Personal Loans in India
A personal loan can help eligible borrowers meet expenses such as medical treatment, family functions, travel, home improvements and other personal financial needs. Banks offer different personal-loan schemes depending on the applicant’s income, employment, credit profile and repayment capacity.
Personal loans may be offered as conventional term loans or as overdraft facilities with reducing Drawing Power (DP). Understanding the eligibility conditions, interest rates, charges and repayment structure can help borrowers choose a suitable facility and avoid unnecessary costs.
Who can apply?
Salaried individuals, self-employed persons, pensioners and other eligible applicants, depending on the bank’s scheme and repayment requirements.
Term Loan or Overdraft?
Personal loans may be offered as term loans repayable through EMIs or as overdrafts with reducing Drawing Power, where permitted under the lender’s scheme.
Is a salary account compulsory?
Not always. Some schemes require a salary account with the lending bank, while others consider applicants receiving salary through another bank.
Types of Personal Loan Facilities
Personal loans are not always provided as a conventional EMI-based term loan. Some banks also offer overdraft facilities, where interest and repayment work differently.
Personal Term Loan
The sanctioned loan amount is disbursed, usually in one instalment, and repaid through scheduled EMIs.
- Fixed repayment schedule with monthly instalments.
- Interest is calculated on the outstanding loan balance.
- Amounts repaid cannot ordinarily be withdrawn again.
Overdraft with Reducing Drawing Power
The bank provides an overdraft limit, but the amount available for withdrawal (drawing power or DP) reduces periodically under the repayment schedule.
- Interest is generally charged on the amount utilised.
- Drawing power reduces as scheduled, even if the borrower has not deposited money.
- The outstanding balance must remain within the applicable drawing power.
Revolving Overdraft
In a revolving overdraft, the borrower can withdraw, repay and withdraw again, within the available limit and the facility’s terms.
- Interest is generally charged on the amount utilised.
- Deposits restore available borrowing capacity, subject to the sanctioned limit.
- The facility may require periodic review or renewal.
How Does Reducing Drawing Power Work?
Suppose an overdraft has an initial drawing power of ₹2,00,000. Under the agreed schedule, it reduces to ₹1,90,000.
The borrower must bring the outstanding balance within the revised drawing power. Any interest or other amount due must also be paid as required under the facility terms.
Personal Loan Eligibility
Personal loan eligibility depends on income, employment or business stability, existing loan obligations, credit history and the lending bank’s scheme conditions. Meeting the basic criteria does not automatically guarantee loan approval.
Salaried Employees
Banks commonly consider employees of government departments, PSUs, private companies and other eligible organisations.
Minimum salary, employment status, length of service and employer category may affect eligibility.
Self-employed & Professionals
Some banks offer personal loans to self-employed individuals and professionals, subject to income, business continuity and credit assessment.
Income-tax returns, bank statements and other financial records may be required.
Pensioners
Banks may offer personal loans to eligible pensioners, particularly those receiving pension through the lending bank.
Loan amount, repayment period and age limits generally depend on the applicable pensioner scheme.
What Do Banks Usually Check?
Whether sufficient income remains after existing EMIs, regular deductions and the proposed loan instalment.
Some schemes require confirmed employment or minimum service. Banks may also consider service with previous employers when an applicant has recently changed jobs.
The repayment tenure may be restricted by retirement age, employment tenure or the scheme’s maximum age conditions.
Home loans, vehicle loans, other personal loans, credit-card dues and repayment commitments can affect the eligible loan amount.
Is a Salary Account with the Lending Bank Necessary?
Not always. Some personal-loan schemes require salary credit into an account maintained with the lending bank. Others accept applicants whose salaries are credited to another bank.
Salary Account with the Lender
The bank can verify regular salary credits and may offer specific loan schemes, concessions or digital pre-approved facilities to eligible account holders.
Salary Account with Another Bank
The lending bank may accept salary statements and arrange EMI collection through an approved repayment mandate, subject to its scheme conditions.
