A personal loan is an unsecured loan. In simple terms, personal loan is used to fulfill your financial need without offering any collateral or any sort of security. Like other loans, a person does not have to put up collaterals like goods, assets or gold to avail the personal loan. Instead, a person needs to submit security of 1-2% to the loan service bank or NBFC.
What makes personal loans unique is that they are flexible as per your need. The loan can be used for personal use like wedding, home renovation, financing of child education, travelling and much more. Also, you can apply for a personal loan without any constraint on the amount of funds you require. Further no reason is asked while availing the personal loan. Nowadays, loans for personal needs get disbursed within 24 hours.
A repayment is the process of returning the borrowed money to the lender. It generally includes principal amount and interest rate. As said, Personal Loans are short to medium term loans to meet your immediate financial needs. So, a borrower can complete the repayment process in less than 2 months to 5-6 years. The repayment period for personal loans depends on the loan amount, EMI, and other company policies.
For example, if you take a loan of Rs. 3 lakhs at the rate of 13% per annum with repayment tenure of 3 years or 36 months. Your EMI will be Rs. 10,108 per month (including interest rate and loan amount).
The total payable amount at the end of 3 years would be Rs. 3,63,895/- ( Rs. 10,108 * 36). Therefore, you are paying a total interest amount to the tune of Rs 63,895. This, however, excludes other applicable charges which can be quantified as under: Loan Processing Charges, Documentation charges - 2%
Fill in the Personal Loan Application Form, to check your eligibility.
Compare various Personal loan options, and apply for the suitable option.
Get an instant e-approval, after successful submission of the application.
Personal Loan Highlights | |
|---|---|
| Eligibility Criteria | Regular Income Source, Profession |
| Loan Duration | 2 months - 5 Years |
| Loan Disbursal Time | 24 Hours to 7 Days |
| Loan Rates | 2.75% to 35% |
| Interest Rate Types | Fixed, Floating |
Personal Loans are one of the flexible loans that are available in the market. The packages are accessible in the various ranges of loan amount, duration and interest rate.
So,what is stopping you from dream vacation or to buy the latest sports bike. Even, any unforeseen financial issues or unexpected expenses can be financed using personal loan.
So, to get immediate funds, personal loans are best to suit your requirements. The main advantage of getting a personal loan online is that you can use the loan amount at your discretion. Whether it is organising a family function, medical expenses, etc. With no-collateral and instant access make the personal loans a best choice to meet your financial needs.
Personal Loan is the quickest way to get the immediate funds for any financial requirement. So personal loan is unique in many ways among all types of loan available in the market.
The benefit of personal loan is that it is unsecured. Hence, you do not need to put up security to avail the loan. No collateral is required like home, other assets or jewellery. If you have a good credit history and CIBIL score, then you can easily apply for the personal loan without losing any important asset.
Gone are the days of submitting a long list of documents to the banks to avail the loan. Now, with seamless digital lending, you can get the loans very minimal documentation is required.
The entire procedure has been turned simple and digitalized. Therefore, offering the customers another benefit of getting access to required funds through a personal loan.The entire procedure has been turned simple and digitized.
Personal is now ever easier to apply and disburse. The latest automated technology makes access to personal loans easier. The online personal loans are quick and hassle-free. Efficient credit and quality check is making approval of loans faster.
Unlike car loan, home loans, you can use personal loans for multiple purposes. The personal loan can be used for various assortment of needs, ranging from managing a wedding in the family, child’s education or to clear your debts.
Personal Loans can be used for different purposes depending on your financial needs. Some of the different types of personal loans are as follows.
Personal L-oan can be used for home renovations. If you want to rebuild your house, get new accessories or plan a whole new makeover of your house, then a personal loan is perfect for you. The finances can be easily availed instantly without waiting for weeks for approval. Thus, with funds available, you can start working on your home sweet home.
You can always avail wedding loans in case you are short of funds. So, don't let money be a constraint in your dream wedding. Many banks and NBFCs are now offering multiple personal loans for weddings as per your requirement. The interest rate and repayment rate will depend on the company policies.
There is a traveller who lies in everyone. So do not let money hinder your adventures and priceless experiences. Loans for travelling are now very popular and easy to avail. The personal loan for travel gets instantly approved and then accordingly you can plan your memorable vacation.
Do you have your previous debts piled up? Various debts makes it possible to forget the EMI deadlines. Hence, penalties and adds default in your credit score. So, to ease the issue, you can pay all your past debts at once and continue with one plan. Thus, get a personal loan and stay tension free.
This is the customised plans by various financial institutions such as banks and NBFCs. In this top up personal loans, a person can get a certain amount of money over the personal loan currently approved. The interest rate for a top up is slightly higher than the personal loan, as you are availing more amounts on your personal loan.
