Types of Personal Loan

A personal loan can be availed by any working individual, housewives, students or self employed persons to help them make their dreams come true. With banks or NBFC helping you with swift loan sanctions. A personal loan can be used for various purposes like funding a wedding, debt consolidation, to pursue higher education, home renovation, medical situation and even plan your vacation & more.

Depending on the eligibility, you can get a personal loan of up to ₹50 Lakhs at competitive interest rates and flexible repayment tenures. Given below are loan details of what lenders offer:

Loan Amount Up to ₹50 Lakhs
Interest Rate 9.9% p.a.* onwards
Repayment Tenure 6 months to 72 months
*Note: The interest rates are dynamic and subject to change based on your credit history and credit worthiness.

Different Types of Personal Loan

Close all your financial needs with personal loans and its types. Understanding these different types of personal loans is important as you need to obtain the most suitable loan options and terms based on your financial circumstances, goals, and preferences. These types of personal loans from banks are:

  • Unsecured Personal Loan: Most personal loans are unsecured loans meaning that you are not required to provide collateral or any security for the loan. Your eligibility will be based on your creditworthiness, income, financial stability and other factors. Unsecured personal loans typically have higher interest rates as they are considered as high-risk loans by lenders.
  • Secured Personal Loan: Secured personal loans are loans that you provide collateral such as a car, home or other valuable assets. These loans are considered low-risk as lenders can seize the collateral in case of default.
  • Personal Loan for Debt Consolidation: You can take a personal loan to combine all your multiple debts into one single loan, this is known as personal loan for debt consolidation. These loans will usually have better repayment terms and a lower interest rate. Helping you simplify your loan repayments and reduce the overall costs of your debt.
  • Personal Loan for Wedding: Weddings can be elaborate and expensive affairs that include venue rental expenses, catering, decorations, clothing, jewellery, and more. To finance these expenses, you can take out a personal loan for wedding. Most lenders will offer specific loan terms that will help you get the perfect Indian wedding you deserve.
  • Personal Loan for Home Renovation: A home or room upgrade can be quite expensive, especially when you want to change it completely. You can get a personal loan for home renovation as it offers you the opportunity to repair or renovate your home to fit your personal style.
  • Personal Loan for Education: Many banks and NBFCs offer financial assistance to those who are looking to pursue higher education. These loans will cover tuition fees, living expenses, books and other educational expenses.
  • Personal Loan for Vacation: If you are eager to go on a vacation, experience new cultures and make new core memories, you can take a personal loan for vacation to fund your trip. Using a personal loan, you can travel anywhere in India or abroad without worrying about finances.
  • Personal Loan for Pensioners: A personal loan for pensioners is a special financial aid that is designed to help retired individuals and pensioners get additional funds to cover unexpected costs. They are personalised to meet the unique requirements of pensioners during their retirement years.
  • Personal Loan for Festival: Celebrating festivals can come with joys, quality family time, and good memories, however, it can come with high expenses. Personal loans for festivals help you celebrate festivities in the right way without straining your wallet.
  • Personal Loan for Medical Emergencies: Medical emergencies can happen unexpectedly and leave you with high medical and hospital bills. In such cases, you can get a personal loan to help you manage the costs. This loan will cover surgeries or necessary bills.
  • Personal Loan Top-Up: A personal loan is helpful in various ways, it can even be a lifesaver. But what do you do when you need sudden financial help when you already have a personal loan? You can take a top-up loan. A top-up personal loan is an addition to your Personal Loan by the same lender. It provides an additional loan amount on top of your current loan balance with a revised repayment plan.

Ready to take the next step? Apply for a Personal loan now!

Top Personal Loan Lenders

There are many Banks and NBFCs that offer personal loans at competitive interest rates and personalised loan terms. Here are the top personal loan lenders that you can borrow from:

Personal Loans by Banks Interest Rate
Axis Bank Personal Loan 10.49% p.a. onwards
Buddy Loan 11.99% p.a onwards
SBI Bank Personal Loan 11.05% p.a. onwards
Poonawala Fincorp 9.99% p.a onwards
L&T Finance 12.00% p.a onwards

Read More

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Note- The interest rates mentioned are subject to change. Do visit the website for more information.

Eligibility Criteria for Personal Loan

The eligibility criteria for availing of a personal loan are:

Age 21 - 65 years old
Citizenship Indian
Minimum monthly income ₹15,000
Credit score 650 above
Employment Must be salaried or self-employed

Documents Required for Personal Loan

Banks and NBFCs will ask for certain documents when you are applying for a personal loan, these are:

Identity proof Aadhaar card, PAN card
Age proof Birth certificate, Voter ID
Address proof Rental agreement, Utility bills
Employment proof Employment letter
Salary proof Salary slips for the last 3 months, bank account statements for 6 months, Form 16.

Personal Loan EMI Calculator

Understanding the equated monthly installments (EMI) is important when obtaining a loan. It helps to make repayment efficient and convenient. Knowing your EMI before applying for a personal loan is essential for effective financial management. You can calculate your potential EMI amount by using the Personal Loan EMI Calculator provided below:

Monthly EMI 86
Principal Amount 1,000
Total Interest 32
Total Amount 1,032.00

Year Month Principal (A) Interest (B) EMI (A+B) Balance Loan Paid to Date (%)

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Features & Benefits of a Personal Loan

Personal loan with its flexibility of end use offers many features and benefits, these are:

Customisable Loan

Choose any loan amount
of up to 50 lakhs.

Low Interest Rate

You can get personal
loans at low interest
rates of 9.9% p.a.

Flexible Tenure

Enjoy flexible tenures
of up to 72 months.

Improve Credit Score

Make repayments on
time and improve your
credit score.

Fast Approvals

Get the funds you
need with loans approved
in just a few nours.

Zero Collateral

Most personal loans
offered by lenders require
no security.

Tips to Choose The Right Personal Loan

With so many personal loan types to choose from, it can be challenging to pick the one that best suits your financial needs. Here are a few tips to help you make the right decision:

  • Loan Purpose: It's important to be sure that your loan aligns with your specific financial objectives. Some lenders provide specialised loans for medical expenses, travel, or weddings. Opting for a loan specific to your purpose offers benefits with customised features and terms.
  • Compare Interest Rates: Different lenders offer varying interest rates. Research and compare rates offered by different lenders to secure the most affordable option.
  • Repayment Flexibility: Look for lenders offering repayment flexibility such as prepayment options or the ability to skip and reschedule EMIs during financial hardships. This flexibility acts as a safety net during unexpected setbacks.
  • Read Terms and Conditions: Thoroughly review the loan agreement and its terms and conditions to avoid any hidden clauses or fees.
  • Additional Perks: Explore lenders offering unique perks like interest rate discounts, waived processing fees, and more as they can add extra value to the loan.

Ready to take the next step? Apply for a Personal loan now!

Frequently Asked Questions

Personal loans are unsecured loans that you can use for any purposes. They are a great financial product that helps you achieve your goals.

The two main types of personal loans are secured and unsecured loans.

The different types of personal loans are personal loans for wedding, education, travel, home renovation, pensioners, etc.

You can get a personal loan amount of up to 50 lakhs.

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