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Best Personal Loans Online

Get instant personal loan up to Rs. 20 Lakhs at interest rate of 10.25% p.a. onwards and tenure up to 5 years. Apply online for quick processing and disbursal.

Learn More About Personal Loans

Personal Loan: Key Highlights

Personal Loan

  • Current lowest personal loan interest rates start from 10.25% p.a.
  • Compare 100+ personal loan banks at MyMoneyMantra and choose the best one.
  • Check fees & charges of all top banks offering personal loans in india.
  • Get flexible tenure of 36 to 84 months to repay the loan.
  • Submit online loan application and get instant loan approval
  • Personal Loan amount can be used for any personal purpose, including marriage, education, medical emergency, shopping, travel, etc.
  • No collateral or security required as personal loans are unsecured loans.
  • You can get a personal loan through the best instant loan app in india or through online lending marketplaces.

Personal Loan Overview

A personal loan is the best option to get access to funds in case of an emergency. Once you fulfill the necessary Personal Eligibility Criteria, you can meet any expense like medical emergency, travel needs, education fees, etc. with this simple, unsecured loan.  

Types of Personal Loan

Here are different types of personal loans available in India:

  • Travel Loan: These personal loan schemes are for people who love travelling. This loan is called by many names, including Travel Loan, vacation loan, and holiday loan. You can avail this loan to travel around the world, and pay the bills latrine affordable EMIs. You can also get travel insurance as an added benefit with this loan.
  • Wedding Loan: Weddings in India come with a long list of expenses. It's once in a lifetime experience for everyone and to make it more memorable many people often need financial support. Therefore, many lenders have started providing Personal Loans for Weddings These loans are availed by the would-be brides and grooms or their family members to pay for the wedding related expenses like venue booking, catering, honeymoon vacation, etc.
  • Festival Loan: These loans are offered for celebrating festivals, parties, and functions. Festival loans help you in preparing for the festivities and hosting parties.
  • Consumer Durable Loan: As the name suggests, this personal loan variant is availed for the purchase of appliances or consumer durables.
  • Pension Loan: Pension loans can be availed by retired personnel to fulfil their financial needs like paying medical bills, meeting daily expenses, etc. Under pension loans, banks provide a few times the amount of pension the pensioner has drawn in previous months before submitting the loan application.
  • Home Renovation Loan: These loans are provided for the purpose of renovation, repair, purchase of new material, and other house-related expenses.
  • Education Loan: You can use these loans for paying the tuition fees of your child, or any other big academic requirements like going abroad.
  • Computers and Mobile Phones Loan: Many lenders nowadays are offering computer loans and mobile phone loans for the purchase of computers, laptops, and smartphones. Some lenders even offer insurance with the loan.

Features & Benefits of Personal Loan

  • The rate of Interest: The Rate of Interest on Personal Loans is between 11-14% depending on your credit score, income and so forth.
  • Loan amount: You can get a loan online for as low as 50,000 and as high as  50 Lakhs depending on your requirement and eligibility.
  • Loan tenure: Personal loans are available for periods as short as 12 months. The average tenure for a Personal Loan is between 12 and 60 months,depending on the loan amount.
  • Security: Due to its unsecured nature, collateral is not required.
  • Loan turnaround time: A Personal Loan typically has the fastest turnaround time in the industry. Many banks personal loans online approval within 48 hours after submission of the online application.
  • Processing fees: It depends on the individual bank. It usually ranges between 0.50%- 2% of the loan amount.
  • Prepayment penalty: Banks charge prepayment penalty if you repay your Personal Loan before the determined period. The charges range between 1-2% of the outstanding amount on the date of closure.

