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Learn to Apply for Instant Personal Loan in India (2024)
Looking to know how to get personal loan? Read this to know the rate of interest, tenure, and types of personal loans in India.
One of the easiest ways to get money for various requirements is through a personal loan. The finest aspect of personal loans is that borrowers can immediately obtain the money they need. Customers can obtain personal loans from lenders without having to present any collateral or security for the loan amount. Personal loans come in a variety of forms to suit the demands of different kinds of borrowers.
Different personal loan options assist borrowers in meeting their unique funding needs. There is always an exclusive personal loan choice for you, whether you need money for your child's wedding, college for your child, home renovations, or purchasing a consumer durable. Wedding loans, holiday or vacation loans, durable consumer loans, medical emergency loans, top-up personal loans, pre-approved personal loans, personal loan balance transfer facilities, etc., are a few popular categories of personal loans. You've come to the right site if you want to learn more about how to get a personal loan in depth. We'll talk about it now.
Go on reading!
One benefit of an online personal loan is that it is unsecured. This means you are not required to put up any collateral to secure your loan. If you meet the requirements, you can apply for a low-interest personal loan, even though doing so might increase your interest rate.
In this age of digitization, the verification and documentation procedure has become simpler. This is accurate of instant personal loans because they are granted swiftly and require little to no documentation.
Personal loans are quick and simple to be approved for. It is the finest option in times of financial difficulty because of this. Additionally, the process is now digital, which speeds up the verification process.
Only investments and illegal activities are prohibited from using personal loans. It is also useful and adaptable for a variety of purposes. Other forms of credit can only be used for that purpose after they are obtained. For instance, a home loan is used to purchase a dwelling, but a car loan is used to purchase a vehicle. You can get a personal loan to take care of any urgent necessities.
Proof of photo identity (Anyone)
• Passport
• Voter’s ID
• PAN Card
• Driving License
• Aadhar Card
Proof of Residence (Anyone)
• Passport
• Aadhar Card
• Utility Bill
• Ration Card
• Driving License
Proof of Ownership of Residence (Anyone)
• Property documents
• Electricity bill
• Maintenance bill
Proof of Income
• Salary slips for the last three months and Form 16
• Bank statement for the previous six months
Proof of Job Continuity (Anyone)
• Employment certificate from the current employer
• Certificate of experience
• Appointment letter from the current employer (if employment period >2 years)
Proof of Investment (if any)
Fixed assets, shares, fixed deposits, etc.
Photograph
One passport size Color photograph
Proof of photo identity (Anyone)
• Passport
• Voter’s ID
• PAN Card
• Driving License
Proof of Residence (Anyone)
• Passport
• Aadhaar Card
• Utility Bill
• Ration Card
Proof of Residence Ownership (Anyone)
• Property documents
• Electricity bill
• Maintenance bill
Proof of Office Address (Anyone)
• Maintenance bill
• Property documents
• Utility bill
Proof of Office Ownership (Anyone)
• Maintenance bill
• Property documents
• Electricity bill
Proof of Business Existence (Anyone)
• Tax registration copy
• Company registration license
• Shop establishment proof
Proof of Income
Income tax returns for the previous two years, inclusive of financial statements
Bank statement
Savings and current bank statements for the past year
Proof of Investment (if any)
Investments such as fixed assets, fixed deposits, and shares
Photograph
One passport-size color photograph
Proof of Identity
• Copy of your passport
• Copy of your visa
Proof of Employment
• Appointment letter
• Job contract
• Identity/Labour card (if applicable)
• Official email ID or the HR’s email ID
Proof of Income
• Bank statements for the last 6 months
• Salary slips or salary certificate
Photographs
Recent passport-size photographs
Proof of Identity/Age (Anyone)
• Ration card
• PAN card
• Voter ID card
• Passport
• Driving licence
• School leaving certificate
• Birth certificate
Proof of Address (Anyone)
• Aadhaar card
• Passport
• Ration card
• Utility bills
• Driving licence
Proof of Income (Any one)
• Bank pass book
• Bank statements of the last 6 months
• Form 16
• Income tax returns
• Copy of pension payment order
Photographs
Recent passport-size photographs
There are a few alternatives to think about if you are denied a personal loan:
Get a cosigner: The name of a cosigner is included on your loan application. In the event of your default, they undertake to repay the loan in full, together with any additional fees. A reliable friend or family member with good or excellent credit could assist you in obtaining approval for a cosigned loan. When you and your cosigner apply for the loan, remember that they probably need to submit the same paperwork as you. If you want to go this route, pay it back on time to keep your relationship intact.
