Personal loan: should I apply or not, know eligibility

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Personal loan keeps a very impressive role for needy people causes due to personal loans, a person can achieve many goals for which he requires funds. Personal loans are an unsecured form of credit that is popular to meet immediate requirements. It is multi-purpose in nature and therefore can be used for various purposes including weddings, home renovations, travel purposes, and more. Moreover, there is no restriction on the amount borrowed and can be used for any purpose they want. In fact, a personal loan can help you build your credit faster when compared with other forms of credit. This is because of the risk it carries due to being unsecured.

What is Personal Loan?

A personal loan is an unsecured credit that can be avail from any financial institution based on criteria like employment history, repayment capacity, income level, profession, and credit history. A personal loan, which is also known as a consumer loan is a multi-purpose loan, which you can use to meet any of your immediate needs. Today, an increasing number of people are applying for Personal Loans to meet their larger expenses. One of the reasons for the significant rise in the growing popularity of Personal Loan is that being an unsecured loan, it does not require any collateral and the processing time is quick.

Which bank is best for a personal loan?

Here are the key features of some of the most popular and best personal loan providers in India as per Policy Bazar’s comparison of the best personal loans offered by banks.

Name of LenderInterest rate
(%)
Processing fee
(% of the loan amount)
HDFC BANK10.25-21.00Up to 2.5% (Maximum Rs 25,000)
CITY BANK9.99-16.49Up to 3%
TATA CAPITAL10.99 onwardsUp to 2.75%
ICICI BANK10.50-19.00Up to 2.50%
BANK OF BARODA10.00-15.602% (Minimum Rs 1,000 and Maximum Rs 10,000)
STATE BANK OF INDIA9.60-13.85Nil across all channels till 31st January 2022
AXIS BANK10.25 onwards1.5%-2%
KOTAK MAHINDRA BANK10.25 onwardsUp to 2.5%
BANK OF INDIA9.35-12.35Up to 2% (Maximum Rs 10,000)
CANARA BANK10.20-13.90Up to 1%
PUNJAB NATIONAL BANK7.90-14.45Up to 1%
HSBC BANK9.50-14.50Up to 1%
FEDERAL BANK10.49-17.99Up to 3%
UNION BANK OF INDIA8.90-13.00Up to 0.5% (Maximum Rs 7,500)
Bajaj finserv13.00 onwardsUp to 4%
Punjab & Sind Bank9.50-11.50Up to 1%
South Indian Bank10.30-18.052%
IDBI Bank9.50-14.001% (Minimum Rs 2,500)
UCO Bank10.05-10.45Up to 1%
IDFC First Bank10.49-23.00Up to 3.50% (Minimum Rs 2,999)
Bank of Maharashtra8.45-12.80Up to 1%
Indian Overseas Bank11.30-12.05Up to 0.75%
Indian Bank9.05-13.651%
Dhanlaxmi Bank11.90-15.70Up to 2.5% (Minimum Rs 1,250)
IndusInd Bank11.00 onwardsUp to 3%

How to get a personal loan?

Here is a list of five-step guides on how to get a Personal Loan from any bank.

1: Determine your requirement

  • Find out why you need a Personal Loan and how much you need.
  • For example, you may need a loan to fund your wedding or to renovate your home. And you may need just Rs. 1 lac, 2 lac, 10 lac, or more. then you should check loan eligibility.

Step 2: Check loan eligibility

  • Once you know how much you need, you must check whether you are eligible.
  • You can visit the Personal Loan Eligibility Calculator online, to find out how much you can borrow as Personal Loan. such as HDFC Bank offers loans up to Rs. 40 lac and others may be less and more than 40 lac.
  • You should read also more about how to calculate your Personal Loan EMI and how to lower it.
  • And after checking loan eligibility should calculate monthly installments.

