Personal Loans in India : Compare interest rates, EMI, processing fees and apply online for best Personal Loans in India
Personal Loan FAQs
What is a Personal Loan?
Personal loan is an all-purpose loan, which is given in most cases without any kind of security.
What are the eligibility conditions for a Personal Loan?
- Minimum take-home salary / gross monthly income of Rs 8,000
- Minimum age 21 years
- Maximum age 60
However, this requirement would vary from lender to lender.
What are the interest rates charged for Personal Loans?
Interest rates on Personal Loans differ for different financiers and currently range from 12 to 30 per cent.
What are the tax benefits of taking a Personal Loan?
The principal repaid does not qualify for tax deduction benefits. However, under Section 24 of the Income Tax Act, the interest paid for a Personal Loan taken for acquisition, construction and renovation of the house can be claimed for tax deduction up to Rs. 1.5 lakh. The borrower can claim tax benefits only after the construction is completed and possessing the property.
What are the documents required for obtaining Personal Loans?
Compared to other types of loans, Personal Loan requires least number of documents. You are required to give documents supporting your identity, your residence and your income.
What is the repayment period for a Personal Loan?
The period varies widely; some lenders usually permit repayment up to a maximum of 60 months. However, most lenders restrict the tenure to a maximum period of 36 months.
How is the mode of payment for Personal Loans?
Repayment of a Personal Loan is done by issuing post-dated cheques for the entire tenure of the contract. The amount of the post-dated cheque would be the EMI i.e. equated monthly installment. Some lenders also permit repayment option by way of standing instructions to your bank account or deduction at source from your salary every month.
What security needs to be provided for a Personal Loan?
Typically, you do not have to provide a security or guarantor; however, some lenders may demand one.
What is the minimum and maximum amount that can be issued as a Personal Loan?
Personal loans are available in the range of Rs 15,000 to Rs 10 lakhs.
Is there any service charge in procuring Personal Loans?
Service charges of up to 3% of loan amount are levied. This amount differs for various lenders.
