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How to Get a Personal Loan in TAMILNADU?




Know your loan eligibility

Wondering how much you can borrow? We can help you with that. Your loan amount is determined by your Gross or Net Salary by banks and Financial Institutions. Reach out to us, so you can find out your loan eligibility quickly.

Get your In-Principle Approval (IPA)

Gone are the days when you’d have to visit banks for your In-Principle Approval. We’ve streamlined the process to make it easier and faster for you to get one. Simply gather the required documents, submit everything to us and wait for approval.

Apply for personal loan

Once you get your IPA, you’re all set for the next step – getting the best personal loan in TAMILNADU. With the help of our knowledgeable Personal Loan Specialists, you can be confident that you’ll be getting the highest loan amount at the lowest interest rates.

Personal Loan - Overview

You can avail your personal loan for
Wedding in the family

Personal loans take the stress off so you can enjoy family marriages to the fullest

Dream Vacation

Travelling to exotic places can now be a reality for you, thanks to our personal loans

Medical Expenses

Manage unforeseen medical emergencies of loved ones with our personal loans

Home Renovation

Repair, refurnish and upgrade your home to a dream home, with our personal loans

Key Benefits and Features

Personal loans can come to your quick rescue when you’re faced with unforeseen expenditures. No matter what your personal exigency, simply apply for a loan online from the comfort of your home and get the loan on submission of necessary documents. Here are some key features.

Loan upto 40 Lakhs

Affordable Interest Rates

Quick Disbursement

Flexible Repayment

Balance Transfer Facility

Borrow more if you need

Apply Online Door Step service

Loan up to 40 Lakhs:

Banks/NBFCs offers personal loan ranging from Rs.50,000 to Rs.40 Lakhs for all Govt./PSU/Private Ltd/MNC Company employees.

Affordable Interest Rates:

Banks/NBFCs provide personal loans at affordable interest rates from 10.75% per annum.

Quick Disbursement:

Get quick disbursement on personal loan from many Banks/NBFCs with hassle-free processing to meet immediate financial needs of your growing business.

Flexible Repayment:

Many Banks/NBFCs provides personal loans with flexible tenures of upto 72 months to make repayment easy.

Balance Transfer Facility:

Transfer your existing personal loan to other Banks/NBFCs for lower EMIs, lower Interest and processing fee waiver.

Borrow more if you need:

Many Banks/NBFCs provides the top up facility to their existing customers. So customer can borrow more money when you need.

Apply Online:

You can submit your personal loan application through online. Apply Now

Door Step services:

Along with your work, also takes care of your convenience. Enjoy our doorstep services by availing our personal loan.

Some more features on personal loan:
  • Minimal paperwork and documentation required.
  • No restrictions on how the loan amount can be used.
  • Helps in consolidation of debts.

Pre-Payment and Part Payment in Personal Loan

A personal loan is given for a stipulated time period. This period is known as the loan repayment tenure. After you have taken a loan, you are expected to pay the debt off by the end of the loan repayment tenure through EMIs. However, after availing a loan, if you decide to pay off your debt before the end of the loan repayment period, it is called pre-payment or foreclosure.

Types of Pre-Payment:

There are 2 types of pre-payment. They are – full pre-payment and part pre-payment or just part payment.

Full Pre-Payment: Part pre-payment:

If you are paying off the whole outstanding loan amount before the end of the loan repayment tenure, it is known as full pre-payment.

If you are paying off a part of the outstanding loan amount before the end of the loan repayment tenure, it is known as part pre-payment.

Advantages of full pre-payment: Advantages of part pre-payment:

You can avoid paying hefty interest on your loan amount.

You can choose to pay off a part of your outstanding loan amount if you have some readily available money.

If you have the money to pay off your debt completely, you might as well get rid of the debt.

Part paying your loan will reduce the outstanding principal amount which, in turn, will reduce the effective EMI amount.

You can avoid paying pre-payment interest as well, if you have taken the loan from a lender who does not charge an interest on pre-payment of the loan.

The overall interest that you pay will also reduce significantly.

Disadvantages of Full Pre-Payment: Disadvantages of part pre-payment:

If your lender charges a penalty on pre-payment of the loan amount, you might have to pay a big chunk of money for pre-paying your loan.

If you do not make the part payment soon enough, you will not be able to maximise your savings.

Before you foreclose a loan, check the other factors related to it. Foreclosing a personal loan means that you would be paying out a huge sum of money at once. This might not always be the best option.

If your lender charges a fee for part payment of personal loans, you might have to spend a significant amount of money for the same.

Personal Loan Eligibility

Who could be eligible for a Personal Loan?

