Identity Proof
Pan Card
Aadhar Card
Voter ID
Driving Licence
Address Proof

Rent agreement registered with respective authorities

Aadhar Card
Driving Licence
Lease agreement

Latest Gas or electricity bill

Financial Document

Salary slips for the last 6 months in case you are a salaried employee (In addition, you can provide IT returns for the past three years along with Form 16

IT returns for the past three years in case you are self-employed (Some banks accept two years IT returns as well)

Statement of A/c for the past 1 year where your salary is credited (in case of salaried people)

Profit and Loss statement and Balance sheet for the last two years in case of self-employed persons

Your Sales tax, GST registration certificates, if applicable

Partnership deed in case of partnership firms (if the applicant is one of the partners)

Certificate of Incorporation in case of limited companies(if the applicant is one of the directors)

Other Important Document

Loan application form duly filled in

Signature Proof
Property Document

Xerox copies of all property documents that can help establish the chain of ownership for the past 30 years

Encumbrance certificate for 30 years

Property tax paid receipt in case you reside in your own house (usually when you apply for Balance Transfer)

What is a Personal Loan?

A Personal Loan is one of the best solutions to any financial emergency that you may have. These loans are processed very quickly and are approved without too many documents. Once the loan has been approved, the money is transferred into your account within a few days, and in some cases within 24 hours.

Top Benefits of Applying for a Personal Loan

Personal Loans are extremely useful as they can be used for several personal expenses. The benefits of applying for these loans are as follows:

  • You can use the approved loan for medical emergencies, family functions, weddings, home renovation and repair, higher education and just about any other personal requirement.

  • Most banks process Personal Loans easily.

  • You have different Personal Loans schemes that help you choose as per your requirement.

  • When it comes to documentation, Personal Loans require minimum documents, making the processing period shorter.

  • You can get a loan repayment period of up to 5 years with most financial institutions.

  • These loans are unsecured and do not require any collateral.

  • Loans are available for salaried individuals as well as self-employed individuals.

  • You have the option of both floating and fixed interest rates as per your preference.

Top Banks Providing Personal Loans in India

Although these loans are very easy to apply for and have very little processing time, the biggest challenge is choosing the financial institution that you want to apply for a loan with. Here is a list of the top banks providing Personal Loans in India. You have all the details that you need including various schemes, tenure, interest rate, minimum loan amount, and so on.

  • HDFC Bank
  • SBI Bank
  • ICICI Bank
  • Axis bank
  • Punjab National Bank

Why Apply for a Personal Loan on MyMoneyMantra?

If you are unable to decide which financial institution to apply for a Personal Loan with, MyMoneyMantra offers you with easy solutions depending upon your requirement and your current employment status. This is one of the simplest options to avail a Personal Loan and offers several benefits such as:

  • You can compare before you choose a plan: With MyMoneyMantra, you have over 70 financial institutions under one portal. This includes some of the leading Personal Loan providers in the country. You can compare different features such as eligibility criteria, the minimum loan amount offered, the rate of interest, and other features. You can read in detail about the different schemes provided by different lenders and then make an informed financial decision.

  • Get immediate financial assistance: With MyMoneyMantra, you have access to a panel of financial advisors who can suggest plans and schemes based on your requirements. For those who are applying for a loan for the first time or are unable to choose from the different plans, this is extremely beneficial. Our financial advisors assess your financial situation, your current requirements, and employment status in detail before making any suggestion.

  • Avail end to end services: One thing that you can be assured of when you apply with MyMoneyMantra is end-to-end customer service. In addition to financial advisors, you also have access to over 2500 relationship managers who strive to give you all the information that you need. Guaranteeing a positive customer experience is our priority. They even take care of all the documentation requirements, the loan application, and follow up for you.

  • Choose from an array of online financial tools: It is very important to be able to plan ahead when you are making any financial commitment. To help you understand what you will have to pay each month towards a loan plan, you have an EMI calculator on MyMoneyMantra that is very easy for you to access. In addition to this, you have other online financial tools such as prepayment amount calculator, and balance transfer calculator.

  • Pan India reach: MyMoneyMantra is accessible in over 500 cities in India. This allows you to understand local schemes or plans available as well. No matter where you are residing in India, you have access to the several loan schemes offered to you on MyMoneyMantra.

  • Award winning services: We have received several awards and accolades for their unique services. They are also one of the most successful online lending platforms with business of over 30,000 Crores completed so far. They have received more than 100 banking awards under several categories to testify their quality of work.

