Personal Loan Overview

A personal loan is an unsecured loan provided by banks or financial institutions to individuals based on their income, credit score, and repayment capacity. It can be used for various purposes such as medical emergencies, travel, wedding expenses, education, or home renovation.

Benefits of a Personal Loan

1. No Collateral Required
   It's an unsecured loan, meaning you don’t need to pledge any asset.

2. Quick Disbursal
   Funds are usually disbursed quickly—sometimes within 24–48 hours.

3. Flexible Usage
   You can use the loan for any personal purpose without restrictions.

4. Minimal Documentation
   Requires less paperwork compared to secured loans.

5. Fixed EMI and Tenure
   You repay in fixed monthly installments, usually over 1 to 5 years.

6. Improves Credit Score
   Timely repayments can help boost your credit rating.

7. 📋 Eligibility Criteria

Eligibility varies from lender to lender, but common factors include:

1. Age

   • Generally between 21 and 60 years

2. Income

   • A stable monthly income (minimum varies by city and lender, typically ₹15,000–₹25,000/month)

3. Employment

   • Salaried employees or self-employed professionals/business owners

4. Work Experience

   • Salaried: Minimum 1–2 years

   • Self-employed: Business continuity for at least 2–3 years

Eligibility Criteria

Eligibility varies from lender to lender, but common factors include:

1. Age

   • Generally between 21 and 60 years

2. Income

   • A stable monthly income (minimum varies by city and lender, typically ₹15,000–₹25,000/month)

3. Employment

   • Salaried employees or self-employed professionals/business owners

4. Work Experience

   • Salaried: Minimum 1–2 years

   • Self-employed: Business continuity for at least 2–3 years

5. Credit Score

   • A good credit score (usually 650 or above) increases approval chances and gets better interest rates

Documents Required

For Salaried Individuals:

• Identity Proof: Aadhar Card, PAN Card, Passport, Voter ID

• Address Proof: Aadhar Card, Utility bill, Rent agreement, Passport

• Income Proof: Last 3–6 months salary slips

• Bank Statements: Last 3–6 months

• Employment Certificate or Company ID

For Self-Employed Individuals:

• Identity & Address Proof: PAN, Aadhar, Utility bill

• Income Proof: ITR for last 2–3 years, Profit & Loss Statement, Balance Sheet

• Business Proof: GST registration, business license, or registration certificate

• Bank Statements: Last 6 months (business and personal)