Personal Loan

Personal loans by Muthoot Finance are available for salaried employees from Public Sector units and other reputed institutions. We also offer personal loans for self-employed individuals. All other individuals who give 100% collateral security which can be in the form of RBI bonds, LIC policies, NSCs, or any other tangible security also have eligibility to avail personal loans too.

In terms of personal loan eligibility, you should know that Muthoot Finance may stipulate fulfilment of particular minimum criteria such as net salary, age, years of service remaining, total years of service, and owning a house depending on the person’s risk profile. Muthoot Finance also possesses the right to not approve an application if any of the criteria are not fulfilled, or without having to assign any particular reason.

Interest rates for personal loans at Muthoot Finance are fixed on the basis of the cost of funds, risk assessment, cost of operations, etc. and may vary for different schemes and different borrower categories. The recovery of processing charges as decided from time to time can also take place.

After you apply for a personal loan with Muthoot Finance and your documents and proofs have been verified, the loan amount is disbursed to you as soon as possible. You can apply for an instant personal loan with us to get the process started.

The loan amount which you are eligible to borrow may differ on the basis of your monthly income. At the time of calculating the loan amount, your monthly income as well as expenses are considered.

At Muthoot Finance, we offer loans starting from INR 50,000* (the minimum personal loan limit) for salaried individuals. You can read our Loan Policy to know more about the minimum and maximum limits for different types of borrowers.

*T&C Apply

The personal loan amount that you can avail depends on certain factors. The loan amount an individual is eligible to borrow varies based on their monthly income. During the calculation of the loan amount, an individual’s monthly income and expenses are taken into account. You can always get in touch with us to know more on the subject.

1) You can repay the loan via EMI

2) Via iMuthoot mobile app

3) Virtual account via your Net banking

4) UPI apps

5) To pay online click here

You can jointly apply for a personal loan offline and online with your spouse by visiting the Muthoot Finance website or your nearest branch. It is frequently simpler to obtain loans if you have a co- applicant. When a borrower applies for a personal loan with a co-applicant, their credit score and income are combined with their co-applicants. Moreover, you can also avail of a joint personal loan with your parents and siblings. To know about eligibility criteria, interest rates, repayment options etc., contact us at our customer support no. - 080-68436919 (Mon-Fri, 10 AM to 6 PM).

The maximum tenure for personal loans differs from lender to lender to ensure that the borrowers can choose as per their financial situation and goals. However, the maximum tenure period for a personal loan that Muthoot Finance offers is five years. Before applying for an instant personal loan online, on our website, you can get an idea of your monthly EMI with the help of a personal loan EMI calculator by adding the estimated loan amount and tenure.

When a person submits all the necessary documents required in the bank, then the bank officials verify them, and after approval, the personal loan amount is disbursed to the customer's bank account.

Today getting a personal loan is handy and hassle-free. At Muthoot Finance, with minimal documentation, quick processing and reasonable interest rates, you can get an instant personal loan. After filling out the loan application, submit the required documents like bank statements for income proof, address proof, identity proof etc., to the bank. The loan amount will be disbursed as soon as your proofs and documents are validated by the concerned authorities.

Yes, you have the option of a balance transfer when you take a personal loan. A Personal Loan balance transfer is the procedure by which a borrower moves the whole outstanding personal Loan amount from one bank to another. Typically, it occurs when the new bank offers a reduced interest rate on the outstanding loan balance. Therefore, the main goal of a personal loan transfer is to lessen the total amount of debt.

The primary benefit of a personal loan balance transfer is to lessen the borrower's interest burden. Moreover, you can opt for a lender that offers top-up loans at competitive rates of interest to ensure that you do not have to face any financial constraints.

Personal loans do provide tax advantages depending on how the loan is used. The Indian Income Tax Act permits tax deductions for loans taken out for particular objectives, such as education, home improvement or purchase, business expansion, etc.

Property construction: According to Section 24 of the IT Act, if the loan amount is utilised to buy or build a home, the interest paid can be deducted from your taxable income.

Business expansion or purchase of assets: If the loan money is used for any other business purpose or to acquire assets other than real estate, the interest paid is added to the acquisition cost. This will reduce the capital gains and, in return, the tax liability.

Loan closed/closure: A loan is marked close when the borrower pays all the loan amount (principal amount + interest) in a timely manner without any failure.

Loan settlement: It refers to a situation of obtaining a loan from a bank or NBFC, but you are unable to make payments owing to a sickness, an injury, a loss of employment, or another reason. In this case, you notify the lender of your position and request that you be given some time off before beginning repayments. The lender may offer you a one-time personal loan settlement option in which you take some time off and then pay off the debt all at once. The credit report will reflect this loan's status as "settled" after it has been repaid in full.

Loan default: It is a situation when the borrower omits to pay the repayments of his loan amount for an unspecified period of time.

Defaulting a loan and loan settlement can drastically reduce a borrower's credit score, which further negatively impacts their future eligibility for credit. On the other hand, the closure of personal loans positively impacts the credit score.

A personal loan is an unsecured loan that can be used for various purposes, such as debt consolidation, home improvements, and paying off medical bills. Unlike secured loans, personal loans do not require any collateral. They typically have higher interest rates due to increased risk for the lenders. Personal loans offer flexible use compared to specific purpose loans and have fixed repayment terms, making them different from resolving credit lines and credit cards.

Secured personal loans require collateral, like property or a car, which the lender can seize if the borrower fails to repay. Due to reduced lender risk, secured personal loans often have lower interest rates. Unsecured personal loans, on the other hand, do not require collateral, relying on the borrower’s creditworthiness instead. These types of loans typically have higher interest rates and stricter eligibility requirements.

Once a personal loan is sanctioned, increasing the loan amount is usually impossible within the same loan agreement. However, you can apply for a top-up or new loan if you need additional funds. Approval of these loans depends on your creditworthiness and repayment history. Some lenders offer you the option to refinance the existing loan to a higher amount, but this also requires a fresh loan application process and credit history evaluation.

If you happen to miss a repayment or default on a personal loan, it can lead to several serious consequences. Initially, you will incur late fees and increased interest charges. It can negatively impact your credit score, making your future borrowing more difficult and expensive. Continued default may lead to collective actions, where the lender can take legal steps to recover the remaining debt, potentially seizing assets or garnishing wages.

Yes. You can apply for a personal loan with a low credit score, but it can be a little challenging. The lenders might offer higher interest rates or require a co-signer to mitigate the risk. Some financial institutions specialising in personal loans provide credit for individuals with poor credit scores, but these often come with less favourable terms. To overcome this, consider improving your credit score or explore alternatives like secured loans, which can be relatively more straightforward to obtain despite a low credit score.

Personal loans offer two primary types of interest rates to borrowers, namely fixed and variable. A fixed interest rate remains constant throughout the loan tenure, providing predictable monthly payments. In contrast, a variable interest rate can fluctuate based on market conditions, potentially lowering or increasing your monthly repayments over time. Hence, choose the type of interest rate based on your risk tolerance and economic outlook.

Yes. You can apply for a personal loan jointly with another individual. This is commonly done to increase your chances of approval or qualify for a larger loan amount based on your creditworthiness and income. Joint applicants share equal responsibility for repaying the loan, and both credit scores are considered during the approval process. Choosing a co-applicant with a good credit score who can meet the financial obligations to avoid defaults or complications is important.