Personal Loans

What is Personal Loan?

A personal loan is a ‘small expense‘ loan that is mostly used by people to finance their day to day emergencies. They come in smaller amounts and therefore, just like most unsecured loans, they are easily approved.

For what purposes can it be used?

It can be used for any personal financial need and the bank will not monitor its use. It can be utilized for renovating your home, marriage-related expenses, a family vacation, your child’s education, purchasing latest electronic gadgets or home appliances, meeting unexpected medical expenses or any other emergencies.

Maximum loan duration

It can be 1 to 5 years or 12 to 60 months. Shorter or longer tenures may be allowed on a case by case basis, but it is rare.

Is there a minimum loan amount?

Yes, though the exact amount varies from one institution to another. Most lenders have set their minimum personal loan principal amount at Rs 30,000.

Eligibility criteria

• it varies from bank to bank, the general criteria include your age, occupation, income, capacity to repay the loan and place of residence.
• you must have a regular income source, whether you are a salaried individual, self-employed business person or a professional. An individual’s eligibility is also affected by the company he is employed with, his credit history, etc.