Credit Score: Preferably 760 or above, as a higher credit score improves the chances of loan approval
Employment Stability: Usually at least 1 year of work experience, though some lenders may require a longer employment history
Business Continuity: Usually at least 3 years of business continuity, though some lenders may require a longer track record
Employment Type: Salaried employees working with reputed organisations, MNCs, private and public limited companies, government organisations, PSUs, and large enterprises

Note: Eligibility criteria vary from one lender to another. Meeting the basic eligibility requirements does not guarantee loan approval.

Documents Required for a Personal Loan

The documents required for a personal loan may vary depending on the lender and the applicant's profile. However, most lenders generally ask for the following documents:

Requirements	Salaried Individuals	Self Employed
Proof of Identity	Passport, Voter’s ID, Driving License, Aadhaar Card or PAN Card	Passport, Voter’s ID, Driving License, Aadhaar Card or PAN Card
Proof of Residence	Aadhaar Card, Passport or utility bills	Aadhaar Card, Passport or utility bills
Proof of Income	Salary Slips, Bank Account Statement, Form 16	Previous Years’ ITR, P&L Statement and Balance Sheet, Bank Account Statement

Minimum CIBIL Score Required for a Personal Loan

There is no fixed minimum CIBIL score needed to take a personal loan, as each bank or NBFC has different eligibility criteria. But maintaining a CIBIL score of 760 and above increases the chances of loan approval at comparatively better loan terms.

If your CIBIL score is lower, you may still be eligible for a personal loan, particularly from some NBFCs, but at a comparatively higher interest rate. The table below shows how different CIBIL score ranges can affect your chances of getting a personal loan:

CIBIL Score Range	Loan Approval Chances	Scenario
760 – 900	Very High	Best offers available, including pre-approved offers
700 – 759	High	Most lenders will approve, but best offers may not be available
650 – 699	Low	Some lenders may approve at higher rates and stricter terms
600 – 649	Very Low	Limited options, very high interest rates and stricter terms
Below 600	Difficult	Almost all lenders would reject. Need to rebuild credit profile.

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

Tip: Check your FREE CIBIL score on the Paisabazaar website before applying for a personal loan online

Personal Loan Fees & Charges

Apart from the personal loan interest rate, banks and NBFCs may levy various fees and charges on a personal loan. While the applicable charges vary across lenders, some of the common personal loan charges include:

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

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

Hidden Charges to Watch Out For

Before applying for a personal loan, it is important to read the applicable terms and conditions carefully. Apart from the interest rate, other charges can increase the total cost of your loan. Some of the charges that are likely to apply when getting a personal loan include:

Processing fees
Foreclosure or prepayment charges
Part-payment charges
Late payment penalties
Penal interest on overdue EMIs
EMI bounce charges
GST and other applicable taxes

Note: Checking these charges in advance can help you compare loan offers more effectively and avoid unexpected costs later.

Why Apply for a Personal Loan Through Paisabazaar?

Applying for personal loans at Paisabazaar is convenient and can help you get the loan at the lowest cost of credit. Here’s why you should apply for a personal loan through Paisabazaar:

Offers from 30+ Lenders: Compare personal loan offers from 30+ leading banks and NBFCs on a single platform.
Highest Chances of Approval: Offers ranked based on the highest to lowest approval chances as per your eligibility.
Interest Rates Starting from 9.99% p.a.: Explore competitive interest rates offered by multiple lenders.
Loan Amount up to Rs. 50 Lakh: Choose from loan offers with amounts of up to Rs. 50 Lakh, subject to the lender's eligibility criteria.
Flexible Repayment Tenure: Select a repayment tenure of up to 84 months based on your financial requirements.
Cashback up to Rs. 1,000: Avail a personal loan of Rs. 1 Lakh or more through Paisabazaar and get a cashback of up to Rs. 1,000.
Check Your Eligibility: Check your eligibility before applying and compare offers suited to your credit profile to get the personal loan at the lowest cost of credit.
100% Online Application: Apply for a personal loan online through a simple and hassle-free digital process.
Expert Assistance: Support from our loan experts throughout the loan approval and disbursal process.

How to Apply for a Personal Loan Online via Paisabazaar

You can compare multiple personal loan offers, check your eligibility, and apply for the most suitable option through the Paisabazaar website or mobile app.

How to Apply for a Personal Loan Online via Paisabazaar Website

Visit the official website of Paisabazaar, i.e., www.Paisabazaar.com.
Log in or sign up using your mobile number and verify it with an OTP.
Go to the Personal Loan category on the site.
Fill in the required details such as your employment type, monthly income, city of residence, and others.
Eligibility and various personal loan offers from banks and NBFCs can be checked.
Choose the best loan offer that fits your needs.
Complete the online application and upload the required documents, if required.
The lender will verify your details and, upon successful verification & approval, disburse the loan amount to your registered bank account.

