In times of hardship, a personal loan is the most convenient option. A personal loan becomes the support line when the savings or emergency reserve isn’t quite enough. A personal loan can help you pay certain of your higher bills.
However, let us remind you that personal loans are not something free-for-all and that you should always have a definite purpose in mind before applying. Depending on your lender, these might also have additional restrictions.
You may think you are aware of what a personal loan is, but you may be puzzled to discover that there are a lot of different uses for it. A personal loan is a particular type of loan that may be taken out for a wide range of purposes. Therefore, what are a few of the most useful uses of this loan in 2024?
A Personal Loan: What Is It?
A personal loan is a type of loan that is usually given to borrowers by banks, or other financial institutions. The loan is given to them in one big payment and is paid back over one to five years, with some lenders offering terms of up to seven years. Personal loans can be classified into several kinds based on the conditions of eligibility. Before you think about one, you should be aware of the following important terms:
- Secured loans: To be eligible for one of these loans, you must provide collateral. This might be your vehicle, house, or another item.
- Unsecured loans: These loans don’t need a co-signer’s signature or any kind of security to be qualified.
- Debt-to-Income Ratio: The monthly amount of debt payments you have with your income is known as your debt-to-income (DTI) ratio. This helps financial institutions decide on your loan size and terms and is taken into account when they decide whether to approve you for one.
- Origination fees are an up-front cost for loan processing that you will have to pay your lender.
- Repayment Tenure: This is how long you have to pay back the whole sum of the loan.
The Best Personal Loan Offers in 2024
| Lender | Min Salary (₹/month) | Loan Amount (₹) | Loan Tenure (Months) | Interest Rate (p.a.) | CIBIL Score | Processing Fees |
| Paysense | 20,000 | 50,000 – 10,00,000 | 6 – 60 | 18% – 22% (Reducing) | 700+ | 2% – 5% |
| Werize | 12,000 | 30,000 – 5,00,000 | 12 – 36 | 15% – 22% (Flat) | 650+ | 3% – 5% |
| Money View | 15,000 | 5,000 – 5,00,000 | 3 – 60 | 17% – 36% (Reducing) | 650+ | 1% – 5% |
| IDFC Bank | 20,000 | 1,00,000 – 40,00,000 | 12 – 60 | 10.49% – 22% (Reducing) | 700+ | 1% – 4% |
| Incred | 15,000 | 50,000 – 10,00,000 | 24 – 60 | 16% – 33% (Reducing) | 650+ | 1% – 5% |
| Aditya Birla | 20,000 | 1,00,000 – 50,00,000 | 12 – 84 | 12% – 28% (Reducing) | 650+ | 1% – 4% |
| Finnable | 20,000 | 50,000 – 10,00,000 | 12 – 60 | 16.95% – 30% (Reducing) | 700+ | 1% – 5% |
| Hero Fincorp | 15,000 | 50,000 – 10,00,000 | 12 – 60 | 9.5% – 16% (Flat) | 700+ | 1% – 5% |
| Muthoot Finance | 20,000 | 1,00,000 – 7,50,000 | 12 – 60 | 14% – 22% (Reducing) | 685+ | 1% – 3% |
| Upward Fintech | 20,000 | 25,000 – 5,00,000 | 6 – 36 | 18% – 32% (Reducing) | 650+ | 2% – 5% |
| Cashe | 12,000 | 10,000 – 4,00,000 | 4 | 1.5% – 3% (Fixed Monthly) | 550+ | 1.5% – 2% |
| Finzy | 25,000 | 1,00,000 – 10,00,000 | 6 – 36 | 10.99% – 18.99% (Reducing) | 700+ | 1% – 3% |
| Fibe (EarlySalary) | 15,000 | 8,000 – 2,00,000 | 3 – 36 | 15% – 30% (Reducing) | 550+ | 1% – 2% |
| Faircent | 25,000 | 50,000 – 10,00,000 | 3 – 36 | 25% – 30% (Reducing) | 700+ | 7% – 9% |
| Stashfin | 20,000 | 5,000 – 5,00,000 | 9 – 36 | 2.45% – 4% (Fixed Monthly) | 725+ | 2% – 2% |
| Tata Capital | 25,000 | 75,000 – 25,00,000 | 12 – 60 | 10.5% – 14.25% (Reducing) | 720+ | 0.75% – 2% |
| Standard Chartered Bank | 50,000 | 1,00,000 – 1,00,00,000 | 12 – 60 | 11.49% – 20% (Reducing) | 740+ | 1% – 3% |
| Bajaj Finserv (Prime) | 38,000 | 1,00,000 – 35,00,000 | 12 – 84 | 13.5% – 15% (Reducing) | 685+ | 0.5% – 1.5% |
| Axis Bank | 25,000 | 1,00,000 – 40,00,000 | 12 – 60 | 11.15% – 16.25% (Reducing) | 690+ | 1% – 4% |
| ICICI Bank | 40,000 | 1,00,000 – 1,00,00,000 | 12 – 72 | 10.5% – 15% (Reducing) | 700+ | 0.5% – 1.5% |
