How to Get a Personal Loan in India: Step-by-Step Guide (2025)
Thanks to technology and new lending regulations, personal loans in India in 2025 will be clearer and easier to get. If you're looking into how to get a personal loan, keep reading. Therefore, this guide from Eximpe will show you how to determine if you are eligible, what documents you need, and advice to help reduce your expenses.
How to Get a Personal Loan in India: Step-by-Step Guide (2025)
Understand Your Eligibility and Loan Amount
Before sending an application, I need to know my estimated eligibility. Personal loans can be given by banks and NBFCs for amounts between ₹10,000 and ₹40 lakh, depending on the money you can afford to return. Most lenders determine if you are eligible by taking your net monthly income and multiplying it by a factor within this range. For instance, a ₹40,000 monthly income qualifies you for a loan of ₹6 lakh (at a 15x multiple) without any other EMI payments at the time.
Other reasons impact eligibility for benefits.
Loans are available for individuals aged 21 to 60 at the time of loan maturity.
You must be employed (salaried, minimum of 1 year's work experience)
As a general rule, your credit score should be 720 or even higher.
Ensure that your monthly debt payments don't exceed 40% of your total income.
Choose the Right Lender and Loan Product
Banks, NBFCs and fintech companies offer you the option to apply for a personal loan. For salaried individuals, the Indian Bank offers personal loans at an interest rate of 10.85% per annum and a loan tenure of up to 7 years. You can receive an instant personal loan of up to ₹4 lakhs from Bajaj Finserv with simple documents and quick approval in under 24 hours. Compare the interest charges, extra costs, and available term lengths to find the plan that suits you best.
Gather Required Documents
To get a personal loan from a bank or NBFC, you need to submit certain documents:
KYC proof: Aadhaar card, PAN card, passport, voter ID, or driving license
Income proof: Latest 2-3 months' salary slips and bank statements showing salary credits
Employment proof: Usually 1 year of employment certificate or appointment letter
Passport-size photographs
Signed loan application form and other declarations as required
Apply Online or Offline
Most lenders offer an online application process for convenience:
Visit the lender's website or use their mobile app
Fill in personal and financial details accurately
Select the loan amount and repayment tenure
Upload required documents digitally
Apply for verification
Alternatively, you can apply offline by visiting the branch, completing the application form, and submitting the required documents in person.
Wait for Verification and Approval
Once you submit all the necessary papers, the lender will review your documents, check your credit rating, and assess your ability to repay the debt. Once all the details are verified, your application will most likely be processed quickly, within minutes or a few days at most. There are fintech lenders that can provide your loan and get it to you within a day.
Receive Funds and Manage Repayment
If the loan is approved, the loan amount will be instantly deposited into your bank account. You can track your EMIs, refer to recent statements and pay bills all through the lender's provided online portal or app.
Tips to Improve Your Chances of Getting a Personal Loan
Maintain a good credit score (above 700)
Keep your debt-to-income ratio low
Ensure all documents are accurate and up-to-date
Choose a loan amount that matches your repayment capacity
Compare offers from multiple lenders before applying
This guide will lead you step by step through the process of obtaining a personal loan in India in 2025. Should you ever need money for renovating your home, travelling, covering medical bills or reducing debt, a personal loan could be the right and fast financial answer for you.
Eximpe helps you find and compare personal loans so you can make the right choice for yourself. Take the first steps now to feel confident and manage your money.
FAQs
What is the minimum eligibility to apply for a personal loan?
You should be between 21 and 60 years of age, have at least 1 year of employment experience, have a good credit score (around 720 or above), and your monthly debt payments should not exceed 40% of your income.
What documents are required to apply for a personal loan?
You will need to provide KYC documents (such as Aadhaar, PAN, and passport), income proof (including salary slips and bank statements), employment proof, passport-sized photos, and a signed loan application form.
Can I apply for a personal loan online?
Yes, most lenders offer an online application process that allows you to fill in details, upload documents, and receive quick approval, often within 24 hours.
How is the loan amount decided?
Lenders typically calculate your eligibility by multiplying your net monthly income by a factor (e.g., 15 times), ensuring that your Equated Monthly Instalments (EMIs) don't exceed 40% of your income, and considering your credit score and existing debts.
How can I improve my chances of getting a personal loan?
Maintain a credit score above 700, keep your debt-to-income ratio low, provide accurate documents, choose a loan amount you can repay, and compare offers from multiple lenders before applying.
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