Personal Loan- Overview

A Personal loan is unsecured form of loan that can be used to meet personal short to medium term financial needs. It is an unsecured loan and doesn't require collateral as security or a guarantor to avail the loan. Personal Loan can be best used for multiple purposes such as for education, home renovation, electronic purchase ,travel, for marriage, in case of medical emergencies, for business purpose or debt consolidation and household expenditures.

Interest Rate Range:Depending upon applicants profile and credit score and the lender, the Annual percentage rate(APR) of personal loan vary from 10.75% - 32% (Annual Rate)

Tenure ( Repayment Period): 1 Year(12 Months) to 6 Years(72 Months)

Processing Fee : 1%-3% of the loan amount + GST

Representative Example Loan Processing Charge:

For a loan amount of 1 lakh, Total cost of loan will be Rs 1000 to Rs 3000 + GST

Representative Example EMI:

For a loan amount of 1 lakh, at the rate of 10.49 % for 5 years. EMI will be Rs 2149 for 60 months at reducing rate of interest.Total interest payable will be Rs 28,934.Total amount payable at end of 5 years would be Rs 1,28,934

Pre-payment Charges:

Depending upon the lender bank option to prepay a loan may or may not be available and the charges may vary as per banks.The charges vary from 0% -5% of the out standing principle amount plus applicable GST.

Additional Information: Additional charge may be applicable in case of change of payment mode.

Connect with Bank & Offers

• 1) PAN CARD
• 2) Aadhar card
• 3) IDENTITY CARD
• 4) Bank Statement 6 months
• 5) 3 Month salary slips
• 6) Valid Address

ProofList of Documents (Self Employed):

• 1) PAN CARD
• 2) Aadhar card
• 3) 3 Years IT Return CA Certified
• 4) Current account statement 1 year
• 5) Valid address proof
• 6) Valid Business Proof

Personal Loan Eligibility Criteria:

Though Personal Loan Eligibility criteria varies between Financial Institutions.To ensure the same, they consider numerous factors before providing personal loans:

• 1) The borrower must be an Indian Resident
• 2) Minimum age - 23 years
• 3) Valid government issued identity proof
• 4) Valid Bank Account
• 5) Regular Source of Income
• 6) Valid Address Proof