Personal loan guides

Let us look at the various loan products to answer the question.

Particulars
Personal Loan
Credit card cash advance
Loan against property (LAP)
Loan against security
Gold loans

Meaning
This is an unsecured loan taken for personal use.
This is an unsecured loan taken for personal use.
Secured loan [...]

Interest rate: This is the key cost of taking a personal loan. Being an unsecured loan, the rate of interest is high. In fact it is lower to only credit cards in the loan segment. The rate of interest charged, can be anywhere between 14% and 23%, depending on the type of borrower. Borrowers with [...]

You can get a Personal loan from around Rs. 25,000 to Rs. 15,00,000 or even higher, depending on your eligibility, repayment capability and credit history.

These are the administrative expenses incurred by a bank in processing a loan application. They range from around 0.5% to 2% of the loan amount subject to a fixed minimum and are usually recovered from the borrower. So, for example, if you take a loan of Rs. 10,00,000, you might end up paying up to Rs. 20,000 as processing fees on it. You may have to pay these fees upfront or they may be deducted from the loan amount sanctioned to you.
All the charges levied by a bank attract a service tax at the rate of 12.36% p.a.

You need to provide proofs of your age, identity, residence address and income documents. The details of documents that you may require to produce are given below:

Personal loans are loans which are given without any specific purpose in mind. In simpler terms, unlike a car loan or a home loan, a personal loan can be put to any use by the beneficiary according to his/her discretion. Personal loans can be used for a wide variety of purposes, and there is no restriction or compliance with specific conditions in its usage. This makes the loan very convenient for a borrower. The loan can be repaid like all other loans through the equated monthly instalment (EMI) process where a fixed amount is paid each month. The distinguishing features of personal loans are as follows: