What can a personal loan be used?

Personal loans can be used for any purpose such as medical emergency, wedding expenses, business expansion, house renovation, vacation expenses etc. It can be utilized towards debt consolidation, paying for the down payment of new house or meeting educational expenses. The uses for which personal loan can be utilized is limitless. The banks do not put any restrictions on its use. This is the very primary reason that demand for a personal loan is high as any kind of expenses can be met without much burden on its users. Hence personal loan is becoming the first choice of many people.

What is the eligibility and criteria for the applying for personal loan?

For applying for Personal Loan, one must need to follow certain requirements such as there must be a regular source of income whether you are salaried or self-employed. This is an essential factor as it determines whether you are capable of repaying the loan back or not. Another important requirement in case of a salaried employee is the company where he/she is working, and also, the credit history plays an important role in determining the rate of interest. Also, one must be minimum of 21 years of age and not exceeding 60 years of age. One can easily apply and get personal loan online as well.

Documents required for loan

  • Photograph
  • Age proof
  • ID proof- such as Aadhaar, Passport, Voter ID, etc.
  • Income proof
  • Residence proof
  • Signature verification proof
  • PAN Card
  • Bank Statement for the past 6 months
  • Proof of continuation such as ITR, Trade License, Establishment Certificate, Sales Tax certificate, etc.

Individuals who can take a Personal Loan:

  • Salaried Employees
  • Salaried doctors
  • Employees of public and private limited companies
  • Public and private limited companies
  • Government sector employees including
  • GMinimum age of 21 years
  • Maximum age of 60 years at the time of maturity of the Personal Loan
  • Minimum net monthly income – Rs. 15,000

Frequently Asked Questions

In the case of a personal loan, the minimum amount that can be borrowed differs from bank to bank. It is dependent on the procedures and policies of various banks, as well as other considerations. However, the minimum amount of an easy personal loan is normally between Rs. 25000 to Rs. 30000. This is the standard limit, however it may change. It is wise to shop around for several lenders to find one that meets your needs. It can also depend on the applicant's source of income when asking for a personal loan.

The maximum amount a person can borrow through a personal loan differs from one person to the next. It is usually determined by the person's financial ability to repay the loan. The maximum amount for paid personnel is determined by their compensation. The loan amount is determined in such a way that the personal loan EMI does not exceed 30 to 40% of their annual wage. In the case of self-employed people, the maximum personal loan amount is determined by their profit. This profit and loss statement is examined.If there are any other loans, they are taken into account as well. When it comes to getting a low-interest personal loan, your credit history is also significant.

A personal loan is popular not only because it may be used for a variety of purposes without being restricted by the bank, but also because of the flexible terms available. Personal loans are available for periods ranging from 12 to 60 months. One can choose the time period that best suits their needs, and it also relies on the purpose of the personal loan. Lenders may grant a shorter or longer time period than the standard in particular circumstances.

The documentation needed for a personal loan may differ from one bank to the next. However, every bank or financial institution requires a few basic documents. These are some of them: Proof of income in the form of a document. Address Verification Documents pertaining to identification verification Any other documents as specified by the lender. It is important to go through all the requirements of the lender before applying for the loan so that there is no headache afterwards. The whole process has been made simpler by applying for a personal loan online.

Personal loan approval is a simple procedure. It does not require a number of time-consuming and inconvenient stages, and the loan may be obtained in a matter of days, which was previously not possible because the loan had to be approved for a longer period of time. The approval procedure varies from lender to lender. The procedure can be done in as little as 48 hours, or it could take a week or two, but not more. All one needs to do is prepare the necessary documentation so that the personal loan application may be processed quickly and the funds used. Furthermore, personal loan online approval has made it easy.

Personal loans are unsecured loans, which means you don't have to put up any collateral to acquire one. Because they are unsecured loans, their interest rates are slightly higher than other types of secured loans. The current interest rates vary according to the discretion of the banks, however the lowest personal loan rate charged is around 10%. There are certainly other factors that also affect the rate of interest such as credit history of the applicant, the income level of the applicant, tenure for which loan is applied for and also other loans that are being taken by the applicant also affect the rate of interest on this loan.