Step 3: Calculate monthly installments

  • Use an online EMI tool to calculate your approximate loan repayments every month.
  • You can modify the interest rate and tenure to match your monthly income.
  • All Bank offers pocket-friendly EMIs on all their Personal Loan, should check what best for you and then approach the bank.

Step 4: Approach the bank

  • You can apply for a Personal Loan with the selected Bank in a variety of ways: Via NetBanking, online on the Bank website, at an ATM, or by visiting a branch. After approaching the selected bank, know the documents formalities then should submit the documents.

Step 5: Submit documents

  • Next, find out what documents are required for a Personal Loan.
  • Usually, you will need income proof (bank statements, salary slips or IT returns)
  • Address proof.
  • and ID proof.
  • then Hand over copies of your Personal Loan documents at the bank. And wait for personal loan application approval and then for funds to be remitted to your account.

Where can You get an instant Personal Loan?

Applying for an instant personal loan online is extremely easy and time-convenient. You can complete the entire loan application process from anywhere and at any time, without having to visit the lender’s office. If your loan application is approved, the loan amount will immediately be disbursed into your account.

You can get an instant loan by applying on Top NBFC and P2P Lending Apps which are Offering Instant Loans. It has become easier to avail of an instant cash loan at interest rates of as low as 1% p.m. as there are a number of apps offered by NBFCs and peer-to-peer lending platforms. You can apply for a loan of up to Rs.5 lakh from the comfort of your own home through these apps.

AppsInstant Approval In
PaySense2 business hours
Rupeelend2 mins
CASHe24 hours
Money View2 business hours
Credy30 Seconds
EarlySalary24 hours
LazyPay24 hours
mPokket24 hours
MoneyinMinutes5 Minutes
QuickCredit1 hour
FlexSalary1 hour
Home Credit30 minutes

Which bank provides best personal loans?

You should know the rate of interest and other details to know the best bank or institution in the details given below:

List of Banks/LendersPersonal Loan Interest RatesLoan AmountProcessing FeeTurnaround Time
Allahabad Bank9.05% – 13.65%Minimum Loan Amount – INR 50,000 Maximum Loan Amount – 12 times of gross monthly salary for employees having a monthly remuneration of INR 15,000 – INR 20,000 24 times the gross monthly salary for individuals earning above INR 20,000. The maximum loan amount, however, won’t exceed INR 7.50 lakh1.22% of loan Amount, Minimum INR 1,228Depends on the internal policy of the bank
Andhra Bank8.90% – 13.00%Salaried – The loan amount is set in a way that the take-home income is not less than 40% of the gross salary after all the deductions, including the proposed EMI Non-salaried – 2 times the average annual income for the past 3 years as per the Income Tax Return (ITR)As ApplicableDepends on the internal policy of the bank
Axis Bank10.25% – 21.00%INR 50,000 – INR 15,00,0001.50%-2.00% of the loan amount plus applicable GST
Bajaj Finserv14.00% – 16.00%Up to INR 25,00,000Up to 3% of the loan amountWithin 24 hours
Bank of Baroda10.00% – 15.60%Up to INR 10,00,000 for people residing in metros and urban areas Up to INR 5,00,000 for people living in semi-urban and rural areas

