| Bank Name | Salary | Rate of Interest % | Loan Tenure | Loan Amount | CIBIL Score | Action |
|---|---|---|---|---|---|---|
| Paysense Personal Loan | 20000/- Per Month | 18% | 6 Month | 50000 | 700 | Apply Now |
| IDFC Bank Personal Loan | 20000/- Per Month | 10.49% | 12 Month | 100000 | 700 | Apply Now |
| Aditya Birla Personal Loan | 20000/- Per Month | 12% | 12 Month | 100000 | 650 | Apply Now |
| Finnable Personal Loan | 20000/- Per Month | 16.95% | 12 Month | 50000 | 700 | Apply Now |
| Hero Fincorp Personal Loan | 15000/- Per Month | 9.5% | 12 Month | 50000 | 700 | Apply Now |
| Muthoot Finance Personal Loan | 20000/- Per Month | 14% | 12 Month | 100000 | 685 | Apply Now |
| Faircent Personal Loan | 25001/- Per Month | 25% | 3 Month | 50000 | 700 | Apply Now |
| Tata Capital Personal Loan | 25000/- Per Month | 10.5% | 12 Month | 75000 | 720 | Apply Now |
| Bajaj Finserve Personal Loan(Prime) | 38000/- Per Month | 13.5% | 12 Month | 100000 | 685 | Apply Now |
| Axis Bank Personal Loan | 25000/- Per Month | 11.15% | 12 Month | 100000 | 690 | Apply Now |
| ICICI Bank Personal Loan | 40000/- Per Month | 10.5% | 12 Month | 100000 | 700 | Apply Now |
| HDFC Bank Personal Loan | 25000/- Per Month | 10.25% | 12 Month | 100000 | 700 | Apply Now |
| Kotak Bank Personal Loan | 25000/- Per Month | 10.75% | 12 Month | 100000 | 705 | Apply Now |
| Credit Saison Personal Loan | N/A/- Per Month | N/A% | N/A | N/A | N/A | Apply Now |
What is a Personal Loan?
A personal loan is a popular unsecured loan option offered by leading banks and NBFCs in India. It provides quick financial assistance without the need to pledge any collateral, making it ideal for both planned and emergency expenses
Benefits of Personal Loans
• No Collateral Personal Loan
Get funds without mortgaging assets like property or gold.
• Instant Personal Loan Approval
Minimal documentation and fast processing mean you get money when you need it most.
• Flexible Loan Usage
Use the loan amount for any personal requirement—medical emergencies, wedding expenses, home renovation, education, travel, or debt consolidation.
Personal Loan Eligibility Criteria
To apply for a personal loan online, lenders usually consider the following:
• Employment type (salaried or self-employed) and category of Employer.
• Minimum monthly income
• Age and work experience
• Credit score and repayment history
• Location and employer profile
A high credit score and stable job increase your chances of low interest personal loan approval.
How Does a Personal Loan Work?
A personal loan works by providing individuals with a lump sum of money that they can use for various personal expenses and repay within the given repayment tenure, keeping the interest rates in mind. Let’s break down the steps for you:
- Personal Loan Application Submission
- Eligibility and Credit Check of the Borrower
- Loan Approvals
- Disbursements
- Repayment terms
- Monthly Payments
- Prepayment and Penalties
- Use of the Loan for Various Reasons
- Completion of the Loan
Features of a Personal Loan
- Loan Amount: This is the fixed amount that the borrowers get from the lender. This amount is based on the creditworthiness and income of the borrower.
- Interest Rates: The interest rate is the cost of borrowing the money and is expressed as an annual percentage rate (APR). Personal loans may have fixed or variable interest rates.
- Loan term: This is a pre-determined tenure the borrower must follow to repay the loan amount. This can also be manipulated based on the creditworthiness and income of the borrower.
- Repayment Schedule: In the repayment schedule, the lenders outline the frequency and amount of each borrower’s payment to repay the loan. The payment frequency is generally monthly; the rest of the element can be customised accordingly.
- Fees and Charges: Apart from Interest Rates, there are several other charges on a Personal Loan, such as processing fees, application fees, late repayment fees, etc.
- Credit Check: This is an inquiry credit history check of the borrower run by the lenders to ensure their repayment capabilities.
- Early Payment Options: Various lenders offer early or pre-pay options on their personal loans. With this, the borrower can repay their borrowed amount even before the completion of the repayment tenure. A few lenders also put charges on closing the loan early.
FAQs
- A personal loan is a type of unsecured loan that individuals can borrow from banks, credit unions, or online lenders for various personal expenses. Unlike secured loans, personal loans do not require collateral.
- Personal loans provide borrowers with a lump sum of money that they must repay in fixed monthly installments over a specified period, typically ranging from one to seven years. Interest rates and terms vary based on the lender and the borrower’s creditworthiness.
- Personal loans can be used for various purposes, including debt consolidation, home improvement, medical expenses, education, travel, or any other legitimate personal expense. Lenders usually do not restrict the use of personal loan funds.
- Eligibility criteria vary by lender but typically include factors such as a good credit score, stable income, a low debt-to-income ratio, and a history of responsible financial behavior. Each lender may have specific requirements.
- A secured personal loan requires collateral, such as a vehicle or savings account, to secure the loan. An unsecured personal loan does not require collateral but typically has higher interest rates compared to secured loans.