Personal Loan

Personal loans are unsecured loans provided by the banks without taking any collateral security, though some PSU banks may insist on a guarantor. Personal loan can be taken for any personal requirement ranging from marriage to holidaying or maybe to buy a lifestyle product or medical emergencies. The end purpose is not important to the bank as long as it is not for speculative trading.

Personal loan is a simple hassle free process of acquiring personal finance with minimal documentation and within quick time. The bank will require the borrower's documents regarding the proof of identity, residence along with income proof / ITR of last 2 years to initiate the process for loan sanction.

After verifying the documents and checking the borrower's credit score with Credit Information Bureau (India) Limited commonly known as CIBIL, the bank may decide whether to approve or reject the personal loan.

The personal loan amount and rate of interest is dependent on three major factors. First are borrower's income and his ability to service the loan. Second is the company for which the borrower is working and third is the credit history of the borrower. The bank may reject the personal loan if the borrower has defaulted in his past dues on any credit card or loans.

Once the borrower is qualified for the personal loan it takes close to about three days or so to get the loan amount disburse. The personal loan repayment is in equated monthly installments and tenure can vary from 1- 5 years.

It is advisable for a borrower to get in touch with as many banks as possible and get them to make loan offers to him. Then he can then try to negotiate with them and select the most cost effective option for him. The borrower will also have to take into consideration the processing fee and prepayment charges while finalizing the lender

Always remember that personal loan should be taken in dire emergency as far as possible. Being classified as unsecured loans, these loans are usually more expensive in terms of interest rate compare to any other loan taken against collateral security like gold jewelry, high surrender valueinsurance policies, etc


Made up your mind to go ahead with pursuing your dream of fulfilling the long cherished desire? You can do that by opting for personal loan, though tricky in nature as it is not easy to make out whether this is a necessity or just an indulgence. This is your call but our Compare Quote on Personal loan can certainly help you by giving complete spectrum of interest rates offered by various banks across the country.

Now that you have decided, please fill up the form alongside stating all your details to get the list of lenders which can cater to your requirement. The lenders will be right in front of you for comparison. Compare it to believe IT!


Personal Loan is a very convenient mode of arranging finance for short-term without providing any security. The avenue of personal loans can be used for the purpose of meeting various needs like education, vacation, marriage, medical expenses, furnishing of home or any unexpected financial urgency.

personal loan interest Rates are primarily dependent on the profile of the borrower and his past repayment track record. The profile of the employer where the borrower is working also has a huge bearing on the personal loan interest rate. Being an unsecured loan, the lender is taking a big risk in lending you money and to cover that risk, the lender charges you a higher rate of interest than those charged on any other secured loans.

Due to higher risk Usually personal loan interest rates are higher than the interest rates offered on loan taken against collateral securities like gold, life insurance policy with surrender value, NSC and KVP etc. It is always advisable to get in touch with as many lenders as possible and get them to make loan offers to you. This will help you in negotiating on the processing charges and the rate of interest as well.

Do not get fooled by the personal loan rate conveyed to you by the lender. Some lenders calculatepersonal loan interest rate on monthly reducing basis and some on annual basis. It is always advisable to opt for monthly reducing basis, because when a portion of principal amount is paid, the next month interest will be calculated on balance principal outstanding for the subsequent month whereas it is done once a year in case of annual basis. So effectively you pay interest on the principal, which you have paid during the year.

Beware of floating type of interest rates, because if the Base Rate / PLR rise, your rate of interest will also rise with it.

Last but not the least; it is advisable not to go for personal loan unless you are in dire need of money. In case you are able to provide any security, please offer to pledge that so that you will be able to get the loans at the lower rate of interest than what is applicable in case of personal loans.


You are eligible for a personal loan if you are a salaried individual, self-employed individual (own business), or a self-employed professional (doctor, lawyer, etc.). Other factors such as your income, age, residence, work experience, repayment capacity, past obligations and place of work are also taken into account. A personal loan can be used for any purpose provided it is legitimate; you need not mention the end use to the lender.
Compare various personal loan providers and decide for yourself the best option.