What Credit Score Is Required for a Personal Loan?
There is no universal minimum credit score applicable to all personal loans. Each lender follows its own credit policy, and the required score may differ between schemes and borrower categories.
A stronger credit history can improve the chances of approval and may help in obtaining better terms.
Applicants with limited or no credit history may still be considered under certain schemes.
Existing overdue loans, repayment delays, settlements and high debt obligations may adversely affect the lender’s assessment.
A credit score is only one part of loan appraisal. Banks also examine repayment history, existing loans and recent credit enquiries. Read our CIBIL Score & Credit Report Guide .
Personal Loan Amount & Repayment Tenure
The amount a bank may sanction depends on the applicant’s income, repayment capacity, existing liabilities, credit profile and the applicable personal-loan scheme.
How Much Personal Loan Can You Get?
Banks assess how much additional monthly repayment a borrower can reasonably afford. Some schemes also specify maximum loan amounts or limits based on multiples of salary or income.
Regular salary, pension or eligible business income is considered when assessing repayment capacity.
Current loan instalments and other financial commitments reduce the income available for another loan.
The bank may prescribe a maximum loan amount, income multiple or other ceiling for a particular borrower category.
How Long Can You Take to Repay?
Many personal-loan schemes offer repayment periods ranging from around one to six years, while some extend up to seven years. The available tenure depends on the bank, scheme, applicant’s age and remaining service or earning period.
Shorter Repayment Tenure
- Higher monthly EMI.
- Lower total interest cost.
- Loan is repaid sooner.
Longer Repayment Tenure
- Lower monthly EMI.
- Higher total interest cost.
- Repayment continues for a longer period.
How Does Repayment Tenure Affect Your EMI?
Consider a personal loan of ₹5,00,000 at an interest rate of 12% per annum, calculated on a monthly reducing balance.
| Repayment Tenure | Monthly EMI | Total Interest |
|---|---|---|
| 3 Years | ₹16,607 | ₹97,858 |
| 4 Years | ₹13,167 | ₹1,32,012 |
| 5 Years | ₹11,122 | ₹1,67,333 |
What this means: Increasing the tenure from three to five years reduces the monthly EMI by approximately ₹5,485, but increases the total interest by approximately ₹69,476.
Figures are illustrative and rounded. They exclude processing fees, insurance and other charges.
Calculate Your Own EMI
Use BankBodh’s Super EMI Calculator to compare different loan amounts, interest rates and repayment tenures before deciding how much to borrow.
Personal Loan Interest Rates & Charges
The cost of a personal loan depends on more than its advertised interest rate. Processing charges, other applicable fees and repayment conditions should also be considered before accepting an offer.
Indicative rates and charges from an external comparison website. Verify the final offer with the lender.
Fixed or Floating Interest Rate?
Banks may offer personal loans at fixed or floating interest rates, depending on their schemes.
Fixed Interest Rate
The contracted interest rate ordinarily remains unchanged during the agreed fixed-rate period. This provides greater certainty about the repayment amount.
Check whether the rate is fixed for the entire loan tenure and whether any conditions permit a change.
Floating Interest Rate
The interest rate is linked to a specified benchmark or reference rate and may change according to the loan terms.
A rate change may affect the EMI, repayment tenure or both, depending on the applicable loan terms.
How Is Interest Calculated?
In a conventional EMI-based personal loan, interest is generally calculated on the outstanding principal balance. As the principal is repaid, the interest component of subsequent instalments normally reduces.
Check the APR and Key Facts Statement (KFS)
The Annual Percentage Rate (APR) helps borrowers understand the annualised cost of credit, taking into account interest and applicable charges included under the prescribed calculation.
The Key Facts Statement (KFS) provides important loan information in a standardised format, helping borrowers compare offers before agreeing to the loan.
What Should You Check in the KFS?
Processing Fees & Other Charges
Processing Charges
Banks generally levy processing charges on personal loans. These may be a fixed amount or a percentage of the sanctioned loan amount, depending on the bank and scheme. Some banks may offer concessions or waivers.
