Overview
A personal loan is a versatile financial solution for short to medium-term needs. It can be used for both personal and business purposes, excluding speculative activities. One of the key advantages is that these loans are typically unsecured, meaning borrowers don't need to pledge any collateral or security to obtain them.
Eligibility
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
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 |
How to apply
BigMudra simplifies the personal loan application process for salaried individuals by allowing them to compare offers from 20+ banks and NBFCs. Follow these steps to apply:
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 the best-suited loan
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 a personal loan through BigMudra's 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.
How can I apply for an instant personal loan online?
Use BigMudra's platform to compare and apply for instant personal loans. 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.
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 personal loans offer 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, personal loans are typically unsecured, meaning you don't need to provide any collateral or security to obtain the loan.
