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10 Best Personal Loan Apps Currently In India

 

By Daniel Asikpo Aug 19, 2023

 

Sometimes one needs financial support to start or complete a project. Unexpected circumstances such as emergent medical service and debt consolidation may surface and going to the bank is stressful and demands a lot of paperwork. 

 

 

Who needs paperwork when it is already emergent? You just need to meet the credit score. Before then let's understand what a credit score means, factors to consider before choosing a loan app and eligibility status in order to access a loan

 

What is a Credit Score?

 

A credit score is a numerical representation of a person's creditworthiness, indicating how likely they are to repay borrowed money. It's based on an individual's credit history and financial behaviour, including factors like payment history, credit utilization, length of credit history, types of credit accounts, and new credit inquiries.

 

Lenders use credit scores to assess the risk of lending money to an individual. A higher credit score generally suggests lower risk and makes it more likely for someone to be approved for loans and credit, often with more favourable terms and interest rates.

 

Factors to Consider When Choosing a Personal Loan App

 

Yes, when choosing a loan app one needs to be vigilant in order not to pass information to the wrong hands who in turn may do damage rather than favour. Here are some factors to be considered;

 

Credibility and Reputation: Look for well-established and reputable loan apps: research reviews, ratings, and feedback from other users to gauge their credibility.

 

Interest Rates and Fees: Compare the interest rates and any additional fees associated with the loan app. Lower interest rates and transparent fee structures are preferable.

 

Loan Terms: Understand the loan terms, including repayment period and frequency. Choose terms that align with your financial situation and repayment capabilities.

 

Loan Amounts: Check if the loan app offers the loan amount you need. Some apps might have limits on the maximum loan amount they provide.

 

Application Process: A user-friendly and straightforward application process is essential. Look for apps that offer a quick and convenient way to apply for a loan.

 

Approval Time: Consider how long it takes for the loan app to process and approve your loan application. Some apps provide instant approval, while others might take longer.

 

Security: Ensure that the loan app follows robust security measures to protect your personal and financial information.

 

Customer Support: Access to responsive and helpful customer support can be crucial if you encounter any issues or have questions about the loan process.

 

Repayment Flexibility: Check if the loan app offers flexibility in repayment options. Some apps might allow you to choose your repayment schedule.

 

Early Repayment Options: Look for apps that allow early repayment without imposing excessive penalties or charges.

 

Credit Score Requirements: Understand the credit score requirements for approval. Some loan apps might cater to individuals with lower credit scores, while others require higher scores.

 

Reviews and Recommendations: Seek recommendations from friends, family, or online communities regarding loan apps that others have had positive experiences with.

 

Terms and Conditions: Thoroughly read and understand the terms and conditions of the loan app, including any fine print, before proceeding.

 

Accessibility: Ensure that the loan app is available on your preferred platform (Android, iOS, web) and is compatible with your device.

 

Regulations: Check if the loan app operates within the legal and regulatory framework of your region to ensure your rights and protections as a borrower.

 

Eligibility criteria for obtaining a loan through a personal loan app

 

There are essential criteria to meet in order to benefit from a personal loan through a personal loan app in India. They are as follows!

 

Age - The standard minimum age requirement is  18 years.

 

Income - Income flow is necessary. One must have a steady source of income. Depending on the loan amount needed, income flow varies from lender to lender.

 

Credit score - Lenders check your credit score to check your credibility and usually look for a score above at least 650.

 

Residency Status - You must be a resident in the country where you’re applying for a personal loan.

 

Employment Type - To qualify for a personal loan, you must be employed. Most lenders require you to be employed for a certain period of time.

 

Bank Account -  A registered and functional bank account is mandatory.

 

Other Documents - Some lenders may require your income proof, residence proof, and a copy of your identity proof (Aadhar card/PAN card/Driving License) and photograph as additional documents.

 

That said, we move to the top personal loan app.

 

10 Best Personal Loan Apps In India

 

1. PaySense

 

This loan app provides instant online personal loans with minimum requirements. It offers loans for all kinds of financial needs. PaySense offers loans to both salary and self-employed individuals from Rs. 5000 to 5 Lakhs with interest rates ranging from 18%-36% annually.

 

Loans are repaid within a period of 3-60 months with an approval time of around 24 hrs and a disbursal time of 2-3 days. 

 

You must be an Indian resident within the age range of 21-60 years and have a minimum monthly income of Rs. 18,000 and Rs. 20,000 for salaries and self-employed respectively.

 

2. Navi

 

Another fantastic personal loan app. According to Navi "Navi offers instant personal loans at attractive interest rates with flexible repayment tenures." All you need to do is download the Navi app, complete your KYC with PAN or Aadhaar and apply. The entire loan journey – from application to disbursal hardly takes a few minutes."

