हिंदी में पढ़े
Personal Loan Highlights |
|
| Interest Rates | 10.49% p.a. onwards; some PSU banks may offer lower rates |
| Loan Amount | Up to Rs 40 lakh; some lenders may offer higher loan amounts |
| Tenure | Up to 5 years (some lenders offer repayment period of up to 6, 7 or 8 years) |
| Processing Fee | 0.5% to 4% of loan amount (may vary across lenders) |
Best Personal Loan Offers
HDFC Bank
Up to ₹40L
10.85% - 24%
Upto 6 Years
₹6,500
Axis Bank
Up to ₹10L
11.25% - 22%
Upto 5 Years
Upto 2%
Kotak Mahindra Bank
Up to ₹40L
10.99% - 36%
Upto 6 Years
Upto 3%
IDFC First Bank
Up to ₹10L
10.99% - 23.99%
Upto 5 Years
Upto 2%
ICICI Bank
Up to ₹50L
10.85% - 16.25%
1-6 Years
Upto 2%
*Applicable for selected customers
Last updated on 11 November 2024.
| On this Page: |
What is a Personal Loan?
Personal loan is a short to medium term loan, which consumers can avail to meet both personal and business needs other than speculative purposes. They are usually unsecured in nature as consumers do not need to pledge any collateral or security to avail them.
Personal Loan Interest Rates
The interest rate offered on a personal loan is determined based on the applicant’s credit profile and the lenders’ credit risk-based pricing model, cost of funds, etc. As the interest rates on your personal loan primarily influences the total cost of your borrowing, one must always look for best interest rates available on their credit profile.
For this, consumers should first check offers from lenders with whom they already have a deposit, credit card and/or loan account(s). Then, they should visit online financial marketplaces to compare interest rates offered by other banks and NBFCs.
Personal Loan EMI Calculator
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.
Monthly EMI ₹ 15,622
Total Amount Payble ₹ 5,62,395(Principal + interest)
Principal Amount ₹ 5,00,000
Total Interest Payble ₹ 62,395
Factors Affecting Personal Loan EMI
An Equated Monthly Installment (EMI) is the amount you pay each month. This money goes towards paying back the loan amount and the interest. 3 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 longer tenure on your loans results in lower EMIs. However, it also leads to higher overall interest cost on the loan.
| EMI Calculators | |
| SBI Personal Loan EMI Calculator | ICICI Personal Loan EMI Calculator |
| HDFC Personal Loan EMI Calculator | Axis Bank Personal Loan EMI Calculator |
How to calculate EMI for a personal loan?
You can calculate the EMI on your personal loan using the formula: EMI = [P x R x (1+R)^N]/[(1+R)^N-1],
where,
- ‘R’ denotes the rate of interest
- ‘P’ denotes the principal amount
- ‘N’ denotes the loan tenure
As manual calculations are prone to errors and can be complex and time-consuming, using an online personal loan EMI calculator would be preferable. The calculator requires just a few basic details for personal loan EMI calculation, including interest rate, loan amount and loan tenure.
Once all details have been entered, you get your loan EMI amount in less than a second. Moreover, besides calculating EMI amount, the calculator also displays the total interest amount and amortization schedule for its users.
Personal Loan Schemes Offered by Top Banks
Given below are a few personal loan schemes offered by some of the leading banks and NBFCs in India:
HDFC Bank Personal Loan
The interest rate of HDFC Bank personal loan starts from 10.85% 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: 10.85% 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 Personal Loan
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: 10.85% p.a. onwards
- Loan Amount: Up to Rs 50 lakh
- Tenure: 1 to 6 years
- Minimum Salary: Rs 30,000 per month
- Age: 23 to 58 years for salaried and 25 to 65 years for self-employed
- Processing Fee: Up to 2% of loan amount
Axis Bank Personal Loan
Axis Bank’s 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: 11.25% p.a. onwards
- Loan Amount: Up to Rs 40 lakh
- Tenure: 1 to 7 years
- Age: 21 to 60 years
- Minimum Monthly Salary: Rs 15,000
- Processing Fee: Up to 2%
Kotak Mahindra Bank Personal Loan
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 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 40 lakh
- Tenure: Up to 6 years
- Credit Score: At least 700
- Age: 21-60 years
- Minimum Monthly Salary: Corporate Borrowers – Rs 25,000, Non-corporate Salary Borrowers – Rs 30,000
- Processing Fees: Up to 5% of loan amount
IndusInd Bank Personal Loan
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 online loans with quick processing and loan approvals.