Are you thinking of availing a personal loan anytime soon? Browse through Banks/NBFCs personal loan eligibility criteria mentioned below, to make sure your personal loan is approved at the very first go:

  • Salaried Employees
  • Salaried doctors
  • Employees of MNC companies, public and private limited companies, trust, partnership companies and proprietorship companies
  • Government sector employees including Public Sector Undertakings, Central and Local bodies
  • Salaried NRI
  • Central and State Government Pensioners
  • Pensioners of Defence like Armed Forces, including Army, Navy and Air Force, Paramilitary Forces (CRPF, CISF, BSF, ITBP, etc.), Coast Guards, Rashtriya Rifles and Assam Rifles.
  • Minimum age of 21 years
  • Maximum age of 76 years at the time of maturity of the Personal Loan
  • Minimum net monthly income – Rs. 15,000 (excluding all deductions) (should be credited in bank account)
  • Total work experience – Minimum 2 years (including current and previous employment)
  • Experience in the current organization – Minimum 6-12 months
If Pensioners,

You should receive minimum pension amount of Rs.25,000

For retired Central and State Government employees
  • Pensioners should not be over the age of 76 years
  • Pensioners should be drawing their pension through any Bank Branch
  • Pensions should be disbursed by Government Treasuries
For defense pensioners
  • Pensioners of the armed forces, Army, Navy, Air Force, Paramilitary, Rashtriya Rifles and Assam Rifles and Coast Guards are eligible
  • The pension payment order should be with any Bank Branch
  • There is no minimum age limit, but the maximum age is 76 years
Family Pensioners
  • Spouse who is authorized to receive the pension after the death of the pensioner
  • The family pensioner should not be more than 76 years of age

If you are not sure if your profile falls under a restricted category or location, you can contact us @ 90470 45470 to confirm your eligibility.

The personal loan eligibility criteria mentioned above are generic in nature and actual eligibility factors will differ from one lender to another.

How to Improve your Chances of Getting a Personal Loan?

Credit Clean-up:

One of the main factors taken into consideration by lenders is your credit score. Getting a personal loan is easier with a high credit score. If your score is low, you must check your reports to see if there are any errors. Sometimes, simple errors could have an adverse effect on your scores, and if you find any of these, you must report them to CIBIL.

Rebalancing your income and debts:

Lenders ask for proof of income when you apply for personal loans in order to ascertain your debt-to-income ratio. Consider the sale of liquid assets like stocks or earning more through a part-time job to increase your annual income. Doing so will increase your debt-to-income ratio and increase your chances of getting a loan.

Consider Co-signers/Guarantors:

If you are finding it hard to get a personal loan on your own accord, you can apply for one by adding a co-signer or guarantor. The person you choose as a guarantor must have a good credit score. Their main aim is to guarantee that you will repay the loan. However, they will also be liable to repay the loan themselves if you are unable to do so. Picking an individual with a credit score over 750 will considerably increase your chances of getting a personal loan.

Limit Your Borrowing:

It can be risky to ask for more money than you require meeting your financial targets. Make sure that you calculate how much you need and apply only for that specific amount.

Choose the Right Lender:

Every lender has their own requirements when it comes to credit scores and income. When looking for personal loans, pick a lender whose eligibility criteria you meet and apply accordingly. The problem with applying with multiple lenders is that each of them will check your credit score, and each time your full credit report is pulled out, your credit score drops, albeit marginally.

Personal Loan Documents and Charges

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For All Salaried Employees:
Identity Proof (any one):
  • PAN (mandatory)
  • Driving License/ Voter ID/Valid Passport/Smart Ration Card
Current Residence Address Proof (any one):
  • Copy of Driving License/Electricity Bill/Water Tax/Property Tax/Aadhaar Card/Telephone Bill/Valid Passport/Employer ID Card/Notary Public Affidavit
Passport Size Photograph:
  • Two passport size recent photographs
Employment Proof:
  • Current Employer Appointment or Offer Letter
  • Employer ID card (optional)
Income Proof:
  • Copy of Form 16
  • Latest 3 months salary slips or Salary certificate
  • Latest 6 months salary credited SB A/c statement
For Salaried Non-Resident Indians (NRIs):
Identity Proof (any one):
  • PAN (mandatory)
  • Valid Passport (mandatory)
  • Valid Visa (mandatory)
  • Employer Identity Card
  • Driving License/ Voter ID/Smart Ration Card
Current Residence Address Proof (any one):
  • Copy of Driving License/Electricity Bill/Water Tax/Property Tax/Aadhaar Card/Telephone Bill/Valid Passport/Notary Public Affidavit
  • Proof of residence indicating the applicant’s current overseas address
Passport Size Photograph:
  • Two passport size recent photographs
Employment Proof:
  • Valid work permits (for NRI - Salaried)
  • Employment contract (translated in English) attested by the employer/consulate/embassy/Indian foreign office if the contract is in another language.
Income Proof:
  • Individual Tax Return for the last 2 years – Not applicable to NRIs/PIOs located in the Middle East countries.
  • Salary slips for the last 3 months.
  • Bank statements indicating salary credit for the last 6 months
  • NRI/NRO savings account statement for the last 6 months (which is opened and maintained in India by NRI Applicant)
  • Copy of the Identity Card issued by the current employer along with the latest salary slip (original)
  • Copy of the individual Tax Return for the last assessment year. - Not applicable to employees in the Merchant Navy and NRIs/PIOs located in the Middle East countries.
Other mandatory documents:
  • Official e-mail ID or HR e-mail ID
  • NREGA job card signed by an officer of the State Government, letter issued by the Unique Identification Authority of India containing details of name, address and Aadhaar number.

