Personal Loans

Personal loans are a great way to get money for various needs, whether it's paying off debt, making a big purchase, or handling unexpected expenses. Let's break down what personal loans are, how they work, and why they might be right for you.

Lender NameInterest Rates (%)Loan AmountProcessing FeesPrepayment ChargesApply Now
Yes Bank10.75 - 18.00Up to ₹40 lakhs1% of the loan amount + GSTNil - Up to 2% of the principal outstanding + GSTApply Now
HDFC Bank10.75 - 14.50Salaried: Up to ₹50 lakhs2% of the loan amount or ₹3,500 (>=₹10 Lakhs)Nil - Up to 4% of the principal outstanding + GSTApply Now
Standard Chartered Bank10.75 - 13.00Up to ₹50 lakhs1% of the loan amount + GST1%-5% of the principal outstanding + GSTApply Now
ICICI Bank10.50 - 18.00Up to ₹50 lakhs2% of the loan amount + GST or ₹3,500 (>=₹10 Lakhs)5% of the principal outstanding + GSTApply Now
State Bank of India (SBI)9.60 - 13.60Up to ₹15 lakhsNil - 1% of the loan amount + GST0.99% to 2.50% of the loan amount + GSTApply Now
Kotak Mahindra Bank10.99 - 20.99Above ₹20 lakhs0.99% to 2.50% of the loan amount + GST5% of the principal outstanding + GSTApply Now
IDFC First Bank10.50 - 25.00Up to ₹1 Crore1% of the loan amount + GST5% of the principal outstanding + GSTApply Now
SMFG India Credit12.00 - 24.00Up to ₹25 lakhs2% - 6% of the loan amount + GST0-4% of the principal outstandingApply Now
RBL Bank17.50 - 26.00Up to ₹20 lakhs2% - 2.5% of the loan amount + GST3%-5% of the principal outstandingApply Now
IndusInd Bank10.49 - 31.50Up to ₹25 lakhsUp to 3% of the loan amount + GSTAs applicable by the bankApply Now
Tata Capital10.75 - 18.00Up to ₹25 lakhs1% of the loan amount + GST4% of the principal outstandingApply Now
DCB Bank13.00 - 25.00Up to ₹5 lakhs2% - 3% of the loan amount + GSTAs applicable by the bankApply Now


  • Flexible Use: You can use the money for almost anything, from consolidating debt to paying for a wedding or covering medical bills.
  • Fixed Payments: Since the payments are the same each month, it’s easy to budget and manage.
  • No Collateral Needed: You don’t need to put up your home, car, or any other asset to get a personal loan.

Risks and Considerations

  • High-Interest Rates: Low credit scores result in higher interest rates. Ensure timely payments to maintain a good score.
  • Debt Burden: Only borrow what you can repay. Late payments incur penalties, increasing your financial burden.
  • Credit Score Impact: Missed payments lower your credit score, making future loans difficult to obtain. Clear existing debts before applying.
  • Hidden Fees: Be aware of additional charges like processing or prepayment fees. Inquire about all fees before committing.
  • Fraud Risks: Only deal with reputable, RBI-recognized lenders. Avoid offers that seem too good to be true, and always verify authenticity.

Steps to Apply for a Personal Loan

  1. Check Your Eligibility
    • Credit Score: Ensure your credit score is good, typically 700 or above.
    • Income: Verify that your income meets the lender's requirements.
    • Employment: Ensure you have a stable job or consistent income source.
  2. Choose the Right Lender
    • Compare interest rates, tenure, and loan amounts from various lenders.
    • Consider the reputation and customer service of the lender.
  3. Gather Necessary Documents
    • Proof of Identity: Passport, Aadhar card, PAN card, or voter ID.
    • Proof of Address: Utility bill, rental agreement, or passport.
    • Proof of Income: Salary slips, bank statements, or income tax returns.
    • Employment Proof: Offer letter or employment certificate.
    • Photographs: Passport-sized photos.
  4. Fill Out the Application Form
    • Visit the bank’s website or branch.
    • Complete the application form with accurate personal and financial details.
  5. Submit Required Documents
    • Attach the necessary documents as per the lender’s requirement.
    • Ensure all documents are valid and up-to-date.
  6. Wait for Verification
    • The lender will verify your application and documents.
    • This might involve a credit check and background verification.
  7. Approval and Loan Disbursement
    • If approved, you will receive a loan offer with terms and conditions.
    • Review the offer carefully.
    • Once you accept the offer, the loan amount will be disbursed to your bank account.

Tips to Increase Approval Chances

  • Maintain a Good Credit Score: Regularly check your credit report and ensure timely payments to keep your score high.
  • Reduce Existing Debts: Pay down current loans and credit card balances to improve your debt-to-income ratio.
  • Stable Income: Ensure a stable and sufficient income to meet the lender’s requirements.
  • Accurate Documentation: Provide all necessary documents accurately and completely.
  • Loan Amount: Apply for a reasonable loan amount that aligns with your income and repayment capacity.
  • Research Lenders: Compare offers from different lenders to find the best terms and conditions.

Improve Your Credit Score

  • Check Your Credit Report: Regularly review for errors and dispute inaccuracies.
  • Pay Bills on Time: Always pay credit card, loan, and utility bills by their due dates.
  • Reduce Debt: Pay down existing balances, focusing on high-interest debts first.
  • Limit New Credit Applications: Avoid frequent new credit inquiries.
  • Increase Credit Limits: Request higher limits on existing credit cards without increasing spending.
  • Maintain Credit Mix: Use a mix of credit types (credit cards, loans).
  • Keep Old Accounts Open: Keep older accounts active to maintain a longer credit history.
  • Use Secured Credit Cards: Build credit with secured cards if needed.
  • Authorized User: Become an authorized user on someone else’s account with good credit.

Special Tips to Avoid Rejection

To avoid personal loan rejection, maintain a good credit score, accurately fill out your application, and provide all required documents. These steps will enhance your chances of approval.


  • Do thorough research before applying for a loan.
  • Do read the fine print carefully.
  • Do save money diligently while repaying the loan.
  • Do pay your loan installments on time, every time.
  • Do evaluate your credit score thoroughly.
  • Do apply for a loan amount that you can afford.


  • Don’t sign loan documents without understanding every detail.
  • Don’t make multiple loan inquiries from different banks.
  • Don’t take a personal loan without a serious purpose.
  • Don’t rush your loan comparison process.
  • Don’t forget to pay your loan installments.
  • Don’t accept unfavorable loan terms.

Things to Do After Closing a Personal Loan

  • Collect No Dues Certificate (NDC): This confirms full repayment of your loan. Keep it safe for future reference.
  • Get a Statement of Account (SoA): This optional document details your repayment history and can help fix any credit report errors.
  • Retrieve Unused Cheques: Collect any remaining cheque leaves from your lender.
  • Check Your Credit Score: Verify your credit score post-loan closure to ensure accuracy, especially if planning to apply for another loan soon.

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