The old train of thought considered taking a loan as a last-ditch effort only to fulfil sudden and unplanned expenses. But in the India of the 21st century, perspectives have changed drastically. What most of us realize today is that a personal loan can not only help in the time of an emergency, but also better assist you in managing your funds while making a big life decision.

What do you need to know about a Personal Loan?

Have you always wanted to pursue an MBA at a reputable college but hesitated because of expenses? Do you want to give your house a much-needed facelift, but don’t want to dip into your savings? Have you been putting off a medical procedure to keep from spending money? A personal loan can be your friend in need at such a time.

Taking a personal loan for educational, home renovation or medical purposes can not only take the burden off your salaried income, but also help you plan your finances better. How? By giving you the freedom to invest your monthly income in lucrative ways while you save only the EMI amount you need to pay.

Top five features of a personal loan:

  1. An unsecured loan with nothing at stake: You don’t have to worry about keeping your or your family’s assets, wealth and property as a collateral for a personal loan today. Neither do you need a co-signor or guarantor. All eligible salaried professionals can get access to instant funds without having to wait too long!
  2. No debt on account of long-term loans: Whether it is funding international education or revamping your home—taking a personal loan won’t mean adding a huge debt to your shoulders. Instead, a personal loan is a short-term loan with comfortable EMIs and flexible payment options that are easy to customise and pay off.
  3. Safeguard the health of your loved ones: At the end of the day, all that matters is the good health and wellbeing of our loved ones. With a personal loan that is there for you in the time of a medical emergency, you can put their needs above everything else.
  4. Be in control of your finances: With attractive interest rates and multiple options to choose your own loan tenure period, a personal loan won’t make you feel like a debtor. Instead, it gives you the freedom to access funds when you need them with loans that go up to Rs. 25 lakhs.
  5. Money in bank in 72 hours: Lenders like Bajaj Finserv, give you instant access to your funds in as little as 72 hours, so that you don’t have to put any of your plans on hold. With a personal loan that is easy to apply for and get, you can start working towards your future right away!

Here are the benefits of a personal loan:

  1. Affordable interest rates: You may be apprehensive of taking a loan in lieu of unreasonable interest rates that eat into your salary. However personal loans have become more borrower-friendly in the last decade with low rates of interest. In many of the personal loan options available today, you don’t even have to pay an interest on the pre-paid amount! When you only pay interest on the amount you have utilised from the entire loan amount as per your need, you end up saving more.
  2. Instant loan approval:Gone are the days when one had wait for days on end to hear about whether their loan application has been approved or not. Today, when you apply online, you can get instant approval in as less as 5 minutes!
  3. Easy online application process: Rather than standing in long queues and going from desk to desk for approvals and paperwork, you can apply for a personal loan from the comfort of your home. As long as you have all the information and basic documents that you need to attach, you don’t have to worry about running around for validating your papers.
  4. Customer-friendly flexibility:You not only have the freedom to pre-pay your personal loan with excess funds when you have them but can also re-avail the pre-paid amount without more paperwork. The fees and charges with regard to processing and online application are also minimal when it comes to personal loans.
  5. Access to cash in 72 hours:No matter the emergency, you can get access to your personal loan funds in as early as 3 days. This ensures that you have support in your time of need and are financially secure when you need to be.

Read more about the advantages of a personal loan here:

What is the eligibility criteria for a personal loan?

To be eligible for a personal loan, you must be a salaried professional between 25 to 58 years of age. The minimum net salary per month differs from state to state, and you need to submit certain documents as proof of a stable income.

The documents required for a personal loan are:

  1. Salary slips of the last 2 months
  2. Bank statements: Salary account bank statement of the last 3 months
  3. Employment proof: Employee ID card, offer letter, etc.
  4. KYC: Identity proof, which may be:
    Passport, Voter ID card, Driver’s license, PAN card, Aadhar Card
  5. Address proof: Passport, driver’s license, ration card, latest mobile bill, letter from employer (with HR or Admin signature)

How CIBIL score affects personal loan eligibility

CIBIL score or a credit score is important to avail a personal loan. CIBIL score is your credit payment history across all loan and credits due in your name over a period of time.

All lenders check the borrower’s CIBIL score before approving a personal loan. Basically, CIBIL score show your ability to repay a loan and thus lenders rely on it.

Here’s how your CIBIL score will affect your personal loan eligibility:

  1. A score of 750 and above is considered as a good CIBIL score. If you have a good CIBIL score, your chances of getting a personal loan increases.
  2. Lenders prefer borrowers with high CIBIL score and give them preference for faster approvals.
  3. If you have a good CIBIL score you might get a lower rate of interest for your personal loan.
  4. However, if your CIBIL score is below 750, then your chances of getting an approval for a personal loan comes down.
  5. Lenders usually hesitate to give loans to borrowers with a low CIBIL score.
  6. If you manage to get a loan despite a bad CIBIL score, the interest rates might be too high.

How to improve your CIBIL score

If you have a bad CIBIL score, that doesn’t mean you can’t get a personal loan. Here are a few tips to increase your CIBIL score:

  • Check your credit history: Do a thorough check of your credit history and rectify any incorrect information.
  • Pay your bills on time: Start paying all your bills within the due date to improve your score.
  • List out your debts: List all your outstanding debts, ranked by most expensive to least expensive.
  • Pay off the highest debt first: Then move on to the next costliest debt on your list.
  • Stop using your credit cards: Limit your credit card usage as much as possible.
  • Do not default on credit card payments: Credit cards have the highest interest charges; defaulting may lead to heavy costs.
  • Do not keep applying for multiple loans: Avoid applying till your credit score improves; a rejection will decrease your score.
  • Avoid taking more credit cards: Even if you are offered free credit cards, do not accept any more of them.
  • Avoid closing old credit card accounts: This move may backfire as it could reflect negatively on your credit history.

Want to apply? Check your personal loan eligibility here.

How can you apply for a personal loan today?

You are just one simple online form away from getting your personal loan. Applying online is easy and it takes just 4 steps to get an instant approval:

Step 1: Fill in all the necessary details correctly and submit the application form online

Step 2: Select your required loan amount and tenure and receive instant approval

Step 3: Hand over the documents to a representative from your lender who will get in touch with you

Step 4: Receive the money in your account!
If you are applying for a loan offline, you can do so by calling on this toll free number: 18002660635. You can even send an SMS by messaging ‘SOL’ to 9773633633 or give a missed call on 9211175555.

Get online access to your personal loan account

Whatever your financial need, a personal loan can help you achieve your desires instantly. At Bajaj Finserv, you have the added benefit of getting a Flexi Loan—which gives you access to funds up to Rs.25 lakhs at the submission of a convenient online application. Once you get the loan, you can access all the information you need, be it the payment schedule, the interest certificate, the repayment track and other important information through Bajaj Finserv’s digital customer portal.

And that’s not all. To help you realise your financial dreams, Bajaj Finserv has introduced a unique product – line of credit. A line of credit is a credit facility aimed at providing you with access to a specified amount of money. When you need money, you can withdraw and use any amount within the allowed level. Interest is calculated only on the amount you’ve withdrawn. This means you have the option to withdraw only as per your requirement and repay a comparatively smaller amount.


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