Personal loan
An unsecured loan from a bank or lender, repaid in fixed monthly EMIs, that you can use for almost anything.
A personal loan is quick to get but costs more than a secured loan. Work out your EMI and see the month-wise schedule with our personal loan EMI calculator, and weigh it against card debt in personal loan vs credit card.
The full picture, with fees, APR and foreclosure rules, is in our personal loan guide.
Questions people ask
What is a personal loan?
A loan you can use for almost any purpose, with no collateral. The lender decides the rate mainly from your income and credit score, and you repay it in fixed monthly EMIs over a set term, often 1 to 5 years.
Why are personal loan rates higher than home loan rates?
Because the loan is unsecured. If you stop paying, the lender has no house or car to fall back on, so it charges more for the extra risk.
What should I check before taking a personal loan?
Compare offers on the annual percentage rate in the Key Fact Statement, which includes fees, not just the interest rate. Check whether the rate is flat or reducing, the processing fee, and any charge for paying early.
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