Personal Loan Complete Guide
Everything you need to know about personal loans in India
What is a Personal Loan?
A personal loan is an unsecured loan provided by banks and NBFCs that doesn't require collateral. You receive the loan amount upfront and repay it in equal monthly installments (EMIs) over a fixed tenure (12-60 months). Personal loans are quick to process and flexible in usage.
Types of Personal Loans
Salary-Based Loans
For salaried individuals with fixed income, easy approval
Self-Employed Loans
For business owners and freelancers with profit & loss statements
MSME/Business Loans
For small business owners, higher loan amount available
Home Improvement Loans
Specifically for home renovation and repair costs
Wedding Loans
Lower interest rates for wedding-related expenses
Education Loans
For higher education with government backing options
Personal Loan Eligibility Criteria
Age
Minimum 21 years, maximum 60-65 years at end of loan tenure
Employment
Salaried employee, self-employed, or business owner with 2+ years experience
Income
Minimum monthly income ₹15,000-25,000 (varies by lender)
CIBIL Score
Minimum 650-700 credit score required
Bank Account
Active bank account for salary/income credit
Residence
Indian citizen or NRI with Indian bank account
Documents Required for Personal Loan
Salaried Employees
- PAN Card
- Aadhar Card
- Latest 3 months salary slips
- Last 2 years IT returns
- Bank statements (6 months)
- Address proof
Self-Employed
- PAN Card
- Aadhar Card
- Business registration
- Last 2 years profit & loss
- Last 2 years IT returns
- Bank statements (12 months)
Personal Loan Interest Rates
6-Step Personal Loan Application Process
Choose Lender
Compare rates, tenure, and features across banks
Check Eligibility
Verify you meet income and CIBIL score requirements
Submit Application
Apply online or visit branch with documents
Document Verification
Bank verifies documents (usually 2-3 days)
Credit Approval
Get approval notification via SMS/email
Disbursal
Loan amount credited within 24-48 hours