2% of the loan amount, subject to a minimum and maximum limit of INR 1,000 and INR 10,000, respectively. The fee will also include applicable GSTDepends on the internal policy of the bank
Bank of India10.35% – 12.35%Up to INR 5,00,000 – INR 10,00,0002% of the loan amount plus applicable GSTDepends on the internal policy of the bank
Bank of Maharashtra9.55% – 10.55%Up to INR 5,00,000 – INR 10,00,0001% of the loan amount plus GST, subject to a minimum of INR 1,000Depends on the internal policy of the bank
Canara Bank11.25% – 13.30%Six months gross salary or INR 3,00,000, whichever is less0.50% of the loan amount, subject to a minimum and maximum of INR 1,000 and INR 5,000 respectivelySanctions at Branch/RAH – 7 Days Sanctions at Circle – 15 Days Sanctions at HO – 2-3 weeks
Central Bank of India9.85% – 10.05%20 times of gross salary, subject to a maximum of INR 10,00,000. The minimum net take-home income must not fall below 40% of the gross salary after deductions, including the proposed EMIINR 500 + applicable GSTDepends on the internal policy of the bank
Citibank9.99% – 16.49%Up to INR 30,00,000Up to 3% of the loan amountWithin 48 hours
Corporation Bank8.90% – 13.00%Upto INR 3,50,0001.50% of the loan amount, subject to a minimum of INR 500Depends on the internal policy of the bank
Dena Bank10.00% – 15.60%Up to INR 10,00,000 for people residing in metros and urban areas Up to INR 5,00,000 for people living in semi-urban and rural areas2% of the loan amount, subject to a minimum and maximum limit of INR 1,000 and INR 10,000, respectively. The fee will also include applicable GSTDepends on the internal policy of the bank
DCB Bank13.00% – 25.00%Up to INR 5 lakh2% of the loan amountWithin 3-4 working days
Federal Bank10.49% – 17.99%Upto INR 10 lakh0.50% of the loan amountDepends on the internal policy of the bank
HDFC Bank10.25% – 17.00%There’s no maximum limit. Your income, credit score, and repayment capacity will dictate the loan amountNIL-2.50% of the loan amount plus applicable GSTWithin 3-4 working days
HSBC9.99% – 14.00%Up to INR 30 lakhUp to 1% of the loan amountWithin 15 days post the receipt of the application form
ICICI Bank10.50% onwardsUp to INR 40 lakhINR 999 -2.25% of the loan amount+ applicable GSTWithin 72 hours of the submission of documents
IDBI Bank9.50% – 14.00%Up to INR 10 lakhAs applicableDepends on the internal policy of the bank
IndusInd Bank11.00% OnwardsUp to INR 15 lakh1%-3% of the loan amount plus applicable GSTWithin 4-7 working days post receipt of the documents
Jammu & Kashmir Bank10.30%Up to 36 months gross salaryNILDepends on the internal policy of the bank
Karnataka Bank12.35%Up to INR 5 lakh0.50% of the loan amountDepends on the internal policy of the bank
Karur Vysya Bank11% – 19.00%Up to INR 10 lakh1% of the loan amountIn-principle sanction – 15 minutes
Kotak Mahindra Bank10.25% OnwardsUp to INR 20 lakh0.99%-2.50% of the loan amount plus applicable GSTWithin 10 working days
Lakshmi Vilas Bank11.55%Up to INR 20 lakh0.25% of the loan amount, subject to a minimum of INR 2,500 plus applicable GSTDepends on the internal policy of the bank
Nainital Bank10.00% – 10.50%15 times of net take-home salary, subject to a maximum of INR 3-5 lakh 2 times of average annual income of last 2 years, subject to a maximum of INR 2 lakh for self-employed0.50%-1.00% of the loan amount plus applicable GSTDepends on the internal policy of the bank
Oriental Bank of Commerce8.95% – 14.00%15 times of gross salary, subject to a maximum of INR 10 lakh0.50% of the loan amount, subject to a minimum of INR 500, plus applicable GSTDepends on the internal policy of the bank
Punjab & Sind Bank11.10%Up to 18 times of net monthly salary or INR 3 lakh, whichever is less1% of the loan amount plus applicable GSTDepends on the internal policy of the bank
RBL Bank17.50% – 26.00%Up to INR 20 lakh2%-2.50% of the loan amountDepends on the internal policy of the bank
Punjab National Bank (PNB)8.95% – 14.00%20 times of net monthly salary or INR 4 lakh, whichever is lower1.80% of the loan amount plus applicable GSTDepends on the internal policy of the bank
State Bank of India (SBI)9.60% – 13.60%Up to INR 20 lakh1% of the loan amount plus applicable GSTDepends on the internal policy of the bank
Standard Chartered Bank11%-12.50%Up to INR 50 lakh1% of the loan amount plus applicable GSTWithin 4-7 working days post receipt of the documents
Syndicate Bank11.25% – 13.30%Salaried – 12 months gross salary, subject to a maximum of INR 4-5 lakh Self-employed – upto INR 5 lakh0.50% of the loan amount, subject to a minimum of INR 500 plus applicable GSTDepends on the internal policy of the bank
UCO Bank8.45% – 10.45%10 times of gross monthly salary, subject to a maximum of INR 10 lakh1% of the loan amount, subject to a minimum of INR 750, plus applicable GSTDepends on the internal policy of the bank
United Bank of India8.95% – 14.00%10 months gross salary or INR 2 lakh, whichever is less1% of the loan amount plus applicable GSTDepends on the internal policy of the bank
Vijaya Bank10.00% – 15.60%Up to INR 10,00,000 for people residing in metros and urban areas Up to INR 5,00,000 for people living in semi-urban and rural areas2% of the loan amount, subject to a minimum and maximum limit of INR 1,000 and INR 10,000 respectively. The fee will also include applicable GSTDepends on the internal policy of the bank
YES BANK10.70% OnwardsUp to INR 40 lakhUp to 2.50% of the loan amount subject to a minimum of INR 999 plus applicable GSTWithin 5 days from the receipt of the application
Tata Capital10.49% – 14.25%Up to INR 25 lakhINR 999-2.50% of the loan amount plus applicable GSTWithin 72 hours from the receipt of the application
Fullerton India12.00% – 25.00%Up to INR 25 lakh2% of the loan amount plus applicable GSTWithin 30 minutes of loan approval