Note: NRI applying for the loan should have a close relative in India and need to be present in India at the time of application

For Co-Applicant (close relative of NRI Applicant, who is residing in India)
Identity Proof (any one):
  • PAN (mandatory)
  • Driving License/ Voter ID/Valid Passport/Smart Ration Card
Current Residence Address Proof (any one):
  • Copy of Driving License/Electricity Bill/Water Tax/Property Tax/Aadhaar Card/Telephone Bill/Valid Passport/Notary Public Affidavit
Passport Size Photograph:
  • Two passport size recent photographs
For All Pensioners:
Identity Proof (any one):
  • PAN (mandatory)
  • Driving License/ Voter ID/Valid Passport/Smart Ration Card
Current Residence Address Proof (any one):
  • Copy of Driving License/Electricity Bill/Water Tax/Property Tax/Aadhaar Card/Telephone Bill/Valid Passport/Notary Public Affidavit
Passport Size Photograph:
  • Two passport size recent photographs
Income Proof:
  • Pension Passbook for last 1 year
  • Pensioner ID card
  • Bank statement of pension credited savings account for the past 6 months
  • Life Certificate

*Requirement of personal loan documents might vary according to the scheme chosen. Banks/NBFCs may require additional personal loan documents which will be intimated to you while processing your application.

Personal Loan Interest Rates

Compare the lowest personal loan interest rates starting from 10.75% p.a. and apply for the best personal loan. Get the complete list of current personal loan rate of interest in India from all leading banks and financial institutions.

Personal Loan
Bank/NBFCs Interest Rate (%) Processing Fees (%) Tenure (yrs.)
min max min max min max
HDFC Bank 10.75 17 0* 2.5 1 5
Axis Bank 11.99 17.75 0* 2 1 5
IDFC First Bank 10.99 19.99 0.99 1.5 1 5
ICICI Bank 10.75 15.49 Rs.2999 1.5 1 6
Kotak Bank 10.75 20.99 0.99 2.5 1 5
Bajaj Finserv 11.99 16.5 0.99 4.19 1 5
Aditya Birla 14 17 0.99 2 1 5
RBL Bank 14 23 0.99 3 1 5
Fullerton India 12.99 36 0* 6 1 5
Indiabulls 13 28 2 2.5 1 5
Ujjivan Small Finance Bank 15.6 21 1.5 2 1 5

Note: *HDFC Bank - PF 0% is only applicable for Indian Army, Navy & Air Force employees who is received net salary >= 40,000 per month

Note: *Axis Bank - PF 0% is only applicable for Indian Army, Navy & Air Force employees

Personal loan Fees and Charges

Depending on the type of loan you are applying for, the following charges may be levied:
Processing fees :

This is a one-time non-refundable fee that is to be paid to the personal loan provider after the loan application has been approved. The processing charge varies depending on the bank and the loan scheme you are applying for.

Prepayment charges:

Prepayment penalty is the fee you will have to pay the lender if you plan on repaying your personal loan before the completion of the loan tenure.

Part-Prepayment charges:

Part-Prepayment charges penalty is the fee you will have to pay the lender if you plan on part paying capital amount to adjust in your outstanding capital amount.

Cheque dishonor charges:

The fee is levied when the loan provider find that a cheque issued by the borrower is found to be dishonored due to reasons such as insufficient funds in the borrower’s account


This is a one-time non-refundable fee that is to be paid to the personal loan provider after the loan application has been approved. Some Banks/NBFCs add this charge with the approved loan amount and deducted with EMIs.

Default charges:

Loan providers also charge a penalty on delayed repayments i.e. if you fail to make your Equated Monthly Installments (EMIs) or Pre-EMIs on time. The defaulting charges vary from one bank to another.

Incidental charges:

This charge covers for the expenses incurred by the bank to recover dues from a borrower who has failed to make his monthly installments on time.

Charges On Account Of Delayed Payments:

Delayed payment of interest or EMI shall render the customer liable to pay additional interest up to 24% per annum.

