What is a Personal Loan?

Personal loans are unsecured loans offered by financial institutions and are based on factors such as employment history, repayment capacity, income level, profession, and credit history. A personal loan, also known as a consumer loan is a multi-purpose loan that can be used to cover a variety of immediate requirements.

Paysense Personal Loan
Insta Money Personal Loan
Standard Chartered Bank Personal Loan
MoneyWide Personal Loan
FlexSalary Personal Loan
Mpokket Instant Loan
EarlySalary Personal Loan
Finzy Personal Loan
Fullerton Personal Loan
Upward Fintech Personal Loan
Cashe Personal Loan
KreditBee Personal Loan
Finnable Personal Loan
Hero Fincorp Personal Loan
Incred Personal Loan
Loan Tap Personal Loan
Muthot Finance Personal Loan
ICICI Bank Personal Loan
Shubh Life Personal Loan
Money View Personal Loan
Faircent Personal Loan
HDFC Bank Personal Loan
IDFC Bank Personal Loan
Axis Bank Personal Loan
Aditya Birla Personal Loan
Bajaj Finserve Personal Loan
Tata Capital Personal Loan
WE Rize Personal Loan

Advantages of Getting a Personal Loan from ReferLoan

Minimal Documentation

Rapid Procedure

Instant Approval

Determined Loan Tenure

Low-Interest Rates

Wide Range of Lenders

No Collateral Required*

Flexible EMIs


  • Age of applicant - The age of the applicant always plays an important role in the rate of interest as well as the tenure of the Personal Loan and the minimum age should be 21 Years and the maximum age decided is 60 Years.
  • Income of applicant: the loan amount is decided by the income of the applicant and the income should not be less than Rs.15,000/- per month some banks do consider an in-hand salary of Rs.13,000/- per month as well.
  • CIBIL score: it was always recommended to have a CIBIL score of 700 and if your CIBIL score is no less than 650 then you’re also eligible for the loan amount.
  • Continuity of Job: this differs from different bank policies and requires a minimum 3-month job or more.
  • Occupation: the eligibility is different, but the applicant who is salaried employees, self–employed professionals, self–employed nonprofessionals, and private limited companies are applicable.

Required Documents to Apply for a Personal Loan

  • PAN Card of the applicant
  • Aadhaar Card of the applicant
  • Driving Licence of applicant
  • Voter ID of the applicant
  • Passport of applicant
  • Registered rent agreement of the applicant
  • Current passport size photograph
  • Salaried income documents
    • Last 3 months' salary slip
    • Form 16 of last 2 years
    • Income Tax Return if any of last 2 Years
    • Last 3 months' bank statement if the salary directly credited in the bank account
    • Certificate of employment from current employer
  • Self Employed person documents
    • Income tax returns of previous 2 years
    • Statement of finances with a proper balance sheet with profit and loss in that sheet
    • Bank statement with continuity of business
    • GST registration evidence of business
  • Other documentations
    • Cancel cheque or bank passbook front page copy
    • Any recent loan with a proper repayment sheet

Things You Should Consider Before Applying for a Personal Loan

Examine your loan’s needs.

Do proper research to get the best rate

Examine your credit report

Carefully read the fine print on your loan agreement.

Assess your repayment ability before deciding on a loan term

Select a reasonable interest rate.

Choose your loan amount according to your needs

Examine your EMIs thoroughly

Examine the processing costs

Depending on your option, choose a fixed or variable interest rate

Other Details You May Need Before Applying for a Personal Loan

What is the maximum loan amount you can get?

The maximum amount you can owe is determined by your income, career, and the lender’s evaluation of your loan application. Generally, lenders approve loans based on their calculations, ensuring that the EMI does not exceed 40% to 50% of your monthly income. When assessing the loan amount, lenders also verify your outstanding debts.

If you own a business or are self-employed, the lender will calculate the loan amount based on the profits you earn and record it on your profit and loss statement. If you are a salaried employee, the lender will calculate the loan amount depending on your pay and other obligations.

How important is a Credit Score for the approval of a Personal Loan?

Your credit score reflects how responsible you are for handling your credit. Personal loan applicants with high credit scores, often 650-700 and above, demonstrate credit discipline and hence have increased chances of being approved by banks and NBFCs. However, some banks and NBFCs charge higher interest rates for personal loans to people with bad credit. Such applicants are also more likely to be approved for personal loans with reduced interest rates. As a result, one should check their credit ratings on a frequent basis. Individuals with no or low credit scores can use secured credit cards to improve or rebuild their credit.