What is the eligibility for a Personal Loan?

Personal Loan eligibility calculation uses six factors to determine your eligibility, which are:

  1. Geographic location
  2. Monthly Income
  3. Ownership of property.
  4. Existing credit.
  5. Employer.
  6. Credit history.
CriteriaSalaried
Age23 years – 58 years.
Net SalarySalaried individuals with a minimum monthly income of Rs.30,000 (Depends on banks)
Total years in job/profession2 Years
Years in current residence1 Year
CriteriaSelf Employed
Age28 years (self-employed individuals) and 25 years (for doctors); Maximum age – 65 years ( can be different as per banks)
Minimum TurnoverRs. 40 lakh for non-professionals; Rs. 15 lac for professionals; as per audited financials
Minimum Profit After TaxRs. 2 lac for Proprietorship Firm/Self employed Individuals and Rs. 1 lac for non-professionals as per audited financials
Business StabilityIn current business for at least 5 years and minimum of 3 years for doctors
Existing relationship with BankMinimum 1-year liability relationship (current or savings account) or Asset relationship (loan) either live or closed in the last 36 months; repayment track as required

You can also use Personal Loan eligibility calculators online for the calculation.

Which documents are required for a Personal Loan?

Although the documentation varies from lender to lender, some of the essential documents you must provide along with your application form include:

  1. Duly filled and signed application form
  2. Proof of identity (Aadhar Card, Driving Licence, Voter Id )
  3. Proof of address (Aadhar Card, Driving Licence, Voter Id, electricity bill, water bill, Ration card, Rent agreement, etc.)
  4. Signature Proof ( Pan Card)
  5. Proof of income (salary slip, bank account statement, ITR forms)
  6. Proof of age
  7. Certified copy of your degrees and license (this is applicable only for self-employed applicants).

How should I apply for a Personal Loan?

Here is a list of five-step guides on how to apply for a Personal Loan from any bank or financial institution.

  1. Determine your requirement
  • Firstly, Find out why you need a Personal Loan and how much you need.
  • For example, you may need a loan to fund your wedding or to renovate your home. And you may need just Rs. 1 lac, 2 lac, 10 lac, or more. then you should check loan eligibility.