- Interest Rate: 10.49% p.a. onwards
- Loan Amount: Up to Rs 50 lakh
- Tenure: 1 to 5 years
- Age: for salaried – 21 to 60 years and for self-employed – 25 to 65 years
- Processing Fee: Up to 3.5% of the sanctioned loan amount
- Minimum Salary: Rs 25,000 per month
Features and Benefits of a Personal Loan
Personal loan is a preferred credit option for financing 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:
- Collateral-free loan
- No end-use restriction
- Loan amount of up to Rs. 40 lakh, which can exceed depending on lenders’ discretion
- Repayment tenure up to 60 months, which may exceed on case-by-case basis
- Top up loans for additional requirements are offered by many lenders
- Minimal documentation
- Quick disbursals
Types of Personal Loan
Apart from the regular personal loan schemes, several banks and NBFCs offer various personal 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.
- Instant Personal Loan
- Short Term Personal Loan
- Pre-Approved Personal Loan
- Personal Loan Balance Transfer
- Personal Loan for Education
- Top Up Personal Loan
Instant Personal Loan
Instant Personal Loans are usually pre-approved loans with instant disbursals. These loans are usually offered by banks and NBFCs to their select customers on the basis of their credit profiles.
Short Term Personal Loan
Short-term Personal Loans have short repayment periods usually ranging from a few days to 12 months. They are usually ideal for borrowing smaller loan amounts. Such loans are usually offered through end-to-end digital process, thereby, ensuring quicker loan approval and disbursals to the applicants.
Pre-Approved Personal Loan
Pre-approved Personal Loans are usually offered by banks and NBFCs to their existing customers on the basis of their credit history, income, employer’s profile, etc.
Personal Loan Balance Transfer
Personal Loan Balance Transfer (PLBT) facility allows borrowers to transfer their outstanding personal loan to a new lender for lower interest rates or better loan terms. However, opt for this facility only when the savings made through the transfer outweighs the cost of the loan transfer.
Top Up Personal Loan
The top up is offered to existing personal loan borrowers who need additional funds to meet their financial requirements. This loan facility is usually offered to select borrowers having satisfactory loan repayment history and/or have completed a specified number of EMIs.
Personal Loan for Higher Education
Personal Loan for Education is for individuals requiring funds for pursuing higher education in India and abroad, vocational courses, etc., and are unable to get a conventional education loan.
What can I use a personal loan for?
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.
Processing Fees and Charges
While the fees and charges of personal loans usually vary widely depending on lender and the credit profile of the loan applicants, the following table will give you a 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 |
| Pre-payment/Part-payment/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.
Personal Loan Eligibility
Personal loan eligibility criteria can vary from one lender to another due to their varying credit risk policies. The eligibility criteria can also vary as per the loan variant and the occupation profile of the applicant. Here are some of personal loan eligibility criteria used by most lenders:
- Age: 18 – 60 years
- Salary: At least Rs 15,000 per month for salaried customers
- Income: At least Rs 5 lakh p.a. for self-employed customers
- Credit Score: Preferably 700 and above as having higher credit scores improve chances of loan approval
- Employment Stability: Usually 1 year with some lenders requiring longer work experience
- Business Continuity: Usually 3 years of business continuity with some lenders requiring longer period of business continuity
- Employment Type: Salaried employees working with reputed organizations, MNCs, Private and Public Limited Companies, Govt. organizations, PSUs, and large enterprises
How to check personal loan eligibility?
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 set for personal loans may vary across lenders.
Therefore, applicants would have to check their eligibility for a personal loan by individually visiting the branch or website of various banks and NBFCs. Alternatively, they can visit online financial marketplaces like Paisabazaar to check and compare personal loan offers from multiple banks and NBFCs on the basis of their credit profiles.
Personal Loan Documents Required
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 the few common set of documents that you will need to submit when applying for a personal loan:
| 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 |
5 Tips to Increase your Chances of Getting a Personal Loan
The unsecured nature of personal loan increases the credit risk for lenders as it leaves them with no collateral or security to compensate their losses in case of a 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 CIBIL score above 700
- 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 personal loan offers available from banks and NBFCs before finalizing 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 span of time
Things to Know Before Getting a Personal Loan
Before applying for a personal loan, here are a few things you should know:
- Many banks and NBFCs offer instant pre-approved loan 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.
- Having a higher credit score increases your chances of loan approval and at lower interest rates: Banks and NBFCs prefer sanctioning personal loans to those having higher credit scores of 700 and above. Many lenders also set lower personal loan rates for such applicants. Having higher credit scores also increases an individual’s eligibility for pre-approved loan offers.
- 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.
- No charges are levied on prepaying or foreclosing floating rate personal loans: The RBI has barred banks and NBFCs from levying prepayment/foreclosure charges on floating rate personal loans. In case of fixed rate personal loans, lenders can choose to levy these charges.
