How to Get Personal Loan | Where to Get Personal Loan
Personal loans are one of the most popular methods of acquiring quick cash in India, with no security or collateral being required. It is a much faster and easier way to borrow some cash that you can use to fund a wedding, medical emergency, home repairs, or travel. In this article, I will explain everything you need to know about personal loans, including how to get a personal loan and how to clear it right away. Before applying, you should calculate your monthly payments using an EMI calculator to understand how much you can afford.
What is a Personal Loan
A personal loan is a short-term and easy-to-acquire loan that you can get through NBFCs, banks, and fintech lenders without any collateral to meet your financial needs. It does not require security, such as a car loan or a house, which makes it simpler and quicker to acquire. You receive a single lump sum, which is repaid as regular monthly payments between 12 and 84 months (1 to 7 years). These monthly payments are called EMIs, and if you don’t know how they work, you should first understand what EMI is and how it works.
One of the most important point about it is that it can be disbursed within minutes (usually, using applications), you can spend it on anything you want, and there are no restrictions on how it can be spent. However, as it is not secured, the interest rates will be higher than on secured loans. They tend to cost between 9.99% and 24% yearly or higher, depending on your credit history. By 2026, the process will have gone practically paperless with the help of online systems. The majority of approvals are done online through applications or sites.
How to get personal loan
Compare offers from different lenders on various sites and choose the best lender with the lowest interest rate and processing fees. Prepare your papers in advance (and later we will see more in the guide). You can apply online using the lender’s website or application, or visit a branch. The lender will verify your credit score, verify your earnings and occupation, and lend you the loan when you qualify. Once you are cleared, the cash is deposited into your bank account. This normally takes 24-48 hours of digital applications and 7-15 days of conventional bank operations.
While comparing lenders, you should also compare EMIs, interest rates, and total repayment using a loan comparison tool. The best way to increase your probability of approval is to maintain steady work/business, ensure you maintain a low debt-to-income ratio, and do not take out too many loans within a brief time.
Where to Apply for a Personal Loan
There are three main sources of a personal loan: traditional banks, non-banking financial companies (NBFCs), and fintech platforms. Each has its own merits and demerits.
Banks(both public and private) offer the lowest interest rates and longest terms, although they are stricter and take longer to complete.
NBFCs are more accommodating for self-employed individuals due to their less strict paperwork and credit ratings, but their interest rates can sometimes be somewhat higher.
Fintech apps can help you when you needs it the most, because they provide the most immediate approvals – occasionally instantly – and completely digital processes. But they impose a higher interest on riskier profiles.
Other popular options are SBI and HDFC Bank (banks), Bajaj Finserv and Tata Capital (NBFCs), and apps such as MoneyView or KreditBee (fintech). As a way to avoid fraudulent applications, ensure that you only select lenders that are registered by the RBI.
Personal Loan Eligibility Criteria
There are several factors considered by lenders to ensure that you can comfortably repay a personal loan.
How can I be eligible for a personal loan?
To obtain a personal loan in India and be much more likely to have it approved within a short time span, you should consider fulfilling a few requirements that banks and lenders impose. You should be aged 21 to 60 years. You should also have a stable source of income. In any case, salaried individuals tend to require at least ₹15,000- ₹25,000 monthly (more in large cities), and self-employed individuals need to prove that they earn at least ₹2.5 lakh to ₹5 lakh annually and that they have been in business for at least 1 to 3 years. Another factor that lenders consider is the stability of your job. Employees must have a minimum of one year of overall work experience and six months of experience with their current employer.
- Income is the most important factor. Average earnings of most salaried individuals require a minimum of ₹15000-₹25000 a month (or more in large cities such as Delhi or Mumbai). Self-employed professionals should earn between ₹2.5 lakh and ₹5 lakh annually and have been in business for less than a year to three years.
- Employment stability is important. Salaried job applicants must possess at least one year of general experience and 6 months with their current employer. Government employees and those who work in a PSU usually get special relief.
- A credit score (CIBIL) of 700 or higher is better for getting the best rates and the most chances of getting approved. Scores 650 to 700 will be considered, but will incur higher interest. Below 650 is difficult, but then it can be done with a few NBFCs or with a co-applicant.
- Otherly, it also depends on age (usually aged between 21 and 60/65 years), place of residence in India, and a debt-to-income ratio that is lower than 50% to 60%. Many lenders currently use AI-based eligibility calculators. Only enter your wage, rating, and score to receive a rapid estimate. Try EMI Calculator AI for precise calculations.