2. Check loan eligibility

  • Once you know how much you need, you must check whether you are eligible.
  • You can visit the Personal Loan Eligibility Calculator online, to find out how much you can borrow as Personal Loan. such as HDFC Bank offers loans up to Rs. 40 lac and others may be less and more than 40 lac.
  • You should read also more about how to calculate your Personal Loan EMI and how to lower it.
  • And after checking loan eligibility should calculate monthly installments.

3. Calculate monthly installments

  • Use an online EMI tool to calculate your approximate loan repayments every month.
  • You can modify the interest rate and tenure to match your monthly income.
  • All Bank offers pocket-friendly EMIs on all their Personal Loan, should check what best for you and then approach the bank.

4. Approach the bank

  • You can apply for a Personal Loan with the selected Bank in a variety of ways: Via NetBanking, online on the Bank website, at an ATM, or by visiting a branch. After approaching the selected bank, know the documents formalities then should submit the documents.

5. Submit documents

  • Next, find out what documents are required for a Personal Loan.
  • Usually, you will need income proof (bank statements, salary slips or IT returns)
  • Address proof.
  • and ID proof.
  • then Hand over copies of your Personal Loan documents at the bank. And wait for personal loan application approval and then for funds to be remitted to your account.

6. Get Approval and then fund in your bank account

Which bank provides a low-interest rate on a Personal Loan?

It depends on the current interest rate of the bank which can be increased or decreased. so should check the list of interest rates to know a low-interest rate on a personal loan.

List of Banks/LendersPersonal Loan Interest RatesLoan AmountProcessing FeeTurnaround Time
Allahabad Bank9.05% – 13.65%Minimum Loan Amount – INR 50,000 Maximum Loan Amount – 12 times of gross monthly salary for employees having a monthly remuneration of INR 15,000 – INR 20,000 24 times the gross monthly salary for individuals earning above INR 20,000. The maximum loan amount, however, won’t exceed INR 7.50 lakh1.22% of loan Amount, Minimum INR 1,228Depends on the internal policy of the bank
Andhra Bank8.90% – 13.00%Salaried – The loan amount is set in a way that the take home income is not less than 40% of the gross salary after all the deductions, including the proposed EMI Non-salaried – 2 times the average annual income for the past 3 years as per the Income Tax Return (ITR)As ApplicableDepends on the internal policy of the bank
Axis Bank10.25% – 21.00%INR 50,000 – INR 15,00,0001.50%-2.00% of the loan amount plus applicable GST
Bajaj Finserv14.00% – 16.00%Up to INR 25,00,000Up to 3% of the loan amountWithin 24 hours
Bank of Baroda10.00% – 15.60%Up to INR 10,00,000 for people residing in metros and urban areas Up to INR 5,00,000 for people living in semi-urban and rural areas