Do’s & Don’ts while applying Personal Loan
Do's Don'ts
Do proper research before you apply for a loan Do not sign your loan documents without understanding every point
Do read the fine print carefully Do not make multiple inquiries regarding loans from different banks
Do save your money carefully when you are repaying Do not take a personal loan without any serious purpose
Do pay your loan installment promptly every single time Do not be in a hurry to end your loan comparison process
Do evaluate your credit score thoroughly Do not forget to pay your loan installments
Do apply for an affordable loan amount Do not accept bad loan products

Things to do after Closing a Personal Loan

If you have recently paid off your personal loan (either repaid or foreclosed), you might have the idea that your obligation towards the loan is over. However, that is not the case. There are certain things that you should do after paying off your personal loan.

  • The No Dues Certificate or NDC:

    The No Dues Certificate or NDC is issued by your lender once you pay off the debt. This is one of the most important documents that you should collect immediately after paying off your loan. It is also a wise decision to retain this document for an extended period of time. This certificate validates the repayment that you have made. Without this document you cannot prove that you have paid off your debts. In case you are looking forward to taking another loan in the near future, you will need this document to prove that your previous loan has been paid off. Usually, this document is issued on spot by your lender if you are paying off the final amount through hard cash. If you are paying via check or NEFT or any other means, the lender will issue the NDC and will either send it to your registered address or will ask you to collect it from the branch office of the lender.

  • The Statement of Account or SoA:

    The Statement of Account or SoA, along with the NDC will help you prove that your debts have been completely paid off and have been paid on time. This is an optional document which is often issued by certain lenders. If your lender provides this document, you should consider getting it. However, you should also look for any sorts of discrepancies in the credit score. If you find something wrong, you can use the SoA to make the necessary changes to it.

  • Collection of unused cheques:

    If you have some cheque leaves which have not been used, you should collect those as well. The collection of the No Dues Certificate and the unused cheque leaves, usually, marks the end of the closure process for the loan.

  • Check your credit score after closing the loan:

    This is just a recommendation. It is not compulsory to check the credit score after the closure process ends. However, it is recommended that you check the score to make sure there are no differences in the score. If there are some chances of you availing another loan within 1 to 2 years of the closure of the current loan, it is highly recommended that you check the credit scores right after the closure of the loan.

How to avoid rejection of personal loan application?

The approval of a personal loan application depends on a number of factors. When you apply for a loan, you should make sure that you are sufficiently fulfilling all the factors to ensure the approval of your loan application. The eligibility criteria for personal loans may vary from lender to lender, however, there are number of common criteria which include the age of the applicant, his or her income, credit score, status of employment, and so on. Before you apply for a loan, make sure that all the eligibility criteria are being fulfilled. This will help you avoid rejection of your loan application. Although there are other options which you can resort to in case your loan application gets rejected, it is recommended to double check before applying to avoid the chances of rejection of application.

FAQs on Personal Loans

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Do I need to go to a Banks/NBFC branches to get a personal loan?
  • No, there is no need to visit Lenders branches to apply for a personal loan. We have made the process simple; you can apply for a personal loan through our website.
  • You can submit required details through and we will call you back and let you know about eligibility and application status. BankVallet will have the necessary documents picked up from your residence or office.
  • If you have any questions regarding the personal loan application process, please feel free to contact our customer care at +91-90470 45470 or write to us at
How secure is my information when I provide it during the loan comparison process?

All your sensitive information like personal/financial information is encrypted and safeguarded with our best in class security systems. We don't share your information with any marketing agencies or any 3rd party without your consent.

How long does it take to get a personal loan?

At BankVallet, we have simplified the process of obtaining a personal loan. You can visit and apply for the personal loan by submitting your details. We will call you back and notify you if you are eligible.

Thereafter, you can submit your documents to our representative who will visit either your home or office as per your convenience. We strive to process the complete application within 24 hours of complete document submission.

If you have any questions regarding the personal loan application process, please feel free to contact our customer care at +91-90470 45470 or write to us at

What is a personal loan?

A personal loan is a type of unsecured loan that that you can borrow from a bank or financial institution if you require funds to pay for your financial needs.

How does a personal loan work?

You borrow a loan when you are in need of credit. Once you submit your loan application to a lender for a personal loan, the lender verifies and approves it. Post this; the loan amount is disbursed into your bank account. Once you receive the loan amount, you will need to repay the lender via EMIs over the course of the loan repayment tenure.

What is an EMI?

EMI or Equal Monthly Installment is the amount that a borrower pays each month towards an outstanding loan to clear off the debt within a specific time frame. EMI includes principal and interest.

What is a credit score? Why is it important?

A credit score or rating is a number that indicates how you repay debt. It is important because your score determines whether you qualify for loans, credit cards, and other credit facilities.

How does my credit score impact the calculation of my loan amount?

