A personal loan is money borrowed from a bank or NBFC for personal use. Here’s everything you need to know.
Benefits
Personal loans can be a great tool to help streamline your budget or get money fast in an emergency. From debt consolidation to paying a big car repair bill, you can usually qualify with a good credit score and stable income.
Many lenders even offer same-day funding, giving you access to funds quickly. Average personal loan rates are also typically lower than other forms of debt like credit cards, which could save you hundreds, if not thousands, in interest charges.
Risks
High interest rates
Late payment can damage credit score
How to Apply
Choose a bank or app
Check eligibility (salary, age, etc.)
Submit documents (ID, bank statement, salary slip)
Wait for approval
When Should You Take a Personal Loan?
Only when you really need it. Try not to take it for luxury items.
Best Lenders in 2025 (Examples)
- HDFC Bank
- Bajaj Finserv
- PaySense
- KreditBee
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