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Personal Loans


Are you planning a holiday? Do you need financial assistance for marriage-related expenses? Do you want to indulge in the latest lifestyle gadget? Or are you simply in need of quick cash? Personal loans help you meet these or any kind of personal expenses.

However, you need to keep in mind that personal loans have high interest rates, making them the most expensive loans in the market. You, therefore, need to plan your loan and be careful while selecting it.

At MoneyRaksha, we provide an easy-to-use platform to review the various personal loans offered by banks and financial institutions. We guide you through the research and understanding of the costs and benefits involved and help you get the right personal loan that smoothens your cash flow and addresses your immediate needs.

Loan eligibility

A personal loan is an unsecured loan. This means that you don't have to provide the bank with any kind of security like property or jewellery against the loan. Personal loans can range from an amount of Rs 50,000/- to Rs 20 lakh.

The loan amount you are eligible for as well as the interest rate depends on factors such as your income and employment, residence, and credit history. Typically, the EMI is pegged at 50 per cent of your take home income, a rather high amount, which translates that you manage your other expenses like rent, food, etc with the remaining 50 per cent. Therefore, plan your personal loan so that you are not financially strained to pay your EMIs.

Fees and charges

When you choose a personal loan, you must make a note of the charges that are levied by the bank that determine the real cost. This includes:

  • A processing fee of two to three per cent of the loan amount, depending on your credit profile;
  • A foreclosure penalty of four per cent of the pre-closed loan amount if you repay your loan prior to the agreed time frame;
  • A late penalty ranging from two to three per cent of the EMI in case of delayed payment;
  • Cheque bounce charges for every bounced cheque submitted for the payment of the loan;
  • Documentation charges to verify your documents to process the loan application.

Loan repayment

Personal loans are short-term loans repayable over a period of one to five years.

Loan documentation

Since a personal loan is an unsecured loan, it can be accessed with minimal paperwork or documentation. You may need to submit the following documents to process your loan application:

  • An identity proof
  • Bank statements for three to six months
  • Salary slip

You may also need to provide guarantors. If you are self-employed, you may need to furnish additional documents like balance sheets, profit and loss accounts, partnership deed, etc.

Compare loans

It is easy to find banks that are willing to give you the money you need, whatever be your reason. But aside from their willingness, finding a good deal is not quite so easy. Here are some points to consider:

  • Since the interest rate is quoted in multiple ways — monthly reducing rate, flat rate, etc, check for the right interest value.
  • Scan through other charges like processing fees.
  • Compare the customer satisfaction ratings of each bank.
  • The total cost of your personal loan is the loan amount + total interest charged throughout the loan tenure + processing fees and other taxes.
  • Most importantly, check the turnaround time, which is the time taken by the bank to process your application. This is a critical factor as you generally apply for a personal loan when you need quick money.

The MoneyRaksha touch

At MoneyRaksha, we understand that picking the right personal loan can be hard. We, therefore, help you choose your loan wisely, so that you borrow only what you can afford to repay. We provide you:

  • The lowest interest rates;
  • Quick, tailor-made loans;
  • Easy comparisons on loan offers;
  • Objective information on your loan options;
  • Neutral advice;
  • Services at no extra cost.

My MoneyExpert

  • Type your requirements in the eligibility calculator.
  • Compare the loan offers you receive and apply for the one that suits your needs.
  • Your application is forwarded electronically to the bank you choose.
  • The bank contacts you within one working day.
  • MoneyRaksha sends you email and SMS alerts to keep you updated with the status of your application.

Personal loan FAQs