Apply for Instant Personal Loans in India: Benefits, Eligibility Criteria, Documents Required
While trying to create a financial corpus for your personal expenses, sometimes, the corpus might fall short. When it does, you need additional funds to meet your expenses – whether they are for your marriage, for taking a vacation, for meeting medical emergencies, or for any business need. A very popular source of such additional funds is getting an instant personal loan. You can apply for an instant personal loan and get funds above Rs.20 lakh with flexible EMI options, usually ranging between 5 and 7 years.
What is a Personal Loan?
A personal loan is an unsecured loan that lets you gather funds for your personal needs. Unsecured loans are that you can avail of without any collateral. You can utilise personal loans for different financial needs, including weddings, travel, paying off your credit card bills, etc. The loan is sanctioned at the earliest without complex formalities. However, your credit score plays an important role in your loan application approval and the interest rate offered by the bank. As in, if you have a good credit score (750 and above), most chance you would get preferential rates or a higher loan amount.
Types of Personal Loans
Personal loans offer you funds for different types of financial needs that you might have. Based on these needs there are different types of loans available in the market. Some of the most common types of personal loans include the following –
1. Wedding Loan
If you or your family member is getting married and you want funds for meeting the expenses of the wedding, a marriage loan can come to your rescue. It’s nothing but a personal loan that you can use to finance wedding expenses. The loan is allowed for meeting the different expenses which you might face in planning a wedding.
2. Travel Loan
A travel loan is offered for travel-related expenses. If you want to go on a holiday or a trip and you need funds for the same, you can avail of travel or a holiday personal loan. For instance, if you’re planning for a vacation, but you’re short on funds, you have the option to apply for a personal loan.
3. Debt Consolidation Loan
A debt consolidation loan helps you aggregate all your existing debts into one. If you have multiple debts you can avail of a debt consolidation loan and pay off all the debts. Then, you would have to service only the loan that you have availed and pay a single EMI rather than multiple ones. A debt consolidation loan is very effective in consolidating your credit card debt. If you have outstanding debt against multiple credit cards, you can pay off the aggregate debt through a debt consolidation personal loan. This would help in lowering the interest cost and make the loan easily manageable.
4. Medical Loan
A medical loan can be availed when you or your family faces a medical emergency and you need funds to pay for the expensive medical costs. This situation could arise if you face any hiccup during health insurance claim settlement with your insurer.
To avoid any unnecessary financial stress you can take a personal loan to meet medical expenses.
5. Top-up Loans
Top-up loans are usually designed for existing borrowers who need more funds over and above their existing personal loan. You can avail of such loans during your loan tenure. However, the terms and conditions of applying for a top-up loan could vary from lender to lender. So, if you have availed of a personal loan and you need additional funds, you can avail of a top-up personal loan.
6. Home Renovation Loan
A home renovation loan can be availed of separately as a part of home loans. However, availing of such can be a time-consuming process. Instead, you can apply for a personal loan to renovate or refurbish your house.
Essentially, personal loans can be taken for any financial need that you have as the lender does not check the usage of the loan. So, if you need instant funds for any financial need, you can resort to personal loans.
7. Personal Loan Balance Transfer
Let’s say you already have a personal loan running. However, you think that the interest rate charged by your lender isn’t feasible for you anymore. In such a situation, you can opt for a personal loan balance transfer with another lender offering a lower interest rate. Balance transfer helps you save more on interest by switching to a lender offering a lower interest rate. However, note that missed EMIs after transferring your loan could come with a heavy penalty fee.
