Applying for a personal loan is easy and fast if you follow the right steps. A personal loan helps you manage urgent financial needs like medical emergencies, travel, wedding expenses, or home repairs. It is an unsecured loan, which means you don’t need to give any security or collateral. Most banks and loan apps offer instant personal loans with minimal documentation. You can apply online or by visiting a branch. Let’s understand how to apply step-by-step.
1. Know What a Personal Loan Is
A personal loan is money borrowed from a bank, NBFC, or online lender for personal use. It does not require any security or asset. You repay the loan in monthly EMIs (Equated Monthly Installments) over a fixed period. The interest rate is usually higher than secured loans, but the process is faster.
Common uses of personal loans include:
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Medical emergencies
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Travel or vacation
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Weddings
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Home renovation
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Education expenses
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Debt consolidation
2. Check Your Loan Eligibility
Before applying, make sure you are eligible for a personal loan. Lenders usually check:
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Age (typically 21 to 60 years)
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Monthly income (₹15,000 or more)
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Job type (salaried or self-employed)
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Credit score (above 700 is ideal)
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Employment history (at least 6 months with current employer)
Most banks and apps provide a free loan eligibility calculator to help you know if you qualify.
3. Keep Your Documents Ready
To get a personal loan, you will need:
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Aadhar Card or PAN Card (ID proof)
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Address Proof (utility bill, rent agreement, etc.)
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Income Proof (salary slip, bank statement, ITR)
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Passport-size photo
Some apps may ask for fewer documents for instant approval.
4. Compare Lenders and Interest Rates
Different banks and loan companies offer different interest rates and terms. Compare:
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Interest rate (usually between 10% to 24%)
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Processing fee
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Repayment period (usually 12 to 60 months)
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Customer support and reviews
Use loan comparison websites or apps to find the best deal.
5. Apply Online or Offline
Most people prefer online loan applications today. You can apply through:
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Bank or NBFC websites
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Loan aggregator platforms
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Loan apps like PaySense, Navi, Bajaj Finserv, etc.
You just need to fill a form, upload documents, and wait for approval. For offline application, visit the nearest branch.
6. Get Approval and Receive the Loan
Once you apply, your documents and credit score are checked. If everything is good, your loan is approved, and the amount is credited to your bank account within 24–48 hours, or even instantly in some cases.
✅ Final Tips:
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Always borrow only what you need
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Check EMI and total interest before applying
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Maintain a good credit score
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Read terms and conditions carefully
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Avoid loan traps or hidden charges