2% of the loan amount, subject to a minimum and maximum limit of INR 1,000 and INR 10,000, respectively. The fee will also include applicable GSTDepends on the internal policy of the bank
Bank of India10.35% – 12.35%Upto INR 5,00,000 – INR 10,00,0002% of the loan amount plus applicable GSTDepends on the internal policy of the bank
Bank of Maharashtra9.55% – 10.55%Upto INR 5,00,000 – INR 10,00,0001% of the loan amount plus GST, subject to a minimum of INR 1,000Depends on the internal policy of the bank
Canara Bank11.25% – 13.30%Six months gross salary or INR 3,00,000, whichever is less0.50% of the loan amount, subject to a minimum and maximum of INR 1,000 and INR 5,000 respectivelySanctions at Branch/RAH – 7 Days Sanctions at Circle – 15 Days Sanctions at HO – 2-3 weeks
Central Bank of India9.85% – 10.05%20 times of gross salary, subject to a maximum of INR 10,00,000. The minimum net take home income must not fall below 40% of the gross salary after deductions, including the proposed EMIINR 500 + applicable GSTDepends on the internal policy of the bank
Citibank9.99% – 16.49%Upto INR 30,00,000Upto 3% of the loan amountWithin 48 hours
Corporation Bank8.90% – 13.00%Upto INR 3,50,0001.50% of the loan amount, subject to a minimum of INR 500Depends on the internal policy of the bank
Dena Bank10.00% – 15.60%Up to INR 10,00,000 for people residing in metros and urban areas Up to INR 5,00,000 for people living in semi-urban and rural areas2% of the loan amount, subject to a minimum and maximum limit of INR 1,000 and INR 10,000, respectively. The fee will also include applicable GSTDepends on the internal policy of the bank
DCB Bank13.00% – 25.00%Upto INR 5 lakh2% of the loan amountWithin 3-4 working days
Federal Bank10.49% – 17.99%Upto INR 10 lakh0.50% of the loan amountDepends on the internal policy of the bank
HDFC Bank10.25% – 17.00%There’s no maximum limit. Your income, credit score and repayment capacity will dictate the loan amountNIL-2.50% of the loan amount plus applicable GSTWithin 3-4 working days
HSBC9.99% – 14.00%Upto INR 30 lakhUpto 1% of the loan amountWithin 15 days post the receipt of the application form
ICICI Bank10.50% onwardsUpto INR 40 lakhINR 999 -2.25% of the loan amount+ applicable GSTWithin 72 hours of the submission of documents
IDBI Bank9.50% – 14.00%Upto INR 10 lakhAs applicableDepends on the internal policy of the bank
IndusInd Bank11.00% OnwardsUpto INR 15 lakh1%-3% of the loan amount plus applicable GSTWithin 4-7 working days post receipt of the documents
Jammu & Kashmir Bank10.30%Upto 36 months gross salaryNILDepends on the internal policy of the bank
Karnataka Bank12.35%Upto INR 5 lakh0.50% of the loan amountDepends on the internal policy of the bank
Karur Vysya Bank11% – 19.00%Upto INR 10 lakh1% of the loan amountIn-principle sanction – 15 minutes
Kotak Mahindra Bank10.25% OnwardsUpto INR 20 lakh0.99%-2.50% of the loan amount plus applicable GSTWithin 10 working days
Lakshmi Vilas Bank11.55%Upto INR 20 lakh0.25% of the loan amount, subject to a minimum of INR 2,500 plus applicable GSTDepends on the internal policy of the bank
Nainital Bank10.00% – 10.50%15 times of net take home salary, subject to a maximum of INR 3-5 lakh 2 times of average annual income of last 2 years, subject to a maximum of INR 2 lakh for self-employed0.50%-1.00% of the loan amount plus applicable GSTDepends on the internal policy of the bank
Oriental Bank of Commerce8.95% – 14.00%15 times of gross salary, subject to a maximum of INR 10 lakh0.50% of the loan amount, subject to a minimum of INR 500, plus applicable GSTDepends on the internal policy of the bank
Punjab & Sind Bank11.10%Upto 18 times of net monthly salary or INR 3 lakh, whichever is less1% of the loan amount plus applicable GSTDepends on the internal policy of the bank
RBL Bank17.50% – 26.00%Upto INR 20 lakh2%-2.50% of the loan amountDepends on the internal policy of the bank
Punjab National Bank (PNB)8.95% – 14.00%20 times of net monthly salary or INR 4 lakh, whichever is lower1.80% of the loan amount plus applicable GSTDepends on the internal policy of the bank
State Bank of India (SBI)9.60% – 13.60%Upto INR 20 lakh1% of the loan amount plus applicable GSTDepends on the internal policy of the bank
Standard Chartered Bank11%-12.50%Upto INR 50 lakh1% of the loan amount plus applicable GSTWithin 4-7 working days post receipt of the documents
Syndicate Bank11.25% – 13.30%Salaried – 12 months gross salary, subject to a maximum of INR 4-5 lakh Self-employed – Upto INR 5 lakh0.50% of the loan amount, subject to a minimum of INR 500 plus applicable GSTDepends on the internal policy of the bank
UCO Bank8.45% – 10.45%10 times of gross monthly salary, subject to a maximum of INR 10 lakh1% of the loan amount, subject to a minimum of INR 750, plus applicable GSTDepends on the internal policy of the bank
United Bank of India8.95% – 14.00%10 months gross salary or INR 2 lakh, whichever is less1% of the loan amount plus applicable GSTDepends on the internal policy of the bank
Vijaya Bank10.00% – 15.60%Up to INR 10,00,000 for people residing in metros and urban areas Up to INR 5,00,000 for people living in semi-urban and rural areas2% of the loan amount, subject to a minimum and maximum limit of INR 1,000 and INR 10,000 respectively. The fee will also include applicable GSTDepends on the internal policy of the bank
YES BANK10.70% OnwardsUpto INR 40 lakhUpto 2.50% of the loan amount is subject to a minimum of INR 999 plus applicable GSTWithin 5 days from the receipt of the application
Tata Capital10.49% – 14.25%Upto INR 25 lakhINR 999-2.50% of the loan amount plus applicable GSTWithin 72 hours from the receipt of the application
Fullerton India12.00% – 25.00%Upto INR 25 lakh2% of the loan amount plus applicable GSTWithin 30 minutes of loan approval

