Credit history directly determines your interest rate through risk-based pricing. Rate structure by score: 800-900 (Excellent): 9.99-11% p.a. – Best rates, pre-approved offers, rate negotiation possible; 750-799 (Very Good): 11-13% p.a. – Standard good rates, quick approval; 700-749 (Good): 13-16%…

High CIBIL score (750+) doesn’t guarantee approval. Other rejection reasons: (1) High debt-to-income ratio – existing EMIs exceed 50% of income; (2) Insufficient income – below lender’s minimum threshold for your city; (3) Job instability – frequent job changes (<1…

No credit history (called ‘credit invisible’) affects 20-30% of Indian adults. Challenges: No CIBIL score to evaluate, banks see as risky, limited loan options. Building credit from scratch: (1) Get a secured credit card – FD-backed from your bank (₹10,000-50,000…

Comprehensive strategy to improve CIBIL score: Immediate actions (0-3 months): (1) Pay all EMIs and credit card bills on time – single most important factor (35% weightage); (2) Clear any overdue amounts immediately; (3) Keep credit utilization below 30% of…

A CIBIL score of 300 is extremely poor (range: 300-900) and indicates severe credit issues like defaults, write-offs, or settlements. Getting a traditional personal loan is nearly impossible. Limited options: (1) P2P lending platforms (high risk, 30-36% interest); (2) Specialized…

Yes, a CIBIL score of 700 is considered ‘good’ and makes you eligible for personal loans from most banks and NBFCs, though not at the best rates. What to expect: Interest rates: 12-18% p.a. (compared to 10-12% for 750+ scores),…

Yes, but with significant limitations and challenges. Options: (1) NBFCs – Bajaj Finance, Tata Capital, Muthoot Finance accept 650+ with conditions; (2) Digital lending apps – MoneyView, KreditBee, CASHe consider 600-650 scores; (3) Co-borrower/Guarantor – Add someone with good credit;…

CIBIL score impacts every aspect of your loan: Interest rates – 750+: 10-12% p.a., 700-749: 12-16% p.a., 650-699: 16-24% p.a., Below 650: 24-36% p.a. or rejection. Loan amount – High score: Up to 30x monthly salary, Moderate score: 10-15x monthly…

Most banks and NBFCs in India require a minimum CIBIL score of 750 and above for favorable personal loan approval with competitive interest rates (10-15% p.a.). Score ranges and implications: 750-900: Excellent – Easy approval, best rates, pre-approved offers, higher…

Lenders prefer certain employer categories for better rates and eligibility: Preferred categories – (1) Central/State Government employees and PSU companies (best rates), (2) Fortune 500 / MNCs / Listed companies (preferred rates), (3) Large private sector companies / Top corporates…

Minimum employment requirements vary by lender: Total work experience: Salaried – 2 years minimum, Self-employed – 2-3 years business continuity. Current company/job: Salaried – 6 months to 1 year in current organization, Self-employed – Current business must be running for…

Yes, NRIs (Non-Resident Indians) can apply for personal loans from select Indian banks and NBFCs. Eligibility: Must be an Indian citizen residing abroad, age 21-60 years, minimum 2 years overseas employment, salary credited to NRE/NRO account, valid work visa/residency permit….

Key differences: Documentation – Salaried: 3 months salary slips, Form 16, 6 months bank statements. Self-employed: 2-3 years ITR, P&L statements, Balance Sheet, GST registration, 12 months bank statements. Interest rates – Salaried: 10-18% p.a. Self-employed: 12-24% p.a. (1-3% higher)….

Yes, self-employed individuals (business owners, professionals, freelancers) can get personal loans from banks and NBFCs, though requirements are stricter than for salaried. Requirements: Minimum 2-3 years of business continuity, ITR for last 2-3 years, Profit & Loss statements and Balance…

Minimum income requirements vary by location and lender: Metro cities (Mumbai, Delhi, Bangalore, Chennai, Hyderabad, Pune): ₹25,000-₹30,000 per month for salaried. Tier-2 cities: ₹15,000-₹20,000 per month. Tier-3 cities/Rural: As low as ₹12,000-₹15,000 per month. Self-employed: Minimum annual income ₹3-5 lakhs,…

Maximum age limit varies by lender and employment: Salaried employees: 58-60 years (at loan maturity), sometimes 65 for government employees or PSU banks. Self-employed/Professionals: 65-70 years (doctors, CAs, lawyers get preference). Some NBFCs like Bajaj Finance extend up to 80…

The minimum age requirement for personal loans in India is typically 21 years across most banks and NBFCs. Some lenders like HDFC Bank, SBI, and ICICI Bank accept applications from 21 years. A few lenders may accept 18 years for…

Check eligibility through these methods: (1) Online eligibility calculators on bank/NBFC websites – enter age, income, employment type, existing obligations; (2) CIBIL score check – free once per year at www.cibil.com; (3) Basic criteria: Age 21-60 years, minimum salary ₹15,000-₹25,000/month…

Secured loans require collateral (home loans, car loans, gold loans, loan against property) with lower interest rates (7-12% p.a.), higher loan amounts (up to 80-90% of asset value), longer tenures (up to 30 years for home loans), and easier approval…

An unsecured loan in India is a loan that doesn’t require any collateral or security (like property, gold, or fixed deposits). Personal loans, credit cards, and student loans are common examples. Since there’s no asset backing, lenders rely heavily on…

Personal loans are better for large, one-time expenses with lower interest rates (10-24% p.a.) versus credit cards (36-42% p.a.). They offer fixed repayment schedules, structured EMI, and typically no pre-payment penalties on floating rate loans. Credit cards are better for:…

Key advantages include: (1) No collateral required – unsecured loan; (2) Quick approval and disbursal – 24-72 hours for digital loans; (3) Flexible usage – no end-use restrictions; (4) Fixed EMI payments for better budgeting; (5) Flexible tenure options –…

The personal loan process in India follows these steps: (1) Check eligibility online using loan calculators; (2) Compare offers from multiple lenders; (3) Submit online/offline application with required documents (identity, address, income proof); (4) Lender verifies documents and checks CIBIL…

Personal loans in India have unrestricted end-use, meaning you can use them for: medical emergencies and hospitalization, wedding and related ceremonies, home renovation and repairs, education fees (domestic or abroad), debt consolidation, travel and vacation, business working capital (though business…

Personal loans serve multiple purposes in India: medical emergencies requiring immediate funds, wedding expenses (average Indian weddings cost ₹10-20 lakhs), home renovation (₹2-10 lakhs typically), education fees, debt consolidation to manage multiple high-interest debts, travel expenses, or business needs. They…

A personal loan is an unsecured loan provided by banks, NBFCs, and financial institutions in India that does not require collateral. It can be used for various purposes like medical emergencies, weddings, home renovation, education, or debt consolidation. Loan amounts…