Penal Charges for Non-compliance
Delayed repayment or other breaches of material loan terms may attract applicable penal charges. Check the circumstances, amounts and conditions disclosed by the lender.
Other Applicable Costs
Depending on the facility, charges may apply for certain services, changes to loan terms or other specified requests. Prepayment and foreclosure conditions are explained separately in this guide.
Can You Claim Tax Benefits on Personal Loan Interest?
Personal loans used for weddings, travel, shopping or other personal expenses generally do not qualify for income-tax deductions.
Interest may qualify for a tax deduction where the loan meets the conditions for eligible higher education, house repairs or business purposes. The actual use of funds, supporting records, applicable tax provisions and tax regime determine eligibility.
Read the KFS and sanction terms carefully. Confirm the interest-rate type, APR, processing charges, repayment schedule and conditions for prepayment or foreclosure.
Personal Loan Repayment: EMI & Overdraft
Repayment depends on whether the personal loan is sanctioned as a term loan or an overdraft facility. Understanding the repayment method and due dates helps borrowers avoid overdue amounts and additional charges.
Term Loan — Monthly EMI
A conventional personal term loan is normally repaid through scheduled monthly instalments covering principal and interest.
- The EMI and due date are specified in the repayment schedule.
- Each EMI ordinarily includes both principal and interest.
- The outstanding principal reduces as repayments are made.
- Amounts already repaid cannot ordinarily be withdrawn again.
Overdraft — Interest & Drawing Power
A personal-loan overdraft operates differently. Interest is generally charged on the amount utilised, while repayment requirements depend on the sanctioned overdraft arrangement.
- Interest must be serviced according to the facility terms.
- In a reducing-DP overdraft, the outstanding balance must remain within the revised Drawing Power.
- Depositing money reduces the outstanding balance, but the ability to redraw depends on the facility type.
- Revolving facilities may also require periodic review or renewal.
How Is the EMI Collected?
Banks commonly collect EMIs through an automatic debit from the borrower’s account or an approved repayment mandate, such as NACH. Other repayment arrangements may apply under the loan terms.
Confirm the first EMI date. Check the repayment schedule after disbursement, particularly if the first instalment differs from subsequent EMIs.
Maintain sufficient balance. Keep enough funds in the repayment account before the scheduled debit date.
Check whether the debit succeeded. A registered mandate does not guarantee that every instalment will be collected.
What Should Overdraft Borrowers Monitor?
An overdraft borrower should monitor more than the account balance. The available Drawing Power, interest servicing requirements and facility conditions are equally important.
Check how much has actually been utilised and remains payable.
In a reducing-DP facility, ensure that the outstanding amount stays within the permitted Drawing Power.
Pay interest as required by the overdraft terms. A reduction in Drawing Power does not itself settle accrued interest.
Where applicable, check the review, renewal or final repayment date.
What Happens If You Miss a Repayment?
A missed EMI, unpaid overdraft interest or failure to maintain the required Drawing Power may result in an overdue amount or other non-compliance under the facility terms.
Applicable penal charges or payment-return charges may arise, subject to the loan terms and regulatory requirements.
Repayment delays may be reported to credit information companies and can adversely affect future borrowing.
The lender may contact the borrower to regularise the account and take further action in accordance with the loan terms and applicable rules.
Contact the bank promptly, explain the difficulty and ask about the available repayment options. Do not assume that a missed debit will automatically be retried or that an overdue amount has been cleared without confirmation.
Documents Required for a Personal Loan
The documents required depend on the applicant’s employment or income category, existing relationship with the bank and the particular loan scheme. Some existing customers may qualify for simplified documentation.
Documents Commonly Required
Identity & Address
PAN or other applicable tax documentation, identity and address documents as required under the bank’s KYC process.
Bank Statements
Recent account statements showing salary, pension or business receipts and regular financial transactions, where required.