Personal Loan Interest Rates & Charges

Name of the Bank Interest Rate EMI Payable Per year/ lakhProcessing Fees 
Bank of Baroda10.50-12.50%Rs.88152% of the loan amount 
Bank of India9.95- 12.15%Rs.87892% of loan amount subject to a maximum of Rs.10000
IDBI Bank Limited 9.50-14%Rs.87681% of loan amount subject to a maximum of Rs.2500
PNB8.95%- 14.50%Rs.87431% of the loan amount. 
State Bank of India9.60% - 13.85%Rs.8773Up to 1.5% of loan amount subject to a maximum of Rs.15000
Union Bank of India8.90% - 13% Rs.87410.50% of the loan amount
Axis bank12%-24%Rs.88851.5 to 2% of the loan amount 
ICICI Bank10.50% - 19%Rs.8815Up to 2.25% of the loan amount 
IndusInd Bank Ltd11%-16.75%Rs.8838Up to 3% of the loan amount
IDFC First bank12.5% to 18% Rs.8908Up to 2% of the loan amount
Kotak Mahindra Bank10.75%- 24%Rs.8827Up to 2.5% of the loan amount 
RBL Bank14%-23%Rs.89794% of the loan amount

How to Apply for a Personal Loan

  • Click on the ‘Compare and Apply’ option 
  • Fill up a registration form with necessary details
  • Get the latest personal loan offers and choose from them. 
  • Apply for the loan plan that you have chosen. 
  • Fill up a simple form online 
  • Provide necessary personal loan document 

Once the application form is received, you will be contacted by the Bank’s representatives.  

Eligibility Required for Personal Loan

 OccupationSalaried employees, self-employed professionals, self-employed non professionals, and business owners
 AgeMinimum 21 years at loan application and maximum 65 years at loan maturity 
 Monthly income20,000 
Job/business continuity2 years continuous job or 3 years continuity in business
ITR Last 2 years IT returns
Credit score700 & above

*Personal loan eligibility criteria may differ from bank to bank.

Factors Affecting the Eligibility of a Personal Loan

1. Credit score: This is the most crucial eligibility factor. A credit score of 700 or above is typically considered a good score for personal loans. The better your credit score, the higher are your chances to get a loan online.

2. Income: People with higher income are more eligible for a higher loan amount than those who have low income.

3. Employment: Employees of listed companies, Central and State Governments, and public sector undertakings are eligible for a higher amount.

4. Work continuity: You should be a long-term employee of your current organisation. In case you are self-employed, the continuity of business and income is the most critical

5. Age of the borrower: The minimum age requirement is 21 years. Banks have their criteria for deciding the maximum age limit. In most cases, your age at the end of the repayment period should not exceed 65 years.

6. Loan amount: Applying for a loan amount that you can service comfortably makes you more eligible for a personal loan and improves your chances of approval.

Documents Required for Personal Loan

KYC Documents
  • PAN Card
  • Aadhar Card
  • Driving Licence
  • Voter ID
  • Passport
  • Registered Rent Agreement
Income Documents - Salaried
  • Salary slips for the last 6 months
  • IT Return along with Form 16 for the past 2 years
  • Bank account statements of previous 3 months that reflects your salary credits and other income
  • Employment certificate from current employer
Income Documents - Self-employed
  • Financial statements that include Balance Sheet and Profit and Loss Statement
  • IT Returns for the last 2 years
  • Proof of continuity of business income such as Bank Account Statement
  • Evidence of doing business like GST Registration
Other Documents
  • Personal loan application form
  • Recent passport-sized photographs
  • Processing fee cheque

Points to Keep in Mind Before Taking a Personal Loan

  • Keep your credit score high: A credit score represents your creditworthiness based on your past repayment history. Try to repay your existing debts on time and regularly. Clear your existing loan before applying for a new loan. This will improve your credit score. To avail a personal loan you should have a good credit score (preferably 700 or above).
  • Compare all the offers before application: Make sure you compare the interest rates, eligibility, and other features of all personal loan options available for you before applying for a loan. This will ensure you get the low interest rate personal loan and the best available deal.
  • Assess the entire cost: Before finalising the deal make sure you have assessed the entire cost of your personal loan, including interest rates, processing fees, prepayment charges, and so on.
  • Analyse your needs: Don't take a personal loan to fulfil any of your fancy. Remember that it's only you who is going to repay the loan and that too with an added interest. Consider borrowing a personal loan to finance your needs and not your wants.
  • Evaluate your repayment capacity: Before borrowing, evaluate how capable you are for its repayment. Make sure your income is enough to repay EMIs each month for a few years without creating any financial burden.
  • Don't fall for fake offers: All that glitters is not gold. Someone may offer you a concession on the interest rate on online loans, but can trick you with other additional costs, making your instant loan a more expensive deal.

