Personal Loan

With the help of EMI (Equated Monthly Installments) you can repay the loan without any burden. Which will be auto debited from your linked bank account. Many lenders also offer payment through UPI, Net Banking and their mobile application.

You can use this formula:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

Where:
- P = Loan Amount
- R = Monthly Interest Rate (Annual Rate / 12 / 100)
- N = Number of Months

Or you can use an online EMI calculator which is available on lender’s websites.

Genrally repayment period of Personal Loan is between 12 months to 60 months (1 to 5 years). But some lenders may extend it up to 7 years for large loan amounts.

You can contact your lender and request for a prepayment or foreclosure of the personal loan. They will calculate the applicable charges amount, after that you can repay but once you pay the amount, your loan will be closed. Ensure you get a loan closure letter for your records.

- Late repayment of personal loan will be charged.
- You may receive frequent reminders and recovery calls.
- Repeated delays can lead to legal action by the lender.
- It will affect your CIBIL score.

You can use a personal loan for multiple personal reasons, including:
- Medical emergencies
- Home renovation
- Education expenses
- Wedding expenses
- Travel and vacations
- Debt consolidation

Lenders generally don’t ask for the purpose unless it’s for risky investments.

Advantages:
- No collateral required
- Quick approval and disbursal
- Flexible & multiple usage
- Fixed EMIs and tenure

Disadvantages:
- High interest rates
- Affect on CIBIL score if not repay on time

While choosing the best lender for Personal Loan you must consider these factors:
- Interest Rate: Choose a lender offering a lower rate.
- Processing Fee: Check for minimum fees.
- Repayment Flexibility: Ensure the lender offers prepayment without any heavy penalties.
- Customer Service: Go for lenders with excellent customer support.
- Reviews and Ratings: Always check online reviews.

Defaulted & Bounced EMIs can directly have a negative impact on your credit score. Maintaining a healthy credit score and avoiding multiple loans at one time.

A co-applicant can be spouse, parents, sibling and child. Having a co-applicant with a good credit score and stable income can improve your chances of approval and even get you a lower interest rate.

- Personal Loan: Fixed amount, fixed EMIs, and longer repayment tenure. Suitable for large expenses.
- Credit Card: Flexible spending limit, interest-free period, and revolving credit. Best for smaller and frequent purchases.

Most lenders usually prefer a CIBIL score of 700 or above. However, some NBFCs may approve personal loans for low credit scores of 600 at a higher interest rate.

The minimum salary requirement is normally around ₹20,000 to ₹25,000 per month. It depends on the city and lender’s policies. For Tier-1 cities, the threshold might be higher.

- Choose a longer tenure to reduce the EMI amount (but this increases total interest).
- Negotiate for a lower interest rate if you have a good credit score.
- Make a higher down payment to reduce the loan amount.
- Opt for part-prepayment to reduce your EMI or tenure.

Lenders typically offer personal loans up to ₹25-40 lakhs. The loan amount depends on some factors:
- Your income
- Your credit score
- Existing loan obligations
- Employment stability

In General: You can get a loan amount up to 20-25 times your monthly salary, provided you have minimal liabilities.