Application & Other Details
Completed loan application, employment or business particulars, existing loan details and other information requested by the lender.
Additional Documents by Applicant Category
Salaried Employees
- Recent salary slips.
- Salary-credit account statements.
- Employment proof or service details, where required.
- Form 16 or income-tax returns, if required by the scheme.
Self-employed & Professionals
- Income-tax returns and income records.
- Business or professional bank statements.
- Financial statements or other income evidence, where required.
- Business or professional registration documents, if applicable.
Pensioners
- Pension payment details or pension slip.
- Pension-credit account statements.
- Pension-related documents requested under the applicable scheme.
How to Apply for a Personal Loan
Eligible applicants can generally apply through a bank branch, its official website or mobile banking application, depending on the facility.
Choose a Suitable Loan Scheme
Compare eligibility, interest rates, repayment tenure, processing charges and the available loan facility.
Submit the Application
Apply through an authorised channel and provide the required personal, income and loan information.
Complete Verification
The lender may verify documents, employment or income, credit history and repayment capacity before deciding on the application.
Review the Loan Offer
Check the sanctioned amount, KFS, APR, charges, repayment schedule and other important terms before accepting the loan.
Complete Documentation & Disbursement
Complete the required loan agreement and repayment mandate. Confirm the disbursement amount and first repayment date.
- Check your likely eligibility before applying to several lenders.
- Provide accurate information about income, employment and existing loans.
- Read the KFS and sanction terms rather than relying only on verbal assurances.
- Keep copies of the application, KFS, loan agreement and repayment schedule.
Digital & Pre-approved Personal Loans
Many banks offer personal loans through their websites and mobile applications. Existing customers may also receive pre-approved or pre-qualified offers based on information available to the lender.
Digital Personal Loan
A digital personal loan allows borrowers to complete some or all stages of the loan process online, including application, verification, acceptance and disbursement.
The lender may still require additional information or verification before approving the loan.
Pre-approved Personal Loan
A pre-approved offer is generally made to selected customers based on the lender’s available information and eligibility criteria.
The final loan amount, interest rate and approval remain subject to the lender’s applicable checks and conditions.
Before Accepting an Online Loan Offer
Confirm which bank or RBI-regulated NBFC will provide the loan, especially when using a third-party lending platform.
Check the sanctioned amount, APR, repayment schedule, charges and Key Facts Statement (KFS).
Understand how EMIs will be collected, the first repayment date and the authorised payment arrangements.
Save the KFS, sanction letter, loan agreement and repayment schedule provided by the lender.
Important Safeguards for Digital Borrowers
1. Clear Disclosure of Loan Costs
The lender must provide the applicable KFS containing important loan details, including the APR and relevant charges, before the borrower enters into the loan agreement.
2. Cooling-off Period
For loans covered by RBI’s digital-lending requirements, borrowers must have an initial cooling-off period of at least one day.
During this period, the borrower may exit the loan by repaying the principal and proportionate borrowing cost without a prepayment penalty. A reasonable one-time processing fee may be retained if disclosed upfront in the KFS.
3. Protection of Personal Data
Digital lending applications must follow applicable consent and data-collection requirements. Borrowers should check what information the app requests and why it is needed.
Be cautious of unnecessary requests for access to contacts, photographs or other sensitive phone data.
4. Loan Disbursement & Repayment
Digital loans are generally disbursed directly into the borrower’s bank account, and repayments are made to the regulated lender, subject to permitted exceptions.
Do not transfer loan repayments to an individual’s personal account merely on the instructions of an agent or an unsolicited message.
How to Check Whether a Loan App Is Genuine
Before using an unfamiliar lending app, verify its association with the bank or NBFC it claims to represent.
- Check the lender’s official website for information about its lending apps and authorised service providers.
- Check RBI’s public directory of digital lending apps for the claimed association.
- Avoid installing loan apps through unsolicited SMS, messaging links or unknown websites.
- Never share OTPs, banking passwords or confidential account credentials with loan agents.
