What is Personal Loan?
A personal loan is an unsecured loan provided by banks and financial institutions for various personal needs without requiring collateral. It can be used for medical emergencies, wedding expenses, travel, debt consolidation, home renovation, or any other personal requirement. The loan amount is disbursed as a lump sum and repaid in fixed monthly installments (EMIs) over a specified tenure.
Detailed Loan Features
| Loan Amount | ₹50,000 to ₹40 Lakhs |
| Interest Rate | 10.5% to 24% per annum (varies by bank, credit score, income) |
| Loan Tenure | 12 months to 60 months (1 to 5 years) |
| Processing Time | 24 to 48 hours (instant approval for pre-approved customers) |
| Processing Fee | Up to 2% + GST (₹1000 to ₹10,000) |
| Prepayment Charges | Nil for floating rate, 2-5% for fixed rate |
| Collateral Required | No collateral or security needed |
| Credit Score Required | Minimum 750 for best rates (680-750 acceptable with higher rates) |
Eligibility Criteria
For Salaried Individuals
- Age: 21 to 60 years
- Minimum income: ₹15,000 per month
- Work experience: At least 1 year (6 months in current company)
- Employment: Permanent employee in MNC, PSU, Private company
- Credit score: 750+ preferred
For Self-Employed
- Age: 21 to 65 years
- Minimum annual income: ₹3 Lakhs
- Business vintage: Minimum 2 years
- Business: Proprietor, Partner, Director
- ITR: Last 2 years filed
Documents Required
Identity & Address Proof:
- PAN Card (mandatory)
- Aadhaar Card
- Passport
- Voter ID Card
- Driving License
Income Proof:
- Last 3 months salary slips
- Last 6 months bank statements
- Form 16 (for salaried)
- ITR for last 2 years (self-employed)
- Employment certificate
Personal Loan Uses
Personal loans offer flexibility and can be used for:
- Medical Emergencies: Hospital bills, surgeries, treatments
- Wedding Expenses: Venue, catering, jewellery, photography
- Home Renovation: Interior design, repairs, furniture
- Education: Course fees, coaching, study abroad
- Travel & Vacation: Family trips, honeymoon packages
- Debt Consolidation: Merge multiple high-interest debts
- Business Needs: Working capital, equipment purchase
Apply Personal Loan
Get instant approval with best interest rates from 50+ banks
Apply Now Call: 88110 59347Quick Tips:
- Check credit score before applying
- Compare rates from multiple banks
- Keep all documents ready
- Don't apply to too many banks
EMI Calculation Example
| Loan Amount | Interest Rate | Tenure | Monthly EMI | Total Interest | Total Payment |
|---|---|---|---|---|---|
| ₹5,00,000 | 12% p.a. | 3 years | ₹16,607 | ₹97,852 | ₹5,97,852 |
| ₹5,00,000 | 12% p.a. | 5 years | ₹11,122 | ₹1,67,320 | ₹6,67,320 |
| ₹10,00,000 | 10.5% p.a. | 5 years | ₹21,494 | ₹2,89,640 | ₹12,89,640 |
Note: EMI calculated using reducing balance method. Actual EMI may vary based on bank policies.
Understanding Business Loans
A business loan is a financial product specifically designed to meet the funding needs of businesses - whether for starting a new venture, expanding operations, purchasing equipment, managing working capital, or any other business requirement. These loans can be secured (with collateral) or unsecured based on the loan amount and business profile.
Loan Parameters
| Loan Amount | ₹1 Lakh to ₹1 Crore+ |
| Interest Rate | 12% to 20% per annum |
| Loan Tenure | 1 to 7 years |
| Processing Time | 3 to 7 working days |
| Processing Fee | Up to 2.5% + GST |
Types of Business Loans
- Term Loan: Fixed amount, fixed tenure
- Working Capital: For day-to-day operations
- Equipment Finance: For machinery purchase
- MSME Loan: For small businesses
- Overdraft: Credit limit against collateral
- Invoice Discounting: Against receivables
Eligibility Requirements
- Business Type: Proprietorship, Partnership, Private Limited, LLP, Public Limited
- Business Vintage: Minimum 2-3 years of operation
- Annual Turnover: Minimum ₹10 Lakhs (varies by bank)
- Credit Score: Business owner's CIBIL 700+
- Profitability: Business should be profitable
- Age: Proprietor/Partner/Director 21-65 years
Complete Documentation Checklist
Identity Documents:
- PAN Card of business & partners
- Aadhaar Card
- Passport size photographs
- Address proof
Business Documents:
- Business registration certificate
- GST Registration
- Shop Act License
- Partnership deed/MOA-AOA
Financial Documents:
- Last 2 years ITR
- Last 12 months bank statements
- Balance sheet & P&L
- GST returns (12 months)
Complete Home Loan Information
A home loan (also called housing loan or mortgage) is a secured loan provided by banks to purchase a residential property - be it an apartment, independent house, or plot with construction. The property itself serves as collateral, making home loans one of the cheapest loans available with longest tenure and attractive tax benefits.