| Fullerton | 25,000 | 1,00,000 – 25,00,000 | 12 – 60 | 14% – 32% (Reducing) | 705+ | 1% – 3% |
| HDFC Bank | 25,000 | 1,00,000 – 1,00,00,000 | 12 – 72 | 10.25% – 16% (Reducing) | 700+ | 0.5% – 1.5% |
| Shubh Life | 12,000 | 5,000 – 2,00,000 | 3 – 24 | 28% – 44% (Reducing) | 650+ | 1% – 3% |
| Loan Tap | 12,000 | 50,000 – 7,00,000 | 12 – 36 | 11% – 24% (Reducing) | 675+ | 1% – 2% |
| Kreditbee | 16,000 | 1,000 – 3,00,000 | 1 Day – 4 Months | 1.5% – 3% (Fixed Monthly) | 550+ | 5% – 6% |
| FlexSalary | 8,000 | 4,000 – 2,00,000 | 6 – 60 | 1.5% – 3% (Fixed Monthly) | 550+ | ₹300 – ₹750 |
| mPokket | 9,000 | 500 – 30,000 | 1 Week – 4 Months | 2% – 4% (Fixed Monthly) | 550+ | ₹50 – ₹200 |
| Moneywide | 20,000 | 10,000 – 3,00,000 | 3 – 36 | 17% – 24% (Reducing) | 650+ | 1% – 3% |
| Insta Money | 15,000 | 5,000 – 25,000 | 1 – 6 | 13% – 36% (Reducing) | 650+ | 1% – 4% |
| Kotak Bank | 25,000 | 1,00,000 – 50,00,000 | 12 – 60 | 10.75% – 22% (Reducing) | 705+ | 0.75% – 2.5% |
| Cholamandalam | 20,000 | 1,00,000 – 35,00,000 | 6 – 60 | 14% – 22% (Reducing) | 675+ | 1% – 3% |
| SBM | 20,000 | 50,000 – 25,00,000 | 6 – 60 | 14% – 20% (Reducing) | 700+ | 1% – 4% |
- Healthcare Emergencies
Nothing in life is possibly as unpredictable as one’s health. Medical emergencies frequently strike without letting people know and force people to take money out of their hard-earned savings. This is when a crucial personal loan for medical crises comes into play. The loan can be used to pay for any costs related to medical treatment, prescription drugs, surgeries, etc.
- Education of Kids or Marriage
You can use personal finances to assist kids in meeting their financial needs. Maybe your kid has shown an interest in going abroad for college, but you haven’t been able to support them because of financial difficulties. If yes, take out a personal loan for higher education to cover your living expenses while traveling, pay for schooling, or make a purchase.
- Purchasing Electronic Gadgets
It is not possible to own smart technological devices in 2023. You should at least be investing in technology for both personal and professional purposes, such as 5G cell phones and new-generation laptops, since the world is rapidly getting more tech-savvy.
Don’t worry if you’re afraid you won’t have enough money left over. You should have no trouble getting a loan because most lenders offer flexible requirements for qualifying for personal loans.
- Debt Consolidation
If you have several loans with various interest rates and instalments each month, a personal loan might be a worthwhile way to streamline your payments. Fortunately, if you qualify for a lower interest rate, it may assist you in saving your earnings each month.
- Home Fixes and Remodeling
Although these might be expensive, remodeling your home can be an excellent way to raise your home’s value and, consequently, your home equity. To reduce the financial strain on your budget and finance these initiatives, you can think about taking out a personal loan.
- Vehicle Financing
Although auto loans usually require a down payment, they may provide better rates than other financing options. If you need a car but don’t have the money upfront, getting a personal loan that doesn’t demand any type of collateral could simplify the purchasing process.
When it comes to huge bills that might not fit properly into your budget, such as wedding costs, expensive medical treatments, or relocating expenses, personal loans are a useful tool for getting cash quickly. But you have to use this money carefully to be sure that it’s going toward a cost that meets the length of the loan’s repayment period and the interest that you’ll accrue.
Pros and Cons of Personal Loans
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Bottom Line
The process for applying for a personal loan is not too complicated. To get the loan you require on the best terms, you should, nevertheless, ensure that your financial situation is sound right now.