Personal Loan FAQs

What is a Personal Loan? 

Personal loan is an unsecured loan offered by banks & NBFCs (Non-Banking Financial Corporations) to an individual, to meet their immediate urgent financial requirement. Its provided by lender on the basis of certain criteria like monthly income, credit history, income & employment stability, repayment capability etc. The interest rate on personal loan is always little higher than the home, car or mortgage loan as it comes without any security. A personal loan is never secured against any assets/ collateral like a home loans, car loan, gold loan or mortgage loan. Major personal loan lenders in India are SBI, HDFC Bank, ICICI Bank, Axis Bank & Punjab National Bank.

  1. How much maximum or minimum loan amount I can get in Personal Loan?

    Under Personal loan program you can apply for as low as Rs. 50000 loan amount and it can go up to Rs. 5000000/-.

  2. What is the maximum term for Personal Loan?

    Maximum term for a personal loan is 60 month or 5 years, however it may depend in your age.

  3. Which are the banks offering personal loan?

    Major personal loan lenders in India are SBI, HDFC Bank, ICICI Bank, Axis Bank, Yes Bank, Punjab National Bank, Corporation Bank, Fullerton India Credit, Bajaj Finserv and other.

  4. For what purposes a personal loan can be used?

    A personal loan taken from a Bank or NBFCs can be used for various purposes typically banks don’t monitor it, some of the bank may take a declaration from you stating it won’t be used to invest in stock market, anti-national activities. A personal loan can be used for following purposes:

    • House renovation purpose personal loan
    • Higher education purposes personal loan
    • Electronic gadget buying personal loan
    • Marriage related personal loan
    • Medical expenses related personal loan
    • Two wheeler purchase personal loan
    • Credit card payoff purpose personal loan
  5. How soon I can get a personal loan?

    If you are eligible to take a personal loan on the basis of your monthly income and overall profile, post application your personal loan can be approved and disbursed in 24 hours to 7 days’ time frame.

  6. Am I eligible to take a personal loan?

    You are eligible to take a personal loan, if you are salaried or self-employed with regular monthly income, your source of income is stable, you have a clear repayment track on loans/credit cards and you reside in the area/ localities approved in the banks system as approved location for funding. However, in different banks income and eligibility criteria varies.

    Check Your Personal Loan Eligibility
  7. How do I decide what EMI amount I should take lower EMI or Higher EMI?

    Your personal loan EMI amount depends on the loan amount you are taking, loan tenure you are opting for and the rate of interest you are charged on loan. Higher the tenure and lower is the rate of interest, EMI will be lower. If tenure is low and the loan amount you are taking is higher the EMI will be higher. Whenever you are deciding on the EMI amount you should always look for the Loan Amount, Rate of Interest and Tenure of the loan.

    Check Your Personal Loan EMI
  8. What is the interest rate for Personal Loan?

    Personal loan in India comes with a rate of interest between 11.50% to 32 %. Since it’s an unsecured loan it come with higher rate of interest then the other retail loans. The rate of interest offered to you by bank or NBFC may also depend on your overall credit profile.

  9. Other than interest what are the other extra charges payable for personal loan?

    Personal loan financers generally charge an upfront processing fees to borrowers. Processing fees for personal loan range from 1-4% based on your credit profile.

  10. What if I want to pre-pay the loan before it’s maturity? Are there any penalty charges?

    Personal Loan lenders (Banks/NBFCs) usually charge a pre-part payment charges ranging from 1-5% of the principle outstanding loan amount. Early foreclosure of the loan also attracts a similar penalty.

  11. Can I get a personal loan up to 1Cr?

    Yes, you can take a personal loan up to 1Cr or more. One bank or NBFC will have an upper loan amount cap of 15 -30Lacs. Subject to your loan eligibility and credit profile- if you have a higher income based on that you can take personal loan from multiple bank at the same time.

Why Choose Personal Loan?