Personal Loan Details
| Loan Amount | Up to ₹20 Lakh |
| Interest Rate | 9.9% to 45% p.a |
| Foreclosure Fee | Nil |
| Tenure | Up to 72 months |
Calculate Your Personal Loan EMI
Loan Amount
Rate of Interest (P.a)
%
Loan Tenure (Months)
Monthly EMI
0
Total Interest
Total Amount
Also Read
Personal Loan Interest Rates in India [2022]
Check the table below for the latest personal loan interest rates:
| Banks/NBFCs | Interest Rate (p.a.) | Processing Fee |
| Navi Personal Loan | 9.90% onward | Check with the Lender |
| HDFC | 10.50% onward | Up to 2.5% |
| Yes Bank | 13.99% | Up to 2.5% |
| Kotak Mahindra | 10.25% onward | Up to 2.5% |
| Axis Bank | 12% onward | Check with the Lender |
| IndusInd Bank | 11% onward | 2.5% onward |
| IDFC FIRST | 12% | Up to 3.5% |
| Home Credit | 19% | Up to 5% |
| Aditya Birla Capital | 14% | Up to 2% |
| IIFL | 24% | 2% onward |
Disclaimer: Note that this table is for educational purposes only and the final rate offered is solely at the concerned lender’s discretion. Navi doesn’t take responsibility for any interest rate changes that may occur in the due course of time.
Features and Benefits of Instant Personal Loan
Here are some of the salient features of personal loans and also the benefits which the loans offer:
- Personal loans are collateral-free loans that do not require you to pledge or mortgage an asset to avail of the loan. The loan does not even require any third party guarantee
- You are allowed flexible repayment tenures to pay off the loan. The tenure usually ranges from 12 months to 84 months
- Besides personal financial needs, you can also avail of personal loans for your business needs
- Applying for a personal loan requires minimal documentation compared to home loans.
- Loans are disbursed almost instantly provided you meet the lender’s terms and conditions.
- You can enjoy lower interest rates if you have a good credit score
- There are personal loan EMI calculators which help you calculate the EMI payable for the loan depending on the loan amount, applicable interest rate and the repayment tenure
- You can prepay the loan before the stipulated tenure, either partially or fully to reduce or completely get rid of EMI burden.
Instant Personal Loan: Eligibility Criteria
If you are looking to avail of a personal loan, you would have to fulfil some eligibility parameters. The parameters are fixed by the lenders and the most common ones include the following –
| Age | You should be between 18 and 65 years of age to avail of the loan. The minimum age can also be increased to 21, 23 or 25 years in some cases |
| Interest Rate | Starting at 9.9% p.a. |
| Credit score | Your credit score should be at least 650 to apply for the loan. If your score is below 650, the loan application might get rejected |
| Employment | You should either be salaried or self-employed |
| Income Level | There is a minimum income which you should earn every month to qualify for the loan. The level varies across lenders |
So, before you apply for a personal loan, check the lender’s eligibility requirements and ensure you meet such requirements so that your loan application is not rejected.
Documents Required for Instant Personal Loan
To apply for an instant personal loan you would have to submit a set of documents to the lender. These documents are used for verification purposes by the lender and also to check whether or not you meet the eligibility criteria. There could be a huge list of documents, but Navi has made the process extremely simple by reducing the documents to only the basics.
The list of documents needed to avail of a Navi personal loan is actually very simple and it includes:
- PAN Card
- Aadhar Card
- A selfie as a proof
To process your loan application within minutes of applying for the same.
For other lenders, you may need the following documents:
Personal Loan Documents for Salaried
If you’re salaried, you could be required to submit the following documents:
- Address Proof: Aadhaar card, driving licence, ration card, voter ID, passport, rent agreement, etc.
- ID proof: Aadhaar card, PAN card, driving licence, voter ID, etc.
- Last 3 months’ salary slips
- Form 16
Personal Loan Documents Required for Self-employed
If you’re self-employed, you may need to submit the following documents:
- Address Proof: Aadhaar card, driving licence, ration card, voter ID, passport, rent agreement, etc.
- ID proof: Aadhaar card, PAN card, driving licence, voter ID, etc.
- Last 6 months’ bank statements
- Last 2 years IT returns
- Business proof
- Income Tax Challans or TDS certificate
What is a Personal Loan EMI Calculator?