 

Their minimum loan amount is Rs. 10,000 and a maximum of 20 Lakhs with an interest rate of 9.90% to 36% annually under a 60-month repayment span.

 

The age range requirement is 21-65 years with a minimum income proof of 3 lakhs in a year.

 

3. IndusInd Bank

 

They prefer a credit score of 700. IndusInd gives a loan of Rs. 30,000 to 15 Lakhs provided you meet the needed criteria. Salary employees must be 21-60 years with a minimum monthly income of 25,000 and self-employed individuals and professionals must be 21-65 with an annual income of 4.8 Lakhs.

 

 A work experience of 2 years, 4 years and 5 years respectively. Loans are granted under a 5-year span with interest rates ranging from 10.49%- 31.50% per annum. Their approval and disbursal time is within 1-2 days.

 

4. Aditya Birla Personal Finance

 

This personal loan app gives Online approval within half an hour with minimal documentation. They offer a minimum loan of 1 Lakh and a maximum of 15 Lakhs with interest rates in the range of 13% to 28% annually.

 

 The loanee must be at least 23 years old and no older than 60 years with a minimum net monthly income that is not less than Rs. 45,000. Their flexible repayment tenure is from 12 to 84 months. Their loans are offered to salaried individuals only.

 

5. Tata Capital

 

This is another personal loan app to use to top up your finance. The eligibility varies between salaried and self-employed individuals. According to Tata Capital, "Your personal loan eligibility depends on your age, income, credit score, professional experience, and nature of employment. Employed individuals between the age of 22 to 58 years can opt for a quick personal loan."

 

Tata Capital gives a minimum of 6 and a maximum of 84 months for their loan to complete repayment. They offer instant loans ranging from Rs. 75,000 to 35 Lakhs when the needed requirements are met.

 

6. Moneyview

 

The loans available under the instant personal loans of MoneyView can be as low as Rs. 10,000 up to 5 Lakhs. The loanee must be between the ages of 21 years and 57 years having an in-hand income of Rs. 13,500 and should receive the salary directly in their bank account. They also require a CIBIL score of 600 or an Experian score of 650.

 

Yes, loans are given to both salary and self-employed applicants. The loan percentage ranges from 17%-22% annually with a repayment tenure within a 3-60 month span. Their approval and disbursal time is within 1-2 days.

 

7. Bajaj Finserv

 

Here, one must be 80 years or younger at the end of the loan tenure. Your Nationality should be Indian at the age range between 21-80 years. One needs to be employed at public, private or MNCs with a minimum monthly salary of RS 25,001 to access this loan. Bajaj Finserv offers personal loans from 1 Lakhs up to 40 Lakhs. 

 

Their interest rate charge is between 11-30% per annum under a repayment tenure range of 6-96 months. Their approval time is within 12 hours and a disbursal time of 48 hours.

 

8. KreditBee

 

They offer loans only to Indian citizens within the age range of 21-50 years. "KreditBee Personal Loan comes with instant disbursal (within 10 minutes) and with minimal documentation. KreditBee also provides pre-closure facility on their personal loans" according to Paisabazaar.  

 

Here, loanees enjoy a flexi personal loan of Rs. 85 to Rs 1250 or a personal Loan for salaried with loans ranging from Rs. 10,000 to 4 Lakhs under 3-24 months intervals. Their interest rate charge is between 15-30% per annum.

 

9. mPokket

 

This personal loan app is basically for individuals who need quick and easy access to fast cash. You just need to be an Indian citizen within the age range of 18-60 years, maintaining an income of Rs. 9,000 minimum monthly salary.

 

According to buddyloan "mpokket personal loan app is an incredible loan journey for students and salaried professionals in India. With loan amount from Rs. 500 to Rs. 30,000 and competitive interest rates starting from 2% per month."

 

Their interest rate charge is between 17.5-39% per annum and their approval and disbursal time range is 1-2 days. Their repayment tenure is 90 days.

 

10. Fibe

 

Last on our countdown is Fibe, another personal loan app that provides instant loans ranging from Rs. 5,000 to 5 Lakhs from your home comfort. One just needs to meet the eligibility status and you are good to go.

 

They offer loans to participants from the age range of 21-55 years who are salaried professionals with a minimum monthly earning of Rs. 18,000 for those living in metro cities and Rs. 15, 000 for those in non-metro cities. One just needs to be a resident of India to access this loan.

 

The interest rate charge is between 19-36% per annum with a repayment tenure of 30-120 days. They have an average approval and disbursal time of 1-2 days.

 

There you go, opt-in and relieve yourself of piled-up bills. Though, I would always advise having a good reason to get a loan before applying for one.