Salaried Individuals and self-employed business owners prefer to take a personal loan to fund their short-term emergency requirements of funds as these loans are the fastest way of raising funds with minimum documentations and without offering any asset as security. In India at present there are more than 50 lenders offering these loans with very attractive interest rates and flexible repayment options. Below are the top reasons to choose a personal loan:

  1. Why Compare personal loan offers online? When I can take the same directly from a Lender?

    Before taking a personal loan, you must compare the rate of interest available from the different banks/NBFCs to find the lowest rate personal loan, it will help you to save interest on your loan. Banks may be offering different rates based on the profile of individuals and on the basis of their lending rate and cost of the fund. if one banks' cost of fund is higher than in that case the particular bank may offer you a higher rate than the others. Now that’s one of the strong reasons for you to compare personal loan offers from a loan comparison site like which is neutral to all the banks/NBFCs and enables individuals to find the lowest or best rate of interest on personal loans.

  2. What can I use a personal loan for ? 

    A Personal loan can be used for almost any type of expense ranging from home renovations to lavish weddings and debt consolidation. They can also be used for paying medical bills, business investments, luxury vacations and many more.

  3. What is the processing fees for a personal loan?

    Processing fees on your loan is a cost you pay to get the loan. It varies from 1% to 5% depending upon the lender. Lower the processing fees you pay; the overall cost of your personal loan reduces.

  4. Am I eligible to take a personal loan from a Bank?

    If you are an Indian resident with a regular source of income, either from salary or business and your age is above 23 years, you are eligible for a personal loan. However, with every bank your eligibility may vary based on your net monthly income and banks minimum income criteria.

  5. Check Your Personal Loan Eligibility >>

  6. How do I apply for a personal loan?

    Apply online for a personal loan: If you have a valid source of income, then you can visit, compare different available personal loan offers online, choose the bank with the best rate of interest of personal loan and apply with few clicks.

  7. Can I consider a Co-applicant for taking a personal loan?

    Yes, you can have a co-applicant for a personal loan which will help you to get a higher loan amount from a financer by clubbing income of the co-applicant in the loan application. Your spouse can be your personal loan Co-applicant. However, this policy differs from banks to banks, while considering the income of a co-applicant, highest loan eligibility can come by clubbing income of your co-applicant.

  8. How do I compare personal loan offers from banks? enables you to compare the quotes from multiple banks and NBFCs on a single platform. Since it’s a neutral platform it offers unbiased personal loan quotes and offers from financers/banks and NBFCs, including the rate of interest, processing fees, the tenure of loan.

  9. What are the pre-payment charges for personal loan?

    Whenever you take a personal loan for a fixed term decided at the time of sanction and disbursement of the loan, usually the term is between 1 to 5 years. However, if you want to pre-pay the loan before its maturity, the bank levies you a pre-payment penalty charge which is also called as foreclosure charge. While comparing, personal loan offers from different banks you should look into this charge carefully.

  10. What is the difference between a fixed interest rate and floating rate in personal loan?

    A Fixed rate of interest on the personal loan remains fixed/constant throughout of the loan tenure irrespective of the market conditions, wherever a floating rate of interest increases or decreases with fluctuations in market rates. A bank decides its lending rates based on its cost of funds as well as the operating cost as and therefore, when it increases or reduces the rate of a personal loan, it would change if its variable and if it's fixed then it remains the same.

  11. How soon can I get a personal loan?

    You can get a personal loan within 2-5 days’ time frame based on the availability of all the required documents and your overall profile.

  12. Whats the maximum term for a personal loan?

    The maximum term for a personal loan is 5 years 
    Highest tenure personal loan in India: Highest tenure personal loan in India is 5 years.

  13. Will IServefinancial charge me any fees for its services

    No My Mudra FinCorp’s services will come to you absolutely free of cost.
    MyMudraFinCorp ensure its customers get the below-mentioned services free:

    • Unbiased services on personal loans.
    • Lowest rate of interest on personal loans.
    • Lowest processing fees on personal loans.
    • Best services on personal loan.
    • Best tenure personal loan.
    • Lowest EMI personal loan.
    • Doorstep service
  14. What can I use a personal loan for?

    Personal Loan can be used for anything and everything. There are no restrictions on the end use. You could use the loan money to finance anything from the latest flat-screen-plasma-LCD TV to buying your better-half a diamond ring. You can consider it as an education loan, marriage loan, or a loan for paying off your credit card balance.

  15. How is my personal loan eligibility calculated?

    Loan eligibility depends upon various factors which differ from banks to banks. The main factor of course, is your ability to repay the loan. Also your profile, in terms of residence and the place you work in also matters. Do make sure to check all such other eligibilities before applying. 

Check Eligibility