Rather than waiting in long queues or visiting multiple bank branches, thousands of Indians now simply apply for a personal loan online. The entire process, from eligibility check to KYC, is completed digitally, often within minutes. After approval, funds are credited to your bank account swiftly. You can compare personalised offers, tenure options and fees before selecting a lender.
But before moving ahead, it’s important to understand the interest rate on the personal loan, which varies depending on your credit score, income and chosen lender. This article takes you step by step through eligibility requirements, document preparation, online application process, anticipated interest rates and how to choose the most cost‑effective option.
Eligibility Criteria and Documents Needed
To qualify, you must meet basic eligibility criteria and prepare essential documents before moving ahead. Here is a checklist:
- Indian citizenship
- Salary or self‑employment income
- Minimum age 18 years (salaried typically 21+)
- Minimum monthly income of ₹10,000 (some ₹25,000 for specific lenders)
- Work experience of at least one year and good credit score (often CIBIL ≥ 600 or ≥ 685)
The documents generally include:
- Identity Proof: Aadhaar and PAN card, Passport, Voter ID or Driving licence
- Address Proof: Utility bill or Govt ID
- Income Proof: Salary slips or bank statement of last three months
How to Apply for a Personal Loan Online
Here’s how you can quickly apply for a personal loan online through the Bajaj Markets platform:
- Start by selecting the ‘Check Offers’ button on the website
- Fill in your personal and financial information in the online form
- Choose your desired loan amount and repayment tenure
- Submit the completed application for review and verification
- Once verified, a Bajaj Markets representative will contact you to complete the remaining process
Loan Types Available When You Apply for a Personal Loan Online
Online platforms may offer several product types:
Personal Term Loan
Offers a fixed interest rate and a structured repayment schedule throughout the loan tenure.
Flexi Personal Loan
Allows you to pay only the interest initially and the principal later, which is ideal for managing irregular cash flow.
Instant Personal Loan
Enables quick approval and fund disbursal, often within minutes of application.
Short-term Personal Loan
Comes with a shorter repayment period, usually between 3 to 18 months, suitable for immediate or small-scale needs.
Pre-approved Personal Loan
Provided instantly based on your credit history without the need for a fresh application.
What Interest Rates to Expect: Overview for Indian Borrowers
Interest rates on a personal loan in India may vary significantly. On Bajaj Markets for example, personal loan interest starts from about 9% per annum up to around 36% per annum. The interest rate on the personal loan depends on factors such as:
- Credit score
- Monthly income
- Loan amount and tenure
- Relationship with lender
Sample Interest Rates from Leading Lenders
Lenders listed on Bajaj Markets offer the following interest rates:
- Bajaj Finance Limited: Offers interest rates starting from 10% per annum, with loan tenures of up to 96 months.
- Kotak Mahindra Bank: Provides personal loans at interest rates beginning from 10.99% per annum, with a maximum tenure of 72 months.
- Federal Bank: Extends loans at an approximate interest rate of 12.75% per annum, with repayment tenures of up to 48 months.
- InCred: Features interest rates starting from 16% per annum, with loan durations available up to 60 months.
Fees, Charges and Prepayment Conditions
Before applying for a personal loan, here are some common charges you should know about:
- Processing Fee: Most lenders charge a processing fee of up to 12% of the loan amount.
- Prepayment or Foreclosure Charges: If you choose to repay your loan before the agreed tenure, lenders may levy an additional penalty fee.
- Part-Payment and Flexi Loan Charges: For Flexi personal loans, you may initially pay only the interest. However, part-payment or early principal repayment may attract additional fees, depending on the lender’s policy.
Tips to Save on Your Loan
Here are some effective tips to help you save more on interest and associated charges:
- Compare offers from multiple lenders and rates via aggregator portals.
- Opt for shorter tenure if you can afford higher EMI; it reduces total interest.
- Maintain a strong credit score to obtain lower interest loans on the personal loan.
- Check pre‑approved offers to reduce processing time and possibly fees.
- Use a reputable EMI calculator before applying to plan your repayment.
Conclusion
Indian consumers seeking funds can confidently apply for a personal loan online. The digital route offers speed, convenience, and access to multiple lenders. Understand the interest loan on the personal loan rates based on your credit profile, loan amount and tenure. Research eligibility, compare offers, and calculate EMIs carefully before finalising. Use tools provided on Bajaj Markets or similar portals. Ensure you review all applicable charges, repayment tenure and lender terms. Making an informed decision helps manage financial needs effectively while keeping borrowing costs under control.
