About Personal Loan

Obtaining a personal loan today is easy, especially when facing a financial emergency. These loans provide quick access to funds and require minimal documentation, making them a convenient solution for urgent financial needs.

Personal loans are versatile and can be used for a variety of purposes such as consolidating debt, funding home renovations, or even planning a dream wedding. Whether you're self-employed, a business owner, or a first-time borrower, personal loans can help you manage your finances effectively. When used responsibly, they offer an excellent way to regain control of your financial future and improve your credit score.

These loans can be borrowed from banks, credit unions, or online lenders, and are typically repaid over time with interest. Some lenders may charge fees, so it's important to understand the full cost of borrowing.

Personal loans offer flexibility in how you use the funds. While some lenders may ask about the purpose of the loan, as long as you have a responsible and legal reason for borrowing, you are free to use the funds as needed. The approval for a personal loan largely depends on your credit history, which is why maintaining a good credit score is important for favorable loan terms.

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Types of Personal Loan

Medical Emergency Loan

This loan type is aimed at covering sudden, urgent medical expenses such as hospitalization, surgery, or medication costs. Medical emergency loans offer quick approval and disbursal, typically within a few hours, making them ideal during times of health crises when immediate funds are needed. Loan amounts can go up to ₹10 Lakhs, depending on eligibility, with interest rates ranging from 12% to 24% and flexible repayment terms from 1 to 5 years. This type of loan helps alleviate financial stress by covering critical medical expenses.

Home Renovation Loan

Designed to fund home improvement projects, a home renovation loan can be used for remodeling, repairs, or upgrades to enhance your property’s value and improve living conditions. Loan amounts can be tailored to cover project costs, with some lenders offering eco-friendly upgrade loans at reduced interest rates. Typically, these loans go up to ₹25 Lakhs based on the scope of the project and repayment capability, with interest rates between 10% and 20%. This loan type is beneficial for those looking to increase property value or improve their home’s aesthetics and functionality.

Debt Consolidation Loan

A debt consolidation loan is intended for combining multiple high-interest debts into one loan, simplifying repayment and reducing overall interest costs. It allows borrowers to manage their debt through a single monthly installment, often at a lower interest rate than the original debts. Loan amounts for debt consolidation typically range from ₹50,000 to ₹20 Lakhs, depending on the borrower’s credit profile and the total debt amount, with interest rates around 10% to 18%. This loan can ease debt management and may also help improve the borrower’s credit score through regular, timely payments.

Wedding Loan

This loan is designed to cover wedding expenses, including venue, catering, photography, and attire, allowing couples to enjoy their special day without immediate financial strain. Wedding loans offer flexible repayment options, so newlyweds can avoid substantial financial pressure right after the wedding. Loan amounts for wedding loans generally go up to ₹15 Lakhs based on budget and eligibility, with interest rates between 12% and 20% and repayment terms from 1 to 5 years. This type of loan provides a stress-free financing solution, allowing couples to focus on celebrating their big day.

Top Features and Benefits of Personal Loan

Personal loans are a popular choice for borrowers due to their flexibility, quick approval, and minimal documentation requirements. Here are some of the key features and benefits of personal loans:

Flexible Loan Amount

At Buddy Finance, we offer personal loans ranging from ₹5,000 to ₹25 Lakhs, giving you the freedom to borrow only what you need. Whether it’s a small emergency expense or a larger financial goal, we’ve got you covered with loan options suited to your requirements.

No Collateral, Just Trust

With Buddy Finance, there’s no need to pledge any assets. Our personal loans are unsecured, meaning your loan approval is based on your credit profile, income, and financial history. We believe in empowering you without risking your valuable assets.

Affordable Fixed Interest Rates

Enjoy peace of mind with fixed interest rates, ensuring your monthly payments stay consistent throughout the loan term. Our competitive rates, starting from 12.99% per annum, make budgeting easy and allow you to plan your finances without surprises.

Fast Approval and Quick Disbursal

We know timing matters. That’s why Buddy Finance offers a quick, streamlined approval process. Once approved, funds can reach your account in as little as 24 to 48 hours—perfect for urgent financial needs.

Flexible Repayment Terms

Choose a repayment period that best fits your budget, with tenures ranging from 1 to 5 years. You decide whether a shorter or longer term is right for you, making it easy to find the balance between affordability and faster repayment.

Prepayment and Foreclosure Options

Got some extra funds? With Buddy Finance, you have the option to prepay or foreclose your loan without hefty penalties. This flexibility means you can pay off your loan faster and reduce your overall interest burden.

Personal Loan - Eligibility

To avail of a personal loan, you must meet the following eligibility criteria:

For Salaried Individuals

Applicants must be between 21 years and 57 years.
Income should be at least Rs. 15,000 monthly and must be credited directly to the applicant's bank account.
Applicants must be employed with an MNC, public agency, or private firm.
A minimum CIBIL score of 700 or more or Experian score 750 or more.

For Self-Employed Individuals

Applicants must have a minimum In-hand income of Rs. 25,000 per month and must be credited directly to the applicant's bank account.
Applicants must be self-employed individuals or business owners.
A minimum CIBIL score of 700 or more or Experian score 750 or more.
Applicants must be between the ages of 21 years and 57 years

Interest Rates and Other Charges

At Buddy Finance, we offer competitive interest rates and transparent charges to ensure you have a hassle-free borrowing experience. Here are the details of our interest rates and other charges:

Fees & Charges	Amount
Interest Rate	Starting from 12.99% p.a to 36% p.a
Loan Processing Charges	Starting from 2% to 5% of the loan disbursement amount
Loan Protection Insurance	Starting from 0.5% to 1% of the loan amount
Interest on Overdue EMIs	In case of delayed or missed payments on your personal loan, a penalty of 2% per month will be charged on the outstanding EMI or principal loan amount.
Foreclosure Charges	Foreclosure charges are applicable if you wish to close your loan before the end of the loan tenure. The charges range from 2% to 5% of the outstanding loan amount.

Frequently Ask Questions

What Is A Personal Loan, And How Does It Work?

A personal loan is an unsecured loan that can be used for various purposes such as debt consolidation, home renovation, medical emergencies, or wedding expenses. The loan amount can range from ₹5,000 to ₹25 Lakhs, with interest rates starting from 12.99% p.a. to 36% p.a. The loan is repaid in fixed monthly installments over a period of 1 to 5 years.

How Can We Get Approval For A Personal Loan?

Getting approval for the application process for a personal loan via Buddy Finance is easy. You need to keep all your documents ready as the documents vary from one lender to another. However, the approval of most applications mostly depends on your credit history.

What Is The Minimum Salary Required To Avail Of A Personal Loan?

The minimum salary required to avail of a personal loan varies from lender to lender. However, most lenders require a minimum monthly income of ₹15,000 for salaried individuals and self-employed individuals. The income must be credited directly to the applicant's bank account.

What Are The Eligibility Criteria To Get A Personal Loan?

Here are the requirements you need to meet:

You must be a citizen of India.
Your age must be between 21 and 57 years.
You must be employed with an MNC, public agency, a private firm, or self-employed individuals.
You must meet the salary requirements as specified based on your city of residence.

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