When life throws unexpected expenses your way—medical emergencies, travel plans, weddings, or home improvements—a personal loan can be the financial lifeline you need. Unlike specific-purpose loans, personal loans offer flexibility and quick access to funds, making them one of the most popular borrowing options in India.
In this blog, we’ll explain what personal loans are, how they work, eligibility criteria, benefits, and tips to ensure a smooth application process.
What is a Personal Loan?
A personal loan is an unsecured loan provided by banks or NBFCs that can be used for almost any personal financial need. Since it is unsecured, you don’t need to pledge any asset or collateral, unlike a home or vehicle loan.
Key Features:
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Loan amount typically ranges from ₹50,000 to ₹40 lakh depending on eligibility.
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Flexible tenure, usually from 12 months to 60 months.
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Fixed or floating interest rates, generally lower than credit card interest rates.
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Quick processing with minimal documentation.
Eligibility Criteria for Personal Loans
Eligibility requirements vary slightly by lender, but common factors include:
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Age: Usually between 21–60 years
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Income: A stable source of income from salary, business, or profession
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Credit Score: A good score (700+) improves approval chances
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Employment History: Consistent employment or business stability for at least 1–2 years
Tip: Pre-check your eligibility online or through a loan agent like Loanslan to save time.
Types of Personal Loans
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Regular Personal Loan – For general purposes such as weddings, travel, or household expenses.
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Medical Loan – Tailored to cover medical emergencies, surgeries, or treatments.
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Education Loan (Short-Term Personal) – For professional courses or certifications not covered by formal education loans.
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Debt Consolidation Loan – Used to repay multiple debts into a single EMI, simplifying repayments.
Benefits of a Personal Loan
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Quick Access to Funds – Most banks offer fast processing, sometimes within 24–48 hours.
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Flexible Usage – You can use the loan for almost any legitimate purpose.
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No Collateral Required – Unsecured loans don’t require property or asset pledges.
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Improves Credit History – Timely repayment enhances your credit score for future borrowing.
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Predictable Repayment – Fixed EMIs make budgeting easier.
Factors to Consider Before Applying
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Interest Rate: Compare rates across banks and NBFCs. Even a small difference affects total repayment.
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Processing Fees: Usually 1–2% of the loan amount. Factor this into your budget.
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Loan Tenure: Longer tenure lowers EMIs but increases total interest paid.
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Prepayment/Foreclosure Charges: Check if the lender allows early repayment and any associated fees.
Personal Loan vs. Credit Card Loan
Many people consider using credit cards for urgent funds. Here’s why a personal loan is usually a better choice:
| Feature | Personal Loan | Credit Card Loan |
|---|---|---|
| Loan Amount | Higher limits (₹50,000 – ₹40 lakh) | Limited to credit card limit |
| Interest Rate | 10–18% p.a. | 24–40% p.a. |
| Repayment Tenure | 1–5 years | Monthly (short-term) |
| Best For | Large, planned expenses | Small, urgent needs |
Tips to Ensure Smooth Approval
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Maintain a Good Credit Score – Pay bills on time, reduce outstanding debt.
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Organize Documents – Keep PAN card, Aadhaar, income proof, and bank statements ready.
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Borrow Responsibly – Only take what you can repay comfortably.
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Compare Lenders – Interest rates, fees, and customer service vary.
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Seek Expert Guidance – Agents like Loanslan can streamline approvals and offer multiple loan options.
How Loanslan Helps With Personal Loans
At Loanslan, we simplify personal loan applications:
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Compare multiple lenders to find the best rates and terms
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Assist with documentation for faster processing
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Provide expert guidance to ensure smooth approval
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Transparent process with no hidden fees
Whether it’s an emergency, a planned expense, or debt consolidation, Loanslan ensures that borrowing is hassle-free, fast, and reliable.
Conclusion
A personal loan can be a powerful tool when used responsibly. By understanding eligibility, types, interest rates, and repayment terms, you can make informed borrowing decisions.
Loanslan is your trusted partner for personal loans, helping you access multiple options, expert guidance, and fast approvals—so you can meet your financial goals confidently.