Choose a secured personal loan: Most personal loans are unsecured, therefore your home or vehicle is not needed as security. Contrarily, secured personal loans are supported by assets. The lender may take possession of your collateral if you don't pay back your loan. Applying for a secured personal loan can lower the lender's risk, increasing the likelihood that you will be approved. Remember that you'll need to provide proof demonstrating the collateral's worth and your ownership of it.
It doesn't hurt to have this information on hand in case you're questioned about your credit history or the reason you need the loan, even though the lender will probably ask for it when you apply.
The lender will pull your credit report hard once you start the loan application procedure, which will impact your credit. While some lenders would only work with consumers with excellent credit, others are flexible and will take a chance on clients with less-than-perfect credit. Remember that you could have to accept a higher interest rate if your credit score is on the low side.
Although most lenders aren't very interested in how you'll utilise the loan, knowing its purpose could assist them in suggesting the most appropriate loan package for your requirements. Some lenders offer specialised loans, such as home repair or debt consolidation loans.
Here is a comparison chart of the most well-known online personal loans, together with information on processing costs, preclosure fees, and interest rates:
BANK/NBFC
Interest Rate (p.a.)
Loan Amount
Processing Fees
Part Payment
Pre-closure Charges
Locking Period
Tenure
IDFC First Bank
12.00 % to 21%
1 Lakhs to 40 Lakhs
Up to 2.0% of the loan amount
Up to 40% of loan amount every year
5% on your principal outstanding + GST
1 Month
12 to 60 months
HDFC Bank
11.25%- 17.75%
50k to 40Lakhs
Up to 2.50% of the loan amount subject to a minimum of ₹1,999/- & Maximum of ₹25000/-
Up to 25% of Principal Outstanding allowed
13-24 Months - 4% of Principal Outstanding
25-36 Months - 3% of Principal Outstanding
>36 Months - 2% of Principal Outstanding
>48 months - 0%
12 Months
12 to 60 months
ICICI Bank
11.50% - 17.25%
50k to 25 Lakhs
Up to 2.25% per annum of the loan amount plus GST
Not available
5% per annum of principal outstanding plus GST
6 months
12 to 60 Months
Bajaj Finserv
12.49% -15.30%
1 Lakh to 20 Lakhs
Up to 2.0% of the loan amount
Normal Loan - Should be more than 1 EMI (2% + applicable taxes on part-payment amount paid)
Flexi Loan - Unlimited part payment Allowed (Min. Rs. 100 ) without any charges
4% plus applicable taxes on Loan amount
1 month
12 to 60 Months
Kotak Bank
10.75% -17.99%
1Lakh to 30Lakhs
Up to 2.5% of the loan amount + GST and other applicable statutory levies
-
5% of the outstanding amount + GST on principal outstanding
12 months
12 to 60 Months
Tata Capital
11.25%-18.75%
75K- 25 Lakhs
From ₹999/- Up to 3.00% of the loan amount and applicable Service Tax
Part-payment up to 25% of the principal outstanding (No part-payment charges) More than 25% of the principal outstanding (2.50% part-payment charges on the part-payment exceeding 25% of principal outstanding)
*Maximum of 50% of the principal outstanding permissible
>6 months - 3.5% of principal outstanding
For Loan amount >=7Lacs - NIL Preclosure
BT - 5% of the principal outstanding
6 Months
12 to 72 Months
IndusInd Bank
11.50% -19.0%
1Lakh to 25Lakhs
Up to 3.00% of the loan amount plus tax
NIL
Salaried: 4% of the principal outstanding after repayment of 12 EMIs.
