What is the minimum salary for a personal loan in India?

Most private banks require a minimum monthly income of ₹25,000 in metros and ₹20,000 in smaller cities. Public sector banks like SBI accept lower thresholds for their existing salary-account customers.

How fast can I get a personal loan disbursed?

For pre-approved customers, most banks disburse within a few hours. For fresh applicants with full documentation, disbursal typically happens in 2 to 5 working days.

Does a personal loan affect my credit score?

Every application creates a hard enquiry that briefly reduces your score. Timely EMI repayment then improves your score over the loan tenure. Missed EMIs cause significant damage.

Can I prepay a personal loan?

Yes. On a floating-rate loan, RBI rules bar any prepayment charge or lock-in for individual borrowers. Most personal loans are fixed-rate, where lenders commonly allow foreclosure after 6-12 EMIs with a charge of up to about 4% of outstanding principal - the exact terms must be in your Key Facts Statement.

Personal Loan in India

A personal loan is an unsecured borrowing option you can use for weddings, medical bills, travel, home repairs, or debt consolidation. On this hub you'll find plain-English guides, eligibility checklists, real bank rates, and calculators to help you plan repayment.

Updated 28 September 2026

Rates checked against the lenders' official pages on 28 September 2026, except HDFC Bank, last checked on 15 June 2025 and possibly out of date. Confirm the current rate with the lender before you apply.

Official rate pages: HDFC Bank · ICICI Bank · SBI (Xpress Credit) · Axis Bank · Kotak Mahindra

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When a personal loan makes sense

A personal loan is a good fit when the expense is time-bound and you can comfortably absorb an EMI without stretching your budget. It is not a good fit for long-horizon spending (like buying property) or for recurring lifestyle expenses. Because it is unsecured, the interest rate is typically higher than a secured loan such as a home loan or a loan against securities. Rates today start around 10.5% for salaried borrowers with strong credit scores.

Typical loan size and tenure in India

Parameter	Typical range
Loan amount	₹50,000 to ₹40 lakh
Tenure	12 to 60 months
Interest rate	About 10% to 24% p.a.
Processing fee	0.5% to 2.5%

Loan amount
Typical range
₹50,000 to ₹40 lakh
Tenure
Typical range
12 to 60 months
Interest rate
Typical range
About 10% to 24% p.a.
Processing fee
Typical range
0.5% to 2.5%

Frequently asked questions

Sources & references

RBI — Master Direction on Regulatory Framework for Retail Lending — Reserve Bank of India
RBI — Pre-payment Charges on Loans Directions, 2025 — Reserve Bank of India
CIBIL — Understanding your credit report — TransUnion CIBIL

Rates, fees, eligibility, and product terms cited on this page reflect the sources above at the time of publication and may have changed since. Always verify directly with the lender or regulator.

What is a personal loan?Eligibility criteria explained Personal Loan EMI calculator HDFC vs ICICI comparison Credit score basics