Personal loans are a popular means to meet your urgent funding needs. You can borrow the required amount with minimal documentation and zero collateral. In addition, you can repay the personal loan at suitable EMIs over a fixed tenure. However, personal loans do come with their set of limitations. Read on to understand what is a personal loan and if you should apply for it to fulfil your financial needs.
The simplest personal loan definition is a borrowed lump sum amount from a financial institution without restrictions. You often get a personal loan without collateral and repay through convenient EMIs over a fixed tenure. Moreover, personal loans need minimal documentation.
This loan funds day-to-day expenses, and stabilises your cash flow, or any cost from wedding, travel, to buying a costly gadget. So, let us dig deeper to understand the significance of personal loan meaning and how it works.
Unlike other loans, personal loans are uncomplicated. Therefore, it is wise to borrow according to your needs to improve your finances that significantly impact your life. Moreover, you get the amount in a lump sum after the bank evaluates your creditworthiness and documentation. However, there are minor differences between lenders, and you must factor in the following before applying for the loan.
Of the several advantages of a personal loan, the most beneficial is using the loan proceeds however you wish. Consequently, no bank loan is as diverse and flexible as a personal loan. Thus, let us study some typical personal loan uses for you to explore.
Personal loans are convenient when you require instant funds to meet your needs. Thus, you will be looking for a hassle-free process with minimal documentation. So, here are a few salient features and benefits of personal loans to help make an informed choice.
Personal loans require the following documents:
However, the document list varies from lender to lender, and it is prudent to check with them individually. However, the following are the indicative documents most lenders seek.
Personal loan interest rates are relatively higher than other loans, mainly because they are unsecured and do not have the backing of matching collateral. In addition, every lender offers interest rates deriving them from their MCLR (marginal cost funds-based lending rate), which depends on the RBI’s Repo Rate notified from time to time.
Personal loan interest rates depend on different types of lenders. The following table denotes the major banks and NBFSc you can avail a personal loan from:
NBFCs | Interest Rates (p.a.) | Processing Fee |
Navi | 9.9% onwards | Up to 7,500 |
Bajaj Finserv | 13% onwards | Up to 4% of the loan amount |
StashFin | 11.99% onwards | Up to 10% of the loan amount |
Faircent | 12% onwards | Up to 8% of the loan amount |
Dhani Loans | 13.99% onwards | Up to 3% of the loan amount |
Muthoot Finance Limited | 14% onwards | Up to 3.50% of the loan amount |
HDB Finance Services | 36% onwards | Up to 3% of the loan amount |
Tata Capital Financial Services LTD | 10.99% onwards | Up to 2.75% of the loan amount |
Pay Sense | 16.80% onwards | Up to 2.5% of the loan amount |
Money View | 15.96% onwards | Up to 2% of the loan amount |
Banks | Interest Rates (p.a.) | Processing Fee |
HDFC Bank | 10.75% onwards | Up to 2.50% of the loan amount |
State Bank of India | 9.60% onwards | Up to 1.50% of the loan amount |
ICICI Bank | 10.50% onwards | Up to 2.50% of the loan amount |
Axis Bank | 10.25% onwards | Up to 2% of the loan amount |
Kotak Mahindra Bank | 10.50% onwards | Up to 2.50% of the loan amount |
IndusInd Bank | 10.49% onwards | Up to 3% of the loan amount |
Yes Bank | 20% onwards | Up to 2.50% of the loan amount |
Punjab National Bank | 8.90% onwards | Up to 1% of the loan amount |
Bank Of Baroda | 9.20% onwards | Up to 2% of the loan amount |
Bank Of India | 10.35% onwards | Up to 2% of the loan amount |
Disclaimer: All the data has been taken from respective banks’ and NBFCs’ websites as on 5 August 2022. The data is for illustrative purposes only, the actual applicable interest rate would be ascertained based on the borrower’s eligibility as per the terms and conditions of the lender
Every lender’s eligibility criteria vary, and you are responsible for checking and ensuring you are eligible for a personal loan.
Follow these steps to get a personal loan from Navi:
After KYC document verification, the loan will be disbursed directly to your account.
Different lenders offer personal loans with varying features to attract customers. However, Navi instantly provides a personal loan through a seamless digital lending app. But, you must still factor in the following before applying for a personal loan.
Personal loans are the answer when you are short of cash and need money immediately. Knowing what a personal loan is can come in handy in many circumstances. However, choose from the lender that offers the best deal in terms of interest rates, tenure, and levy of charges. Accordingly, consider Navi personal loan through their digital lending app for a simple, paperless, instant personal loan with many redeeming features
Ans: The personal loan amount limit varies from lender to lender. However, Navi offers a maximum of Rs.20 Lakh as a personal loan.