Warning Signs of a Suspicious Loan Offer
- Demands for an advance payment to an individual’s account before loan release.
- Refusal to identify the actual bank or NBFC providing the loan.
- No clear KFS, repayment terms or information about applicable charges.
- Pressure to accept immediately or requests for unnecessary phone permissions.
If an offer appears suspicious, verify it directly with the lender through its official customer-service channels before proceeding.
Personal Loan Prepayment & Foreclosure
You may wish to repay a personal loan before its scheduled maturity to reduce interest costs or become debt-free earlier. Before making an additional payment, check how the lender will treat it and whether any charges apply.
Part-prepayment
You pay an additional amount towards the outstanding principal while keeping the loan account open.
This can reduce future interest costs. Depending on the loan terms, the bank may reduce the EMI, shorten the repayment tenure or offer a choice between the two.
Full Foreclosure
You repay the entire amount required to close the loan before its scheduled maturity date.
Obtain the final closure amount from the lender, including interest accrued up to the applicable settlement date and any lawful charges.
When Are Prepayment Charges Not Allowed?
For floating-rate loans granted to individuals for purposes other than business, RBI rules prohibit prepayment charges, subject to the applicable provisions.
For eligible floating-rate loans, the protection applies to both part-prepayment and full repayment, irrespective of the source of funds and without a minimum lock-in period. It also covers eligible overdraft facilities.
Individual borrowers with eligible non-business floating-rate term loans sanctioned before 2026 are also protected against prepayment charges. Different provisions may apply to older overdraft facilities.
What About Personal-loan Overdrafts?
Closing an overdraft facility is different from simply depositing money into the overdraft account.
Reducing the Balance
Depositing funds reduces the amount outstanding, but does not necessarily close the sanctioned overdraft limit.
Closing the Facility
Request formal closure, settle the outstanding dues and obtain confirmation that the overdraft limit has been cancelled.
Important for Overdraft Borrowers
Bringing your overdraft outstanding balance to zero does not automatically close the facility. The sanctioned limit may remain active, and applicable renewal or maintenance charges may continue.
Should You Prepay Your Personal Loan?
Prepayment can be beneficial, particularly when the interest saved is greater than any applicable cost of early repayment.
Check how much future interest you can save by reducing the principal.
Confirm whether a prepayment charge is legally permitted and, if so, how much it will be.
Avoid using all your available savings if it would leave you without money for emergencies.
Checklist for Closing a Personal Loan
Request a foreclosure statement. Obtain the amount payable and its validity date from the lender.
Pay through an authorised channel. Retain the payment receipt or transaction confirmation.
Collect closure confirmation. Obtain the No Dues Certificate or loan closure letter, as applicable.
Check the repayment mandate. Confirm that further EMI debits will stop and any standing instructions are appropriately cancelled.
Verify the credit report. After the lender’s reporting cycle, check that the account is correctly shown as closed, with no incorrect outstanding balance.
If you make a part-prepayment, obtain the revised repayment schedule or confirmation of the new EMI or tenure. Do not assume that an extra deposit has automatically been adjusted against the principal in the manner you intended.
Personal Loan Insurance & Optional Add-ons
Banks may offer loan protection insurance or other products along with a personal loan. Before accepting them, understand their purpose, cost and conditions.
What Is Personal Loan Protection Insurance?
Loan protection insurance is intended to provide financial protection against certain specified events, such as the borrower’s death or disability, depending on the policy coverage.
The insurer may pay an eligible claim towards the outstanding loan or provide benefits according to the policy terms.
What Should You Check Before Buying?
Coverage
Check which events are covered, the insured amount and whether the cover reduces with the loan balance.
Exclusions & Conditions
Read the exclusions, waiting periods and claim conditions. Not every illness, disability or loss of income is necessarily covered.
Premium & Total Cost
Confirm the premium, applicable taxes and whether the amount will be paid separately or financed through the loan.
Early Loan Closure
Check whether insurance continues after foreclosure and whether any premium refund or cancellation benefit is available.