How to Apply for a Personal Loan on MyMoneyMantra?

Applying for a loan on MyMoneyMantra is extremely simple. The entire loan application process is broken down into simple steps to make sure that you do not miss anything out. With this, you have the advantage of reduced processing time to get financial assistance right when you need it.

In order to apply for a Personal Loan on MyMoneyMantra:

  • Register on MyMoneyMantra: Provide your personal details such as name, gender, city of residence and employment status. Following this, you will be asked for the specific loan requirement and the repayment expectation that you have currently.

  • Get a customised quote: As per your current financial situation and your employment status, a quote with different options is prepared to give you loan plans that are closet to your requirements.

  • Documentation: You can get all the information that you need with respect to the loan plan that you choose. Following this, an associate from MyMoneyMantra will assist you with all the documents required and will also complete the loan application process for you.

  • Approval of the loan: After the application has been made, you may have to complete an interview with the financial institution that you are applying for a loan with. MyMoneyMantra associates follow up your loan application until the final approval. Once approved, the loan is disbursed to you as per the guidelines of the bank.

All services provided to you by MyMoneyMantra are without any additional cost.

Documentation Needed to Apply for a Personal Loan

In order to get a Personal Loan from a bank, the borrower must provide a mandatory set of required documents. The lender uses these documents to assess the borrower's financial stability and understand the credit risk appetite as well. In addition to that, the documents allow the lender to verify applicant's details like age, address, income, and employment to then decide whether or not to lend the amount to the borrower. Since there is no collateral involved, the risk to lender is always higher. That is why these documents are all the more required by the lender to feel secure before proceeding with the loan.

Here is a checklist of all documents needed to apply for a Personal Loan:

Checklist of Documents Required for Personal Loan

  • Recent passport size, color photograph

  • Photo Identity Proof
  • Residence Proof
  • Investment Proof
  • Income Proof
  • Bank Statement
  • Job Continuity Proof

Common Documents List Mandatory for Personal Loan

Listed below are common documents, which are required to be submitted in any bank you seek loan from:

  • Applicant's passport size photograph attached to the filled loan application form.

  • Applicant's valid identity proof: Passport/ Voter ID Card/ Driving License/ PAN Card (any one)

  • Applicant's valid Proof of Residence: Utility Bill/ Ration Card/ Aadhaar Card/ Passport (any one)

  • Applicant's valid Age Proof: Passport/ Voter ID Card/ Driving License/ PAN Card (any one)

In addition to the above-mentioned common documents, applicant will also have to deposit some financial documents. These vary for salaried, self-employed, and senior citizens.

Salaried individuals must provide:

  • Present Employment Certificate/ Appointment Letter as well as an Experience Certificate as Job Continuity Proof.

  • Payment Track Record for existing loans if any and the sanction letter for the same.

  • Their bank statement for the last six months

  • The latest salary slips from the last three months as income proof

  • Form 16

Self-employed individuals must provide:

  • The bank statement of last one-year. This includes savings bank account statement as well as the current bank account statement.

  • Proof of office address through property documents/ utility bills/ maintenance bills

  • Proof of office ownership through property documents/ utility bills/ maintenance bills

  • Latest proof of last two year's income tax returns with Computation of Income/ Balance Sheet/ P&L Account as Proof of income.

Senior citizens must provide:

  • Their pension document or bank statement as Income Proof.

Importance of Bank Statement in Getting a Personal Loan

Bank statement is an important document for getting a Personal Loan as it acts as a valid proof of a person's income and his ability to repay the loan. Bank statements are generated monthly as a record of the income generated and the expenses paid. In addition to that it also offers details such as the beginning balance, the ending balance, date of statement, date of transaction, the payee name, address, customer service number, period of statement, and the account number.

Here are the reasons why bank statement is important to get a Personal Loan:

  • It confirms your identity
  • It confirms your income
  • It lends credibility to you being a reliable borrower

  • It helps the lender understand whether you have the capability to pay back the loan EMIs on a regular basis or not.


Q1. Are Personal Loans given for only a few purposes?

Personal Loan can be taken to meet any kind of expense. It could be a large expenditure, a family vacation, home renovation, medical expenses, business investment, and so on. There are no specific reasons defined for which Personal Loans are given.

Q2. Who is eligible for a Personal Loan?

Anyone who is either self employed or a salaried individual is eligible for a Personal Loan. However, factors such as the person's salary, credit history, residential location, age, and so on, do tend to govern the criteria to judge the borrower and the amount of loan a person will get thereafter.

