What is a personal loan?
A personal loan is borrowing for an eligible personal expense, usually repaid through monthly instalments over an agreed period. It is generally unsecured, which means it typically does not require a house or other property as collateral.
People may consider one for a planned expense, education-related costs, a family event or another permitted need. Approval depends on income, existing repayments, credit history and the lender’s policy. Borrow only what your monthly budget can support.
Potential advantages to consider
Usually no property collateral
An unsecured personal loan can fund an eligible expense without mortgaging your home. Repayment obligations still apply.
Plan around monthly repayments
A stated EMI and repayment schedule can help you plan your cash flow. Confirm whether the rate and repayment terms can change.
One route for different needs
Permitted personal expenses can be covered by one loan category. Confirm the lender’s end-use restrictions before applying.
What can affect eligibility?
- Income amount and consistency, employment or professional profile
- Existing EMI and other repayment commitments
- Credit report, repayment history and recent credit applications
- Age, location and other criteria specified by the selected lender
Documents and information to prepare
- Lender-accepted identity and address proof
- Recent salary slips or other applicable income records
- Recent bank statements
- Employment details and existing loan information, where requested
Requirements vary by provider and profile. Never put documents, identity numbers, passwords or OTPs in the initial enquiry.
Open loan document checklistsCosts and trade-offs to review
Compare the annual percentage rate (APR), interest and processing charges rather than an advertised rate alone.
Check the EMI, total repayment, late-payment charges and prepayment conditions. A longer tenure may reduce EMI while increasing total interest.
Ask the lender for the applicable Key Facts Statement and repayment schedule. Do not assume a calculator result is a lender quotation.
How does a personal loan EMI work?
For an illustrative ₹5,00,000 loan at a fixed 12% annual nominal rate over 3 years, a monthly reducing-balance calculation gives an EMI of approximately ₹16,607. Total repayment is approximately ₹5,97,858, including around ₹97,858 in interest.
Assumes 36 monthly instalments and excludes fees, taxes, insurance and other charges. Rounding may affect the displayed totals. The rate is an example, not an available lender offer.
Change the values in the EMI calculator →What happens next?
- Share your requirement and your own contact details with our team. This first enquiry does not apply for a loan.
- Discuss your income profile, repayment commitments and the documents a lender may require.
- Review any lender proposal, including its repayment schedule, total cost and applicable terms, before deciding.
- If you proceed, the lender verifies your application and decides approval and disbursement. We assist with coordination.
Personal Loan FAQs
Does a personal loan need collateral?
Personal loans are generally unsecured. The lender still assesses repayment capacity and credit history, and its specific product terms apply.
Can I get a personal loan with a low credit score?
A score is one factor in a lender’s decision. We cannot guarantee approval at any score; income, commitments, repayment history and lender policy also matter.
What interest rate will I receive?
There is no universal rate on this website. Ask for a lender proposal based on your profile and compare APR, fees and total repayment.
Can I repay the loan early?
Prepayment options, conditions and any charges depend on the applicable lender terms and rules. Check the proposal before accepting it.
Does sending an enquiry apply for a personal loan?
No. Your details go to our team for follow-up. A lender application and any credit assessment are separate steps.
Explore related guidance
Further reading: RBI: Key Facts Statement and APR ↗. External information is not an appointment claim or product recommendation.
General information, not a personalised loan offer, credit decision or insurance recommendation. Ask the relevant lender or authorised insurer to confirm the terms that apply to you.