Your credit score is an indicator of how you handle your finances. It considers your credit card bill payment history, repayment of past and current loans, and other criteria. Your credit rating tells lenders how likely you are to repay them if they grant you a loan. The better your credit score, the better the chances are of getting a higher loan amount.

What is the maximum amount of loan I can get?

The maximum amount of loan depends on your monthly income. In India, there are lenders who offer up to Rs.40 lakh.

What is a prepayment and how does it help in repaying my loan?

If you happen to get some extra money, you can pay it towards your loan even before the EMIs are due. This is called a prepayment. Every prepayment you make goes towards reducing the outstanding principal component of your loan. And since the principal reduces, your interest cost will also reduce. Also, your tenure gets shortened this way, helping you pay off the loan ahead of time.

How much loan can I get if I earn a monthly salary of Rs.60,000?

For personal loans, most lenders fix the minimum monthly income requirement between Rs.15,000 and Rs.25,000. Thus, if you have a monthly income of Rs.60,000, you can be fairly certain that you won’t find it difficult to borrow a loan. The exact amount that you will be offered will, however, vary based on your repayment capacity, debt-to-income ratio, the lender’s terms and conditions, etc.

Is the PAN card mandatory when applying for personal loans?

Yes, you are required to have a PAN card.

How much loan can I get if my salary is Rs.25,000?

With a monthly salary of Rs.25,000, you are likely to be eligible to borrow a loan. However, the lender will also check if you have any other outstanding loans, your credit score, repayment capacity, etc. before deciding how much you can borrow. You can use a personal loan eligibility calculator tool to know how much you are eligible to borrow with a monthly salary of Rs.25,000.

Is there an upper age limit for personal loans?

Yes, the upper age limit to apply is 60 years for salaried and 76 years for pensioners. This may, however, vary from lender to lender.

Is Form 16 required to borrow a personal loan?

Yes, lenders will require you to submit your Form 16.

Is it mandatory to submit my Aadhaar card to borrow a personal loan?

Yes, most lenders will require you to submit your Aadhaar card.

What is the minimum salary that an individual is required to earn to apply for a personal loan?

The minimum salary requirement will vary from lender to lender. Most lenders, however, will require you to earn at least Rs.15,000. If you reside in a metropolitan city, you may have to earn between Rs.20,000 and Rs.25,000.

Can you get a personal loan if you are retired?

A number of banks offer loans for pensioners. Thus, if you are a pensioner, you will be able to borrow a personal loan.

Can I get a personal loan with a credit score below 500?

If your credit score is under 500, there is a good chance that your loan application may be rejected by the lender. Even if your application is approved, you may have to pay a high rate of interest for the loan.

Can I borrow a personal loan to pay for my house deposit?

Yes, you can. Banks and financial institutions that offer loans do not lay down any restrictions on how the loan amount can be used.

How long does it take to get approved for a personal loan?

It may take anywhere between a few seconds to up to 48 hours. If you are a pre-approved customer, your loan amount will be approved very quickly. Else, you may have to wait for up to 48 hours to get approval.

Will borrowing a personal loan affect my credit score?

Once you borrow a loan, your credit score will improve if you pay the required EMIs as per the schedule specified by your lender. On the other hand, your credit score will drop if you miss EMI payments.

Is borrowing a personal loan better than using a credit card?

Personal loans are a good option if you need funds for a large expense or wish to consolidate multiple debts. The key benefit of a personal loan is that you can pay monthly installments to repay your borrowed loan amount. Further, you can also choose repayment tenure between 1 year and 5 years to suit your repayment ability. Credit cards, on the other hand, are a good choice if you want to finance smaller expenses, provided that you can repay your balance in full at the end of every month.

Is it smart to consolidate my debts with a personal loan?

Yes, if you have multiple outstanding debts, it is best to avail a loan and consolidate your debts. Doing this will make repayments a whole lot easier and help you clear off your consolidated loan amount in affordable installments.

What is the best reason to give when applying for a personal loan?

Most lenders will not require you to provide a reason when applying for a loan.

How long do I have to be employed for to get a personal loan?

Most lenders will require you to have a work experience of at least 2 years. This condition, however, varies from lender to lender.

Can I use a personal loan to purchase a car?

Yes, you can use a loan to purchase a car. That said, if the sole purpose of the loan is to purchase a car, it is highly recommended that you avail a car loan since it is likely that you will be offered a lower rate of interest.

How will I know if my personal loan had been approved?

You can track the status of your loan application through online/offline channels. Also, the lender will let you know if your application has been approved.

How can I access the funds that I receive through my personal loan?

Most lenders disburse the loan amount into your savings bank account.

How do I get a top-up on my personal loan if I require more funds?

Keep in mind that not all lenders offer top-up personal loans. However, if the lender does offer top-up loans, you can apply for the same through online or offline channels.

Will I get a loan account statement detailing my payments and outstanding balance?