Q3. What is Personal Loan tenure?

Personal Loan tenure refers to the time period under which the borrower has to repay the obtained loan amount. Commonly Personal Loan tenures are from 1 - 5 years. It is very rare to find shorter or longer tenures for Personal Loans. The duration varies from amount to amount and case to case.

Q4. Do different lenders have different Personal Loan amounts that one can borrow?

Yes, different lenders have different specifications as to how much minimum amount a borrower can borrow under a Personal Loan.

Q5. What is the criterion to decide the maximum loan amount a borrower can borrow?

The maximum Personal Loan amount differs for salaried and self-employed individuals.

For the salaried, the maximum Personal Loan amount must be fixed in a way that their EMI never exceeds 30%-40% of their take home salary. In this calculation, existing loans taken by the borrower are also considered before the Personal Loan amount is calculated.

In case of self-employed individuals, profit earned by them helps determine the loan value. For this their recent Profit/Loss statement is considered. Also, their existing liabilities such as current business loans too are considered.

Q6. Can Personal Loan be taken jointly?

Yes, you may apply for a Personal Loan jointly, with a co-applicant. However, it is necessary that your co-applicant is your family member - parents, siblings, or spouse. Jointly applied Personal Loans are processed in an income bracket higher than single applicant loans; thus, allowing you to secure a bigger loan as the risk is divided. However, a poor credit score of your co-applicant can possibly reduce your chances of getting the loan as well.

Q7. Is lowest possible EMI the only criteria to select a loan provider?

Any lender offering a lower EMI is obviously either charging a low interest rate or has offered a long repayment term. It can also be a combination of both these factors. Therefore, it is important to consider the loan period as well as the rate of interest before deciding which lender to go with. Longer loan periods would also mean an expensive loan where you end up paying a lot of interest to the lender in the long run.

Q.8. Do lenders offer a relationship discount? What is it

Yes, some lenders do offer a relationship discount. It is an extra benefit offered by some banks to prospective borrowers with whom they have shared a good, pre-existing, relationship. This means that the borrower might be having a savings account, fixed deposits, or Credit Cards with the bank. Based on this relationship the bank may offer some discounts to the client such as waiving off the processing fees or offering a lower interest rate or floating any other investment scheme in offer.

Q9. What is a Balance Transfer on Personal Loan? What are its benefits?

Sometimes, some lending institutions may allow the borrower to transfer the existing balance amount to be repaid from the present lender to a new lender. The new lender then pays off the old one and the borrower is then liable to pay back the loan and interest amount to the new lender.

A borrower does a balance transfer if he finds a lender offering lower rate of interest. However, the process involves a balance transfer fee and some pre-payment charges.

Q10. What happens when someone defaults on scheduled Personal Loan EMIs?

There are settlement and recovery agents who are employed by lenders to help recover their loan amount. However, failing to repay the loan account gets marked as defaulter and the same is reflected in the individual's credit report as a default. Such an indication adversely affects one's credit score and makes it extremely difficult to get loans or credit cards in future.

Q11. Will I get any tax benefit on my Personal Loan?

There are no tax benefits associated with Personal Loans. However, when a Personal Loan is taken for home renovation or a down payment of a house/flat, or for business expenses, one gets income tax deduction on the loan. You must furnish relevant receipts confirming the usage of the loan to claim the tax deduction

Q12. Do I have to pay any pre-payment charges on my Personal Loan and how much?

If you want to make a pre-payment to your Personal Loan and clear it off before the tenure ends you are charged a nominal fee, known as the pre-payment/foreclosure charge/penalty. It ranges from 1-2% of the outstanding principal.

Q13. How does a high credit score benefit me?

When you have a higher credit score, it vouches for your good track record in paying off loans. For instance, if your CIBIL score is higher than 700 you have a better chance of getting a bigger loan as compared to when you have a lower score. A higher credit score also helps you to leverage a better deal in terms of getting the processing charges waived off or getting a lower interest rate.

Q14. What is the difference between Personal Loan and Loan Against Credit Card?

Many Credit Cards offer loan on the card. They are similar to Personal Loans with respect to loan terms and interest rates. However, you can take loan on Credit Card only from your card issuer and not others. In case of Personal Loans you may take loan from any lender whether or not you have an account with the institution or not. Credit Card loans are simpler to take as no additional documentation is required as is the case in Personal Loan applications.


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