Tips for successful Personal Loan application

When looking for a personal loan, there are a few factors to keep in mind. Check out this list of the most useful tips for dealing with personal loans: 

  1. Credit Clean-up: Your credit score is one of the most important variables that lenders check. A high credit score makes it easier to obtain a personal loan. If your score is poor, you should double-check your reports for any inaccuracies. Sometimes, simple inaccuracies can have a negative impact on your scores, and you must submit them to CIBIL if you discover any.
  2. Rebalancing your income and debts: When you apply for a personal loan, lenders will ask for proof of income to determine your debt-to-income ratio. To boost your annual income, consider selling liquid assets like stocks or taking on a part-time job. This will raise your debt-to-income ratio and your chances of getting approved for a loan.
  3. Consider Co-signers/Guarantors:  If you’re having trouble getting a personal loan on your own, you can apply with the help of a co-signer or guarantor. A solid credit score is required of the individual you choose as a guarantor. Their primary goal is to ensure that you return the debt. They will, however, be responsible for repaying the debt if you are unable to do so. Choosing someone with a credit score of 650-700 can significantly improve your chances of obtaining a personal loan.
  4. Limit Borrowing: Asking for more money than you need to fulfill your financial goals can be too risky. Make sure you figure out how much you’ll need and just apply for that amount.
  5. Choose the Right Lender: When it comes to credit scores and income, each lender has its own set of requirements. Choose a lender whose eligibility criteria you fulfill and apply accordingly while looking for personal loans. The trouble with applying to many lenders is that each one will examine your credit score, and each time your full credit report is accessed, your credit score declines slightly.

How can we avoid the rejection of the Personal Loan application?

Many factors influence the approval of a personal loan application. When applying for a loan, make sure you meet all of the requirements to ensure that your loan application is approved. Personal loan eligibility standards differ from one lender to the next. However, there are certain common requirements, such as the applicant’s age, income, credit score, employment status, and so on. Make sure you meet all of the qualifying requirements before applying for a loan. This will assist you to avoid having your loan application rejected. Although you have alternative options if your loan application is initially rejected, it is essential that you double-check before applying to avoid the chances of rejection of the loan. 

How ReferLoan can help in getting a Personal Loan?

  • Wide Choice: Choose from 175 banks & NFCs that include HDFC Bank, SBI, Axis Bank, ICICI Bank, IndusInd Bank, and more.
  • Chances of Approval: ReferLoan has a unique feature called ‘chances of approval,’ which compares your credit profile to several lending criteria used by banks and NBFCs to determine the likelihood of your loan application being accepted – Excellent, Good, Fair, or Poor – for each lender.
  • Pre-approved Personal Loan Offers: Our customers receive pre-approved personal loan offers from our partners based on their credit profiles. Our pre-approved personal loan offers have a high acceptance rate, need little documentation, and are available immediately.

Expert Assistance: Customers can choose the best personal loan offer for their circumstances with the help of ReferLoan’s team of specialists. Our team of experts from various financial fields advises customers throughout the loan process, from application to disbursement to cancel out any possibility of getting their applications rejected.


Have a question? We've got answers!

A personal loan can be utilized for almost every kind of spending, from pricey trips and debt consolidation to big-ticket item purchases and house improvements. Moreover, personal loans can also be helpful for paying for unforeseen medical expenses, company investments, car repairs, down payments for new homes, and many other things.

Yes, most lenders have set a minimum lending amount for personal loans. However, this amount can vary from our lending institution to another.

Yes, you can apply for a personal loan either alone (singly) or with a co-applicant (jointly). A family member like your spouse or parents can be a co-applicant. By having a co-borrower on your side, the loan application will be processed in a higher income bracket, making you eligible to avail of a larger amount of loan. However, keep in mind that the likelihood of your loan application being approved could be negatively impacted if you or your co-applicant have a bad credit history.

Once your personal loan is approved, you may either get an account payee cheque/draft equal to the loan amount or receive the money deposited automatically into your savings account via NEFT or IMPS.

Personal loans typically offer no tax advantages, but if you use one for home improvements or a down payment, you will be eligible for an income tax deduction under section 24.