A personal loan could be utilized for nearly all kinds of expenses, from major appliances and home improvements to extravagant holidays and debt reduction. Other scenarios where personal loans can be helpful include the payment of unanticipated medical expenses, investments in business, repair of your car, making a down on a house purchase and many more.

You need a steady source of income to qualify for the personal loan regardless of whether you’re a salaried employee, a self-employed businessperson, or a professional. The eligibility of a person depends on the organization that they work for and their credit score, as well as the home address and other variables according to the lending criteria of the lender.

Yes. Although what constitutes the minimal personal loan amount differs between lending institutions, many lenders have set their minimum principal for personal loans at Rs. 30,000.

In calculating the maximum amount of personal loans for salaried persons, the financial institution/bank will ensure that the EMI is not more than 30%-40% of the applicant’s home pay. Existing loans being paid by the borrower are also considered in formulating the personal loan amount. For self-employed people, the loan amount is calculated using the income earned by the most recent Profit/Loss Statement while including any additional obligations (such as loans currently being used for business, etc.) that the borrower may have.

Personal loans are available for one year to five years or 12-to-60 months. In rare circumstances, short or longer personal durations of loans may be granted from the lender on a case-by-individual basis.

The loan approval is at the discretion of the loan granting officer, who bases their decision on the criteria set by the bank or financial institution. The whole process can range from approximately 48 hours or approximately two weeks. When all necessary documents are received, along with the confirmation process has been completed, and the loan is approved, it will be disbursed within seven working days from the bank. To avoid delays in processing the loan and distribution, keep all required documents on hand and the post-dated checks (PDC) or signed Electronic Clearing System form.

You can repay your loan in EMIs (Equated Monthly Instalments). To ensure hassle-free repayments, set up auto-debit on the Navi app. Your EMI will get automatically deducted on the EMI due date. However, ensure that you have sufficient balance in your bank account on or before the due date.

Multiple missed repayments can lead to loan default. This can cause irreparable damage to your credit score and put a dent in your creditworthiness.