What are the different types of personal loans in India?

2 min read

Personal loans can be used for a wide variety of purposes. Here are the popular types of personal loans.

  • Wedding loan
    Whether for marriage celebrations or your honeymoon, take a personal loan for weddings instead of draining your savings. Use it towards all wedding-related expenses and repay with ease.

Additional reads:
What are the documents required for Personal Loan?
How do lenders decide Personal Loan eligibility?

Features of personal loan

Personal loans are financial tools that individuals can use for various purposes, providing flexibility and convenience. Here are five key personal loans features:

  1. Unsecured nature: One of the primary features of personal loans is that they are typically unsecured, meaning they don’t require collateral such as a house or car. This makes them accessible to a broader range of borrowers who may not have significant assets to pledge.
  2. Fixed interest rates: Most personal loans have fixed interest rates, which means the interest rate remains the same throughout the loan term. This predictability helps borrowers plan their budgets effectively, as monthly payments remain consistent.
  3. Variety of uses: Personal loans are versatile and can be used for a wide range of purposes, including consolidating debt, funding home improvements, paying for medical expenses, or covering unexpected emergencies. Lenders usually do not restrict the usage of personal loan funds, providing flexibility to borrowers.
  4. Structured repayment plans: When you take out a personal loan, you agree to a specific repayment schedule. This often includes fixed monthly payments over a predetermined period, typically ranging from one to seven years. Such structured repayment plans help borrowers manage their finances by spreading the cost of a large expense over time.
  5. Quick approval and disbursement: Compared to other types of loans, personal loans often have a quicker approval process. Many lenders offer online applications with instant decisions, and once approved, funds can be disbursed promptly, sometimes within a few business days. This speed makes personal loans a convenient option for urgent financial needs.

Eligibility and documents required for personal loan

You can qualify for a Bajaj Finserv Personal Loan once you meet the five simple eligibility criteria mentioned below:

  • Nationality: India
  • Age: 21 years to 80 years*.
  • Employed with: Public, private, or MNC.
  • CIBIL score: 685 or higher.
  • Monthly salary: Starting Rs. 25,001, based on the city you live in.

*You should be 80 years* or younger, at the end of the loan tenure.

Below are the documents required for personal loan to be submitted loan:

  • KYC documents: Aadhaar/ passport/ voter’s ID/ driving license/ Letter of National Population Register
  • PAN card
  • Employee ID card
  • Salary slips of the last 3 months
  • Bank account statements of the previous 3 months


In conclusion, personal loans offer borrowers flexibility, quick access to funds, and structured repayment plans with fixed interest rates. Their unsecured nature makes them accessible to a wide range of individuals needing financial assistance for various purposes. Understanding these features allows borrowers to make informed decisions, selecting loans that best fit their needs and financial situations. Borrowers need to compare offers from different lenders carefully before they apply personal loan online, considering factors like interest rates, fees, and repayment terms, to ensure they choose a loan that aligns with their long-term financial goals and ability to repay.

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Frequently asked questions

What are the common types of personal loans?

Common types of personal loans include debt consolidation loans, home improvement loans, medical loans, and loans for major purchases like appliances or electronics.

How many types of personal loans are there in India?

In India, common types of personal loans include unsecured personal loans, secured personal loans (like gold loans), and loans specifically for salaried individuals or professionals.

Which personal loan is best for salaried individuals?

Personal loans tailored for salaried individuals often offer competitive interest rates, convenient repayment terms, and quick approval processes, making them suitable for meeting immediate financial needs.

Which loan has a low interest rate?

Generally, secured personal loans, such as loans against fixed deposits or gold loans, tend to have lower interest rates compared to unsecured personal loans due to the collateral provided, reducing the lender's risk.

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