What is a personal loan?
A personal loan is an unsecured loan offered by banks, credit unions, or online lenders to meet various personal expenses like home renovations, medical bills, or emergencies. If you're wondering about the personal loan meaning, it refers to a loan that does not require collateral and is repaid in fixed installments. It comes with fixed interest rates and a flexible repayment period. With minimal documentation and a hassle-free application process, Bajaj Finserv personal loans provide a seamless borrowing experience.
What is a personal loan used for?
Personal loans offer flexibility in usage, allowing you to address a wide range of financial needs based on your personal and professional goals. You can use the funds for goals like managing emergencies, planning vacations, renovating your home, or even expanding your business. Enjoy complete flexibility with a personal loan.
- Travel Costs: Fulfil your travel dreams with a personal loan for travel to explore dream destinations.
- Wedding Costs: Plan a grand celebration by availing a personal loan for wedding and make every moment special.
- Education Costs: Invest in education effortlessly with a personal loan for higher education to fund tuition or study abroad.
- Medical Expenses: Tackle unexpected medical bills quickly with a personal loan for medical emergency.
- Home Expenses: Upgrade or renovate your home using a personal loan for home expenses to cover related costs.
What are the benefits of availing of a Personal loan
There are several advantages of a personal loan. These include:
- No collateral: Personal loans are unsecured, meaning you do not need to pledge any asset to avail of funds.
- Minimal documentation: The documents required for a personal loan are minimal. It reduces the overall processing time and helps you get quick access to funds.
- Flexible tenure: You can pick a tenure that suits your repayment capacity. We offer tenures of up to 96 months.
Check if you are eligible for a personal loan and get a personal loan in just a few steps.
How does a personal loan work?
A personal loan works in the same way that most loans do. You apply for a loan, present the required documentation, and the bank evaluates your creditworthiness before making a loan offer. If you accept it, the cash is deposited into your bank account, and you can use it for any legal purpose. You can always use a personal loan EMI calculator before availing of a personal loan.
Example of Personal Loan
Priya obtained a personal loan to cover unforeseen medical expenses for her father's surgery. With a quick approval process, the loan provided financial relief. The fixed-rate loan allowed Priya to manage repayments comfortably, easing the burden during a challenging time and ensuring her father received the necessary medical care.
Types of personal loans
There are various types of personal loan options designed to meet different financial needs, including travel, weddings, education, medical emergencies, and home renovations. Choose the one that best suits your requirements for a hassle-free experience.
Unsecured personal loan:
An unsecured loan doesn't require collateral, making it accessible based on creditworthiness. Borrowers qualify based on their financial history, and interest rates may be higher than secured loans due to the lack of collateral.
Secured personal loan:
A secured personal loan is backed by collateral, typically an asset like a home or car. Collateral reduces the risk for the lender, resulting in potentially lower interest rates, but the borrower risks losing the asset if they fail to repay.
Documents required for a personal loan
The documentation requirements for a personal loan can vary from lender to lender. Below are the documents that are required to be submitted when applying for a Bajaj Finserv Personal Loan:
- KYC documents: Aadhaar/ passport/ voter’s ID/ driving license/ Letter of National Population Register/ NREGA job card
- PAN card
- Employee ID card
- Salary slips of the last 3 months
- Bank account statements of the previous 3 months
- Piped gas bill
- Pension order
- Letter of Allotment of Accommodation Issued by Employer
- Property / Municipal tax receipt
- Utility bill
- Real-time image / photograph
- Ration card
*You should be 80 years** or younger, at the end of the loan tenure.
Eligibility criteria for a personal loan
The eligibility criteria for a personal loan differs from lender to lender. You can qualify for a Bajaj Finserv Personal Loan once you meet the five simple eligibility criteria mentioned below:
- Nationality: India
- Nationality: Indian
- Age: 21 years to 80 years**
- Employed with: Public, private, or MNC.
- CIBIL Score: 685 or higher.
- Customer profile: Self-employed or Salaried
What is the interest rate and repayment tenure of a personal loan?
- Interest rates on personal loans: Personal loan interest rates vary based on factors like credit history, income, tenure, and occupation. Personal loan interest rates remain fixed.
- Repayment tenure: The loan tenure can be chosen to align with your requirements. Loan repayment happens through equated monthly instalments (EMIs), which are consistent amounts comprising principal and interest and depend on the loan amount, tenure, and interest rate.
How do you choose a perfect personal loan?
Choosing the perfect personal loan involves assessing factors like interest rates, loan terms, and fees. Consider your credit score, financial goals, and the loan's purpose. Compare offers from various lenders, review terms and conditions, and ensure the loan aligns with your repayment capacity.
How to get a personal loan?
To apply for a personal loan , you must meet all the eligibility criteria mentioned by the lender. You can also use our personal loan eligibility calculator and compare various lenders, interest rates, repayment terms, and fees among different offers to find terms that suit your needs. Apply through the lender's website and complete the application accurately. The lender will review your application, credit history, and financial stability before approving or denying the loan.
Frequently asked questions
The maximum personal loan amount you can borrow depends on the lender and factors like your credit score, income, and overall financial profile. Typically, personal loans can range from a few thousand to several lakhs. Lenders assess your eligibility and risk before determining the maximum amount you can qualify for.
Yes, personal loans may have fees associated with them, such as origination fees, prepayment penalties, late payment fees, and sometimes annual fees. It's essential to carefully review the terms and conditions before borrowing.
With Bajaj Finance Limited, you can get a personal loan within a day of loan approval.
Yes, some personal loans have foreclosure charges, also known as prepayment penalties, which are fees charged for paying off the loan before the agreed-upon term.
Yes, you can apply for a joint personal loan with a co-borrower. This improves your chances of approval and may also qualify you for a higher loan amount.
Personal loan risk refers to the chance of defaulting on repayments, which can harm your credit score and financial health, impacting future borrowing ability.
Personal loans can be expensive if interest rates are high. The cost depends on your credit score, loan amount, and repayment term, but it is manageable with careful planning.
A minimum salary of Rs. 20,000 to Rs. 30,000 per month is typically required to qualify for a personal loan, depending on the lender's criteria.