How to Apply for a Personal Loan Online via Paisabazaar App

Download the Paisabazaar Loan App from Google Play Store or Apple App Store (only for the first time)
Log in or register using your mobile number and verify it by entering the OTP sent to your registered mobile number.
Navigate to the 'Personal Loan' section and fill in the necessary personal, professional, and income-related information.
Check your eligibility and compare different personal loans from various banks or NBFCs.
Select the most appropriate loan offer based on your requirements.
Submit the application and, if required, upload necessary documents.
Post successful verification and approval of your application, your loan will be disbursed into your bank account.

How to Choose the Best Personal Loan

Here are some important factors to consider when choosing the best personal loan offer:

Check Your Eligibility: Before applying, evaluate the eligibility criteria such as age, income, job stability, and minimum CIBIL score required by the lender to improve your chances of loan approval.
Check the Loan Amount Offered: The financial liability must be aligned with your income, lifestyle, and repayment capacity. Hence, you should borrow only up to the required amount and avoid taking a larger amount than needed.
Check Interest Rates: Opt for a personal loan offer with a lower rate of interest to reduce the total cost of borrowing. Also, compare the interest rates provided by different banks and NBFCs while considering the personal loan.
Select a Suitable Repayment Tenure: A longer tenure reduces your monthly EMI, but the overall interest payable would be higher, whereas a shorter tenure comes with higher monthly EMI but minimal overall interest. Therefore, select a tenure that matches your repayment capacity.
Review Fees & Charges: Along with a lower rate of interest, compare the processing fees, foreclosure charges, pre-payment penalties, late payment fees, and any other additional charges applicable before finalizing the loan offer to get the lowest APR (Annual Percentage Rate).
Compare Multiple Loan Offers: Evaluate multiple loan offers from different banks and NBFCs to find the best fit as per financial needs and repayment capacity.
Read the Loan Terms Carefully: It is mandatory to thoroughly understand and evaluate the terms and conditions of the loan offer, repayment schedule, foreclosure options, and other important details before signing the personal loan agreement.

To analyse your borrowing capabilities better, you should use the Personal Loan Eligibility Calculator and understand your eligibility for the loan amount, optimum tenure, and a suitable EMI.

Pros & Cons of Personal Loans

Here are some of the advantages and limitations of personal loans to help you decide if and when you should get one:

Pros	Cons
No collateral is required to avail a personal loan, as it is an unsecured loan	Personal loans are offered at a comparatively higher interest rate
The loan amount that you receive can be used for different purposes like medical emergencies, weddings, traveling, home improvement, etc., except for speculative purposes	Lenders usually charge fees related to processing, foreclosure, late payments, or others
Eligible applicants can get quick approval and disbursal of a personal loan	Delayed or missed repayments can cost a lot and also negatively impact your credit score
You can choose a repayment tenure based on your financial needs and repayment capacity	Borrowing more than required can increase your debt burden and overall repayment cost

Common Mistakes to Avoid When Taking a Personal Loan

While applying for a personal loan, here are some common mistakes that you should avoid:

Avoid taking a higher loan amount than the actual requirement. Taking a larger loan than the actual requirement increases your EMI and the total interest payable.
Do not apply for the first loan offer that comes your way. You should always compare multiple offers and choose the one that best suits your financial needs and repayment capability.
Apart from the interest rate, also consider other fees and charges like processing fee, pre-payment penalty, late payment charges, and more before finalizing the loan.
Compare loan offers based on the APR (Annual Percentage Rate) and not only on the interest rate to get the most economical loan option.
Try to choose an affordable EMI amount that fits in with your monthly budget. It is better to pay back a smaller amount rather than defaulting on the payments.
Applying for multiple personal loans at the same time can damage your credit score. It will make you look credit-hungry to the lenders, which may lower your chances of loan approval.
Read the terms and conditions carefully before signing any document related to the personal loan.
Have a deep understanding of the repayment tenure, foreclosure charges, and other important details.

Why Personal Loan Applications Get Rejected

A personal loan can get rejected even if you meet all the eligibility criteria on the lender’s end. Some of the common reasons for personal loan rejection are:

Low Credit Score: A low credit score reduces your chances of loan approval.
Low or Unstable Income: Lenders assess your income and repayment capacity before approving a loan. Therefore, low or irregular income may result in rejection.
High Existing Debt: If a significant portion of your income (55% or higher DTI) already goes into paying EMI, then lenders may not approve your personal loan application.
Frequent Loan Applications: Applying for multiple loans within a short period makes you look credit-hungry, which reduces your chances of loan approval.
Incomplete Documentation: If you miss out on providing the required documents, or there are errors in the proof you submitted, the lender may reject your loan application.