A personal loan EMI calculator helps you calculate your monthly repayment obligations in a hassle-free manner. This online tool is extremely easy to use and usually provides 100% accurate results. All you need to do is enter the loan amount, interest rate and tenure. If you want to check the overall cost of your instant personal loan, you can enter the processing fee as well. Hit ‘calculate’ to check your personal loan EMI.
You can apply for an urgent cash loan without documents through the Navi App just by following the steps below:
- Download the Navi App
- Once you have downloaded the app, you need to click on the “Apply” tab
- Then you need to fill in basic details to process your loan application like:
-Full Name
-Age
-Marital Status
-Pin code of residence - Then you need to fill in employment and income details
- And finally, enter your PAN number
- Then your loan is instantly processed where your Credit Score and other details would be checked at the backend
- And your loan would be processed within a matter of 10 mins
While there are different lenders for a personal loan, Navi offers you the easiest way to avail of the loan. With Navi personal loans you can get instant funding for any need that you have. You can get instant personal loans up to Rs. 20 lakh through the Navi app at competitive rates starting at 9.9% p.a.
5 Things to Remember Before Taking a Personal Loan
Consider the following pointers before taking an instant personal loan:
- Credit score: Ensure that you have an above-average credit score. A good credit score, above 750, will help you fetch better deals on your loan. However, a poor credit score could result in loan rejection.
- Repayment capacity: Though a personal loan could help you during unforeseen circumstances, keep in mind that you have to repay the loan in EMIs. So, ensure that you have the repayment capacity to pay off the loan. Multiple failed EMI payments could bring undue stress.
- Compare multiple lenders: Check multiple lenders and their personal loan offers before deciding on one. Compare their interest rates, processing fee and other charges and tenure. This will help you make an informed decision.
- Borrow the amount you need: Try not to go overboard with the loan amount. For instance, if you need Rs.2 lakh but you’re pre-approved for Rs.5 lakh, apply for Rs.2 lakh. Getting overburdened with debt is never a good thing.
- Use an EMI calculator: You have to repay your loan in EMIs or equated monthly instalments. Calculating your EMI beforehand would help you plan your finances in a better way. Use a personal loan EMI calculator to calculate your monthly repayment obligations.
How to Avoid Personal Loan Rejection?
In order to avoid personal loan rejection, make sure you meet the concerned lender’s eligibility criteria. These could be your monthly or annual income, employment status, credit score, age, etc. You could also take the help of a personal loan eligibility criteria to check if you are eligible for an instant loan.
How to Check Personal Loan Status?
You can check your loan status online or offline.
Online: You can use your net banking log in ID and loan account number to track your personal loan status.
Offline: For offline tracking, you have to visit the bank branch. Or you can choose to call your lender’s office number to check your personal loan status.
Final Words
Personal loans could help you during any financial emergency. However, a word of caution – apply for a personal loan only if you have adequate repayment capacity. Defaulting on your loan would make it extremely difficult for you to apply for any line of credit in the future. Also, compare multiple lenders before taking a loan.
FAQs
Usually, personal loans are the easiest loans that you can avail yourself. However, if you do not meet the eligibility parameters of the lender your personal loan application might get rejected. With Navi, you can check eligibility instantly – Install the app, enter basic details (no documents required) and know your eligibility instantly.
A personal loan is a multi-purpose loan and if you want to redecorate your house, you can easily get the loan.
Yes, you can get a personal loan even if you have just joined a new job. You just need to meet the eligibility parameters of the lender and the loan would be sanctioned.
The interest rate on a personal loan is not fixed. It varies across lenders. You, therefore, would need to check with the lender the exact interest rate charged on the loan. Your personal loan interest rate will also depend on several factors like credit score, annual income, repayment capacity, etc. Note that the lender will offer the final rate upon evaluation. Navi offers personal loans at competitive rates starting at 9.9% p.a.
Prepayment of the personal loan depends on the lender’s practices. If the lender allows prepayment you can prepay the loan. However, remember that if you prepay the loan, there might be a prepayment charge levied by the lender. However, Navi offers your flexibility to pre-pay loans at zero charges.
Personal Loan in Your City