The interest rates imposed on personal loans vary from bank to bank due to a variety of reasons. To obtain a low-interest personal loan, one must evaluate the interest rates of several banks and other financial institutions. Paisewaale allows you to compare the interest loan rates of several banks, providing you with all the information you need to make an informed decision. Paisewaale is a good place to go if you want to receive the best deal on a personal loan.

As more banks and other financial organisations provide personal loans, borrowers can compare interest rates and so get the lowest rate that meets their needs. Previously, in order to learn about interest rates, one had to physically visit various banks and financial institutions, making it difficult to choose the best bargain. It has now been made easier thanks to the Paisewaale platform, which makes available the various interest rates offered by various banks or NBFCs, allowing you to choose the best loan interest rate.

Our partners from across the industry

Bank Name Rate of Interest Processing Fees Loan Amount Tenure Range
Bank of Baroda 8.15% - 9.50% NIL Rs. 10cr Max 1-30 Years
Bank of Baroda Maharashtra 8.35% - 9.50% NIL Rs. 10cr Max 1-30 Years
UCO Bank 8.05% - 9.10% NIL Rs. 5cr Max 1-30 Years
SBI Bank 8.5% - 9.30% NIL Rs. 10cr Max 1-30 Years
Andhra Bank 8.25% - 9.50% 0.35% + GST Rs. 8cr Max 1-30 Years
IDBI Bank 8.35% - 9.25% NIL Rs. 8cr Max 1-30 Years
HDFC Bank 8.15% - 9.90% 0.50% + GST Rs. 10cr Max 1-30 Years
ICICI Bank 9.00% - 10.50% 0.50% + GST Rs. 10cr Max 1-30 Years
Equitas Bank 10.50% - 12.50% 1% + GST Rs. 25 Max 1-20 Years
LIC HFL 8.90% - 9.25% Rs. 5900/- Rs. 10cr Max 1-25 Years
TATA Capital 8.10% - 9.15% Rs. 5900/- Rs.5cr Max 1-30 Years
Gruh Finance 8.35% - 11.00% 0.50% + GST Rs.2cr Max 1-30 Years
OC HFL 8.85% - 9.75% 3.50% + GST Rs.25lac Max 1-20 Years
BAJAJ Fineserv 9.20% - 12.50% 1.50% + GST Rs. 75lac Max 1-20 Years
ASPIRE Home Finance 12.50% - 14.50% 2.50% + GST Rs. 25lac Max 1-20 Years
Shubham Finance Company 12.50% - 16.50% 2.50% + GST Rs. 25lac Max 1-25 Years
Mahindra Home Finance 10.50% - 15.50% 3.50% + GST Rs. 25lac Max 1-25 Years
Aadhar housing finance 10.80% - 13.75% 3.50% + GST Rs. 25lac Max 1-25 Years
Financial Services Ltd 12.50% - 16.50% 3.50% + GST Rs. 20lac Max 1-20 Years
Shriram housing finance 10.50% - 12.50% 2.50% + GST Rs.5cr Max 1-30 Years
AXIS Bank 8.40% - 9.15% 1.50% + GST Rs.5cr Max 1-30 Years
C-NTRUM Home Loans 11.50% - 14.50 1% + GST Rs.40cr Max 1-20 Years
HindusInd Bank 8.70% - 9.15% 2.50% + GST Rs.2cr Max 1-30 Years
pnb Housing 8.85% - 11.75% 0.50% + GST Rs.5cr Max 1-30 Years
CanFin Homes 8.85% - 10.75% 1% + GST Rs.5cr Max 1-30 Years
EdelWeiss 8.70% - 9.95% 1.50% + GST Rs.1cr Max 1-25 Years
L&T Finance Home Loan 8.70% - 9.15% 2.50% + GST Rs.251cr Max 1-25 Years
RELIGARE 8.80% - 9.45% 2.50% + GST Rs.501cr Max 1-25 Years