What is a Personal Loan?
Personal loan can be defined as a short-to-medium term financing option that people can use to fulfill both personal and business needs. Usually a personal loan is an unsecured loan that does not require collateral or security to obtain them.
Personal Loan Interest Rate
Interest rates of Personal loan depends on the credit profile of an individual, lender’s risk based pricing model, cost of funds, and other factors. However, the interest rate highly impacts the total borrowing cost, applicants should always seek the most valuable rates suitable for their credit profile.
One of the best ways to find suitable interest rates is to explore offers from lenders where they already hold deposits, credit cards, or loan accounts. Next, you can use online financial platforms such as BigMudra to compare interest rates from various banks and NBFCs, BigMudra provides the best personal loan in India.
Features and Benefits Personal Loan
A best personal loan in India is a popular choice for many individuals for meeting lifestyle aspirations and addressing financial needs, thanks to BigMudra hassle free access, minimal paperwork, and quick disbursement.
Here are the standout features of instant personal loan.
Collateral-free financing
No restrictions on end-use
Loan amounts up to Rs. 1 crore, with potential for higher limits based on lender policies
Flexible repayment tenures of up to 60 months, extendable in specific cases
Top-up loans available for additional needs with many lenders
Streamlined documentation process
Fast disbursal of funds
Eligibility For Personal Loan
While eligibility criteria may vary among lenders due to different credit risk policies, loan variants, and applicant profiles, here are some common requirements:
Age: 18 - 60 years
Salary: Minimum Rs 15,000 per month for salaried customers
Income: Minimum Rs 5 lakh p.a. for self-employed customers
Credit Score: Preferably 750 and above (higher scores improve approval chances)
Employment Stability: Generally 1 year, with some lenders requiring longer work experience
Business Continuity: Usually 3 years, with some lenders requiring a longer period
Employment Type: Salaried employees from reputed organizations, MNCs, Private and Public Limited Companies, Govt. organizations, PSUs, and large enterprises
By meeting these requirements, you increase your chances of qualifying for a Big Mudra Personal Loan or securing instant loan approval.
Documents Required
To establish identity, income, repayment capacity, and residence, lenders typically require the following documents:
| Requirements | Salaried Individuals | Self Employed |
|---|---|---|
| Proof of Identity | Passport, Voter’s ID, Driving License, Aadhaar Card or Pan Card | Passport, Voter’s ID, Driving License, Aadhaar Card or Pan Card |
| Proof of Residence | Adhaar Card, Passport or Utility Bills | Adhaar Card, Passport or Utility Bills |
| Proof of Income | Salary Slips, Bank Account Statements, Form 16 | Previous Year’s ITR, P&L Statement and Balance Sheet, Bank Account Statement |
When applying for a personal loan application online, ensure all your documents are accurate to avoid delays.
How to Calculate EMI for a Personal Loan
To calculate your personal loan EMI, use the formula:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]- P = Principal loan amount
- R = Monthly interest rate (annual rate divided by 12)
- N = Loan tenure in months
Manual calculation of EMI and interest rates can be hectic, tedious and there are chances that may get errors. So using an online EMI calculator is recommended. Simply set the loan amount, interest rate and tenure. BigMudra EMI calculator will Instantly show your EMI, total interest rate, and tenure. This helps you to compare loan offers and let you choose the best one for you.
How to apply for Personal Loan
Big Mudra simplifies the personal loan application online process for salaried individuals by allowing them to compare offers from 20+ banks and NBFCs. Follow these steps to apply for personal loan:
Enter your mobile number
Provide personal details (annual income, employer name, etc.)
Verify your mobile number with OTP and login
Select your reason for applying
Choose your residence type
Specify the desired loan amount
Compare offers and apply for personal loan best suited to your needs.
With instant loan approval options available, the process becomes faster and more efficient.
Fees & Charges
| Particulars | Charges |
|---|---|
| Interest Rate | 11% to 32% p.a. |
| Processing Fees | Up to 4% of the loan amount |
| Bonus Charges | ₹700 to ₹1200 per instance |
| Part Prepayment Charges | Up to 5% |
| Penal Charges | ₹8 to ₹12 per day |
| Stamp duty | As per state law |
| Annual Maintenance Charges | Up to 0.3% |
FAQs
How can I apply for a personal loan?
You can apply for personal loan through Big Mudra's personal loan application online platform, which allows you to compare offers from multiple lenders and choose the best one.
What is the interest rate on a personal loan?
Interest rates typically range from 10.5% to 24% p.a., depending on factors like your credit score, income, and lender policies. You can easily check your interest rate and monthly EMI through our most advanced personal loan calculator
How can I apply for an instant personal loan online?
Use Big Mudra's personal loan application online platform to compare and apply for instant loan approval. The process is quick and can be completed entirely online.
How much CIBIL score is required for a personal loan?
Most lenders prefer a CIBIL score of 750 or above, but some may approve loans for lower scores depending on other factors. To check your CIBIL score please click here.
What is the maximum loan duration for a personal loan?
Personal loan tenures generally range from 12 to 60 months, with some lenders offering up to 72 months.
What is the difference between an instant personal loan and a regular personal loan?
Instant loan approval offers faster approval and disbursement, often within hours, while regular personal loans may take a few days to process.
What is the minimum salary required to get a personal loan?
Most lenders require a minimum monthly salary of Rs 15,000, but this can vary based on the lender and loan amount.
Can I get a personal loan without a salary slip?
Some lenders may offer personal loans without salary slips to self-employed individuals or those with alternative income proofs, but terms may be less favorable.
Are there any charges for prepaying a personal loan?
For floating rate loans, there are usually no prepayment charges. For fixed-rate loans, charges typically range from 2% to 5% of the outstanding principal.
Can I cancel a personal loan after the loan amount is disbursed?
Yes, but you'll likely incur cancellation charges (usually around Rs 3,000) and need to repay the full loan amount immediately.
Do I need to provide any security or collateral to apply for a personal loan?
No, Big Mudra Personal Loans are typically unsecured, meaning you don't need to provide any collateral or security to obtain the loan.