How to get approved for personal loan
To get approved faster, maintain a clean credit history, do not apply for multiple loans within a short time, and keep your current EMIs low. Your opportunities are even higher if you have a regular job in the government, a PSU, or a popular privatized business. And the most convenient is to visit the site or app of a lender and fill in your PAN and salary immediately to know whether you are eligible. If you already have loans running, you should understand how loan foreclosure or prepayment works to reduce your EMIs and improve eligibility.
Most lenders can license and provide you the required money within minutes to a few days upon satisfying these standards and submission of the required papers, which are largely PAN, Aadhaar, salary stubs, and bank statements.However, there are other tips too on how you can increase your loan approval. You can also quickly check whether you qualify by using a personal loan eligibility calculator before submitting applications to banks or NBFCs.
Best Banks to Get a Personal Loan
The best bank for you to get a personal loan will be the one that offers the best rates to people with good credit, the one that offers loans the quickest to those in need of one urgently, and even the one that offers a loan to people with mediocre scores with ease.
Which bank can give a personal loan easily
Examples of banks of the public sector, which tend to begin at 8.75% -10.00% p.a. with minimal or no processing charges, include the State Bank of India (SBI) and Bank of Maharashtra. This would suit them in large loans and long terms. Examples of these private banks offer rates as low as 9.99%, all-digital processes, and increased loan ceilings (up to ₹50 lakh) include HDFC Bank, ICICI Bank, and IDFC FIRST Bank. They tolerate quicker and are more accommodating to salaried employees in the established businesses.
Where is the best personal loan
There are a large number of individuals who would rather get a loan fast, and they prefer to approach any private bank or NBFCs, such as Bajaj Finserv, because they consider the present level of income and employment security rather than the strict government-sector regulations. You have to compare on PaisaBazaar or BankBazaar. Others are also relevant, such as processing fees (up to 23%), prepayment, and customer service.
How to Get Personal Loan from a Bank
The bank procedures to get a personal loan are straightforward, but they are being computerized. The very first thing to do is to visit the website or the app of the bank and check the eligibility checker with the help of your PAN and other simple details. In case you are pre-approved, enter your personal, work, and loan details on the online form. You may have to submit scanned documents or visit the branch.
The bank verifies your CIBIL score, income (through pay stubs or bank accounts), and work. A relationship manager can make a call to request further information. When you accept, you sign the agreement either electronically or in hard copy. Disbursal occurs on average between 2 and 7 business days after the paperwork is completed. Banks charge the processing fee (1-2% of the loan amount) and might require a post-dated cheque or an e-NACH mandate on EMIs. Never ignore the little information on notes that are not immediately apparent, like late charges or foreclosure penalties.
How to Get Personal Loan from SBI
SBI is the biggest banking institution in India, and the people have faith in it, as it is low-rate and highly trusted by people. SBI Personal Loan would provide you with up to ₹50 lakh with interest rates beginning at 10.00% p.a. (up to 15.00% p.a.) and up to 6-7-year interest.
SBI eligibility criteria:
- Age: 21–60 years (varies by scheme)
- Minimum monthly income: ₹15,000 (₹24,000 in metros for some cases)
- Minimum CIBIL: 650+ (higher preferred)
- Employment: The central/state government, PSUs, national educational institutions, or selected private firms, with at least 1 year of experience
Documents required:
- PAN card (mandatory)
- Identity & address proof (Aadhaar, Passport, Voter ID)
- Latest 3–6 months’ salary slips and Form 16
- 6 months’ salary account statement
- 2 passport-size photographs
- Employment proof (ID card or appointment letter)
Steps to apply:
- Check pre-approved offer through YONO app, internet banking, or SMS “PAPL” to 567676.
- Go to SBI or the closest branch and complete the application form.
- Provide documents and apply e-KYC.
- Bank checks and deposit money to your account (most of the time within days to its existing customers).
No collateral is required, and the processing fees are low (as high as 1.5%).
Where to Get Instant Personal Loan
Fintech applications and online NBFCs will provide you with the necessary cash immediately. Such platforms make use of AI and other data to approve the loans immediately without the need of visiting a branch.
Some popular choices are:
- MoneyView and KreditBee provide loans up to ₹10 lakh with approval within 2-10 minutes and give the same day.
- Navi, MoneyTap, and CASHe all have a paperless process, adjustable EMIs, and are suitable for individuals with even moderate credit scores as well.
- The Kissht and Bajaj Finserv apps allow you to take 10-14% per year loans of up to ₹55 lakh per year.
It can all be done on your phone, download an app, add your bank account, e-KYC your PAN or Aadhaar, and immediately get an offer. In a few minutes or hours, you will have money in your account. The rates are higher (14-36% p.a. in certain cases), but the tenures are shorter; still, it is the most convenient. Always ensure that you get registered with the RBI and read the information on APR.
