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Personal Loan
A personal loan can be availed when an individual has an immediate requirement of funds, with minimal documentation, processing time with immediate disbursal to Customer bank account. It serves as a great option for individual for meeting their immediate financial requirements.
We, at Muthoot Finance, understand our customers and provide them with the perfect solutions for their requirements. One can apply for a personal loan online as well for enhanced ease. Get in touch with us to know your personal loan eligibility & other terms and conditions.
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Personal loan EMI calculator
Personal loans offer an easy way for individuals when they want to finance a long-term goal. An important aspect that an individual should consider before availing a personal loan is the EMI that they will be liable to pay.
If you want to avail a personal loan from Muthoot Finance, you can use our personal loan EMI calculator to easily calculate the EMI you will have to pay even before you apply for your personal loan online. All you need to do is enter details such as the loan amount and loan tenure to calculate the monthly loan EMI.
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CUSTOMER SUPPORT NO.:
080-68436919 (Mon-Fri, 10 AM to 6 PM)
SALES SUPPORT NO.:
8767017711 (Missed Call)
WRITE TO US:
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What is a personal loan?
A personal loan comes in handy when you have an immediate financial requirement with minimum turnaround time& it is also known as an ‘all-purpose loan’. Unlike other secured loan products a personal loan has easy eligibility criteria & documentation. Today, one can avail instant personal loans to fulfil their personal needs.
How to get a personal loan?
If you are in need of immediate credit, the first thing you need to do is submit a personal loan application form along with applicable documents to the lender which is then verified and approved. After this, the loan amount is disbursed into your bank account. Upon receiving the loan amount, you are required to repay the lender through EMIs (Equated monthly instalments) over the course of the loan repayment tenure.
A personal loan, if used judiciously, can also prove to be advantageous for improving your credit score.
Why choose a personal loan?
A personal loan can help you take care of various financial needs in a convenient manner. Major expenses can come up at any time without warning and could drain your savings. In such situations, opting for a personal loan can be very helpful. Some of the common reasons for applying for a personal loan can include financing a festive celebration, constructing a house, fixing a car, etc.
In addition, a personal loan can also aid you in meeting any shortfall experienced in purchasing a car or house, or in cases of medical contingencies, or for the higher education of your children, among other things. Going for a personal loan offers the easiest way to raise funds to make all your future plans come true, that too in a quick manner.
Let’s explore some of the other reasons why one can opt for a personal loan:
- Debt Consolidation: It aids you in consolidating your expenses as you can pay off your credit card bills or other debts on time.
- Flexibility of Use: you have the flexibility to use the loan for any expense
- Quick Approval: At the time of securing a personal loan, minimum documentation is required, which results in quicker processing.
- Reasonable Interest Rates: Another reason to go for personal loans is that they are available at reasonable interest rates.
All in all, numerous people are opting for instant personal loans today for many different reasons and you can avail one too if you have a personal need to take care of.
Factors That Affect Personal Loan Eligibility
Before you apply for a personal loan online, you should know about the different factors that impact your eligibility for a personal loan. These include:
- Geographic location: The area where you live plays an important role in determining your eligibility for a personal loan.
- Existing credit: If you are already repaying other loans your eligibility for a new loan will be affected.
- Housing situation: If you live in your own house, you have an increased chance of getting your personal loan application approved. This is because if you reside in a rental house, it reduces your disposable income, which will lead to lower eligibility of Personal loan.
- Income: The higher a person’s income, the higher is the loan amount they are eligible for. So, it may be said that your personal loan eligibility also depends on your income.
- Organisation: Another determining factor in your personal loan eligibility is the company for which you work. Working for a well-known company that holds a good reputation in the market ensures that you have a stable job.
- Credit history: Your credit history and credit score have the largest impact on your personal loan eligibility. The tenure, the interest rate, and the total loan amount that you can borrow will depend on this.
If individuals want to improve their eligibility for personal loans, they should pay their loan EMIs and credit card dues on time and in full, decrease their existing debt, minimising credit utilization, and so on.
Factors That Impact Interest Rates On Personal Loans
Another thing that you should be aware of before you apply for a personal loan online is the interest rate and the factors that affect it.
