Digital finserv Technologies provides financial advisory platform in Andhra Pradesh, Telangana, Tamil Nadu, Karnataka, Mumbai and Pune

Personal Loan


Personal Loan is a collateral-free loan in which you are not required to submit any security or collateral with the bank or NBFC to avail funds. It’s an unsecured and multi-purpose loan that comes with no restrictions on spending. Customers can choose to spend as per their likings, preferences and requirements. Funds can be used to meet various immediate needs, such as wedding, higher education, home renovation, travel, medical-related, debt consolidation and much more.

The personal loan interest rates offered by financial institutions start from as low as 10.25% per annum. Usually, the loan amount offered is up to Rs. 40 lakhs but can exceed as per the applicant’s credit score, salary, financial stability, and repayment capability. The repayment tenure is up to 84 months that can be exceeded and repaid with flexible repayment options. The interest rates, eligibility criteria, fees and charges and loan approval time shall vary from lender to lender.

  • Collateral-free loan
  • Interest Rate starting from 10.25% per annum
  • Loan amount up to Rs. 40 lakh, can exceed as per business requirements
  • No End-Use Restriction
  • Repayment tenure up to 84 months.
  • Minimal Documentation

Personal loans are the unsecured loans offered by financial institutions wherein you are not required to submit any collateral with the lender. To minimize the risk of defaults or non-payments by the borrowers, most of the banks and NBFCs offers personal loans only to applicants with good credit score. Maintaining a credit score of 750 or above is always an added advantage in the loan approval process. It increases the chance of approval and helps in availing personal loan at low-interest rates. Credit score is generated by 4 credit bureaus operating in India like CIBIL, Experian, Equifax and CRIF Highmark, depending upon the financial documents submitted to them by the banks or lenders.

  • Age: Minimum 21 years & Maximum up to 60 years
  • Credit Score: 750 or above
  • Salary: Min. Rs. 12,000 per month for salaried customers
  • Income: Min. Rs. 5 lakh annual for self-employed customers
  • Employment Stability: At least 2 years with Min. 1 year in the same profession & Min. 2 years for self-employed professionals (We do loans for freshers also with minimum 3 months of Experience)
  • Employment Type: Salaried employees working with reputed organizations, MNCs, Private and Public Limited Companies, Govt. organizations, PSUs, and large enterprises, proprietorship Company, Partnership Company & LLP companies

*The personal loan eligibility criteria mentioned above is generic in nature and actual eligibility factors may differ from one lender to another.

Wedding Loan

Weddings in India are usually considered a costly affair and tend to be more expensive than expected. Shedding all of your savings on marriage shall not be a good idea. Therefore, you can apply for marriage loans to meet all the marriage-related expenditures. Wedding loans can be repaid with flexible repayment options as per the tenure.

Higher Education Loan

Personal loans for higher education can be availed to fund all the aspects of studying abroad for yourself, your children or your spouse. Higher education loans can be used to cover the expenses, such as paying off school/college fees, flight tickets, visas, accommodation, living expenses, etc.

Medical Loan

Just in case, if you do not have medical insurance for yourself or your family member and require finance to meet the urgent medical requirements. You can certainly opt for a medical loan that can be of great help in times of emergencies or cash crunch situations.

Loan for Home renovation

Home renovation has no end to it. You can invest as much as you want for maintenance, reconstruction, refurnishing, décor and much more. Personal loan can be availed to meet all home renovation requirements as per the budget.

Travel Loan

Personal loan can be availed to arrange a vacation or holiday trip abroad with your family. Travel loans can also be availed to manage domestic destinations, honeymoon trips, as well as cruises.

Debt Consolidation Loan

Affordable EMIs can be arranged and paid for debt consolidation purposes. All your loan or credit card debts can be arranged collectively into one and can be adjusted as per your convenience.

Identity Proof

PAN Card/ Voter’s ID/ Aadhaar Card/ Passport/ Driving License

Address Proof

Bank Account Statement/ Aadhaar Card/ Lease/ Property purchase Agreement/ Utility Bill (not more than 3 months old)/ Passport/ Driving License

Income Proof

For Salaried Individuals: Salary Slips/ Bank Account Statement/ Form 16

For Self-employed: Previous Years’ ITR/ P&L Statement and Balance Sheet/ Bank Account Statement

Business Proof

For self-employed applicants only: Certificate of Practice/ Partnership Deed/ GST Registration and Filing Documents/ MOA & AOA/ Shop Act License

*The actual list of documents required may vary from one lender to another.

By following the below-mentioned points, you can avail personal loan at affordable interest rates:

Your Credit Score

Every lender checks your credit score and credit history before offering personal loan interest rates. This evaluation is performed to minimize the risk of any defaults from the borrowers. Applicants with a higher credit score are offered personal loans at comparatively lower interest rates. So, maintaining a credit score of 750 or above is always beneficial. High credit score depicts that the borrower has managed to repay the loan or credit card payments on time.