How to use Personal Loan Effectively (Tips & Advice)

An unsecured loan like a personal loan can affect your CIBIL score negatively. So, even with the Best Personal Loan In India, you need to keep some tips in mind: 

  • Avoid taking personal loans for business requirements 
  • Repay personal loans on time to avoid issues with your CIBIL score. 
  • Apply for a personal loan only when you have no other resources for financing. 
  • Only apply for the loan amount that you need immediately. 

✅When Should I Consider Taking a Personal Loan?

You can consider applying for a personal loan for a marriage in your family, to bear educational expenses, for vacation abroad, debt consolidation, home renovation, or any other purposes.

✅Do I Need a Co-Applicant for a Personal Loan?

 OccupationSalaried employees, self-employed professionals, self-employed non professionals, and business owners
 AgeMinimum 21 years at loan application and maximum 65 years at loan maturity 
 Monthly income20,000 
Job/business continuity2 years continuous job or 3 years continuity in business
ITR Last 2 years IT returns
Credit score700 & above

*Personal loan eligibility criteria may differ from bank to bank.

✅What is a Pre-approved Personal Loan?

Pre-approved personal loans are instant loans disbursed by banks to their select customers. These loans require minimum documentation and no collateral or security.

✅Can I get a personal loan during Covid-19?

Covid-19 personal loans were available to deal with the covid-related financial stress till 31st July 2020. These loans were offered by many banks. However, they are no longer available in India.

✅I have a decent salary package. However, the bank rejected my Personal Loan application. What can I do now?

Approving any loan is the prerogative of the bank. There are various reasons for rejection of the Personal Loans.

  • You might be having many loans outstanding. The possible solution is to bring in a co-borrower. Your working spouse can join as a co-borrower. You can also try to reduce your existing liabilities by closing some of your loans.
  • You might have an adverse credit score. Check your credit report and go through it in detail. There can be errors in your report. Dispute them if necessary and take the steps needed to rectify your credit report. Remember, you need a minimum credit score of 650 to 700 to be eligible for a Personal Loan.

✅What is the difference between foreclosure and part-prepayment?

  • Foreclosure is the situation where the borrower wishes to close the entire principal outstanding before the completion of the tenure of the loan. Part-prepayment is when the customer does not close the entire loan but attempts to repay a portion of the outstanding amount.
  • Many banks charge a prepayment penalty ranging from 2% to 5% of the loan outstanding when you try to prepay your loan liability. Some banks have a lock-in period when you cannot foreclose the loan.

✅What are the minimum and maximum loan amounts offered by banks?

Generally, the minimum loan amount is around 50,000,and the maximum amount can go up to 50 Lakhs depending on your eligibility. The banks like to have a personal discussion with borrowers before approving higher Personal Loan limits.

✅How does the credit score affect the Personal Loan approvals?

A credit score is a 3-digit number varying between 300-900. It represents a borrower's creditworthiness. A higher credit score signifies a good credit history and responsible repayment behaviour. It also increases the borrower's chances for loan approval as lenders believe that you have the ability to repay your loan.

✅What are the options available to banks in case of default?

The banks do not have any collateral to fall back on in case of default. The only recourse available to the banks is to file a civil suit in the court of law.


 

✅Which Bank is the best for a personal loan?

Each bank or NBFC offers various features and benefits. To find the Best personal loan in India, it is best that you compare all the current offers and choose one that suits you the best. 

✅How Can I get a 50,000 personal loan fast?

If you have a good CIBIL score and necessary personal loan eligibility, you can apply for a personal loan on lending apps to get quick disbursal. 

✅What is the maximum personal loan you are eligible for?

You can get loans of up to Rs.50 Lakhs. However, the maximum loan quantum depends on the lender and the eligibility factors that the borrower fulfills. 

✅Do I need to provide any security or collateral to obtain a personal loan?

No. Personal loans are unsecured loans. So, you do not have to provide any security or collaterals.