Home Loan Specifications
| Loan Amount | ₹5 Lakhs to ₹5 Crores (up to 90% of property value) |
| Interest Rate | 8.5% to 10% per annum (floating or fixed) |
| Loan Tenure | Up to 30 years (360 months) |
| Processing Fee | 0.25% to 0.50% + GST |
| Prepayment Charges | Nil for floating rate |
| Tax Benefits | Up to ₹3.5 Lakhs under 80C and 24(b) |
Types of Home Loans:
- Purchase of New Property
- Purchase of Resale Property
- Construction on Owned Plot
- Home Extension Loan
- Home Improvement Loan
- Balance Transfer
- Top-Up Loan
Tax Benefits Breakdown
| Section | Benefit Type | Maximum Deduction | Conditions |
|---|---|---|---|
| Section 80C | Principal Repayment | ₹1,50,000 | Combined with other 80C investments |
| Section 24(b) | Interest Payment | ₹2,00,000 | For self-occupied property |
| Section 80EEA | Additional Interest | ₹1,50,000 | First time buyer, property value up to ₹45L |
| Total Maximum Tax Benefit | ₹5,00,000 per year | ||
Factors Affecting Home Loan Eligibility
- Age: Younger age = Higher eligibility (loan tenure)
- Income: Higher income = Higher loan amount
- Credit Score: 750+ gets best rates and max amount
- Existing EMIs: Lower obligations = Higher eligibility
- Job Stability: Permanent job preferred
- Property Value: Lower value = Easier approval
- Down Payment: Higher down payment = Better terms
- Co-applicant: Increases eligibility significantly
| Loan Type | Amount | Interest Rate | Tenure | Processing | Collateral | Best For |
|---|---|---|---|---|---|---|
| Personal Loan | ₹50K-₹40L | 10.5-24% | 1-5 years | 24-48 hrs | No | Quick cash needs, emergencies |
| Business Loan | ₹1L-₹1Cr+ | 12-20% | 1-7 years | 3-7 days | Optional | Business expansion, working capital |
| Home Loan | ₹5L-₹5Cr | 8.5-10% | Up to 30 yrs | 7-15 days | Property | Buying house, tax benefits |
| LAP | ₹5L-₹10Cr | 9.5-14% | Up to 15 yrs | 5-10 days | Property | High amount, any purpose |
| Car Loan | ₹1L-₹1Cr | 8.5-12% | 1-7 years | 3-5 days | Vehicle | Buying new/used car |
| Gold Loan | As per gold | 7.5-12% | 3m-3 yrs | 30 mins | Gold | Instant cash, emergency |
| Education Loan | Up to ₹1.5Cr | 9-12% | 5-15 years | 7-10 days | Optional | Higher education, tax benefits |
| Instant Loan | ₹10K-₹5L | 12-18% | 3m-3 yrs | 2-6 hrs | No | Immediate small needs |
How to Choose Right Loan?
1. Assess Your Actual Need
Calculate exact amount needed. Don't over-borrow as you pay interest on entire amount. Consider all costs - down payment, processing fee, insurance, etc.
2. Check Your Repayment Capacity
Your total EMI (including existing loans) should not exceed 50% of monthly income. Keep buffer for emergencies. Use EMI calculator before applying.
3. Compare Multiple Options
Don't settle on first offer. Compare interest rates, processing fees, prepayment charges across 4-5 banks. Small rate difference = Big savings over tenure.
4. Read Fine Print Carefully
Understand all charges - processing fee, prepayment penalty, late payment charges, conversion charges. Ask questions before signing.
Common Loan Mistakes to Avoid
❌ Multiple Loan Applications
Applying to many banks simultaneously hurts credit score. Each application creates hard inquiry. Let us handle it strategically.
❌ Ignoring Credit Score
Not checking score before applying. Low score = Rejection or high rate. Check free score, improve it first if below 750.
❌ Incomplete Documentation
Missing or incorrect documents delay approval. Some applications get rejected for documentation issues. Keep everything ready.
❌ Not Reading Terms
Ignoring loan agreement terms. Hidden charges discovered later. Foreclosure not allowed, or heavy penalty. Always read carefully.
Universal Documents Checklist for All Loans
Identity Proof
- PAN Card (mandatory)
- Aadhaar Card
- Passport
- Voter ID
- Driving License
Address Proof
- Aadhaar Card
- Passport
- Utility bills
- Rent agreement
- Property documents
Income Proof
- Salary slips (3 months)
- Bank statements (6 months)
- Form 16
- ITR (2 years)
- Employment certificate
Others
- Passport photos
- Cancelled cheque
- Signature proof
- Processing fee cheque
- Application form
Ready to Get Your Loan?
Expert Guidance | 50+ Banks | Best Rates | 99% Approval | Quick Processing
info@loanengine.in
Birubari, Guwahati, Assam - 781016