Personal Loan
A Personal Loan is an unsecured loan that individuals can use for a wide range of personal financial needs such as travel, medical emergencies, education, home renovation, or debt consolidation. It does not require any collateral and is approved based on creditworthiness and income profile.
Key Features
- Loan amounts from ₹50,000 to ₹40 lakhs
- No collateral or guarantor required
- Tenure ranges from 1 to 7 years
- Fixed monthly EMIs with flexible repayment options
- Instant approval and quick disbursal (in some cases within 24 hours)
Eligibility Criteria
- Indian citizen aged 21–60 years
- Salaried or self-employed with regular income
- Good credit score (typically 700+ preferred)
- Minimum income as per lender's policy (usually ₹15,000–₹25,000/month)
Required Documents
- KYC documents (Aadhaar, PAN, etc.)
- Income proof (salary slips, ITR, bank statements)
- Employment certificate or business proof
- Passport-size photograph
Benefits
- No need for collateral or security
- Can be used for any legal personal purpose
- Simple documentation and fast processing
- Option to prepay or foreclose as per lender terms
Top Lenders Offering Personal Loans
Major lenders include HDFC Bank, ICICI Bank, SBI, Axis Bank, Kotak Mahindra Bank, and NBFCs like Bajaj Finserv, Tata Capital, and MoneyTap.
Important Notes
- Compare interest rates, fees, and terms before applying
- Avoid over-borrowing to manage EMIs effectively
- Maintain good credit history for better loan offers