You can log into your lender’s customer portal to view your loan account statement.

What should I do if I want to repay my loan (partially or in full) during the loan repayment term?

Most lenders will allow you to make pre-payments or pre-close your loan during the loan repayment term. You will, however, have to pay a nominal charge to the lender for doing the same. Keep in mind that most lenders will only allow you to prepay or pre-close your loan after 1 year of borrowing the loan. If you want to prepay/pre-close your loan, ensure that you inform your lender of the same.

Do personal loans offer tax exemptions?

Personal loans only offer tax exemptions if you are using the loan amount for renovation of your house, to pay for educational expenses, or to expand your business.

What is the impact of GST on personal loans?

Prior to the implementation of the Goods and Services Tax (GST), a service charge of 15% was applicable to personal loans. Post the introduction of the GST on 1 July 2017, a service tax of 18% is applicable on personal loans. Thus, there is a 3% increase in the payable service tax. The service tax, however, is only levied on the processing fee, prepayment charges, etc., and not on EMI payments.

Can I get a personal loan without submitting my salary slips?

If you are a salaried employee looking to borrow a personal loan, you should submit your salary slips as proof of employment and income. Lenders will not process your application unless you submit the required documents.

How do I cancel my personal loan after the loan is disbursed?

You can cancel your loan application before the loan amount is disbursed into your account by submitting a written application for the same. You will also need to pay the loan cancellation fee to the lender. Once the loan amount has been disbursed into your account, most lenders will not allow you to cancel it. You can, however, pre-close the loan. If you are thinking of cancelling your loan because you pay a high interest rate on your loan, you can consider transferring your outstanding loan balance to another bank or financial institution.

Since a longer tenure means lower EMIs, should I always choose a longer tenure?

No, not necessarily. This depends on your ability to repay the loan. In other words, how much you can afford to repay every month. If you’re able to afford only a smaller amount each month, choose a longer tenure. But remember that this will result in you paying more interest over the longer duration. Also, it will keep you indebted to the lender for a longer time.

How can I repay my personal loan?

There are a number of ways by which you can repay your loan. These include:

  • Via Electronic Fund Transfer (EFT)
  • By cheque
  • By physically paying at a branch of the lender
  • Via standing instruction for automatic deduction from your account
How often should I repay my loan?

This depends on the lender you choose. Normally, every personal loan repayment is calculated on the basis of a monthly repayment pattern. It includes the principal and interest components that you’re expected to repay each month.

How can I avoid defaulting on my personal loan repayments?

The measures given below can help you pay your loan installments on time:

  • Apply only for a loan amount that you can afford to repay on time
  • Don’t apply for a larger loan simply because you’re eligible for it
  • Choose the tenure wisely. It will determine how much you have to repay every month
  • Choose a loan with a low interest rate
  • Look out for other rates, charges, and hidden fees
  • Plan your finances well
  • Give the utmost priority for your EMI in your monthly budget
  • Make a repayment schedule of your own
  • Set reminders for each month’s repayment
What will happen if I default on my loan repayment when I have offered collateral?

Personal loans are usually unsecured loans. Sometimes, if you don’t fulfill the loan criteria, you may be able to get a loan by offering collateral. In such cases, you have to be extra careful about repaying the loan on time. If you default on your repayment, the lender may take possession of your collateral to cover their losses. Defaulting in such circumstances could make you lose your collateral.

If I have a guarantor, what will happen if I default on my EMIs?

A guarantor is someone who guarantees repayment on your behalf. So, if you’re unable to repay the loan as and when the installments are due, your guarantor will be asked to pay.

If I have a co-applicant, what will happen if I don’t repay my loan on time?

All co-applicants for a loan are equally responsible for repaying the loan. If one applicant is unable to repay the loan, the remaining applicants are expected to do so. So, if you’re not able to pay the EMIs on time, your co-applicant is expected to pay. If your co-applicant also fails to pay the installments on time, it will result in a repayment default.

Are there any charges for prepaying my personal loan?

Some lenders may ask you to pay a fee if you want to prepay a part of your loan. Others may either waive the fee or may not have prepayment charges at all.

How is my prepayment fee calculated?

This depends on your lender. Some lenders charge you a fixed fee for each prepayment. Others may charge you a percentage of the amount outstanding or a percentage of the amount prepaid.

Can I offer collateral and get a loan if I have bad credit?

Yes, you can. This is another way to get a personal loan even if your credit rating is bad. Some lenders may offer you a loan if you’re willing to offer them something as collateral. But keep in mind that the lender has every right to possess your collateral if you don’t repay the loan as promised.

Will I be able to get a loan along with a co-applicant if I have bad credit?

