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Personal Loans
Personal Loan Checklist 2026: Documents, Eligibility & Real Cost of Funds
May 19, 2026
Personal loans look simple — fast disbursal, no collateral, minimal paperwork. The catch is the cost. The advertised rate is rarely the rate you pay. Here's how to read between the lines.
Eligibility at a glance
- Salaried: ₹25,000+ take-home, 1+ year employment, current job 6+ months.
- Self-employed: 2+ years business vintage, ₹3 lakh+ annual ITR.
- Age: 21–60 years at loan maturity.
- CIBIL: 700+ for the best rates, 750+ for pre-approved offers.
Documents
- PAN, Aadhaar, recent photograph.
- Salaried: last 3 months salary slips + Form 16. Self-employed: last 3 years ITR + audit report.
- Last 6 months bank statements (salary account).
- Address proof (utility bill, rent agreement or Aadhaar).
The real cost of funds
Don't compare advertised rates. Compare the total cost over your tenure:
- Processing fee: 1–3% of the loan amount, deducted upfront.
- GST: 18% on the processing fee.
- Pre-payment / foreclosure: 2–5% on outstanding principal (often waived after 12 months).
- EMI bounce charges: ₹500–₹750 per bounce + GST.
- Insurance: Lenders increasingly bundle credit-shield insurance — always optional, often ₹3,000–₹15,000.
One question to always ask
"What is the all-in effective rate including all charges?" A reputable lender will calculate the APR. If they dodge the question, that's your answer.