About Personal Loan

Personal loans are meant to meet short-term financial needs i.e. you can borrow money for a minimum period of one year to a maximum of five years. The needs may vary as needs may arise due to an unexpected medical emergency, going on a vacation, home renovation, buying consumer durables, repay credit card debt or any other personal exigency which has a temporary effect on your earnings.

Features & Benefits

With personal loans, you can take advantage of Flexible EMI plans, higher loan amount and flexible tenure options. Although, the quantum of personal loans to the customer depends on a number of factors such as borrower’s credit history, existing loans, company with which you are currently employed & the number of years of relationship with the bank etc.

Eligibility & Documents Required

Eligibility Required

Any individual who is an Indian citizen or national and has residual income qualifies for the personal loan. By design Personal Loans are unsecured loans and therefore an applicant does not have to worry about furnishing paperwork related to collateral For getting a personal loan, you need to fulfill certain parameters as a part of the eligibility criteria.

Credit Rating or score
Income criteria
Age criteria
Employment stability
Existing EMIs

Credit Rating or score

The Credit score is an important factor for approval of your loan. Usually, an applicant’s creditworthiness is determined by evaluating his credit score i.e. CIBIL / EXPERIAN score. Loan applications of applicants having poor credit score may get rejected. It’s always advisable to keep on updating your credit score every now and then. If you have a bad credit score and somehow your loan application gets approved, you might be asked to pay a high rate of interest and be offered unfavorable terms and conditions on your loan as compared to someone who has an excellent credit score.

Document Required

The personal loan entails the simplest form of documents which can be divided broadly into two categories:-

  1. Documents for Salaried Individuals *
  2. Documents for Self-Employed Individuals *

Salaried Individuals
Self-employed Individuals

Salaried Individuals

Documents required for Salaried Individuals are as follows:-

  • Identity proof:- Any one of Aadhar Card / Voters ID / Passport / Driving License / PAN Card.
  • Residential proof:- Any one of Leave and License Agreement / Utility Bill (maximum three months old) / Passport.
  • Salary Slips:- Latest (last) three months' Bank Statement of the account in which salary or income is credited.
  • Employment certificates:- 2-year Employment continuity document
  • Photographs:- Two passport size photographs

*Note:- The required documents may vary from institution to institution. Every lending entity has their own criteria for documentation.

Interest Rate & Charges

The very first question that comes to our mind when we are looking for a personal loan is how much interest rate one would need to pay. Historically banks and other financial institutions have charged much higher interest rates in this category.

The table below shows the interest rates offered on Personal Loans by various banks as of March 2018.

Personal Loan Interest Rates*
Lowest EMI per lakh for Max Tenure
SBI12.50%In the range of 2% to 3%
HDFC Bank10.99%Min 0.99%, Max 2.50% Up to Rs. 10,000
ICICI Bank10.99%Starting from 0.99%, Up to 2.25%
Bajaj Finserv11.99%Starting from 1.50%, Up to 3%
Citibank10.99%Up to 0.5%
IDFC Bank11.00%Starting from 0.75%, Up to 2%
Axis Bank11.25%1.50% to 2.00%
Tata Capital11.99%A flat fee of Rs. 999*, Up to 2%
Fullerton India14.00%Up to 6.50%
IndusInd Bank11.99%Min 1% to Max 2.50%
Kotak Bank11.50%Up to 2.5%
RBL Bank13.99%Up to 2%
IIFL12.99%1 - 2%
HDB Financial13.99%Up to 2% of loan amount
Karur Vysya Bank13.90%0.40%
PNB11.70%1.8% + taxes
Vijaya Bank12.50%0.25%, Max. Rs. 10000 + ST
Union Bank of India14.40%0.5%, Min Rs. 500
Syndicate Bank14.20%0.5%, Min Rs. 500
Standard Chartered Bank10.99%1.00%
Indian Overseas Bank12.70%Rs. 204 per lakh
Andhra Bank13.05%Case to Case
Bank of Baroda11.60%2%, Min Rs. 250
Bank of Maharashtra15.10%1%, Min Rs. 1,000
Canara Bank13.65%0.50%
Corporation Bank12.75%1.5%, Min Rs. 500
Dena Bank13.00%1%
Federal Bank13.32%0.5%, Min Rs. 500
IDBI Bank13.20%1%
Allahabad Bank12.95%1.06%, Min- Rs. 1068
Indian Bank14.35%0.5%, Min- Rs. 508
Yes Bank10.75%Starting at 0.99%, Up to 2%

*Special Note:- Rates are subject to periodic changes. Personal loan interest rates and other fees/charges are subject to regular reviews and can vary from customer to customer - depending upon a number of factors ranging from credit score to existing loans, amount of savings, company with which you are currently employed, number of years of relationship with the bank or NBFC etc.


What is a personal loan?
Who can apply for a personal loan?
What is the meaning of EMI?
Is there any guidance on how to utilize the Personal Loan amount?
What is the minimum tenure one can take a personal loan for?
What is the maximum tenure one can take a personal loan for?
List of the major financial institutions which are offering personal loans?
Will I be charged a processing fee?
Do I need a guarantor to take a personal loan?
Can I get an option to choose between a fixed interest rate or a floating interest rate?
How important is it to have a healthy CIBIL score?
How can I apply for a personal loan which will give me possibly the best loan deal?
How much time does it take to get the loan approved?
How many days does it take to get the loan disbursal done?
Can I track my loan application?
How to avoid loan rejection?
Will Afinoz charge any fee from its customers?