Yes, applying for a loan along with a co-applicant who has good credit can help you get a loan even if you have bad credit. The scores of both applicants are considered when processing a joint-loan application. This way, the good credit of your co-applicant will help balance out your poor credit. But, remember that your co-applicant will be held responsible for repaying the loan if you are unable to do so.

What credit rating should I have to get a loan?

A score of 700 and above is considered to be good. This should be enough to get you a loan without any hassles. But, a score of 800 or more will get you into the good books of lenders. This could get you better interest rates and repayment options.

Why should I take a personal loan?

An unsecured loan can help you during tough financial situations. You can easily apply for one if you qualify for it. Lenders usually process your loan quickly. You won’t have to offer any collateral either.

What does the process of applying for a loan include?

The process of applying for a loan includes the following steps:

  • Searching for the right loan
  • Getting the required documents ready
  • Applying for the loan
  • Submitting the documents
  • Application verification and approval
  • Loan sanctioning and disbursement
What do I need to apply for a personal loan?

To apply for a loan, you need to make sure that you are first eligible for it. Don’t apply for a loan for which you aren’t eligible. This can hurt your credit score. Apart from checking your eligibility, you also need to make sure that you have all the necessary documents in hand before applying.

What will happen if I don’t have one or two of the required documents?

Lenders usually require you to have all the required documents in order before you apply. However, if you don’t have one or more of these, you can talk to the lender and find out if there is an alternative solution. If these are vital documents, your loan will not be sanctioned till you give them.

When will a bank reject my loan application?

A bank can reject your loan application if you apply for a loan for which you are not eligible. It can also reject your application if you fail to submit the documents it requires.

Is part- prepayment allowed on my personal loan?

Personal loans can be prepaid in parts or as a whole at any stage. Some banks may charge a prepayment penalty for the same. Some banks do not allow part-prepayment. So, check all the documents before finalizing on the loan with the bank.

Will I need a guarantor to take a personal loan?

No, you will not need a guarantor.

Can I club my income with my spouse to take a personal loan?

Yes, you can club the income of your spouse to boost your eligibility to avail a personal loan.

How will I be eligible for a relationship discount?

If you have been a customer for a particular bank for a while, then the bank might reduce the loan interest rate or other such charges. Some banks will also provide you additional services.

Do I need to open a bank account to service my personal loan?

Some Lenders deduct your EMIs in your existing account. Some Lenders ask to open a bank account in their bank to deduct your EMIs.

For what reasons should I avail a personal loan for pensioners?

You can avail a personal loan for pensioners to meet various requirements such as planning your child’s marriage, buying your dream home, planning a vacation, for medical purposes, etc.

What will happen if something happens to me after I have taken the loan?

In case you are a pensioner who has availed a personal loan who get disposed or sick or in a situation where you will not be able to repay the loan on time, then your guarantor will have to pay the remaining loan amount to the bank. Personal Loan for Pensioners is a secured loan and a guarantor is required before the bank agrees to allow you to avail the loan.

What is the repayment tenure offered if I avail a personal loan for pensioners?

The repayment tenure offered may range from lender to lender and also depends on your age and the loan amount availed by you. However, the repayment tenure offered may range between 2 years and 5 years.

How do I stop executives from calling me to let me know about other loans?

Some banks let you register yourself for ‘Do Not Disturb'. If you opt for this, the executives will not disturb you with cold sales calls.

What is the best way to apply for personal Loan?

The best way to apply for a personal loan is by using the online loan application tool at The tool can be accessed on this page allowing users to choose loan from various banks and NBFCs as per their selection.

Is my Data Safe with is TamilNadu’s premier financial marketplace and takes utmost care in ensuring that all data is sent in electronic form with high level of encryption. does not share data with any third party other than the financial institution.

Is Personal Loan Tool Free?

Yes personal loan calculator tool is totally free and the portal does not charge any fee for its services from users.

How do I obtain a Duplicate Repayment Schedule for my loan account?

You can request the bank for a personal loan duplicate repayment schedule either via your net banking account, or by calling the customer care unit or by writing to them via your registered email ID.

How can I get my address changed in my loan account?

You can change your address of residence linked to your loan account via your net banking account or by visiting the bank branch. At the bank branch, you will have to fill in the address-change form and submit relevant address proof documents that are authorized or attested by the State or Central Government.

How can I make sure I get approved for a personal loan?

Ensure that you meet the eligibility criteria set by the bank, such as your age, credit score, minimum monthly income, work experience and that there are no discrepancies in the documents that you submit to the financial lender.

Do personal loans affect mortgage?

Not necessarily, but it depends on your current credit score or past repayment record as well as your net monthly income and lender’s discernment if you can repay the loan without any payment lapses.

Can you get a mortgage loan if you have a personal loan?

Yes you can, but it depends on your income and your ability to pay the EMIs of both the home loan and the personal loan.

How many personal loans are too many?

