PERSONAL LOAN COLLECTION: 5 important factors you need to know

Personal loans are a general financial tool for lenders to manage unplanned expenses or finance essential personal projects. However, the acquisition of approval for any specific personal loan product depends on various key factors that evaluate borrowers. These factors include the history of repayment of the past, credit values, history of employment, payments that are missed, and a number of others. Understanding such important aspects can increase your chances of obtaining a loan on favorable conditions. Currently, the appropriate interest rates for personal loans differ between different lending institutions. It depends on a fundamental basis on factors such as loan amounts, lender type, loan type, repayment, along with other similar components. Personal loans Interest rates in September 2025 Bank interest rate (per year %) HDFC Bank 9.99 Axis Bank 9.99 – 22.00 State Bank of India 10.10 – 15.10 Icici Bank 10.60 Kotak Mahindra Bank 10.99 and on comment: The interest rate of personal loans discussed above is illustrative in nature. Consult the official websites of the various lending institutions for updated interest rates, terms and conditions. 5 Factors affecting your Personal Loan Science -Currency: A high creditworthiness, preferably more than 750, indicates creditworthiness and reliability, and increases the chances of approval for personal loan and credit card. Revenue stability: A regular income generated together for years, either through a job or self-activity, ensures lending institutions of your repayment potential. It is a positive sign and indicates reliability and integrity. Existing debt burden: A high debt-to-income ratio can reduce an applicant’s suitability as lending institutions check the general financial obligations of an applicant before cleaning any loan. Loan amount and term requested: Greater loan amounts or longer repayment capacity usually require tighter checks and verifications. With a longer repayment period, the lender is needed to pay higher amounts than interest. Employment type and tenure: Salaries with a stable history of employment tend to have higher scores than independent individuals. It simply means that lenders want complete clarity and predictability when they want to borrow money. Maintaining a clean and injury -free credit profile, high creditworthiness, a steady flow of income and manageable debt levels for years together are critical ingredients to increase one’s personal loan arrangement. Always compare interest rates, understand the pros and cons, and seek professional guidance before submitting any loan application. Visit here for all personal finance updates. Disclaimer: Mint has a fusion with fintechs to give credit; You must share your information if you apply. These bonds do not affect our editorial content. This article only intends to educate and distribute awareness about credit needs such as loans, credit cards and credit values. Mint does not promote or encourage credit because it comes with risks such as high interest rates, hidden costs, etc. We advise investors to discuss with certified experts before taking credit.