Personal Loan

In Rs.





Product Overview


Personal Loans help us during an emergency financial crisis in life. Personal loans are used to meet the expenses such as home improvements, wedding, purchase of a vehicle or any appliances, children’s education, luxury holiday etc.

Personal loans are generally unsecured loans are the loans which are provided by financial institution without any collateral security, this means that there is no risk on owned property. Due to the unsecured nature of the loan, the lender charges higher interest rates to balance out the greater risk. Even though the interest rates on personal loans are higher, personal loan interest rates are usually still lower than loan on credit cards.

There are service charges or loan processing charges, which the bank charges for processing and disbursing loans. It is deducted directly from the Personal Loan amount and is generally restricted to 1% to 3 % of the Personal Loan amount. It is a one- time fee.

Banks charge borrowers with prepayment fee when they pay the loan EMIs before the tenure which normally is between 2-5% of the outstanding loan amount.


  • It is unsecured in nature, which means that there is no collateral or security required for this loan.

  • It is based on buyer's credit history - i.e checking the conduct of the past loans. The repayment history and the behavior of the loan account and the payments on credit card.

  • Personal loans are generally granted for a maximum tenor of 5 years.

  • The disbursal time is generally 3-4 working days.

  • This loan has a processing fee apart from the interest charged and prepayment penalty in case of closure before the tenor of the loan.

Criteria Self Employed


Minimum age for availing loan for self employed individuals is 25 years. This includes self employed professional and self employed business men. The maximum age for availing a personal loan is 65 years.

Minimum Profit After Tax

Rs. 2 lakhs for Proprietorship Firm/Self employed individuals and professionals and Rs. 1 lakhs for other business men, as per latest audited financials

Business Stability

Minimum business track record of at least 3 years, with 2 years in current line of business. 

Credit history

No bad loans in CIBIL under suit filed or write-off category.

These are general eligibility criteria. However, this differs from institution to institution. The eligibility would be guided by the norms of the bank.

  • KYC Documents :Proof of Identity, Address proof and photograph

  • Proof of residence - Passport/Utility bill (not more than 3 months)/ Leave and license agreement.

  • Income proof - audited financials for the last 2 years

  • Bank Statement for the last 6 months

  • Office Address proof

  • Proof of continuity of business.

  • Proof of office ownership

  • And Duly filled-in Bank Application form

  • Post sanction documentation by the bank/FI