Personal loan guide: what to know before you apply

A personal loan is generally an unsecured loan that can be used for many personal needs, such as a wedding, travel, medical expenses or consolidating smaller debts. Because there is usually no collateral involved, lenders rely heavily on your income, employment and credit profile.

What lenders usually look at

Each lender has its own criteria, but most consider your age, monthly income, type of employment, existing obligations and credit history. A stable income and a healthy repayment record generally make the process smoother.

“Borrow only what you need and what you can comfortably repay each month.”

How to prepare

Keep your identity proof, address proof, income documents and recent bank statements ready. Check your credit report for errors, and use an EMI calculator to estimate a monthly payment that fits your budget before you compare lenders.

Approval and interest rates are decided by the respective lender. An advisor can help you understand the options available for your profile, but no one can guarantee approval.