It is one of the innovative financial products where you can transfer your total outstanding loan to another bank. The advantage of this is that a person can continue its EMI with another paying less interest on rates.
In order to apply for a personal loan, you need to check some criterion as per the policy of the banks. Different eligibility terms and conditions need to be fulfilled to avail the loan. They can differ depending on the type of bank or NBFC.So, before applying for the loan to check the eligibility and hassle free process further.
| Age | 23/24 years - 60/65 years |
| Employment Type |
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| Credit score | 750+ or with a good credit or cibil score history |
| Minimum Net Income (Monthly) |
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| Loan Amount | Up to 40-50 lacs depending on the credit profile and the applicants profile. |
| Work Experience |
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In digital lending, you just need necessary documents online. The documents for personal loan can easily be scanned and uploaded online. So, the list of the documents that are generally needed by banks and NBFCs. Further, there are two classifications, that is for salaried individuals and second for self-employed individuals.
| Documents Required | Salaried Individual | Self-Employed |
| Salary slips of the last 3 months | Yes | No |
| Last 3 months bank statement till date (reflecting salary credits) | Yes | Yes |
| Identity proof and PAN card (mandatory) | Yes | Yes |
| Residence Proof (Passport, Utility bills, Bank Statements, Postpaid bill, DL, Aadhar Card, Company letterhead stating the address) | Yes | Yes |
| Permanent address proof - (Passport, Utility bills, Bank Statements, Aadhar Card, Company letterhead stating the address) | Yes | Yes |
| Form 16 or Income Tax Returns of last 2 years (not mandatory) | Yes | No |
| Completely filled personal loan application with photograph | Yes | Yes |
| Last 3 years Income Tax Returns with computation of Income | No | Yes |
| Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account | No | Yes |
Choosing a right personal loan plan for you is never easy. There are a plethora of options to choose one. In the end, a person will end up with multiple choices in hand but isn't able to apply for the best personal loan. Here at LoanADDA we provide best and affordable offers on your personal loan, through our online EMI calculator, which calculates flexible repayment options for you. Let's check out other features that make LoanADDA perfect for your home loan needs.
LoanADDa online EMI Calculator helps you to calculate the EMI amount. This is the payout that needs to be paid out every month on your personal loan application.
LoanADDa offers paperless Personal Loan service which gets approved in 4 minutes. The disbursal of the amount takes less than 24 hours.
LoanADDa helps you choose the best plans for your personal loans across top banks and NBFCs.
With LoanAdda apply for a personal loan & enjoy multiple benefits. Such as online application help, Instant Personal Loan approval, multiple personal loans offers etc.
LoanAdda endows all its customers with round the clock services. The applicants can easily get in touch with the professionals at any hour as per their convenience. In case of any issues the customer can write to us at support@loanadda.com. Our executive will reach to you as soon as possible.
Making a decision for a loan is never easy. So at Loanadda, customer needs are our priority. Our agents are always happy to match your loan needs. The best efforts are endowed to offer best financial solutions. Here, we give our best to experience a hassle-free loan disbursal at earliest.
Curious to know how to apply for a personal loan? The steps are pretty simple, just keep your basics credentials ready for the loan application. The brief of the application procedure is as mentioned below.
It is the monthly payment a person has to submit in order to clear the outstanding loan in the fixed duration of time. The EMI drives its value from the amount borrowed, interest rate, duration of loan, and monthly repayment. The payment of EMI includes repayment of loan amount and interest on the loan.
Have a look at the results that will appear on the personal loan EMI calculator online:
Few Personal Loan Details | |
|---|---|
| Interest Rates | 10.75% - 35% |
| Processing Fee | It Differs from bank to bank; generally ranges between 1-3% of the loan amount |
| Loan Tenure | 12 months to 60 months |
| Loan Amount | Starting from 15000 – 30 lacs |
| Lock-in period | It Varies from lender to lender |
| Pre-closure Charges | It Differs; Generally between 2%-5% of the loan outstanding |
| Guarantor Required | It Varies on different conditions |
Every Bank or NBFC checks your credit score. It shows your ability to pay back the outstanding loan. The higher the credit scores, greater the chances to get a loan easily. It depends on your past credit history, default rates, income source, expenditures etc. A person getting CIBIL score of more than 750 shows a good track record with loans and eligible for new loan approval.
A loan is a long term solution as compared to credit cards. Personal loans are used for specific purposes and usually for single use. Where credit cards are mostly preferred for getting smaller amounts. Also, there is a limit until which you can take credit from the banks. EMI for very single single spend needs to be paid as per the company policy. However, you do not need additional documentation with credit cards as compared to personal loans.
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