- Income : At the time of deciding the interest rate, loan providers consider the income of the applicant. People with high income may be offered a lower interest rate. Individuals with lower annual incomes, on the other hand, may have to pay an interest rate that is higher.
- Nature of the employment: Interest rates offered may differ on the basis of whether the applicant is Salaried profile with regular employment.
- Employer details: There is an increased chance of a financial institution offering you a lower rate of interest if you work at a reputed organization.
How To Get Lower Interest Rates On A Personal Loan?
When you are about to apply for a personal loan online, there are certain tips that can prove to be helpful in availing a lower rate of interest. Some of these tips include:
- Improve Your Credit Score: A high credit score denotes that an individual is creditworthy. A lender will offer lower personal loan interest rates to an applicant with a high credit score. So, before you apply for a personal loan online, you should check your credit score.
- Do Not Miss Repayments: If you miss a credit card or a loan repayment, your credit score gets affected in an adverse manner. Loan providers generally consider your repayment history before deciding the interest rate for a personal loan. Individuals who have paid their past EMIs as well as credit card bills on time are more likely to be charged a lower interest rate.
- Look out for offers: During festive occasions, financial institutions generally offer special interest rates for a limited period of time. You may be offered a lower interest rate if you apply for a loan when such offers are available.
Things To Know Before Applying For A Personal Loan
Some important points that you should be aware of before applying for a personal loan are:
- Analyse the necessity of loan: The purpose of taking personal loans or any other loan for that matter is generally to meet immediate financial needs. So, if you can handle your financial situation without availing the loan, you must restrain from getting it.
- Penalty Charges: If you don’t pay your EMIs/dues on time, a high penalty will be charged.
- Borrow within your means: When you apply for a personal loan, ensure you borrow within your means. An individual should choose to go for a personal loan in a careful manner after carrying out due research. You should also understand both the benefits and costs involved before availing a personal loan.
What documentation is required at Muthoot Finance for a personal loan ?
Latest salary slip, salary credit bank statement & KYC documents are required to be submitted for salaried individuals for applying for a personal loan from Muthoot Finance. You will also be required to submit additional documents as decided by the sanctioning authority. You can read more about the documentation that is required for availing a personal loan by Muthoot Finance in our Loan Policy.
Why take a personal loan from Muthoot Finance
Do you need immediate funds to deal with your financial needs? We, at Muthoot Finance, understand our customers and their various needs and provide the right solutions. Fulfil all your plans such as travelling, or invest in your kid’s higher education, or plan an upcoming wedding by availing a personal loan from Muthoot Finance. We offer loans that allow you to meet all kinds of personal needs. At Muthoot Finance, you can easily apply for a personal loan online.
When it comes to availing a personal loan from Muthoot Finance, you enjoy a variety of benefits as well. These include access to a loan that requires no collateral and minimum documentation. We offer personal loans at affordable interest rates and with quick processing. Other highlights of our service include flexible repayment options with multiple tenures.
Individuals can avail a personal loan through a simple and easy process from Muthoot Finance, repayable as EMI for a maximum tenure of sixty-months. If you wish to avail unsecured loans for any financial purpose, we have the best offers for you.
Ask an Expert
CUSTOMER SUPPORT NO.:
080-68436919
(Mon-Fri, 10 AM to 6 PM)
SALES SUPPORT NO.:
8767017711
(Missed Call)
WRITE TO US:
plcustomersupport@muthootgroup.com
BRANCH TIMINGS:
Mon-Sat, 9:30 AM to 6 PM
WHAT OUR CUSTOMERS HAVE TO SAY
Muthoot Finance is my first choice for personal loans. They have flexible repayment schemes and very attractive rates of interest for their loans, which makes them one of the best financial service providers around.
Marut Talwar
Taking a Gold Loan from Muthoot Finance is a very simple process and requires minimum documentation. I was able to get a very good rate of interest and the staff was very helpful in helping me avail the loan. Most important of all, Muthoot Finance is a brand you can trust.
Sagar Sachdeva
We needed more funds apart from the approved home loan amount in order to buy our dream home. That’s when we decided to get a personal loan from Muthoot Finance. The easy documentation and simple process really made the whole process seem effortless. Even to this day, I look back at how Muthoot Finance helped us cross the line.