When the Insurance Premium Is Added to the Loan
Some lenders may offer to finance the insurance premium as part of the loan. In that case, interest may also be payable on the financed premium.
Other Products Offered with a Personal Loan
Borrowers may also be offered other insurance, assistance services or financial products. These should be assessed separately from the personal loan.
Before agreeing, check whether the product is optional, what it costs, who provides it and how it can be cancelled.
Ask for the policy details and premium breakup. Make sure you understand the coverage and exclusions, and keep a copy of the policy document. If a product is presented as compulsory, ask the lender to identify the applicable requirement.
Compare Personal Loans Across Banks
Personal loan schemes differ in loan amount, repayment tenure, eligibility and facility type. The comparison below highlights selected features of 15 major Indian banks, with links to their official websites.
The amounts and tenures shown are published scheme limits, not guaranteed eligibility. Your actual offer may depend on income, employment, credit profile, existing loans and the bank’s applicable scheme.
State Bank of India (SBI)
Public SectorPersonal loan facilities for eligible salary-package customers, including term loans and reducing-Drawing-Power overdraft options under applicable schemes.
View SBI Personal LoanPunjab National Bank (PNB)
Public SectorTerm loan and reducing-Drawing-Power overdraft options. Suitable third-party guarantee requirements may apply under the relevant scheme.
View PNB Personal LoanBank of Baroda
Public SectorPersonal loan terms vary by employment category, income and salary-account relationship. Longer tenures are available to eligible categories.
View Bank of Baroda LoanCanara Bank
Public SectorSeparate personal loan schemes for eligible employment categories, with different eligibility and co-obligation conditions. An overdraft variant is also available.
View Canara Bank LoanUnion Bank of India
Public SectorDifferent personal loan offerings for eligible salaried and other applicants. Loan limits and conditions depend on the particular scheme.
View Union Bank LoanBank of India
Public SectorStar Personal Loan for eligible applicants, including salaried individuals and self-employed borrowers, subject to scheme conditions.
View BOI Star Personal LoanIndian Bank
Public SectorIB Clean Loan for eligible salaried customers. Loan ceilings and salary credit conditions vary by category; term loan and overdraft options are available under applicable schemes.
View Indian Bank Clean LoanCentral Bank of India
Public SectorPersonal loan benefits under the Cent Param salary package, subject to eligible salary-account and employment conditions.
View Cent Param SchemeHDFC Bank
Private SectorPersonal loans with digital application facilities and pre-approved offers for selected customers.
View HDFC Personal LoanICICI Bank
Private SectorPersonal loans through online and branch channels, with selected-customer pre-approved offers and eligibility-based loan terms.
View ICICI Personal LoanAxis Bank
Private SectorPersonal loans with digital application options and repayment tenures subject to borrower eligibility and the applicable product.
View Axis Personal LoanKotak Mahindra Bank
Private SectorPersonal loans based on income, employment and credit eligibility, with digital application facilities.
View Kotak Personal LoanIDFC FIRST Bank
Private SectorFIRSTmoney is a digital personal loan offering with additional withdrawal flexibility and zero foreclosure charges under its published product terms.
View IDFC FIRST LoansFederal Bank
Private SectorFedPremia Personal Loan for eligible salaried applicants, with income and other scheme-specific conditions.
View Federal FedPremiaIndusInd Bank
Private SectorPersonal loans with digital application facilities. Loan amounts and conditions may differ between online offerings and other bank schemes.
View IndusInd Personal LoanWhich Personal Loan Should You Choose?
A higher loan ceiling or longer repayment tenure does not automatically make a loan more suitable. Compare the amount you actually need, the EMI you can comfortably repay, the APR, applicable charges and repayment flexibility.
If you are considering an overdraft, compare its Drawing Power and repayment conditions with those of a conventional EMI-based term loan.
*Certain amounts, tenures and facilities are restricted to specific applicant categories or schemes. Banks may revise their products and conditions. Check the linked official bank pages before applying.
