Expert’s Guide on How to Avail Personal Loan on Low EMI in 2020


Availing a personal loan is now on a rise all due to the increased cost of living and accommodation. This type of loan product has now become popular in India owing to its instant availability and utility. Being an unsecured form of credit, a personal loan can be used to finance your holiday, renovate your home, and pay off credit card bills, medical bills and even education fees. The loan is offered without any collateral meaning the entire risk is undertaken by the lender. With this type of loan being risk-free, the interest rate is usually high in comparison to car, home and other types of loan. If you are looking to avail a personal loan in India, then here’s a short guide to help you gain more information about the loan product, additionally if you want to calculate the EMI for your personal loan, you can click here to use a personal loan calculator.

What Does Personal Loan Cover?

Personal loan does not offer any specific coverage since the money can be utilized for catering to various financial emergencies. The loan amount can be used for covering various personal expenses including home renovation, car repair, debt consolidation, payment of credit card bills, financing a vacation, education, medical bills, business purpose and even for paying off personal debt.

Eligibility Criteria for Personal Loan

The eligibility criteria for a personal loan varies from lender to lender and also depends on your credit profile, income and other factors.

  • You should be aged between 21-60 years
  • You should be a citizen of India
  • You should have a good credit score
  • You should have a monthly income of 17,000
  • You should be working with private, government or public establishment
  • You should have at least 1 year of work experience
  • You should be employed with your existing employer for a minimum of 6 months

Documents Required for Personal Loan Application

Below documents have to be submitted to the lender when applying for an unsecured form of credit.

  • Address proof i.e. utility bills such as electricity bill, telephone bill, Aadhar card, driving license
  • Identity proof i.e. PAN card, driving license, passport, Aadhar card
  • Last 6 months salary slip
  • Last 6 months bank statement
  • Form 16 and ITR if required

The requirement for the documents may vary from lender to lender.

Features and Benefits of Personal Loan

Below are few benefits and features of getting a personal loan:

Minimum Documentation

With digitization, getting a personal loan has now become easy. Many fintech companies, NBFCs and banks have made it easy for applicants to apply for a loan. Few lenders in India also have pre-approved offers.

No Collateral

Since personal loan is an unsecured form of credit, you don’t have to keep any guarantor or offer any security to the lender. The loan amount is offered based on your credit score and eligibility.

Flexible Repayment Tenure

The loan amount is offered for 12 months-60 months. However, few lenders in India have also started offering loans for 3 months-72 months even. The loan can be repaid in easy EMIs. The EMI amount consists of the principal and the interest amount. Both can be easily calculated using a personal loan calculator.

Interest Rate

The interest rate levied on the personal loan usually varies from 10%-18% depending on your credit score and profile and even the lender you are availing the loan from. A high credit score attracts low interest rate, whereas a low credit score usually leads to loan rejection or approval at a high rate of interest. Hence, using a personal loan calculator enables you to pinpoint and estimate the exact amount.

Quick Loan Disbursal

Few lenders in India offer instant disbursal, thereby making it easy for you to plan your finances and handle emergencies in an easy way. Using a personal loan calculator helps in the planning process immensely, as you can calculate exactly how much you would have to pay with respect to time.

Increase Credit Score

Getting a personal loan helps you increase your credit score if the repayment is done on time. Defaulting on loan and credit card payment can decrease your score, thereby making it difficult for you to secure loan in future. Repaying loan EMIs on time is important to improve the credit score and secure more loans in future.

How to Apply for Personal Loan in 2020?

You can apply for personal loan in 2020 following the below steps

  • Visit or download the lender’s app or website
  • Login using your email address or social media account
  • Enter your personal and professional details
  • Upload documents i.e. address proof, identity proof, income documents
  • Passport size photographs. Mostly lenders in India require you to upload selfie
  • On successful submission of the application, your credit eligibility and score is checked.
  • On approval of loan amount, submit additional details
  • Get disbursal within 24-48 hours


Getting a personal loan in 2020 is hassle-free and a simple process. Before applying for a loan, it is essential that you use a personal loan calculator determine your credit eligibility and prevent your loan application from getting rejected. Rejection of loan application can lead to low credit score, thereby preventing you from securing more loans in future.


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