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Personal Loan
Personal Finance

Personal Loan

A Personal Loan is an unsecured loan offered to individuals to meet various personal financial needs, with no collateral required.

Key Features
Unsecured loan - no collateral required
Fixed tenure from 1 to 5 years
Loan amount from ₹50,000 to ₹50 lakh
EMI-based repayment
Digital application process
Credit score-based approval
Interest rate 10% to 24% p.a.
Pre-closure option
Top-up facility
Balance transfer facility
Benefits
No asset risk
Quick access to funds
Freedom of use
Budget-friendly EMIs
No guarantor required
Builds credit history
No end-use restriction
Easy processing
Multiple lender options
Debt consolidation
Detailed Information

Everything you need to know about Personal Loan, presented exactly as provided.

A Personal Loan is an unsecured loan offered to individuals to meet various personal financial needs. It requires no collateral and is ideal for expenses like weddings, travel, medical emergencies, or home renovation. The loan is repaid in fixed EMIs over a flexible tenure, typically ranging from 1 to 5 years. Approval is based on income, credit score, and repayment capacity. With minimal documentation and quick disbursal, it's a convenient short-term borrowing option.

Key Features of a Personal Loan

  • Unsecured Loan – No need to pledge assets.
  • Fixed Tenure – Usually 1 to 5 years.
  • Loan Amount Flexibility – Ranges from ₹50,000 to ₹50 lakh or more.
  • EMI-Based Repayment – Monthly installments with fixed or reducing interest.
  • Digital Application – Can be applied online via website or app.
  • Credit Score-Based Approval – Heavily dependent on CIBIL or other scores.
  • Interest Rate Range – Typically 10% to 24% p.a. based on profile.
  • Pre-closure Option – Can repay before tenure with/without charges.
  • Top-up Facility – Option to borrow more on an existing personal loan.
  • Balance Transfer Facility – Switch to another lender for better rates.

Advantages of a Personal Loan

  • No Asset Risk – You don't risk losing property or valuables.
  • Quick Access to Funds – Useful during emergencies or urgent needs.
  • Freedom of Use – Spend the amount however you want.
  • Budget-Friendly EMIs – Fixed repayment helps manage finances easily.
  • No Need for Guarantor – Standalone eligibility based on your profile.
  • Builds Credit History – Improves your score if repaid on time.
  • No End-Use Restriction – Use for marriage, travel, education, etc.
  • Easy Processing – Especially if you are an existing customer.
  • Multiple Lender Options – More choices mean better terms for you.
  • Helps Consolidate Debt – Can be used to pay off costlier credit card or loan debts.

Frequently Asked Questions

Get answers to common questions about Personal Loan

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