1 Year
12 to 60 Months
Fullerton
11.99% - 25%
65k to 25Lakhs
Upto 4.5% of the loan amount plus GST
NIL
Within 7 months to 17 months - 7%
Within 18 months to 23 months - 5%
Within 24 months to 35 months - 3%
After 36 months - NIL
6 Months
12 to 60 Months
RBL Bank
11.99%- 18.0%
1Lakh to 20Lakhs
1.5% of the loan amount (Non-Refundable fee of Rs 7500 Upfront, Rest at the time of disbursal)
NIL
NIL
12 months
12 to 60 Months
Yes Bank
10.99% - 15.99% (BT Special rates - 10.75%)
1Lakh to 25Lakhs
Up to 2.50% of the loan amount subject to a minimum of ₹999/- plus taxes
• 20% Principal Outstanding for 12 – 24 months
• 20% Principle Outstanding for 25 – 36 Months
• 25% Principal Outstanding for 37 – 48 Months
• 25% Principal Outstanding for 49 – 60 Months
1% plus applicable taxes on part payment amount paid
13 – 24 months - 4% of principal outstanding
25 – 36 months - 3% of principal outstanding
37 – 48 months - 2% of principal outstanding
>48 Months - Nil
12 months
12 to 60 Months
Medical issues can be extremely demoralising, and a financial crisis will worsen your anxieties. You might benefit from an immediate personal loan that you can use for a medical emergency. When you submit all of your paperwork online, and the bank/NBFC approves it, you might receive this loan as soon as two business hours later.
A large celebration of friends and families is a wedding in India. You can pay for your wedding expenses, big or small, using a personal loan. After the wedding, a bank/NBFC’s rapid personal loan with an interest rate starting at 1.33% pm won't burn a hole in your wallet.
Indians have great hopes for their ideal home. You can use a personal loan to help you pay for home improvements or interior design projects. When remodelling your home, it may be tough to plan all your spending. Therefore, pick an adaptable loan that can provide the money you need as and when you need it.
Who doesn't enjoy travelling and discovering new places? With a simple personal loan that can cover your travel costs, whether a road trip or a cruise, you can leave on vacation whenever you want. Your trip aspirations are never too far away with a simple to obtain a personal loan from the bank/NBFC.
A vital education is frequently seen as the key to a successful profession, yet the cost of higher education is rising daily. A personal loan can be helpful in all of these situations, whether you need money for tuition at a university or college or higher education costs at home or abroad. If you need a loan to pay educational fees, a personal loan with more significant maximum limits of up to Rs 500000 would be more suitable.
A personal loan might help you combine all your debts into a single loan. Doing this could prevent missing loan payments and cope with numerous EMIs. However, it would help if you always considered the difference in interest rates and the associated fees when applying for a debt consolidation loan.
Our lives are more accessible thanks to consumer durables. But they are not inexpensive. You can use a personal loan to help you buy the consumer durables you want.
Credit score has become crucial to obtain loans from banks or non-banking financial institutions. You can, however, end up with a poorer credit score for some reasons. A personal loan, especially from internet lenders, might be advantageous because they frequently have lower credit score criteria than banks and other financial organisations. They also permit you to take out little loans, which could increase your credit score by returning on time.
Your business venture can be set up or established with a personal loan. Additionally, it could assist you in growing your company, mainly if it's a tiny firm and you're having trouble getting a bank loan. You can use a personal loan for your business and write off the interest you pay as a legitimate business expense.
The finest personal loan is a difficult concept. It alone is based on the applicant's requirements. To get the most outstanding personal loan, the applicant must look for and evaluate the lender offering offerings that meet their needs. You may search through various lenders and their market offerings to find your most excellent offer.
A personal loan's interest rate is purely based on the applicant's credit history. You may be able to obtain personal loans with the lowest interest rates if your creditworthiness and financial situation are strong.
The best bank for a personal loan is the one that gives you the most appropriate offerings. Always evaluate the numerous offerings offered by various lenders on comparison websites before choosing the ideal bank for you. Consider your needs, the lender's processing fees, personal loan requirements, additional costs, availability of immediate personal loans, interest rates, loan terms, etc., before making your decision.
We hope readers are now clear about how to get a personal loan in India. Give the lender some time before you apply for a personal loan to get in touch. They can advise you on the paperwork required to handle your financing request. To avoid delays and facilitate a smooth procedure, gather all the documents you need before filling out the loan application and gather the ones you already have.
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