Personal Loan

The interest rates offered to customers are subject to variation based on their individual profiles. Typically, loan rates begin at approximately 10.25%. To improve the likelihood of obtaining a loan at a lower interest rate, it is advisable to maintain a strong credit history. Ideally, a CIBIL score above 750 is considered favorable.

The repayment period for a Personal Loan typically ranges from 3 months to 6 years, allowing borrowers to choose a tenure that aligns with their requirements. Whether one needs a short-term or long-term loan, they have the flexibility to select a suitable repayment duration. However, it is crucial to ensure that the Equated Monthly Installment (EMI) amount is manageable and can be comfortably repaid each month.

Financial institutions typically require certain documents before approving and disbursing a loan. These documents include identification proof, address proof, a copy of the PAN card, salary slips, recent bank statements, photographs, ECS mandates, and post-dated cheques.

Certain NBFCs offer customers the flexibility to fully repay the loan amount or make partial pre-payments towards the principal. However, specific terms and conditions are typically associated with such pre-payments. For instance, pre-payment is usually allowed after 12 months, and a pre-payment fee may be levied on the repaid amount. Nevertheless, these terms may vary depending on the product, so it is essential to seek clarification from your lender regarding pre-payment policies before the loan disbursal.

As discussed earlier, the interest rates for personal loans can vary based on the customer's profile. IndiaLends employs algorithms to strive to obtain the most competitive interest rate product available for each customer.

Banks are financial institutions registered with the Reserve Bank of India (RBI) and engaged in various activities such as accepting deposits and providing loans. In addition to universal banks, the RBI has recently introduced payment banks and small finance banks. However, only universal banks and small finance banks are authorized to lend to individuals. Applying through IndiaLends offers the simplest method to obtain a personal loan from the leading banks in the country. IndiaLends has established collaborations with renowned banks and NBFCs, including HDFC, ICICI, RBL, IndusInd, Kotak, Yes Bank, and more.

NBFCs are non-banking financial institutions registered with the Reserve Bank of India (RBI), primarily engaged in lending to individuals and businesses. Unlike banks, NBFCs are generally not authorized to accept customer deposits. They rely on borrowing funds from banks for their lending activities, which often results in comparatively higher interest rates on Personal Loans than those offered by banks. Additionally, NBFCs tend to cater to a higher-risk profile segment, leading to higher acceptance rates for loan applications.

Although CIBIL and Experian maintain records for more than 150 million individuals, a significant majority have never borrowed from an RBI-regulated financial institution that is a member of a credit bureau. As a result, these individuals lack a credit bureau record, meaning they have no credit history or credit score. Due to the absence of a credit file, they often encounter difficulties in securing loans from financial institutions. However, IndiaLends has forged special partnerships with various banks, enabling them to assist some individuals who are new to credit (with thin credit files) in accessing low-interest personal loans.

A significant number of consumers face loan application rejections from banks due to factors such as inadequate credit history, limited affordability, insufficient supporting documents, and more. However, IndiaLends can assist some of these customers in obtaining affordable loans through collaborations with specialized NBFCs.