Personal Loan Rejected? Reasons & What to Do
A personal loan application may be declined even when the applicant has a reasonable income or a good credit score. Banks assess several factors before sanctioning a loan. Understanding the possible reason can help you decide what to do next.
Common Reasons for Rejection
1. Existing EMI Burden Is Too High
Existing loan repayments may leave insufficient income for another EMI.
2. Credit Report Issues
Overdue payments, defaults, settlements or inaccurate credit-report entries may affect the bank’s assessment.
3. Income or Employment Conditions
The applicant may not meet the bank’s minimum income, employment stability, business vintage or other scheme requirements.
4. Frequent Loan Applications
Several recent credit applications may raise concerns about additional borrowing or financial pressure.
5. Documentation or Verification Problems
Missing documents, inconsistent information or unsuccessful employment, income or address verification can delay or prevent approval.
6. Bank-specific Lending Policy
The application may fall outside the bank’s permitted customer profile, loan amount limits or internal credit-assessment criteria.
Yes. A good credit score can support an application, but it does not guarantee sanction. Income, existing liabilities, repayment capacity and the lender’s eligibility conditions also matter.
What Should You Do After Rejection?
Ask for the reason. Contact the lender and request clarification regarding the rejection.
Review your credit report. Check for overdue accounts, incorrect entries or other information that needs attention.
Address the identified issue. Improve repayment capacity, correct documentation or resolve credit-report errors, as applicable.
Reapply selectively. Choose a suitable lender or scheme after checking eligibility rather than submitting multiple applications immediately.
Personal Loan Complaints & Grievance Redressal
If you face incorrect charges, repayment disputes, loan closure delays or other servicing problems, raise a written complaint with your lender. If the issue remains unresolved, you may be able to approach the RBI Ombudsman.
Common Personal Loan Complaints
Charges & Repayment
Disputed charges, incorrect interest calculations, EMI debits or payment adjustments.
Loan Closure
Delayed closure confirmation, incorrect outstanding balances or continued debits after closure.
Credit Report Errors
Incorrect overdue amounts, repayment history or loan status reported to credit information companies.
Digital Loans & Recovery
Problems involving lending apps, unauthorised charges, recovery-agent conduct or misuse of personal data.
How to Escalate Your Complaint
Contact Your Bank or Lender
Register a complaint through the lender’s branch, official website, app or grievance channel. Keep the acknowledgement and complaint number.
Escalate Within the Lender (if needed)
If needed, escalate your complaint within the lender. Use our Bank Complaint Directory to find the official escalation contacts, including the nodal officer. This additional escalation is not compulsory before approaching the RBI Ombudsman.
Approach the RBI Ombudsman
If you receive an unsatisfactory response, or the lender does not respond within the applicable waiting period, you may file an eligible complaint with the RBI Ombudsman.
When Can You Complain to the RBI Ombudsman?
Under the Reserve Bank – Integrated Ombudsman Scheme, 2026, you must first complain to the concerned lender.
You may approach the Ombudsman if you are dissatisfied with the lender’s reply or resolution.
You may approach the Ombudsman if no reply is received within 30 days, or a longer period specified under applicable regulatory guidelines.
File within 90 days from the expiry of the applicable response period or the lender’s last communication, whichever is later.
The Ombudsman examines eligible service complaints against entities covered by the Scheme. A bank’s commercial lending decision, such as declining a loan on credit-assessment grounds, is generally outside its scope.
RBI Ombudsman complaints are free. For guidance, call RBI’s toll-free contact centre at 14448. Complaints cannot be filed through this telephone number.
What Should You Keep Ready?
- Loan account details and the lender’s name.
- Copy of your original complaint and its acknowledgement or reference number.
- Lender’s response, if received.
- Relevant statements, receipts, screenshots or other supporting documents.
- A clear explanation of the problem and the resolution you are seeking.
What If a Recovery Agent Harasses You?
