Personal loans, home loans and EMIs — clearly explained for first-time borrowers.
A personal loan is unsecured credit — no collateral required — usually ranging from ₹50,000 to ₹40 lakh and repaid in 12–60 monthly EMIs. Interest rates in India sit between 10.5% and 24%.
Use personal loans only for genuine, short-term needs: medical emergencies, weddings, home renovation.
EMI = P × r × (1+r)n / ((1+r)n − 1), where P is principal, r is the monthly interest rate and n is total months.
Use any online EMI calculator before signing — a 1% lower rate on a ₹10 lakh, 5-year loan saves about ₹30,000 in total interest.
Indian banks rely on CIBIL, Experian, Equifax and CRIF scores ranging from 300 to 900. Anything above 750 unlocks the best interest rates.
Home loans are secured against the property, carry much lower interest (8.5–9.5%) and longer tenures (up to 30 years).
Never use a personal loan for a property down-payment.