RBI Guidelines for Personal Loans

The Reserve Bank of India regulates banks and NBFCs offering personal loans to ensure these lenders adhere to specific guidelines and offer protection to the borrowers. Some of the key RBI guidelines for personal loans include:

Key Fact Statement (KFS): Any lender offering personal loans has to provide a Key Fact Statement that will disclose the fine print of the loan agreement, including the interest rate, APR, loan amount, tenure, monthly instalment amount, and other charges.

Transparent Fees & Charges: The lender has to disclose all fees and charges upfront and cannot levy any hidden charges.

Consent for Data Use: The lender needs the borrower’s consent to use their personal data.

Direct Disbursement to the Borrower’s Account: The sanctioned loan amount has to be disbursed directly to the borrower’s bank account.

Recovery and Collection Guidelines: The lenders and recovery agents have to follow the recovery and collection guidelines and cannot harass borrowers to recover the outstanding amount.

Grievance Redressal Mechanism: Lenders need to have a proper grievance redressal system to address the complaints from borrowers.

Want to know more? Read our detailed guide on RBI Guidelines for Personal Loans

Personal Loans for Every Financial Need

The table below highlights some of the common purposes for which personal loans are availed, along with the typical loan amount required:

Purpose	Best For	Typical Amount
Personal Loan for Wedding	Marriage expenses, catering, venue	Rs. 2L – Rs. 25L
Personal Loan for Medical	Hospital bills, surgery, treatment	Rs. 50K – Rs. 20L
Travel Loan	Domestic or international trips	Rs. 50K – Rs. 5L
Loan for Home Renovation	Interior work, repairs, furnishing	Rs. 1L – Rs. 25L
Personal Loan for Education	Short courses, certifications, exams	Rs. 50K – Rs. 5L
Debt Consolidation Loan	Pay off multiple debts at lower rate	Rs. 1L – Rs. 20L

Explore Personal Loans by Loan Amount

Whether you need a small loan or a higher loan amount, you can choose from personal loan options across different loan amounts based on your financial requirements. Explore the options below:

Personal Loan Amount
Rs. 1 Lakh Personal Loan	Rs. 5 Lakh Personal Loan
Rs. 10 Lakh Personal Loan	Rs. 20 Lakh Personal Loan
Rs. 40 Lakh Personal Loan	Rs. 50 Lakh Personal Loan

Explore Personal Loans by Salary

Your monthly income plays an important role in determining your personal loan eligibility and the maximum loan amount you can avail. Most lenders prefer applicants to maintain a debt-to-income ratio up to 55%, including the EMI of the proposed loan. Lenders assess your income along with your credit profile and repayment capacity before approving a loan. You can explore salary-wise personal loan options below to find loans as per your monthly salary:

Personal Loan for 25000 Salary	Personal Loan for 30000 Salary
Personal Loan for 50000 Salary	Personal Loan for 60000 Salary
Personal Loan for 80000 Salary	Personal Loan for 100000 Salary

Explore Personal Loans by City

Paisabazaar offers personal loans to eligible borrowers across multiple cities in India, including all metro, Tier-I, Tier-II and Tier-III cities. You can explore personal loan options in your city and compare offers from multiple banks and NBFCs to find a loan that best suits your financial requirements:

Personal Loan in Delhi	Personal Loan in Hyderabad
Personal Loan in Bangalore	Personal Loan in Chennai
Personal Loan in Kolkata	Personal Loan in Mumbai

Paisabazaar Consumer Insights Report

Paisabazaar’s consumer insights report, “The Personal Loan Story” revealed key insights on how and why Indians choose personal loans. Based on a survey of 2,889 borrowers across 23 cities, the report revealed that while 48% borrowed for essential requirements, 36% borrowed to fund aspirations, and 16% for business investments. Additionally, Tier 3 borrowers are 2.4x more likely to borrow for daily needs than Tier 1 borrowers.

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

Publication	Article Title	Published On
Mid Day	How personal loans in India have evolved beyond emergency needs	27-May-26
Times of India	Are healthcare costs driving India’s personal loan boom? Paisabazaar study explains	22-Jan-26
Times of India	Personal loans for festive spending: How speedy disbursal, ease of digital processes are driving borrowing trends - survey reveals	11-Nov-25
Live Mint	Around 27 percent people take personal loan for travel, says report	06-Aug-25

Customer Reviews & Success Stories

Priya Shukla - For Medical Emergency

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 an instant reply from the customer executive. They guided me through the entire loan process and 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 a 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.

