Personal Loan Details

Loan Amount

Rs. 1 Lakh to Rs. 1 Crore

Interest Rate

10.50% onward


1 year to 5 years

Processing Fee

Up to 2% of the loan amount

Prepayment Charges

Up to 5% of the outstanding principal

  • Personal Loan is an unsecured loan. It is a multipurpose loan that you can take to meet any financial requirement.
  • SBI offers the lowest rate 10.50% onward followed by the HDFC bank at 10.75%. Lowest EMI per Rs. 1,00,000 is Rs. 2,149.
  • The loan amount available is between Rs. 1 Lakh and Rs. 1 Crore. This product is usually offered to salaried individuals only.
  • Some banks and NBFCs may offer personal loan for self-employed (architects, doctors, lawyers, and Chartered accountants), firms, and enterprises as well.
  • The key benefits of a personal loan are: minimal documentation, no restriction on the end-use of the fund, quick processing and disbursal.

Features and Benefits of a Personal Loan

Below-given are the benefits and features of a personal loan:

  1. No Security Required: This loan is collateral-free. You can borrow up to Rs. 1 Crore without securing any asset with the bank/NBFC.
  2. Affordable Interest Rate: The personal loan interest rate starts at 10.50%. The rate of interest is much lower than interest charged (as high as 36%) on a credit card loan.
  3. Flexible Tenure: The tenure is flexible: between 1 year and 5 years. You can choose loan tenure as per your repayment ability.
  4. Quick Disbursal: The loan amount is quickly disbursed within 48 hours of loan approval. Therefore, you can choose a personal loan to fulfil urgent expenses.
  5. Online Application: Most lenders allow you to apply for a personal loan online. Thus, no branch visits are required to request for the funds.

Personal Loan Eligibility Criteria

Below-mentioned are the personal loan eligibility norms:

Things to Consider Before Application


1. Age

You must be above 21 years of age.

2. Income

Your net monthly income must be at least Rs. 25,000.

3. Credit Score

A credit score of 650+ is considered as a good credit score to avail the loan.

4. Employment History

Minimum work experience of 1 year is preferred. You must be able to provide income proofs. Cash salary is not acceptable.

5. Ongoing EMIs

As a thumb rule, on-going EMIs should not be more than 60% of your income.

Documents Required for Personal Loan

Here is a list of documents needed for salaried, professional, and self-employed applicants for a personal loan:

Documents Required


Self-employed, Firms, Partnerships

Filled and signed application form

It is required

It is required

Proof of Identity

PAN card, Driving License, Passport, Voter ID, Govt issued i-card, Aadhaar Card

PAN card, Driving License, Passport, Voter ID, Govt issued i-card, Aadhaar Card

Proof of Income

Last 6 months salary slip, last 2 years Form 16, bank account statement of the last 6 months reflecting credited salary

Bank account statement of the last 6 months and last 2 years ITR

Proof of Address

Driving License, Election ID card, Passport, Telephone/bank statement Electricity/ Mobile bill (latest up to 3 months old)

Utility bill/bank statement latest up to 3 months old, TAN allotment letter, lease or rent agreement, registry copy

Proof of Age

Birth certificate, School/college leaving certificate, Passport, Driving License, PAN card, Voter id card, Employee ID card (only for PSU/ Government employees)

Birth certificate, School/college leaving certificate, Passport, Driving License, PAN card, Voter id card, Employee ID card (only for PSU/ Government employees)

Certificate and Business Existence Proof


Certificate of practice, PAN, VAT/ sales tax/ excise/service tax registration, Trade license, Copy of partnership deed, registration certificate issued by RBI, SEBI

Personal Loan Interest Rates

One of the important things to do before applying for personal loans is checking the interest rates offered by banks and NBFCs. The Personal Loan Interest Rates will differ from a financial institution to another on grounds of your individual profile, repayment capacity, income, required loan amount, loan tenure, credit score, and other factors.

Interest Rate

Starting at 10.50% onwards

Processing Fees

1% to 3% of the borrowed principal amount

Loan Tenure

1 Year to 5 Years

Pre-closure Charges

May vary from one lender/Bank/NFBC to other

Pre Part-Payment and Foreclosure in Personal Loan

A personal loan comes with a fixed tenure. The tenure is the repayment period. You are expected to repay the debt via EMIs within this fixed tenure. But anytime if you want to repay the loan sooner than the end of repayment period, you can opt for: Part pre-payment or Foreclosure.


Full Pre-payment/Foreclosure

Part Pre-payment

What is?

If you pay off the entire outstanding before the end of tenure, then it is known as full pre-payment or foreclosure.

If you pay a part of the outstanding amount before the tenure’s end, then it is known as part pre-payment.


 One of the benefits of foreclosure is that you save on the interest payout.
You can also save on the prepayment interest if the lender does not charge an interest on foreclosure of the loan.

 One of the benefits of part pre-payment is that you can use excess funds in hand to pay a portion of the outstanding amount.
Thus, any interest thereby charged would be on the reduced outstanding principal amount.
So, you can expect the EMI amount to also reduce. Also, the total interest payout will also decrease.


However, if the lender charges a penalty on foreclosure, then you may have to pay a good amount of interest.
This is why before foreclosing a loan, check the factors related to it. Full pre-payment may not always be the right option.

Several lenders charge a fee for part-payment. You need to check the charge for part-payment and analyze if it is the best to pay off a portion of the outstanding principal or not.

Find the best Personal Loan for you

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