What is a Personal Loan?

A Personal Loan is an unsecured loan provided by banks and financial institutions to meet various personal financial needs such as medical expenses, education, travel, wedding costs, home renovation, or emergency requirements. Since no collateral is required, personal loans are easy to apply for and are disbursed quickly.

Benefits of Personal Loan

  • No Collateral Required: Get funds without pledging any asset or property.

  • Quick Disbursal: Fast approval and instant access to funds.

  • Flexible Usage: Use the loan amount for any personal requirement.

  • Simple Documentation: Minimal paperwork compared to secured loans.

  • Flexible Repayment Tenure: Choose repayment tenure that suits your income.

  • Fixed EMIs: Easy monthly installments for better financial planning.

  • Improves Credit Score: Timely repayment helps build a strong credit history.

Eligibility Criteria for Personal Loan

Eligibility may vary from lender to lender, but generally includes:

  • Applicant must be an Indian citizen

  • Age: 21 to 60 years

  • Employment Type: Salaried or self-employed individuals

  • Minimum Income: As per lender’s norms

  • Work Experience: At least 6 months (salaried) or 1–2 years (self-employed)

  • Credit Score: Preferably 650 or above

  • Stable Income Source: Regular and verifiable income

Documents Required for Personal Loan

KYC Documents

  • PAN Card

  • Aadhaar Card

  • Passport / Voter ID / Driving License

Income Documents

For Salaried Individuals:

  • Salary slips (last 3 months)

  • Bank statements (last 6 months)

  • Form 16 / Income Tax Returns

For Self-Employed Individuals:

  • Bank statements (last 6–12 months)

  • Income Tax Returns (last 2–3 years)

  • Profit & Loss Statement (if applicable)

Other Documents

  • Passport-size photographs

  • Duly filled loan application form