Introduction
Personal loans are one of the most popular financial products because of their flexibility and quick approval process. Whether it’s for medical expenses, education, travel, or consolidating debt, a personal loan can provide the instant financial support you need. However, before applying, it’s important to understand how they work, what to expect, and how to choose the best one.

1. What is a Personal Loan?

A personal loan is an unsecured loan offered by banks and NBFCs without requiring collateral. You can borrow a fixed amount and repay it in monthly installments (EMIs) over a chosen tenure.

2. Key Benefits of Personal Loans

• No Collateral Required: Apply without pledging property or assets.

• Quick Approval: Many loans are approved within 24–48 hours.

• Flexible Tenure: Repay over 1 to 5 years.

• Multi-Purpose Use: Ideal for medical bills, weddings, education, travel, or emergency needs.

3. Eligibility Criteria

Eligibility generally depends on:

• Age (usually 21–60 years)

• Employment type (salaried or self-employed)

• Income level and stability

• Credit score (a good CIBIL score improves approval chances)

4. Tips to Get the Best Deal

• Maintain a good credit score.

• Compare offers from multiple banks/NBFCs.

• Choose a tenure that balances EMI affordability with total interest cost.

• Borrow only what you really need to avoid debt burden.

Personal loans can be a lifesaver when managed responsibly. At The Nest Guru, we simplify the process by comparing multiple offers and guiding you to the best deal — at no cost to you.

FAQs on Personal Loans

1. What is the maximum loan amount I can get?
It depends on your income, credit score, and lender policies. Some banks offer up to ₹25–40 lakhs.

2. How long does it take for a personal loan to get approved?
Most personal loans get approved within 24–72 hours if your documents are in order.

3. Can I prepay or foreclose my personal loan?
Yes, most lenders allow prepayment or foreclosure after a minimum lock-in period, usually with small charges.

4. Will applying for multiple loans affect my credit score?
Yes, multiple loan applications in a short time can reduce your credit score. Compare offers before applying.

5. What is the typical interest rate for personal loans?
Interest rates vary from 10% to 24% annually, depending on your profile and lender’s policies.