Understanding Personal Loans in India
Personal loans are unsecured loans offered by banks and NBFCs for various purposes. This guide covers everything Indians need to know about borrowing.
Top Lenders
- HDFC Bank: Competitive rates, fast processing
- ICICI Bank: Good for existing customers
- SBI: Government bank reliability
- Bajaj Finserv: Quick disbursal
- Kotak Mahindra: Flexible terms
Interest Rates
- Banks: 10.5%-18% per annum
- NBFCs: 12%-24% per annum
- Rates depend on credit score, income, employer
Eligibility Criteria
- Age: 21-60 years
- Minimum income: ₹15,000-25,000/month
- Employment: Salaried or self-employed
- Credit score: 700+ preferred
Documents Required
- Identity proof (Aadhaar, PAN)
- Address proof
- Salary slips (3 months)
- Bank statements (6 months)
- Form 16 or ITR
Loan Amounts
- Minimum: ₹50,000-1,00,000
- Maximum: ₹40-50 lakh
- Tenure: 12-60 months
How to Apply
- Compare lenders online
- Check eligibility
- Gather documents
- Apply online or in-branch
- Await approval (24-72 hours typical)
Tips for Approval
- Maintain good credit score
- Have stable employment
- Don’t apply to multiple lenders
- Accurate income declaration
Conclusion
Personal loans offer quick access to funds for various needs. Compare rates, understand terms, and borrow responsibly.
