What is a Personal Loan?

A Personal Loan is an unsecured loan offered to individuals to meet personal financial needs such as medical expenses, education, travel, wedding, home renovation, or emergency expenses. Since no collateral is required, personal loans are quick and easy to access.

Benefits of Personal Loan

  • No Collateral Required: Get a loan without pledging any asset.

  • Quick Approval & Disbursal: Ideal for urgent financial needs.

  • Flexible Usage: No restriction on end use of funds.

  • Simple Documentation: Minimal paperwork and easy process.

  • Flexible Repayment Tenure: Tenure usually ranges from 12 to 60 months.

  • Fixed EMIs: Predictable monthly repayments help in better budgeting.

  • Improves Credit Score: Timely repayment boosts credit history.

Eligibility Criteria for Personal Loan

Eligibility may vary by lender, but generally includes:

  • Applicant must be an Indian citizen

  • Age: 21 to 60 years (salaried) / up to 65 years (self-employed)

  • Employment Type: Salaried, self-employed, or professional

  • Minimum Monthly Income: As per lender policy

  • Work Experience:

    • Salaried: Minimum 6–12 months of employment

    • Self-employed: Minimum 1–2 years in business

  • Credit Score: Preferably 650 or above

Documents Required for Personal Loan

KYC Documents

  • PAN Card

  • Aadhaar Card

  • Passport / Voter ID / Driving License

  • Passport-size photographs

Income Documents

For Salaried Applicants

  • Salary slips (last 3–6 months)

  • Bank statements (last 6 months)

  • Form 16 / Income Tax Returns

For Self-Employed Applicants

  • Income Tax Returns (last 2–3 years)

  • Profit & Loss Statement

  • Balance Sheet

  • Business bank statements