How much Personal loan can I get as per salary?

Banks and financial institutions offer personal loans to help you meet your personal financial requirements at times of need, thus helping you meet the uncertainties of life. But a question that bothers many of the applicants very often is how much personal loan can I get on my salary?

In many cases, these institutions consider the salary as an important tool to calculate your eligibility for getting personal loans. Your salary serves as your regular source of income, and thus, it forms the basis of your credibility for making the timely repayment of the amount of the loan. So, the claim for a personal loan depends upon the fixed obligation income ratio.

The following table shows the debt-income ratio and is followed by the method to calculate the same as the money view website.

SalaryExpected Personal Loan Amount
Rs. 20,000Rs. 5.40 lakhs
Rs. 30,000Rs. 8.10 lakhs
Rs. 40,000Rs. 10.80 lakhs
Rs. 50,000Rs. 13.50 lakhs
Rs. 60,000Rs. 16.20 lakhs

How can I get a Personal loan ungently?

A same-day loan is a type of unsecured personal loan that gives you access to funds instantly, post submitting your application. These loans are very helpful when you are in urgent need of credit. Same-day loans provide you with the required funds to help you meet your various personal needs such as car repairs, medical bills, etc. These loans are sanctioned for a relatively short period of time and carry comparatively higher rates of interest.

  1. A same-day loan is ideal for those individuals who:
  2. Don’t want to borrow money from family or friends.
    Need instant cash.
  3. Don’t want to use a credit card cash advance.

Same-day loans are perfect for unexpected financial requirements. When you realize that you need money suddenly for an emergency requirement, you can apply for a same-day loan as your application will be processed immediately. Usually, financial resources are limited when you need instant cash. In such cases, same-day loans from reliable lenders are the best go-to options.

  1. HDFC Bank
  2. ICICI Bank
  3. Bajaj Finserv
  4. Exceed cash
  5. Credit Bazar
  6. Pocket app and etc.

Is a Personal loan good for me?

Getting a personal loan is a good idea if you have a stable income and a good credit score because you will then be offered a low rate of interest. On the contrary, with an unstable job and a low credit score, the interest rate offered to you will be comparatively higher. It is not advisable to apply for a personal loan each time you have a major expense.