When applying for a Personal Loan
A Personal Loan is often the most convenient way to raise money whatever be the purpose of using money. Before you apply, you may want to keep in mind the following 4 factors:

1. Check if you can provide any security
A loan secured against your jewellery or against securities such as Mutual Fund units, listed shares of major companies, debentures of major companies/public sector companies, life insurancepolicies with large surrender values, National savings certificates, etc. can often be quicker and cheaper.

2. Get your own credit report
Apply online at and follow the instruction given there to get a copy of your own credit report. Check your credit report thoroughly to spot errors. If need be, use our advisory services on CIBIL Report to get any errors corrected. Remember any errors in your credit report can reduce your chances of getting a good personal loan offer.

3. Go for Fixed rates of interest
Most personal loans are available at completely fixed rates of interest for the entire tenure. Make sure that the personal loan that you are taking is also fixed for the entire tenure of the loan.

4. Be aware about the Processing fees and Pre-payment Charges
Most personal loans have processing fees ranging from 0.50% to 3% of the loan amount . Most personal loans will also charge you a fee if you wish to pre-pay the loan of between 3-5% of the loan amount repaid. Some lenders will not allow pre-payment for the first 6 months and most lenders do not accept partial pre-payment.
Do not sign blank application forms or documents and keep a copy of all documents submitted to the lender for your future reference. Any promise made by the DSA or even an official of the lender has no value unless it is in writing or at least on email. So if you are basing your decision on any such promise make sure you get it in record in some form.


A Personal Loan is a great way to get money quickly whatever be the purpose of funds. You can borrow a fixed amount and re-pay in equated monthly installments (EMI).

A Personal Loan EMI is the amount payable each month from your future income towards repayment of your loan. Try our Personal Loan EMI Calculator to find out exactly how your Personal Loan EMI gets computed. The EMI is primarily dependent on several factors - more prominently like the interest rate of borrowing and the period of loan, etc. It is these factors which contribute to the difference in EMIs charged by the various banks like SBI, HDFC, ICICI, etc.

Paying your loan EMI on time helps you build a re-payment track record. Most banks lend at a lower rate to customers with such a track record. So if you want better-than-market rates (and therefore lower EMIs) the next time you seek a loan, be sure to pay your EMI on time.

If you do not like the idea of paying a fixed loan EMI each month, you may want to consider is an overdraft facility. Unlike in a Personal Loan, here there is no fixed EMI to be paid back every month. You get flexibility in your repayment schedule. The interest charged each month is typically based on the fluctuating daily outstanding balance. There may also be a service fee that a bank may charge for managing the credit line. Also, you may have to offer a security.


Personal loan EMI is the amount paid every month to the lending institution towards the repayment of your loan taken for personal use. Our Personal Loan EMI Calculator will help you to know exactly how much amount you will have to assign every month from your income for payment of these installments.

Like every loan, the lender tries to recover more of interest portion in the beginning of the tenure. Hence the contribution of EMI is higher towards the interest portion in the beginning of the tenure and it reduces as the tenure nears the end.

Our Personal Loan EMI Calculator will help you to quickly determine the monthly installments you are likely to pay on repayment of your personal loan. You just have to enter basic values like:
1. Loan Amount you wish to avail
2. No.of monthly installments (normally lender offers maximum tenure between 48-60 months)
3. Rate of interest offered by the lender

Personal Loan interest rate is dependent on various factors like nature of employment and past credit history etc. hence the rate of interest can vary drastically from one lender to another. You can increase/decrease the tenure to find most comfortable EMI. You can also increase the tenure to increase the loan eligibility amount and vice versa to repay the loan in short duration. But always remember that normally bank considers 40% - 45% of your monthly salary as available to service EMI's of all loans.

You can either use the slider to increase/decrease the values or directly enter the data in the input parameters. The resultant EMI will be displayed on the top right hand corner of the EMI calculator.

The pie-chart will display the amount of interest you have paid towards servicing of this loan. You can also compare EMI's at different interest rate offered by financial institutes to choose the most suitable option as per your affordability.


Compared to other types of loans, personal loan requires least number of documents. You are required to give documents supporting your identity, your residence and your income.


