A personal loan is an unsecured, short- to medium-term loan given to an individual. It is frequently utilized to address financial necessities such as debt consolidation, wedding expenses, unanticipated medical expenses, house improvement, and so on. Personal loans are a favored lending choice because of its flexibility, minimum documentation, and speedy execution. It usually has a shorter repayment period than other loans, ranging from 1 to 5 years. A personal loan's APR (Annual Percentage Rate) can range from 11.29 percent to 35 percent, depending on the applicant's profile and lender.

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For example, if you borrow Rs. 4.5 lakhs at 15.5 percent interest and repay it over three years, your EMI will be Rs. 15,710. The entire payment due after three years would be Rs. 5,65,553. As a result, you are paying a total interest sum of Rs 115,553. Other appropriate charges, on the other hand, can be quantified as follows:

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Loan Processing Charge@2% = Rs.9000

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Documentation charges = Rs. 500

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Amortization Schedule charges = Rs. 200

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Additional fees may apply if you alter your payment method or trade your Post Dated Cheques. Prepayment options may or may not be available depending on the lender bank, and the associated charges may vary correspondingly.