- 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 loans.
How to apply for a personal loan online through Paisabazaar?
Paisabazaar allows salaried individuals to compare personal loan offers from 30+ banks and NBFCs and apply for the best-suited offer online with ease. The steps for the same are as below:
- Enter your mobile number
- Select your personal details like annual income, employer name, etc.
- Enter OTP to verify your mobile number and login
- Select your reason to apply for a personal loan
- Select your residence type
- Select the desired loan amount
- Compare offers and apply for the loan
Insights from Industry Experts
- 53% opt for personal loan even before 30, Bengaluru most credit healthy city
- Why you should not apply to multiple lenders for loan at the same time
- Tips to improve your chances of personal loan approval
- Banks prefer to lend money to salaried, than self-employed, says a Paisabazaar study
What is the maximum loan amount I can get on my personal loan?
Lenders usually offer personal loans between Rs 10,000 and Rs 40 lakhs. However, the amount that they approve of is primarily dependent on your income and existing loan repayment obligations, if any. 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 pre-determined proportion of the applicant. Some lenders also use a combination of both of these methods to find the loan amount eligible of the applicant.
- 50 Thousand Personal Loan
- 1 Lakh Personal Loan
- 3 Lakh Personal Loan
- 5 Lakh Personal Loan
- 10 Lakh Personal Loan
Why should I avail personal loans from Paisabazaar?
While looking for a personal loan, prospective borrowers should compare offers from as many lenders as possible. While one can check personal loan offers by individually visiting websites of various banks and NBFCs, however, checking it on an online financial marketplace like Paisabazaar will make the process faster, easier and more convenient. Here are a few more reasons to apply for personal loans through Paisabazaar:
- Check and compare personal loan offers from 30+ partner banks and NBFCs without adversely affecting your credit score
- Get pre-approved offers with instant disbursals
- Know your chances of loan approval based on your credit score and other aspects of your credit profile
- Apply for a personal loan online through end-to-end digital process
FAQs on Personal Loan
How can I apply for a personal loan?
Individuals can apply for a personal loan by visiting the nearby branch of their preferred bank or NBFC. They can also apply for the loan through lenders’ official website or through their respective internet banking platform and mobile applications.
What is the interest rate on a personal loan?
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.
How can I apply for an instant personal loan online?
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.
How much CIBIL score is required for a personal loan?
Applicants having credit scores of 700 and above usually have higher chances of availing personal loans. However, many banks and NBFCs offer personal 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.
What is the maximum loan duration for a personal loan?
The tenure of a regular personal loan usually ranges from 1 year to 5 years. However, some lenders offer maximum personal loan tenure for 6 to 8 years.
What is the difference between an instant personal loan and a regular personal loan?
Instant personal loan is a personal loan variant, which is usually disbursed within a few minutes of making a loan application. These loans are usually pre-approved in nature and are offered to select existing customers having a good credit profile.
What is the minimum salary required to get a personal loan?
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.
Can I get a personal loan without a salary slip?
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.
Can I get a personal loan if I have a home loan?
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.
Are there any charges for prepaying a personal 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.
Can I cancel a personal loan after the loan amount is disbursed?
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.
How much personal loan can I get on a Rs. 40,000 salary?
Some lenders use EMI/NMI ratio while some may use a multiplier method to determine their applicant’s eligible personal loan amount. As these ratios may differ across lenders, the maximum personal loan amount that you can avail on Rs 40,000 salary would also vary.
Hence, to know your eligible personal loan amount, you have to contact the lender individually. Alternatively, you can visit online financial marketplaces, which will show eligible personal loan amounts from multiple lenders based on your repayment capacity, interest rate and loan tenure.
Can I get a personal loan if my salary is Rs. 12,000?
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.
Hence, individuals having low salary should visit online financial marketplaces to check if they are eligible for any personal loan offers based on their current income.
Do I need to provide any security or collateral to apply for a personal loan?
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 personal loan or is charged very high interest rates for it.
What are the pros of availing a personal loan?
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.
What are the cons of availing a personal loan?
The interest rates of personal loans 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.
Can I take personal loans from two different banks at the same time?
Yes, you may avail personal loans from two different 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.
Can a student apply for a personal loan?
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.
Can I get a personal loan for business purposes?
Yes, the proceeds of a personal loan can also be used for financing various business requirements except for any speculative activities.
Also read: About business loan
How do I make overdue payments of my personal loan?
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).
Can a pensioner get a personal loan?
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.
Where can I get my no-dues certificate from?
Your existing personal loan lender will provide you with a no-dues certificate after the complete repayment of your personal loan.
| Written By: Shamik Ghosh | Reviewed By: Gaurav Aggrawal |