Personal Loan
Complete professional guide to personal loans — requirements, documentation, application process & smart borrowing tips
Smart Personal Loan Tips
Expert Advice: Personal loans are unsecured and usually costlier than secured credit. Compare offers, keep EMIs affordable, and repay on time to protect your credit score.
Understanding Personal Loans
A personal loan is an unsecured financial product that gives quick funds for any legitimate personal need — medical, travel, debt-consolidation, etc.
Key Features
- No Collateral: No asset pledge required
- Quick Processing: Most disburse within 24-48 h
- Flexible Usage: Spend for any personal purpose
- Fixed EMIs: Easy monthly budgeting
- Tenure Choice: 12 to 60 months
Why Personal Loans?
Ideal for immediate funds without the paperwork of secured loans. Perfect for high-cost emergencies or consolidating expensive credit-card debt.
Personal Loan Requirements
Meet these basic criteria to boost approval odds:
Age & Citizenship
- 21 – 58/65 yrs (lender specific)
- Indian citizen / eligible NRI
- Valid ID & age proof
Income & Employment
- Salaried: ₹12k – ₹40k / month
- Minimum 3 months in current job
- Total work-experience: 3 months+
- Self-employed: ₹2–3 L annual ITR
- Bank-statement: 6–12 months bank statement with salary credit if monthly
Credit Score & Health
- Preferred score 650 +
- No recent defaults/settlements
- EMI-to-income < 50 %
Documentation
Keep these handy for a smooth journey:
ID & Address
- PAN & Aadhaar
- Passport / DL / Voter ID
- Latest utility bill or bank statement
Income Proof
- Latest 3 salary slips
- 6–12 m bank statement
- Form-16 / ITR 2 yrs
- Business GST/ITR (self-emp.)
Other Docs
- Photo & cancelled cheque
- Existing loan statements
- Duly-filled application form
Application Process
Eight simple steps from check to cash-in-hand:
Check Eligibility
Use online calculators & CIBIL check
Compare Lenders
Rate, fee, tenure
Prepare Docs
Scan & upload
Apply
Online / branch
Verification
Document & job check
Approval
Sanction letter
Sign Agreement
Read T&C
Disbursement
24–48 h credit
Interest Rates & T&C
Know the cost & conditions before you sign:
Rate Factors
- CIBIL score
- Salary / turnover
- Loan amount & tenure
- Employer / business category
Processing Fees & T&C
- Processing Fee 1–3 % (max ₹15k)
- Documentation ₹500–₹2k
- Stamp duty (State laws)
- Pre-payment 2–5 %
- Late EMI ₹500+
- Cheque bounce ₹400+
- Statement copy ₹100+
- Foreclosure rules lender-wise
EMI & Repayment
- Auto-debit EMIs
- Part-prepay option
- Step-up/holiday plans
- Restructuring support
*All charges quoted above are indicative and subject to each lender’s Terms & Conditions (T&C) apply.
Benefits & Considerations
Weigh the plus & minus before committing:
Key Benefits
- No collateral
- Fast disbursal
- Fixed EMIs
- Build credit
Considerations
- Higher rate vs secured
- Penalties on delay
- Pre-pay charges
- Impact on future credit
Smart Tips
- Borrow only what you need
- Compare at least 3 offers
- Keep EMI < 40 % income
- Auto-debit to avoid miss
Need Help with Personal Loan?
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