What Are the Different Types of Personal Loans in India? How Do I Choose the Best Suitable Personal Loan for Me?

Personal types of loan

Technological advancement and digitalization have opened new doors for the financial sector, particularly enhancing credit options like Personal Loans. Personal Loans have emerged as one of the most sought-after solutions for individuals needing immediate financial assistance. In today’s diverse market, various lenders from the public, private, banking, and NBFC sectors offer Personal Loans tailored to cater to different income groups.

In India, borrowers can access various types of Personal Loans, including those designed for weddings, travel, medical emergencies, debt consolidation, higher education, and more. These loans offer unique benefits such as substantial loan amounts, no collateral requirements, minimal documentation, quick approval and disbursal, and flexible repayment tenures. As a result, Personal Loans have become increasingly popular among borrowers seeking convenient and efficient solutions to their financial needs.

Additional Read – Calculating Personal Loan EMI with Excel

You must fulfill the lender’s eligibility requirements to access a Personal Loan. Various lenders have distinct criteria. However, typical criteria include age, income, employment status, work experience, credit score, etc. 

Before applying for a Personal Loan, you must check the following factors: 

  • Compare the rate of interest.
  • Check additional fees.
  • Choose a suitable loan tenure. 
  • Check for a desired loan amount. 
  • Ensure ease of documentation process
  • Confirm that no additional conditions, charges, or fees are mentioned in the fine print.

Must Read – Impact of GST Rate on Personal Loans

Along with the abovementioned factors, a borrower needs to plan their loan efficiently using a monthly EMI calculator. Using a personal loan EMI calculator, you can plan your loan. You can use an online calculator, a manual calculator, or Microsoft Excel to calculate your monthly EMIs. Interest rate, loan amount, and tenure are three major factors influencing your monthly EMIs. Using EMI calculators is the best way to plan your loan well.

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