Personal Loan


A Personal loan is the lending of money by one or more individuals, organizations, or other entities to other individuals, organizations etc.
The recipient (i.e. the borrower) incurs a debt, and is usually liable to pay interest on that debt until it is repaid, and also to repay the principal amount borrowed.
The document evidencing the debt, e.g. a promissory note, will normally specify, among other things, the principal amount of money borrowed, the interest rate the lender is charging, and date of repayment. A loan entails the reallocation of the subject asset(s) for a period of time, between the lender and the borrower.
The interest provides an incentive for the lender to engage in the loan. In a legal loan, each of these obligations and restrictions is enforced by contract, which can also place the borrower under additional restrictions known as loan covenants. Although this article focuses on monetary loans, in practice any material object might be lent.
Acting as a provider of loans is one of the main activities of financial institutions such as banks and credit card companies. For other institutions, issuing of debt contracts such as bonds is a typical source of funding.

What is Personal Loan?

It is a type of unsecured loan and helps to meet your current financial needs.
You don’t need any security/collateral while availing it. Personal loan gives you the flexibility to use the funds as per your convenience and need.
Personal Loan is your solution for instant cash and can be used for traveling, wedding, medical emergency, home renovation, or anything else.
To know how to get an easy Personal Loan, first check the personal loan Eligibility criteria.
Know your EMIsusing the Personal Loan EMI Calculator and apply for a personal loan to finance your needs.
Make sure you maintain a good credit score and a clean credit history to avail personal loan easily.

What is the Eligibility for a Personal Loan?

Personal Loan is an unsecured loan to meet your current financial needs.
If you are looking for quick and easy loans with manageable interest and minimal documentation, you can opt for a Personal loan. To be eligible for a Personal Loan, you must meet the following requirements:
Age: 25 – 58 years
Profession: Salaried employee
Net monthly income: Average Rs. 25,000 (Varies based on location and employer)

Does Bank checks CIBIL to approve Personal Loan?

Yes, Bank checks the CIBIL scores of personal loan applicants. The minimum CIBIL score for personal loan in Banks is 750.
A credit score of 750 and above is considered eligible for obtaining a personal loan. However, in some cases where all other criteria are met, one may obtain a personal loan with a slightly lower CIBIL score depending on internal policies.
What are the Documents Required for a Personal Loan?
Personal Loan has different set of documents, eligibility criteria and loan requirements. The primary eligibility criteria for Personal Loan from Banks is that you should be a salaried professional between 25-58 years of age.
In order to read about documents that would be required as well as to check eligibility criteria for Personal Loan in detail.
Personal Loan Eligibility & Documents
A Personal loan can come handy when you are going on a vacation, renovating your home or planning that dream wedding.
You can easily get a personal loan if you qualify below personal loan eligibility criteria:
Age between 25 to 58 years of age
Salaried employee of either an MNC, public or private company
An Indian citizen residing in any of the 30 cities mentioned below