Ans: Yes, you can choose your spouse, parents, or siblings as co-borrowers for a joint personal loan. In addition, you get the advantage of a higher amount as the dual incomes determine the loan quantum.
Ans: Foreclosure charges depend on the lender and range from 1 to 2% of the outstanding loan amount. Thus, you must check with the lender before applying for a personal loan.
Ans: If your loan application faces rejection, you can explore alternative means to generate instant funds. The two ready avenues are credit cards and loans against mutual funds.
Ans: Your repayment burden goes up for default in repayment. For example, your interest burden increases with a penal interest levy and tenure extension.
Ans: The primary criteria for a personal loan are your income, repayment capacity, and credit score, which should be more than 650 to apply.
Looking for instant 🚀 personal loans 24*7 anywhere, anytime? Get personal loans up to ₹20 lakh starting at 9.9% p.a. Install the Navi app now!
Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
How to Get Urgent Cash Loan without Documents Online in India?
An urgent cash loan without documents is a quick and easy solution for individuals in need of sudde... Read More »What is an Aadhaar Card Loan and How to Apply?
What is an Aadhaar Card? An aadhaar card loan is a type of instant cash loan that requires the b... Read More »20 Best Personal Loan Apps in India for Instant Loan in Feb 2023
Personal loan apps are apps designed for anyone looking for an instant personal loan with minimal d... Read More »Get Instant Cash Loan in 1 Hour Without Documents: Interest Rate and Eligibility
Instant Cash Loan in 1 Hour Are you in any emergency cash crisis and in need of an instant cash ... Read More »How to Apply for ₹5,000 Loan on Aadhaar Card?
Aadhaar card is an essential identity proof for all Indian citizens. From opening a new bank accoun... Read More »How to Get ₹20,000 Loan on Aadhaar Card?
Short on cash? What if we told you it's possible to get an instant, convenient, paperless ₹20,000... Read More »How to Get ₹10,000 Loan on Aadhaar Card?
Need ₹10,000 cash urgently to pay your rent or bills? Don’t worry, you can take a ₹10,000 loa... Read More »How to Get ₹50,000 Loan on Aadhaar Card?
Financial emergencies come unannounced. In such a situation, taking an instant personal loan could ... Read More »Peer to Peer (P2P) Lending – Features, Working, Benefits and How to Apply?
Peer-to-peer lending is an alternative financing system that enables borrowers to get loans from ot... Read More »What is a Cash Credit Loan and How to Apply for it?
What is a Cash Credit Loan? A cash credit loan is a short-term loan given to businesses to meet ... Read More »How to Get Small Cash Loan on Aadhaar Card without PAN Card?
Small cash loans are loans offered by banks and NBFCs to meet short-term financial requirements. Th... Read More »What is an Aadhaar Cash Loan and How to Apply for it?
Aadhaar Cash Loan Aadhaar cash loan is a financial service provided by banks and NBFCs (Non-bank... Read More »Top 10 Chit Fund Schemes in India in 2023
Chit funds are one of the most popular return-generating saving schemes in India. It is a financial... Read More »10 Best Gold ETFs to Invest in India in February 2023
Gold ETFs or Gold Exchange Traded Funds are passively managed funds that track the price of physica... Read More »Top 10 Demat Accounts in India [Lowest Brokerage Charges]
A Demat account was created to eliminate the time-consuming and inconvenient procedure of purchasin... Read More »20 Best Index Funds in India to Invest in 2023 (Updated on 31st Jan)
What is an Index Fund? An index fund is a type of mutual fund or exchange-traded fund (ETF) that... Read More »Best Arbitrage Mutual Funds to Invest in India: Returns and Taxation
Arbitrage funds are hybrid mutual fund schemes that aim to make low-risk profits by buying and sell... Read More »Best SIP Mutual Funds To Invest In India (2023) – Its Types And Taxation
A Systematic Investment Plan (SIP) is a convenient way to invest a fixed sum in mutual funds. For i... Read More »10 Best Corporate Bond Funds in India 2023 – With Returns
Corporate bond funds are debt funds that invest at least 80% of the investment corpus in companies ... Read More »10 Best Banks for Savings Account in India (2023)
A savings account keeps your money safe, and lets you earn interest every quarter. There are many b... Read More »All information is subject to specific conditions | © 2023 Navi Technologies Ltd. All rights are reserved.
FEE FREE MONTH
No Processing Fee on Cash Loan