Maninder Singh
A personal loan gives you easy access to money when you require it the most! I availed a personal loan from Muthoot Finance when I wanted to renovate my home. The overall process was a quick one. I only had my Aadhaar Card, but getting an instant personal loan was not difficult.
Sonam Anand
I got an instant personal loan from Muthoot Finance and I must say I am immensely satisfied with my overall experience with the company. They offer personal loans at reasonable interest rates.
Navya Singh
One of the best options for self-employed looking for personal loans. The Interest rates are generally pretty high for such loans but that’s not the case at Muthoot Finance. One can apply for a personal loan online with Muthoot Finance too, which is another plus point for me.
Nikita Sachdeva
Muthoot Finance offers the best rates for a personal loan for self-employed individuals. I was looking for a quick financial fix and availed a personal loan from them. The entire process of taking the loan from Muthoot Finance is very simple.
Arpit Verma
When I heard that one can avail a personal loan from Muthoot Finance, I went ahead and took a personal loan from them. With Muthoot Finance, one can apply for a personal loan without a PAN card using their Aadhaar Card. I had a great overall experience with the company.
Vaibhav Rana
FAQs
You can jointly apply for a personal loan offline and online with your spouse by visiting the Muthoot Finance website or your nearest branch. It is frequently simpler to obtain loans if you have a co- applicant. When a borrower applies for a personal loan with a co-applicant, their credit score and income are combined with their co-applicants. Moreover, you can also avail of a joint personal loan with your parents and siblings. To know about eligibility criteria, interest rates, repayment options etc., contact us at our customer support no. - 080-68436919 (Mon-Fri, 10 AM to 6 PM).
The maximum tenure for personal loans differs from lender to lender to ensure that the borrowers can choose as per their financial situation and goals. However, the maximum tenure period for a personal loan that Muthoot Finance offers is five years. Before applying for an instant personal loan online, on our website, you can get an idea of your monthly EMI with the help of a personal loan EMI calculator by adding the estimated loan amount and tenure.
When a person submits all the necessary documents required in the bank, then the bank officials verify them, and after approval, the personal loan amount is disbursed to the customer's bank account.
Today getting a personal loan is handy and hassle-free. At Muthoot Finance, with minimal documentation, quick processing and reasonable interest rates, you can get an instant personal loan. After filling out the loan application, submit the required documents like bank statements for income proof, address proof, identity proof etc., to the bank. The loan amount will be disbursed as soon as your proofs and documents are validated by the concerned authorities.
Yes, you have the option of a balance transfer when you take a personal loan. A Personal Loan balance transfer is the procedure by which a borrower moves the whole outstanding personal Loan amount from one bank to another. Typically, it occurs when the new bank offers a reduced interest rate on the outstanding loan balance. Therefore, the main goal of a personal loan transfer is to lessen the total amount of debt.
The primary benefit of a personal loan balance transfer is to lessen the borrower's interest burden. Moreover, you can opt for a lender that offers top-up loans at competitive rates of interest to ensure that you do not have to face any financial constraints.
Personal loans do provide tax advantages depending on how the loan is used. The Indian Income Tax Act permits tax deductions for loans taken out for particular objectives, such as education, home improvement or purchase, business expansion, etc.
Property construction: According to Section 24 of the IT Act, if the loan amount is utilised to buy or build a home, the interest paid can be deducted from your taxable income.
Business expansion or purchase of assets: If the loan money is used for any other business purpose or to acquire assets other than real estate, the interest paid is added to the acquisition cost. This will reduce the capital gains and, in return, the tax liability.
Loan closed/closure: A loan is marked close when the borrower pays all the loan amount (principal amount + interest) in a timely manner without any failure.
Loan settlement: It refers to a situation of obtaining a loan from a bank or NBFC, but you are unable to make payments owing to a sickness, an injury, a loss of employment, or another reason. In this case, you notify the lender of your position and request that you be given some time off before beginning repayments. The lender may offer you a one-time personal loan settlement option in which you take some time off and then pay off the debt all at once. The credit report will reflect this loan's status as "settled" after it has been repaid in full.
Loan default: It is a situation when the borrower omits to pay the repayments of his loan amount for an unspecified period of time.
Defaulting a loan and loan settlement can drastically reduce a borrower's credit score, which further negatively impacts their future eligibility for credit. On the other hand, the closure of personal loans positively impacts the credit score.
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