• Age : Minimum 18 years & Maximum up to 60 years
• Credit Score : 750 or above
• Salary : Min. Rs. per month for salaried clients
• Income : Min. Rs. 5 lac yearly for self- employed clients
• Employment Stability : At least 2 years with Min. 1 cycle in the same profession & Min. 2 years for self- employed professionals
• Employment Type : Salaried jobholders working with reputed associations, MNCs, Private and Public Limited Companies, Govt. Authorities, PSUs, and large companies

* The particular loan eligibility criteria mentioned over is general in nature and factual eligibility factors may differ from one lender to another.

Personal loans are the relaxed loans offered by fiscal institutions wherein you aren’t needed to submit any collateral or security with the lender. To minimize the threat of defaults or non-payments by the borrowers, utmost of the banks and NBFCs offer particular loans only to aspirants with good credit/ CIBIL scores. Maintaining a credit score of 750 or over is always an added advantage in the loan blessing process. It increases the chance of blessing and helps in serving particular loans at low- interest rates. Your credit score is generated and managed by 4 credit divisions operating in India, named TransUnion CIBIL, Experian, Equifax and CRIF Highmark. The credit score is generated as per your fiscal documents submitted to the credit divisions by the bank or lender.

• Identity Proof Passport/ PAN Card/ Voter’s ID/ Aadhaar Card/ Driving License
• Address Proof Passport/ Aadhaar Card/ Lease/ Property purchase Agreement/ Mileage Bills (not further than 3 months old)/ Passport/ Driving License
• Income Evidence For Salaried Individualities Payment Slips/ Bank Account Statement/ Form 16
• Income Evidence For Tone- employed Professionals Former Times’ITR/ P&L Statement and Balance Distance/ Bank Account Statement
• Business Proof For Self- employed Individualities Business Incorporation Certificate/ Professional Degree/ Certificate of Practice/ Partnership Deed/ GST Registration and Filing Documents/ MOA & AOA/ Shop Act License

 * The factual list of documents needed may vary from one lender to another.

By following the below-mentioned points, you can avail personal loan at comparatively lower 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 or NBFC

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 CIBIL score above 750
• Check for inaccuracies in your credit report, as they might adversely impact your credit score and thereby, reduce the chances of loan approval (Check Your Credit Score for FREE)
• 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 (Below 30%) 
• 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.

• 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.

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 private and public sector banks, the minimum income eligibility is Rs. 15,000 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.