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Whether buying a new home theatre or taking your family out on an exotic vacation, personal loans can be used for virtually any expense. It's perfect for those small expenses and can be repaid within a couple of years.

What is a Personal Loan?

A Personal Loan is taken by a borrower for his/her individual wants and needs; it is commonly referred to as an unsecured loan because there is no security/collateral against it. It is also called “All-purpose loan” at times as there is no restriction on the end use of the funds.

Borrowers use personal loans for various reasons such as vacations, refurnishing their homes, buying a new appliance, to fund weddings etc. All personal expenses the borrower wants to make can be made by availing a personal loan.

Why go for a Personal Loan?

A Personal loan is generally taken by borrowers who are looking for loans for quickly and with minimum documentation. In addition, since there is no monitoring of the end use, it gives flexibility to the borrower to use the loan for any purpose they like.

How much loan can you get?

Personal Loans can range from   10,000 –   30,00,000/- based on the lender and the borrower’s ability to pay back. Go through this educational video to understand the loan approval process and to understand what your borrowing capacity is.

What is the duration that it can be taken for?

Personal Loan is a short term loan. The repayment options are usually flexible, and it can be between 12-60 months, depending on the lender and the credit history of the borrower.

What are the interest rates that I am eligible for?

Interest rates for a personal loan vary from borrower to borrower & lender to lender, depending on their individual credit history and amount borrowed. You can log on to Xpress Acquire to check the interest rate (and other features) being offered to you by participating Banks basis your CIBIL TransUnion Score and other parameters.

What are the factors that affect interest rate for Personal Loan?

The lending rate depends on :

  • The amount of loan as compared to your income
  • Loan tenure that you opt for
  • Credit profile which is ascertained from your Credit Report
What are the other fees and charges payable and when?

There are usually 2 types of charges that are levied- 1. When applying for a personal loan. These typically vary from 2-3% of the Loan amount. This varies from lender to lender. 2- When you prepay your loan i.e., if you pay-up the loan before the loan tenure then, there is a prepayment charge varying from 2-3%.

What do lenders look for before sanctioning a Loan?

Your annual income, current EMIs, credit history of a borrower & your profile in terms of the company you work, are taken in to consideration when you apply for a loan. Since it is an unsecured loan, lenders specifically look at the repayment history and the credit score of a borrower. It is advisable to conduct regular checks of your CIBIL TransUnion Score and CIR to make sure there are no errors and the overall report looks favorable to the lender.

How long will it take for a loan to be sanctioned?

The time taken to disburse personal loans varies from lender to lender. Your loans may be approved in as little as 24 hours or may take up to 7 business days, based on your credentials.

What should I look out for?

While applying for a Personal Loan, make sure you borrow within your means or else the repayment will become a long and tedious process which could affect your credit history and credit score if you have outstanding payments. Personal loans are one of the most expensive forms of loan available in the market. Choose carefully after conducting due research and understanding of the cost & the benefits involved.


  • General Questions
  • Document Checklist
  • Loan Eligibility Calculator
What is an EMI?

An EMI, equated monthly installment, is the amount of money to be paid to the bank or lender on a monthly basis. It consists of the principal amount and the interest on said amount, equally divided by the number of months in the loan tenure. The EMI is paid on a fixed date of the month until the full amount has been repaid. Calculating your EMI in advance can help you plan your budget, because you will know exactly how much money to pay each month.

What are the different types of interest rate available?
  • Fixed interest rate :
    A fixed interest rate on a loan or mortgage stays at the predetermined rate for the entire term of the loan. This allows borrowers to plan their future payments. Usually personal loans and credit cards have fixed interest rates.
  • Floating interest rate :
    A floating interest rate fluctuates with the market or along with an index. Floating rates are usually offered for home loans; the prime lending rate or the base rate is used as a basis for calculating the floating rate and the interest rate charged is the prime interest rate/base rate plus a certain spread (as charged by the credit institution).
Latest Credit Score & CIR*    
Bank Statement    
KYC docs (identity, signature & address proof)    
Registration Papers    
Income Statement (such as salary slip)    
Property Papers    
Last 3 years IT return  (for self-employed only)  (for self-employed only)  

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* This is an indicative list and may differ from lender to lender.