Personal loans in India are a popular way to pay for big expenses like weddings, education, home repairs, and medical emergencies. These loans don’t require any collateral, unlike secured loans, which makes them a popular choice for many people. Lenders decide if you are eligible for a personal loan based on your credit score, income, and banking history. While some banks start offering loans from Rs 50,000, you can get loans up to Rs 50 lakh or more, depending on the lender and your financial situation.
If you’re looking for a personal loan, it’s important to compare different lenders to find the best offer. Moneycontrol’s online platform helps you compare personal loan offers up to Rs 50 lakh from various lenders, with interest rates starting from 10.5% per year. The whole process can be done online.
What Decides Your Eligibility for a Personal Loan in India?
For salaried people, personal loan eligibility is based on factors like job stability, credit score, existing debts, and age. Lenders check these factors before deciding how much loan you can get. Sometimes, they might approve only part of the loan to reduce their risk.
For business owners, the loan amount depends on how well the business is doing. A higher credit score (750 or above) can increase the chances of getting approval and getting better interest rates.
Lenders also check your history with banks. If you’ve paid off previous loans on time, you may get better terms for your personal loan. While the rules may vary between lenders, most offer an easy online application process with minimal paperwork.
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What’s the Highest Personal Loan Amount You Can Get in India?
The maximum amount you can borrow depends on several factors, such as your credit score, income, age, and existing debts. Certain professions may also qualify for higher loan amounts.
For example, some banks base the loan amount on your salary, where the loan is a multiple of your monthly income. If you earn Rs 50,000 per month, you may be eligible for a loan of around Rs 7.5 lakh instead of the full Rs 10 lakh limit.
On the higher end, some lenders offer loans of up to Rs 50 lakh, depending on your financial profile. You can use digital platforms to compare offers from different lenders, with interest rates starting at 10.5% per year.
Personal Loan Interest Rates and EMI
Interest rates for personal loans in India usually start above 10% per year. Borrowers also need to account for processing fees, which add to the overall cost.
For example, if you take a loan of Rs 55 lakh with a 96-month tenure at an interest rate of 10%, your monthly EMI will be around Rs 83,400. If you choose a shorter loan tenure, your monthly EMI will be higher, which could make it harder to manage your finances.
It’s important to consider both the interest rate and the loan tenure to find a loan that fits your budget and financial plans.