Most lenders do not allow a customer to avail a second personal loan if he/she is still repaying the first personal loan. However, while it is still possible to have multiple personal loans at once, banks take into consideration the debt-to-income ratio of the individual, which will increase the chance of the personal loan being rejected if he/she has existing loans.

What is RTGS?

Real Time Gross Settlement (RTGS) is a real-time money transfer interbank transfer system. Individuals or institutions can send larger amounts of money via RTGS and once the amount is credit in the account of the beneficiary, it is irreversible.

What is NEFT?

National Electronic Funds Transfer (NEFT) is a fund transfer facility between one NEFT-enabled bank account to another. NEFT transfers are not real time like RTGS are the transfers are carried out in batches during the working hours of the bank.

What is SI (Standing Instructions)?

Standing instructions is basically instructions given by a bank customer to the bank to make a payment to another bank account or to the bank at regular intervals or as a one-time payment - as per the requirement. As per the instructions, the money in the bank account of the customer will be debited and remitted in another account as per the specified time of the customer.

How to check personal loan balance?

Bank customers can check their personal loan balance through the repayment schedule that will be issued by the lender.

What happens if a personal loan is not paid?

If the borrower fails to pay the EMI, the bank charges a penal interest on the overdue amount. Financial lenders usually charge a penal interest of 2%-3% per month of the overdue amount. Also it affects your cibil score.

Where can I get a personal loan with bad credit and no checking account?

It could be hard to get a traditional personal loan from a bank with a poor credit score and no checking account. However, certain lenders offer types of personal loans such as payday loans for those with a poor credit score. That said, the interest charged will be quite high.

Can I pay more than my EMI in personal loan?

Over your EMI, after a certain period following the disbursement of the loan, you can make a part-payment towards the loan. The part payment will further deduct the outstanding principal amount of the loan.

Is it good to top up personal loan?

Opting for a top-up loan is better than availing a fresh personal loan, as the documentation process might not be required, the interest rates will be attractive, and the loan amount will be disbursed quickly.

Can a fresher get a personal loan?

Yes, individuals who have just started working can apply for a personal loan offered by certain lenders. Also, some lenders list a minimum of 3 months’ experience and a minimum monthly income of Rs.15,000 to apply for a personal loan.

What is pre-approved personal loan?

A pre-approved loan is one where the customer can apply for a loan and possibly doesn’t need to submit documents or go through the verification process as he/she shares a healthy relationship with the bank as an existing customer and has a clean repayment record.

Do personal loan pre-closures have certain terms and conditions?

Yes, financial lenders have their terms and conditions when it comes to personal loan foreclosures. Usually, financial lenders allow loan pre-closures only after the payment of 12 EMIs and charge a foreclosure charge + GST on the outstanding loan amount. Some lenders are allowing pre-closure after deducting first EMI and nil foreclosure charges.

Is it possible to get a personal loan for a self-employed individual with no income proof?

Most banks and financial lenders require income proof as verification prior to the approval of the loan application. However, for some lenders, the proof of work experience and bank statements of the individual will suffice.

What is reducing rate of interest in personal loan?

If the borrower has opted for the reducing balance interest rate, then the interest will be as per the outstanding amount. As the loan amount decreases with every EMI, the interest rate will be applied only on the outstanding balance. With the flat interest rate option, the interest will remain the same irrespective of the reducing principal amount.

Is the overdraft facility available for salaried individuals?

Yes, it is.

A GST rate of 18% will be applicable on banking services and products from 01 July, 2017.

How To Apply for a Personal Loan


Compare the best Personal Loan packages

At BankVallet, we give you an overview of the latest Personal Loan packages available in the market. With just a few clicks, you’ll be able to compare the best interest rates from our Banks and Financial Partners.


Get in touch with our Personal Loan Specialist

From knowing your loan eligibility to getting your IPA, we’ll fill you in with all the pertinent details regarding Personal Loan. Our Personal Loan Specialists will help you throughout the process and give you unbiased advice.


Apply for your Personal Loan

Once you have your IPA, we can get started with your Personal Loan application. We understand that this is a major life decision and we’re here to guide you. With our help, the Personal Loan application process can be completed within 2 working days. Although, some banks and financial institutions may take up to a week to complete.

Why Get Your Personal Loan
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Leave your Personal Loan research to us and we will break it down for you in simple terms. Our Personal Loan Specialist will contact you directly so you can save time for other important things in life.

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Feeling so spoilt for choice you cannot decide? Settling for the first option is like being forced to marry the first person you come across on a matrimony app. Don’t feel pressured. We compare across all banks in TamilNadu to ensure that you get the best deals.

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Our service to you is free. But, of course we are not doing this for charity! All banks pay us a standard referral fee for our services and our awesome job done. We don’t take sides or give biased advice.

We have helped thousands Tamilnadu consumers choose and apply for their Personal Loans

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