Personal Loan in India
Personal loans are a flexible financial solution for individuals seeking a quick and hassle-free way to access funds. Whether you need money for a medical emergency, home renovation, education, or even a dream vacation, personal loans offer the convenience of fulfilling various needs without collateral. In India, these loans are especially popular for their ease of application and fast approval process. They are often unsecured, meaning you don’t have to risk your assets. Moreover, with competitive interest rates, these loans can be an affordable way to manage personal finances. By choosing the right lender through reliable comparison services, borrowers can optimize their loan conditions and benefits.
| Company | Loan amount | Term of Loan | Age Limit | Apply | |
|---|---|---|---|---|---|
 | up to ₹ 15.000 | 3 – 12 months | 21 – 65 | Apply for a loan | |
| NIRA is one of India's best Instant personal Loan apps providing loans from Rs 2500 – Rs 1 Lakh in partnership with leading banks and NBFCs.To apply for a personal loan with NIRA you would need your Aadhaar number, PAN number, Salary slip and 6months bank statements. | |||||
 | up to ₹ 50.000 | 3 – 60 months | 21 – 65 | Apply for a loan | |
| Navi is one of the largest lending apps in the country and the latest venture by Sachin Bansal (formerly co-founder of Flipkart, India’s largest e-commerce player) and Ankit Agarwal (formerly a banker with Deutsche Bank and Bank of America) that plans on making financial services simple, transparent and accessible to all. Navi provides its clients with cash loans, home loans and health insurace services. | |||||
 | up to ₹ 50.000 | 3 – 36 months | 21 – 55 | Apply for a loan | |
| Fibe (formerly EarlySalary) is one of India's leading digital lending apps focused on young, aspirational and tech-savvy Indian consumers. Instant Cash Loans, Personal Loans, Online Loan, Instant Personal Loans. | |||||
 | Credit Card | 21+ | Apply for a loan | ||
| IndusInd Bank Limited is a new-generation Indian bank headquartered in Pune. The bank offers commercial, transactional, and electronic banking products and services. IndusInd Bank was inaugurated in April 1994 by then Union Finance Minister Manmohan Singh. | |||||
 | Credit Card | Apply for a loan | |||
| Axis Bank Limited, formerly known as UTI Bank (1993–2007), is an Indian banking and financial services company headquartered in Mumbai, Maharashtra. It is India's third largest private sector bank by assets and Fourth largest by Market capitalisation. It sells financial services to large and mid-size companies, SMEs and retail businesses. | |||||
 | Credit Card | Apply for a loan | |||
| SBI Card was launched in October 1998 by the State Bank of India and GE Capital. Incorporated as SBI Cards and Payment Services Limited (previously known as SBI Cards and Payment Services Private Limited), SBI Card is headquartered in Gurgaon, Haryana. | |||||
 | Credit Card | Apply for a loan | |||
| Standard Chartered PLC is a British multinational banking and financial services company headquartered in London. It operates a network of more than 1,200 branches and outlets (including subsidiaries, associates and joint ventures) across more than 70 countries and employs around 87,000 people. It is a universal bank with operations in consumer, corporate and institutional banking, and treasury services. | |||||
 | Credit Card | Apply for a loan | |||
| HSBC is one of the world’s largest banking and financial services organisations. HSBC serves approximately 40 million customers through our global businesses: Wealth and Personal Banking, Commercial Banking, and Global Banking & Markets. Our network covers 63 countries and territories in Europe, Asia, the Middle East and Africa, North America and Latin America. | |||||
 | Credit Card | 25+ | Apply for a loan | ||
| AU is a dream that was started 25 years ago by Mr. Sanjay Agarwal, a merit holder Chartered Accountant and a first-generation entrepreneur. Founded in Jaipur in 1996 as Au Financiers, a non-deposit-taking Non-Banking Finance Company (NBFC), it effectively worked on funding economic growth, especially for the under-served and un-served low & middle-class individuals. | |||||
 | Credit Card | Apply for a loan | |||
| Credilio is an official distribution partner for the distribution of Personal Loan / Credit Line products of the following Banks and NBFCs. Credilio offers a life time free SMB credit card, powered by Visa. The card comes with various lucrative deals and offers on multiple online shopping and OTA platforms. | |||||
Understanding personal loans
Personal loans are a type of loan that individuals can use for personal expenses like medical emergencies, weddings, or home renovations. They do not require collateral, meaning the borrower doesn’t have to offer an asset to secure the loan. This flexibility makes them popular among people who need quick access to funds.
One key benefit of personal loans is the freedom to use the funds without any restrictions, allowing borrowers to address their specific needs.