Your Monthly Income

Higher monthly income is preferred by lenders, as borrowers with high income are more likely to repay the loan in a timely manner. The affordability for the loan increases for borrowers with high monthly income. The minimum income criteria and eligibility shall vary from bank to bank.

Reputation of your organization

The reputation of your organization and the type of employment also are vital factors in deciding the personal loan interest rates. Applicants with high job security and those working with reputed organizations shall get loans at comparatively lower interest rates. Salaried employees may be offered different interest rates, as compared to self-employed professionals. Government and PSU employees are usually offered personal loans at lower interest rates because of their secured job and regular income certainty. People working with MNCs and reputed private sector organizations are usually offered lower interest rates than other private sector organizations. 

Your relationship with the bank

If you are already maintaining a good relationship with your existing bank or lender by repaying all the loans on time. Then the possibility of loan approval increases, along with the benefit of low-interest rates. Bank’s existing customers shall be selected for pre-approved offers, special deals, concessional rates and much more.

  • Maintain your credit score above 750
  • Check for inaccuracies in your credit report as they might adversely impact your credit score and thereby, reduce the chances of availing personal loan. 
  • Compare the personal loan offers available from banks and NBFCs before finalizing any loan deal
  • Apply for the loan from a bank/NBFC where you have the highest chances of approval
  • Keep your credit utilization ratio minimal 
  • Avoid making multiple loan applications within a short span of time

The fees and charges of personal loans usually vary from lender to lender and case to case. Some of the common fees and charges related to personal loans are as follows:

    • Loan Processing Fees
    • Pre-payment/part-payment or foreclosure charges
    • Verification charges
    • Loan Cancellation or Rebooking charges
    • Documentation Fees & Stamp Duty
    • Legal and Penal charges
    • Duplicate statement, NOC certificate, EMI/Cheque Bounce, Swap and late fees, etc.

Personal Loan Balance Transfer (PLBT) allows you to transfer your existing personal loan to another lender at lower interest rate and/or better terms and conditions. This option is especially helpful for existing personal loan borrowers who had availed personal loan at higher interest rate but are now eligible for lower interest rates due to their improved credit profile or reduction in market interest rates.

Q. What is the minimum credit score to get a personal loan?

Ans. It depends on the eligibility criteria set by the lender. Most lenders do not specify a minimum credit score for a personal loan. Some lenders might lend to applicants with low credit score (less than 750) but the interest rate applicable is usually higher in such cases.

Q. Can I cancel a personal loan after the loan amount is disbursed?

Ans. In some cases, you may cancel a personal loan after disbursal subject to the terms and conditions of the lender. Loan cancellation will lead to cancellation charges and processing fees. Please note that all banks do not allow loan cancellation once the amount is disbursed. However, you can always prepay the loan amount as per the terms and conditions of the bank and save on the interest component.

Q. What is the minimum salary required to get a personal loan?

Ans. The minimum monthly salary required to avail personal loan varies from lender to lender. However, for large lenders like Banks, the minimum income eligibility is Rs. 12,000 per month and above.

Q. Can I get a personal loan being a pensioner, if I have a pension account with one of the leading banks in India?

Ans. Yes, you can get a personal loan even as a pensioner, if you have a pension account with one of the leading banks. However, you should ensure that the bank where you receive pension funds offers personal loans to pensioners and you meet the eligibility criteria as specified by your prospective lender.

Q. Can a student apply for a personal loan?

Ans. Generally, students are not eligible for a personal loan as a stable source of income and a good credit score are necessary prerequisites. However, if you have a stable monthly income and fulfill the lender’s other eligibility criteria, you may easily avail of a personal loan.

Q. Can I get a personal loan if I have a home loan?

Ans. Yes, you can apply for a personal loan even if you already have a home loan. However, the chances of getting the loan approved will depend on your repayment capacity, which in turn depends on your monthly income and credit score.

Q. Can I get a personal loan without a salary slip?

Ans. Yes, you can get a personal loan without providing salary slips. You can submit your bank account statement/ a copy of Form 16/ employee certificate from the employer, etc. as proof of income to fulfill the eligibility criteria. However, it is always recommended to confirm the list of required documents with the lender as it may vary from one bank to another.

Q. Can I use a personal loan for marriage purposes?

Ans. Yes, you can avail personal loan to meet marriage-related expenditure as personal loans come with flexible end-use. Some lenders even provide personal loans specifically named as wedding/ marriage loans.

Q. Can I take a personal loan from two different banks at the same time?

Ans. Yes, you may avail personal loan from two different lenders at the same time. However, it is not advised to do so as it will not only affect your credit score but also increase your EMI payout. It will be better to take one personal loan of a larger amount than two personal loans of smaller amounts. This way you can pay lower EMIs for a longer tenure and also improve your credit score. Moreover, you will save upon processing fees and other loan-related charges.

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