By Thelowinterest 17 May, 2026
·Personal Loans · Beginners Guide · 8 min read · ~1,400 words
Whether you need funds for a medical emergency, home renovation, or a wedding, personal loans in India have become one of the fastest ways to access money — often with approval in 24 to 48 hours. But the process can feel confusing if it is your first time. This guide walks you through every step clearly so you know exactly what to expect.
A personal loan is an unsecured credit product — meaning you do not need to pledge any asset as collateral. Banks and RBI-registered NBFCs offer personal loans for almost any legitimate purpose, from debt consolidation to travel funding. Loan amounts typically range from ₹50,000 to ₹40 lakh, with repayment tenures between 12 and 60 months.
Q: Who qualifies for a personal loan in India?
A: Most salaried individuals aged 21–58 with a monthly income of ₹20,000 or more and a CIBIL score above 700 qualify. Self-employed applicants generally need at least two years of business income history.
1. Check your CIBIL score for free before applying — a score above 750 gets you the best rates.
2. Compare offers from at least three lenders using a loan aggregator like TheLowInterest.com.
1. Select a loan amount and tenure that keeps your EMI within 30–40% of your monthly take-home pay.
2. Fill in the online application form with accurate personal, income, and employment details.
3. Upload scanned copies of your documents (Aadhaar, PAN, salary slips, bank statements).
4. Receive a conditional approval — usually within minutes — and final disbursal in 24–48 hours.
Document Type | What to Submit |
Identity Proof | Aadhaar Card, PAN Card, or Passport |
Address Proof | Aadhaar, utility bill, or rental agreement |
Income Proof (Salaried) | Last 3 months' salary slips + 6-month bank statement |
Income Proof (Self-Employed) | ITR for last 2 years + business registration proof |
Photograph | Recent passport-size photograph |
Banks (SBI, HDFC, ICICI, Axis) offer lower interest rates starting around 10.5% p.a. but require stronger credit profiles and take slightly longer to process. RBI-registered NBFCs (Bajaj Finserv, Tata Capital, Poonawalla Fincorp) accept CIBIL scores as low as 650 and often disburse funds within the same working day — though at slightly higher rates. If your credit score is strong, go with a bank. If speed or flexibility matters more, choose a reputable NBFC.
TIP: Pro Tip: Applying through a loan comparison platform lets you check pre-approved offers from multiple lenders with a single soft enquiry — which does not affect your CIBIL score. |
• Applying to multiple lenders simultaneously (each hard enquiry can reduce your score by 5–10 points).
• Providing inconsistent income information across your application and bank statements.
• Having a credit utilisation ratio above 30% on existing credit cards.
• Not checking whether the lender serves your pin code or employer category before applying.
Q: Can I get a personal loan without a salary slip?
A: Yes. Self-employed individuals can substitute salary slips with ITR documents and audited profit-and-loss statements. Some digital NBFCs also accept bank statement analysis in place of formal income proofs.
Q: What is the minimum CIBIL score for a personal loan?
A: Most banks require 700 or above. NBFCs may consider applications with scores between 650 and 699, particularly if income is stable and the loan amount is modest.
→ Compare personal loan offers from 20+ banks and NBFCs on TheLowInterest.com — check your eligibility in under two minutes without affecting your credit score. |
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