Introduction
In today’s fast-paced world, financial needs can arise anytime — whether it’s for medical expenses, higher education, home renovation, or even a dream vacation. When savings fall short, a personal loan becomes one of the most accessible and reliable solutions.
But before applying, it’s important to understand how personal loans work, the eligibility criteria, benefits, and things you should keep in mind. At Credit Bandhu, we help customers make informed financial decisions by connecting them with the right banks and NBFCs.
What is a Personal Loan?
A personal loan is an unsecured loan, meaning you don’t need to pledge any collateral like property or gold. It’s approved based on your income, credit score, and repayment history. The loan amount is disbursed directly into your account and can be used for any legal purpose — medical bills, education, travel, marriage, or debt consolidation.
Key Features of Personal Loans
- Loan Amount: ₹50,000 to ₹50 Lakhs (varies by bank/NBFC)
- Tenure: 1 to 7 years
- Interest Rates: Typically 10% – 24% (depends on credit profile)
- Collateral: Not required
- Processing Time: 24–72 hours after document submission
Eligibility Criteria
Eligibility depends on lender policies, but common requirements are:
- Age: 21 – 60 years
- Employment: Salaried or self-employed
- Income: Minimum ₹20,000/month (varies by city and bank)
- Credit Score: 650+ preferred
Documents Required
- PAN Card & Aadhaar Card (Identity Proof)
- Address Proof (Utility bills, Aadhaar, Passport, etc.)
- Salary Slips / ITR / Bank Statements
- Employment/Business Proof
Benefits of a Personal Loan
Quick disbursal – Ideal for emergencies
No collateral needed – Easy access to funds
Flexible usage – Use money as per your need
Balance transfer available – Switch to lower interest rates
Improves credit history – On-time EMI payments help build score
Things to Keep in Mind Before Applying
- Compare Interest Rates – Don’t just go with one bank; check multiple lenders.
- Check Processing Fees – Usually 1-3% of loan amount.
- Read Prepayment Terms – Some banks charge extra for foreclosure.
- Maintain CIBIL Score – A good score improves your chances of approval.
How Credit Bandhu Helps You
At Credit Bandhu, we simplify the loan process:
- Compare offers from multiple banks/NBFCs
- Assist with document collection & verification
- Faster approval and disbursal with expert guidance
- Zero hidden charges, complete transparency
Conclusion
A personal loan can be a lifesaver if used wisely. Always borrow within your repayment capacity and compare lenders before finalizing. If you’re looking for the best personal loan offers with hassle-free processing, get in touch with Credit Bandhu today.