Why Choose Paisabazaar?

Compare & Choose the Best Offer

Pre-approved Offers with Instant Disbursals

Know Your Chances of Approval

End-to-End Digital Process

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FAQs

What is a personal loan?

A personal loan is an unsecured loan offered without collateral. The funds obtained through the personal loan can be used for various purposes, such as medical expenses, marriage expenses, travel, and home improvements.

How does a personal loan work?

When applying for a personal loan, the lender assesses your eligibility according to your income, credit score, occupation, and ability to repay the loan. After getting your loan approved, the money is transferred into your bank account. Then, you will pay back the loan in the form of fixed monthly EMIs within the chosen tenure of the loan.

What can a personal loan be used for?

Personal loans can be used for most personal financial needs, as there are usually no restrictions on their use. The funds received can be spent on marriages, medical emergencies, house renovation, vacation, further education, debt repayment, and so on. It is worth mentioning here that these funds cannot be used for illegal or speculative purposes such as betting, stock markets, etc.

Where can I get a personal loan?

On Paisabazaar, you can compare personal loan offers from 30+ leading banks and NBFCs and apply online for the most suitable loan offer. One can also get a personal loan either from banks or from non-banking financial companies (NBFCs).

Can I get a fixed rate personal loan?

Yes. Personal loans offered by most banks in India are fixed-interest rate loans. This means that your EMI will remain constant during the loan period. However, the interest rate that will be offered to you is based on your eligibility and the bank's policies.

Is a personal loan taxable?

No. A personal loan is not counted as your income and thus is not taxable. However, if you have taken this loan for any particular purpose, like buying or constructing a home or for any other commercial activities, you can avail tax benefits provided certain conditions are met.

Is insurance mandatory for personal loans?

No. Insurance for personal loans is not mandatory. However, there are some banks that might give you loan protection insurance. This loan protection insurance will cover you against certain unforeseen events like death or disability to pay off your remaining loan.

What is the interest rate on a personal loan?

There is no fixed interest rate, as it varies from one lender to another. Besides this, it also depends on your credit profile. However, by comparing multiple lenders on platforms like Paisabazaar, qualified applicants can get a personal loan at competitive interest rates starting from 9.98% per annum.

Can I negotiate the interest rate on my personal loan?

It is certainly possible to discuss the terms of the loan agreement regarding lowering the interest rate. Lenders usually offer this privilege if you maintain a high credit score and a low debt-to-income ratio.

How long does it take to get a personal loan approved?

It depends on the lender. In the case of instant personal loans, it takes just a few hours, while in the case of regular personal loans, it could take one to several days to get the application approved.

Personal Loan Guides & Videos

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We have been recognised at several prestigious forums for our consumer-focused innovations over the last decade.

2024

Bharat Fintech Award for Best fintech Lender

2022

India FinTech Award for Best Fintech Consumer Lender

2021

Fintech Innovation Expo award for Best Digital Lender

2021

Gold for Excellence in Consumer Lending at India Digital Awards

Personal Loan Articles

What Happens to Your Personal Loan If You Lose Your Job? Complete Guide

Sushmita Mishra16 Jul 2026

Personal Loan for Travel: Smart Way to Fund Your Vacation or a Debt Trap?

Sushmita Mishra09 Jul 2026

Personal Loan Top-Up: When Does It Make Sense to Apply?

Sushmita Mishra06 Jul 2026

Can a Co-Applicant Help You Get a Better Personal Loan Deal?

Anubhuti Agrawal22 Jun 2026

Personal Loan Interest Rate Trends in India

Anubhuti Agrawal18 Jun 2026

How RBI’s Lending Guidelines Protect Personal Loan Borrowers

Anubhuti Agrawal04 Jun 2026

How to Use a Personal Loan to Build Credit from Scratch

Anubhuti Agrawal22 May 2026

Personal Loan for Gig Workers & Freelancers: How to Qualify in 2026

Anubhuti Agrawal05 May 2026

How Personal Loan Works in India

Anubhuti Agrawal30 Apr 2026

Importance of No Dues Certificate in Personal Loan Closure

Paisabazaar02 Feb 2026

View All Articles

What our customers say

Get My Personal loan disbursed

I would like to give a huge shoutout to Munni Nayak from Paisabazaar for her incredible support in helping me get my personal loan disbursed within just a few days. She was extremely cooperative throughout the entire process and demonstrated great knowledge by explaining every step in detail with patience and clarity. I truly appreciate her dedication, professionalism, and the smooth experience she provided. Thank you so much, Munni, for all your help and support!

