Personal loan is an unsecured loan facility, which can be availed by both salaried and self-employed individuals. Proceeds from the loan can be used to meet any personal and business related financial requirements without any end usage restriction. Personal loan also comes with fewer documentation requirements, which enables quicker processing and disbursal than other credit options.

Personal loan is a type of unsecured loan that you can borrow from a bank or financial institution if you require funds to pay for your financial needs.

Interest Rates

The personal loan interest rates vary between 10.15% p.a. and 36% p.a. Depending on the loan amount availed by you, your credit score, and repayment tenure, the interest rate charged on your loan is decided. If you maintain a high credit score and have a good relationship with the bank, then the interest rate on your personal loan can be lowered.

Eligibility Criteria For Personal Loan

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 750 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

Documents Required For Personal Loan

• Proof of Identity: Passport, Voter’s ID, Driving License or PAN Card
• Proof of Residence: Passport or utility bills
• Proof of Income: Bank statement of salary account for the past two years
• Salary Certificate or salary slips