Personal Loan 2023: Latest Interest Rates, Types, Benefits, Eligibility, FAQs

Personal loans are the financial products of commercial banks and NBFCs to cover your financial needs temporarily. This is a form of borrowed money which gives you an economic boost and lets you make large purchases, pay debts, use funds for emergencies and more.

The repayment of the personal loan is made in the form of EMIs or Estimated Monthly Instalments. With every EMI the portion of borrowed money and the applicable interest rate is charged by the lender. The repayment tenure depends on the borrowers repaying capacity, which the lender determines by accessing his or her credit score.

All About Personal Loans

Why Get a Personal Loan?

Here are the 6 most valid excuses for you to get a personal loan:

• To Pay off your old debts.
• A profitable alternative to payday loans.
• To fulfil temporary liquidity needs.
• To make large purchases and return EMIs.
• In case of emergency.
• To cover wedding expenses.

Personal Loan Latest Interest Rate 2023

Benefits of Getting a Personal Loan

• Personal loans are approved without collateral for the majority of people.
• There are no restrictions on end-use.
• Low-interest rate starting from 10.49% p.a for excellent CIBIL score or credit score browsers.
• A personal loan can be availed for up to ₹40 lacks.
• The repayment period can extend up to 60 months depending upon the type of case.
• Instant disbursals with no to minimum documentation.

Types of Personal Loans

Instant Personal Loans

As the name sounds, these types of personal loans are disbursed within 3 to 4 steps of the online process. They require no minimal documentation.

Short-Term Personal Loan

These types of loans have a very short repayment tenure ranging from a few days up to 12 months.

Pre-Approved Personal Loans

Pre-approved personal loan offers are offered by the banks and NBFCs to existing customers with a good credit history, income, and relation with the institution.

Consumer Durable Loans

Consumer durable loans are offered by lenders to customers who want to purchase items like mobile, laptops, furniture, microwave, etc. The major role of this type of loan is to enable the customers to purchase expensive products and repay in small EMIs.

Personal Loan to Finance Education

Students having the vision to pursue higher education in India or abroad can avail of this type of loan.

Who is Eligible for a Personal Loan?

• An individual aged between 18-60.
• A salaried person with a monthly salary of at least ₹15,000.
• A self-employed individual with an annual income of ₹5 lacks.
• A person with a credit score of 750 and above.
• An employee with job stability in his resume.
• A businessman of which the business should have at least 2 years of continuity.

Also read:

New Income Tax Slab 2023-24 For Senior Citizen Vs Old, Which Will Follow This Year?

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