When you should get a personal loan

You could get a personal loan for various reasons from funding your wedding to paying off existing loans. Banks approve personal loans on the basis of your income and rarely on the basis of the purpose. Here are some of the reasons why you could get a personal loan:

1. Consolidate your debts

If you have maxed out all your credit cards, or you have many loans that you wish to pay off, you could get a personal loan. Ideally, you should do this only if your income has increased and your credit score has improved. Otherwise, it could be a bad idea.

2. Refinance your education

When it comes to education, personal loans are not the best choice. Education loans come with comparatively lower interest rates and various benefits. However, you could get a personal loan to take care of any expenses that may have cropped up.

3. Renovate your home

You could get a personal loan for home improvement. The home renovation could make your home comfortable and bring you much-needed peace of mind. Moreover, the renovation could add value to your home in case you are looking to sell it in the near future.

4. Pay for your wedding

Indian weddings are a considerably expensive affair. You may be tempted to use your credit card for all your purchases but it is best to get a personal loan instead. That way, you can repay the loan eventually.

5. Finance a purchase

Let’s say you wish to take a break and go on a solo trip or you wish to buy furniture for your home, you can go ahead and get a personal loan. If you do not have sufficient savings at the moment to fund your purchase, you can make use of a personal loan.

6. Medical emergency

If you or your family member needs surgery immediately or was diagnosed with a critical illness, you could get a personal loan to take care of the expenses. While getting a personal loan is always an option, it is best to get a health insurance plan for you and your family so that you are protected from such emergency scenarios.

When you shouldn’t get a personal loan

Personal loans are relatively easy to get. You can apply for a personal loan and get the amount disbursed within a week. However, you should make sure that you really need the loan when you apply for it. Here are a few reasons why you shouldn’t get a personal loan:

1. Impulsive decision

If you have the option to save up for the expenditure you are planning, it is always best to save up over a period of time and then make the purchase. Instead of paying the EMI with interest, you could save up the same amount every month and buy the item, say, six months down the line.

2. Bad investment

If the amount you spend is not going to give any fruitful result, it is a bad investment. The money you borrow, through a personal loan, should add value to something, only then should you get it.

3. Low credit score

If your credit score has just taken a hit, it is best not to apply for a personal loan as you may be charged very high-interest rates. Also, if you are unable to repay the loan, your credit score will go further down. Thus, repay all your existing loans and then get a new loan if necessary.

4. Unstable job

Personal loans are usually offered on your income. If you do not have a stable job, banks are most likely to charge a high rate of interest. So, think wisely before you decide to get a personal loan.

Can I get a Personal Loan with no job?

Yes, you can get a loan without a job, as long as you provide an alternative source of income, put up collateral, or find a cosigner. Lenders won’t discriminate against you just because you don’t have a job, but they will require you to demonstrate the ability to repay what you borrow somehow. Below, you can find some detailed tips on the various ways to get a loan without a job.

How to Get a Loan Without a Job
Find an alternative source of income and this can include benefits like unemployment, retirement, disability, alimony, or child support. You could also draw from assets such as a savings account, trust fund, or investments. And you’re allowed to put down a spouse/partner’s income that you have reasonable access to, among other sources of income.

What is the age criterion to get a Personal Loan?

To be eligible for a Personal Loan, you must be between the ages of 21 to 60.

What is the Minimum Credit Score to apply for a Personal Loan?

HDFC Bank requires a minimum credit score of 650 to be eligible for Personal Loans. The credit score can vary from bank to bank.

What are the factors that affect the eligibility for a Personal Loan?

The factors that affect the eligibility for Personal Loans are

  1. CIBIL Score – A CIBIL score above 720 is ideal for Personal Loans.
  2. Income – It plays a vital role in the approval of the loan amount.
  3. Repayment history- If you have a good track record of repayment with previous loans, approval of the loan is faster and easier.

Is a guarantor needed for a Personal Loan?

This usually depends on the lender, but the lender can ask for a guarantor if you have a poor credit score.

How to improve Personal Loan eligibility?

The best way to improve your Personal Loan eligibility is by maintaining a healthy repayment history.

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