These loans usually have fixed interest rates and repayment terms, making it easier for the borrower to plan their finances. It’s an ideal choice for those who need a defined borrowing limit and repayment schedule, offering both convenience and financial control.
Eligibility criteria for personal loans
In India, getting a personal loan requires meeting certain criteria which lenders use to determine your creditworthiness. Generally, you must be at least 21 years old and not older than 60 years at the time of loan maturity. Age plays a key role in assessing the repayment capacity, especially when applying for larger amounts.
Income is another vital factor. A steady and regular income, either from being employed or self-employed, is important. Most lenders will have a minimum income requirement that varies depending on the city you live in. Urban areas might have higher criteria compared to smaller towns.
Credit score is crucial too. A good credit score, often above 700, enhances your chances of approval. It reflects your history of managing credit responsibly. While these are standard requirements, each bank or financial institution may have additional criteria, so it’s wise to check what the lender specifies before applying.
Types of personal loans available
Personal loans come in different forms, each tailored to meet specific needs. Understanding the various types can help you choose the one that best suits your requirements.
- Unsecured Personal Loans: These are loans that do not require any collateral. They are ideal for those who need quick cash without pledging any assets.
- Secured Personal Loans: These loans require collateral, such as property or a vehicle. They often come with lower interest rates due to the reduced risk for lenders.
- Fixed-Rate Loans: The interest rate remains constant throughout the loan term, making it easier to plan your repayments.
- Variable-Rate Loans: The interest rate can fluctuate based on market conditions, which might lead to changing monthly payments.
- Debt Consolidation Loans: These loans allow you to combine multiple debts into a single, more manageable payment.
Each of these loans serves distinct purposes, from covering emergency expenses to consolidating existing debts. Always consider the interest rates, repayment terms, and your personal financial situation before choosing a loan.
How to apply for a personal loan online
Applying for a personal loan online in India is straightforward. First, visit the website of a reputable lender or loan comparison platform. Here, you’d typically find a section dedicated to personal loans. Start by reviewing the loan options available, paying close attention to interest rates, terms, and repayment options. This ensures you select the most suitable offer.
Next, proceed to the application form. Fill in the required details such as personal information, income, and employment status. Ensure all information is accurate to avoid delays. Often, you’ll need to upload documents like ID proof, income proof, and bank statements. Ensure these documents are clear and legible. Once everything is in order, submit the application.
After submission, the lender will review your application. This process might take a few minutes to a few days. Once approved, the loan amount is typically disbursed to your bank account. Ensure your bank details are correct to facilitate smooth disbursement. Keep an eye on notifications for any updates from the lender regarding your application status.
Advantages of comparing personal loans
Exploring different personal loan options can be overwhelming. A comparison service offers a streamlined solution. It brings together various lenders, allowing for a comprehensive look at available options. This way, you can identify the best interest rates and terms that fit your financial needs. By comparing offers, you stand to save not only money but also time.
Choosing the right loan is much easier when all necessary information is available at your fingertips.
Moreover, a clear overview helps avoid common pitfalls associated with hurried decisions. Instead of rushing into a commitment, the comparison approach provides an informed path, ensuring peace of mind and financial stability.
Common challenges in getting a personal loan
Obtaining a personal loan in India can sometimes be tricky. One major hurdle can be the credit score, which is crucial for loan approval. Many lenders require a good credit score to process the application. If the score is low, it can result in higher interest rates or even rejection. To tackle this, focus on improving your credit score by paying bills promptly and reducing existing debts.
Another challenge is the documentation process. Some lenders require extensive paperwork, which can be overwhelming. Ensuring all documents like identity proof, income statements, and bank details are ready can streamline the application process and increase approval chances. Lastly, borrowing from reputable lenders ensures transparency and reduces the risk of hidden charges.
A surprising truth about personal loans
Personal loans might surprise you with their flexibility. Unlike specific loans, such as auto or home loans, you can use personal loans for anything. From planning a dream wedding to consolidating debt, they offer a wide range of possibilities. This versatility makes personal loans a strong choice for many, though often overlooked.
| Usage | Type |
|---|---|
| Home Renovation | Specific Loan |
| Debt Consolidation | Personal Loan |
| Buying a Car | Specific Loan |
| Financing a Wedding | Personal Loan |
Another surprising fact is that personal loans can sometimes have lower interest rates compared to credit cards. This means you could save money on interest when managing expenses. Opting for a personal loan might just be a wise choice for better financial planning. It’s about finding the right fit for your personal needs and ensuring you are making the most cost-effective decision. Remember, the key is to look at all available options carefully and choose what suits you best.