RBI instructions prohibit intimidation, abusive conduct, threats, public humiliation and harassment of borrowers or their family members during loan recovery. Recovery calls before 8:00 AM or after 7:00 PM are also prohibited under the applicable RBI instructions.
Keep records of calls, messages and incidents. Report the conduct to the lender’s grievance officer. If the complaint remains unresolved, use the applicable RBI grievance mechanism. For threats or suspected criminal conduct, approach the police.
Check the name of the actual bank or NBFC providing the loan in your loan documents or Key Facts Statement. Raise the complaint with that lender, even if the loan was arranged or serviced through an app or lending service provider.
Personal Loan — Frequently Asked Questions
Quick answers to common questions about personal loan eligibility, approval, repayment and closure.
Is a CIBIL score of 750 compulsory for a personal loan?
No. There is no universal requirement that every personal loan applicant must have a CIBIL score of 750. Each lender applies its own credit assessment and eligibility criteria. A higher score may improve your chances, but it does not guarantee approval.
Can I get a personal loan without a previous credit history?
It may be possible. Some lenders consider applicants with limited or no credit history, particularly when income and employment details are satisfactory. Approval depends on the lender’s policy.
Must I take a personal loan from the bank where my salary is credited?
No. You can apply to another lender, provided you meet its eligibility conditions. Some salary-linked loan schemes, however, require a salary account with the lending bank.
Can a self-employed person apply for a personal loan?
Yes, if the lender offers a suitable scheme. Income-tax returns, bank statements, business continuity and other income documents may be required.
Can I have two personal loans at the same time?
Yes, subject to the lender’s assessment. Existing EMIs and other liabilities will be considered while deciding whether you can comfortably repay another loan.
Is a guarantor compulsory for a personal loan?
Not necessarily. Many unsecured personal loan schemes do not require a guarantor. However, a lender may require one under a particular scheme or based on its assessment.
Does checking or applying for a personal loan affect my credit score?
Checking your own credit report does not lower your score. A formal loan application may result in a lender enquiry on your credit report. Multiple applications within a short period may affect your credit assessment.
Does a pre-approved personal loan mean approval is guaranteed?
No. A pre-approved offer may still be subject to verification, eligibility checks and the lender’s final approval. Check the actual interest rate, charges and Key Facts Statement before accepting.
Can I change my personal loan EMI payment date?
Some lenders allow an EMI date change on request, subject to their rules and any applicable charges. Contact the lender before the next due date. Do not assume that requesting a change suspends the existing EMI.
What happens to my personal loan if I change or lose my job?
Your repayment obligation continues. A job change does not automatically cancel or transfer the loan. If repayment may become difficult, contact the lender early to discuss the available options.
Is personal loan insurance compulsory?
Insurance is not universally compulsory for personal loans. Check whether a particular scheme requires it, what the policy covers and whether the premium is being financed as part of your loan.
What should I check after fully repaying my personal loan?
Obtain loan closure confirmation, check that any repayment mandate is appropriately discontinued, and verify that the account is subsequently reported as closed in your credit report. Follow up with the lender if the status remains incorrect.
Remember: Personal loan terms can differ across banks and schemes. Always check your sanction terms and Key Facts Statement for the conditions applicable to your loan.
References & Official Sources
This guide draws on RBI regulations and published personal-loan information from banks in India.
- RBI — Commercial Banks: Credit Facilities Directions, 2025 Digital lending and borrower safeguards
- RBI — Commercial Banks: Responsible Business Conduct Directions, 2025 Key Facts Statement, charges, prepayment and recovery practices
- RBI — Integrated Ombudsman Scheme, 2026 Complaint escalation and redressal
- Income Tax Department — Income-tax Act, 2025 as amended by Finance Act, 2026
Official product-page links for the 15 banks are provided in the bank comparison section .
Banking rules, contact details and procedures can change. If you notice something outdated, incorrect, unclear or missing, or have an idea that could improve BankBodh, please let us know.
If you need further clarification or want to suggest a related question for BankBodh, write to us at hello@bankbodh.com .