How to Get a Personal Loan in India
Key takeaways
- You need a minimum CIBIL score of 700 to qualify for most personal loans in India.
- Documents required include Aadhaar, PAN, last 3 months salary slips and 6 months bank statements.
- Compare offers from multiple lenders before choosing to get the lowest interest rate possible.
What is a Personal Loan?
A personal loan is an unsecured loan that you can borrow from a bank or NBFC for any personal use — medical emergencies, weddings, travel, education or home renovation. Since no collateral is required, approval depends entirely on your credit profile, income and repayment history.
Who is Eligible for a Personal Loan?
Most banks and NBFCs in India have the following basic eligibility requirements.
- Age between 21 and 60 years
- Salaried employee or self-employed professional
- Minimum monthly income of ₹25,000
- CIBIL score of 700 or above
- At least 1 year of work experience with current employer
Documents Required
Keep these documents ready before applying to speed up the process.
1. Aadhaar Card — identity and address proof
2. PAN Card — mandatory for all loan applications
3. Last 3 months salary slips
4. Last 6 months bank statements
5. Employee ID card
6. Latest Form 16 or ITR
How to Compare Personal Loan Offers
The biggest mistake most borrowers make is applying to just one lender. Every application creates a hard inquiry on your CIBIL report which lowers your score. Finbros lets you check offers from 12+ lenders in one place with a single soft inquiry that does not impact your score at all.
Factors That Affect Your Interest Rate
Your personal loan interest rate depends on multiple factors. Understanding these helps you take steps to get a better rate before you apply.
- CIBIL score — higher score means lower rate
- Monthly income — higher income reduces risk for lenders
- Employer reputation — top companies get preferential rates
- Existing EMIs — lower existing obligations improve eligibility
- Loan tenure — shorter tenure usually means lower rate