Preeti BhattMay 16, 2026

Smooth & hassle-free loan approval experience

I want to express my gratitude for your exceptional support & guidance throughout my loan application process to Aman (EW17239). Your professionalism & clear communication made the journey smooth and manageable. I appreciate how you helped during loan approval & fast-tracked the documentation. It is rare to find someone so committed to their clients. I truly value the effort you put into ensuring a successful outcome. Thanks again for your invaluable help.

Sanjay Kumar GuptaMar 30, 2026

Exceptional guidance throughout the process

I’d like to express my sincere appreciation for Mr. Aman Kumar (EW32023) for the excellent assistance provided. His professionalism & willingness to help made the experience smooth & pleasant. Aman Kumar demonstrated patience & clarity while addressing queries and ensured that everything was handled efficiently. Such dedication & customer-focused service truly deserve recognition. Please convey my thanks and appreciation to him for his outstanding support.

Jyotirmoy SinghaMar 23, 2026

Very helpful and easy to reach

I really wants to appreciate Mohankumar Dhandapani for closing my loan requirement in such a short time and nice manner. He is very much approachable helped me based on my requirements. He explained me all the options in very short time even one option failed immediately helped me to get other options worked. Excellent job done by Mohankumar Dhandapani all the best keep you same way approachable you will get more customers. Thanks to Paisabazar too.

Kirubagaran GanesanFeb 24, 2026

Reliable help when i needed it most

I am writing this email to express my sincere thanks for your excellent support and guidance on Paisabazaar. My experience was very smooth and satisfying because of your help. You explained everything clearly and made the whole process easy and comfortable for me. I truly appreciate your professionalism, patience, and quick response. I am very happy with the service and would definitely recommend to others because of the great support I received from you. Thank you once again

DharmeshFeb 22, 2026

Committed support that made everything easy

I’d like to appreciate the Paisabazar team for the excellent loan service. I especially want to recognize one of your agents, Mr. Prince Kumar, for his outstanding support. For more than a month, he continuously followed up with me and assisted me. His commitment & professionalism made the experience smooth & hassle-free. I appreciate his efforts and dedication. Kindly acknowledge his performance and consider rewarding such a sincere employee.

BhupendraFeb 18, 2026

My Trust in Paisabazaar has Increased

I would like to take a moment to share my sincere feedback regarding the support I received from your team. The executive who assisted me was extremely professional, polite, and knowledgeable. They patiently understood my concern, explained the process clearly, and guided me step by step toward the right solution. I truly appreciate the transparency, timely responses, and genuine effort shown to help me.

Lalit MaviFeb 12, 2026

Best Place for Taking Loans

I contacted customer care with a few queries, and I am very satisfied with the support I received. The representative was polite, patient, and explained everything clearly. My questions were resolved properly, and the overall experience was smooth and helpful. Thank you for the excellent customer service

Kokil BarnwalFeb 12, 2026

Easy loan approval with good guidance

Thank you for the support provided for getting personal loan approval. During this process I worked with Mr. Aman Bajpai (EW17239) who was co-ordinator for this entire process of Personal loan, I was incredibly impressed by his efficiency and problem-solving skills. He went out of their way to ensure all my questions were answered and that the disbursement timeline stayed on track. His coordination was really appreciable.

Riyaj AtarFeb 9, 2026

Apne higher education ke liye loan liya tha

Muhje higher education ke liye loan chahiye tha. Paisabazaar pe apply kiya. Got it at the right time. Quite helpful.

Puja DanuJan 22, 2026

View All Testimonials

Paisabazaar is a loan aggregator and is authorized to provide services on behalf of its partners.

The APR (Annual Percentage Rate) of a personal loan is its annualised cost of borrowing, which includes the interest rate as well as the processing fees, documentation fees and other fees charged during the loan origination. The APR is expressed in the form of a percentage and thus, allows personal loan applicants to detect personal loan schemes offered at lower interest rates but with higher processing fees and/or other charges.

The APR of personal loans usually ranges between 11.29% to 35%. For example, assume that you have availed a personal loan of Rs. 5 lakhs @ 10.50% p.a. with a repayment tenure of 5 years. The processing fee charged for this loan is 1.5% of the loan amount, which amounts to Rs 7,500. Therefore, the total borrowing cost of your personal loan will be Rs 1,52,317 and its APR will be 11.16%.

Address: Paisabazaar Marketing & Consulting Pvt. Ltd. 135 P, Sector 44, Gurugram (HR) 122001

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