Platforms like Paisabazaar and BankBazaar allow comparisons across multiple lenders. Banks often offer lower rates for existing customers, while NBFCs provide faster processing. Instead of checking lenders one by one, you can first compare interest rates and EMIs using a loan comparison tool to find the most affordable option.
Documents Required for Personal Loan
With the correct paperwork, it will become much easier to be approved and prevent rejection. Various lenders and jobs of one kind or another have slightly different requirements.
Common documents for all applicants:
- PAN card (mandatory for credit check)
- Aadhaar card or other KYC (Passport, Voter ID, Driving Licence)
- 2–3 passport-size photographs
- Bank statements (last 3–6 months)
For salaried employees:
- Latest 3 months’ salary slips
- Form 16 or ITR (last 1–2 years)
- Employment certificate or offer letter
For self-employed:
- Last 2–3 years’ ITR and audited financials (P&L, balance sheet)
- Business registration (GST, shop act licence)
- Bank statements showing business transactions
Other fintechs just require a PAN and Aadhaar to issue small loans of less than ₹5 lakh, and this is enough to allow them to perform video KYC. Ensure that you have a copy of the documentation digitally, as the majority of lenders are now accepting e-documents.
Personal Loan Interest Rates
The interest rates will be between 9.99% to 9.99% per year (lowest rates to people with good credit) to 24% or even higher per year (high-risk borrowers). The rates may be fixed or floating and are pegged on a declining balance. If you are confused between rate types, you should read the comparison between fixed vs floating interest rates before choosing a loan.
These are the examples of the best lenders (this is not the full list; the real rate will depend on your profile):
| Lender | Interest Rate (p.a.) | Processing Fee | Max Loan Amount |
| SBI | 10.00% – 15.00% | Up to 1.5% | ₹50 lakh |
| HDFC Bank | 9.99% – 24.00% | Up to ₹6,500 + GST | ₹50 lakh |
| ICICI Bank | 9.99% – 16.50% | Up to 2% | ₹50 lakh |
| IDFC FIRST Bank | 9.99% onwards | Up to 2% | ₹10 lakh+ |
| Bajaj Finserv (NBFC) | 10% – 30% | Up to 3.93% | ₹55 lakh |
Additional expenses are stamp duty and the penalty of late payments (2-3% monthly). Most banks will also allow you to repay your loan within 6 to 12 months with no or minimal charges.
How Much Personal Loan Can You Get
The maximum amount of loan is dependent on your income, credit score, current EMIs, and the policies of the lender. Fixed Obligation to Income Ratio (FOIR) provides that your total EMIs must not exceed 50 -60% of your net monthly earnings.
Rule of thumb:
- Salaried: 10–30 times monthly salary (e.g., ₹30,000 salary → ₹3–9 lakh possible).
- With excellent credit and no existing loans: up to 20–24 times salary.
Examples:
- ₹25,000 salary → ₹2.5–5 lakh typical
- ₹50,000 salary → ₹5–15 lakh
- Maximum cap across lenders: ₹20–55 lakh
To get a personal estimate, you may use this tool and go to bank websites and use eligibility calculators. It is possible to earn more money when you earn a higher income, have longer employment time, and have good credit.
Personal Loan FAQs
To qualify, you should be aged 21-60 years, have a good, stable job, and your CIBIL score should be at least 700. You also need to earn at least ₹15,000-₹25,000 monthly (in case you are self-employed) or you need to earn ₹2.5 lakh (in case you are a worker). Instant Eligibility of Lenders.
NBFCs such as Bajaj Finserv and other banks are generally simpler to deal with than state banks, as their rules are less strict, they do things digitally, and they can grant loans faster.
Fintech apps such as MoneyView, KreditBee, Navi, and CASHe are not bad in terms of emergencies, as they approve you immediately and send the money the same day with minimal paperwork.
Yes, and you do not have many options. There are lenders who are NBFCs and fintechs who will offer a loan at a score of 550-650, but the interest rate will be more (20-36% p.a.). Making payments on time, clearing your debt, or applying with a co-applicant will improve your score. Begin with a small amount and gradually increase to a bigger amount.
Conclusion
One can easily determine how to obtain a personal loan in India with the help of internet tools and comparison. Make sure that you are eligible, make sure to compare the offers to see the best rates, and under no circumstances should it be more than you can manage. Calculate EMI with the help of EMICalculator.AI and seek offers with your bank to repay loans quicker. It is always good to read the agreements so as not to be surprised.
