A personal loan is a loan that the lenders offer without any security or guarantor. A personal loan can be used for a myriad purposes. You can get a personal loan from Rs. 25000 to Rs 1 Cr. The repayment tenure of a personal loan resides between 1 to 7 years. It is often also called a consumer loan. The beauty of a personal loan is that is disbursed fast and can be used for practically any purpose ranging from holidays to weddings to the down payment of a ome loan etc
The first personal loans in India were disbursed by Citibank in 2001. This was the first time a bank has disbursed personal loans at any degree of scale. This launch was quickly emulated by other foreign banks such as Standard Chartered, HSBC, ABN AMRO etc over the next few years. In a short period of a few years, the Indian private sevtor banks such as ICICI, HDFC Bank and Axis Bank also wamed up to the opportunity. Today, personal loans is among the fastest growing segments in the Indian retail lending landscape. Apart form banks and NBFCs, there are a whole host of fintechs also which are jostling for market share in this segment.
The personal loan interest rate lies between 10 – 36%* per annum, excluding one-time processing fees whihc ranges between 2% to 5%.