It is very easy to get a personal loan as it requires a lot less paperwork and is the best option when you are in urgent need of money. Moreover, it is relatively hassle-free as it does not require any guarantor, security, or collateral. Once you have qualified for the loan it takes only about three days to get the loan amount disbursed to you.


Personal loan is an all-purpose loan, which is given in most cases without any kind of security like a car, home, shares etc.

Who are the lenders?
Most of the nationalised, foreign and co-operative banks offer personal loans. Besides banks, some other finance companies and financial institutions also offer them. For more information, visit our product browser section.

What are the lending rates for personal loans?
Lending rates differ for different financiers and currently range from 12 to 30 per cent. Visit our product browser section for more information.

What is the minimum and maximum amount that can be issued as a personal loan?
Personal loans are available in the range of Rs 15,000 to Rs 10 lakhs.

What is the tenure possible?
The period varies widely; some lenders usually permit repayment up to a maximum of 60 months. However, most lenders restrict the tenure to a maximum period of 36 months. For specific information, visit our product browser section.

What are the eligibility criteria for personal loans?
a. Minimum take-home salary / gross monthly income of Rs 8,000
b. Minimum age 21 years
c. Maximum age 60
(However, this requirement would vary from lender to lender.)

Who can get a personal loan?
a. Salaried individuals
b. Self-employed professionals
c. Self-employed non-professionals
d. Any salaried individual/self-employed professional is eligible for a personal loan and the amount of
   loan eligibility will differ based on the person's current earnings.

Do I have to pay service charges? If yes, what is the amount?
Service charges of up to 3% of loan amount are levied. This amount differs for various lenders. For details, see our browser section.

Why are personal loans called all-purpose loans?
Personal loans are called all-purpose loans because the financier is not concerned about the purpose for which the loan is taken.

Is a guarantor necessary?
No. Typically, you do not have to provide a guarantor; however, some lenders may demand one. For more details, you can visit our product browser section.

Can I club the income of my spouse with mine?
Yes. You can club the income of your spouse for the purpose of boosting your own eligibility for a personal loan.

How is the repayment done?
Repayment of a personal loan is done by issuing post-dated cheques for the entire tenure of the contract. The amount of the post-dated cheque would be the EMI i.e. equated monthly installment. Some lenders also permit repayment option by way of standing instructions to your bank account or deduction at source from your salary every month.

What is the difference between a personal loan & credit card ?
Unlike loans against credit card, in a personal loan, it is necessary for the borrower to draw out the entire loan and the loan is repaid by way of fixed monthly installments. In the case of a credit card, the interest is charged based only on the amount utilised.


Personal loan is the fastest and easily av ailable loan, but also one of the costliest. This is because banks provide you personal loan based purely on your income and repay ment capability and not against the security of some asset like a home or car. But some features of personal loan too vary from ba nk to bank.


Welcome to our Personal Loan Eligibility Calculator!

What do we do here, you ask?
Well, you enter a required loan amount as well as existing repayments. Sit back and let this calculator account for them and then give you a maximum loan amount that you are now eligible for. And since we are big on making things pleasing on the eye, say hello to the bar chart. The bar on the left (in orange) is the loan amount you require, while the one on the right (in green) is the maximum loan amount you are eligible for.

We have provided you with sliders for all the relevant parameters. Move these sliders around and see your eligibility amount change. In short, we give you complete freedom to experiment with your own eligibility. When the green bar on the right changes to red, it means that the loan amount you are eligible for is lesser than the loan amount you require.

How does this calculator help you, apart from giving you an idea of the loan amount that you could be eligible for? How about this - once the calculator has given you an idea of the loan amount you are actually eligible for, use own very own EMI calculator to find out what your EMI will now be. Now you have a pretty good idea of your finances, what your outlays will be in the future. You can now decide objectively whether you want to take on this financial commitment.

Note: All calculators and comparators are made based on certain assumptions which may not be true in your case. You should consult your personal financial advisor before taking any decision. Apnaloan disclaims any responsibility for any decision taken based on these calculators and comparators.

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