A personal loan is a loan that a borrower uses for several purposes. It does not require any security or collateral as it is an unsecured loan. It is offered by many lenders, financial bodies, or NBFCs. Personal loans can be used for emergency medical treatment, marriage, higher education, purchase of gadgets, travel, home renovation, etc.
| Flexible tenure | It has a flexible repayment option that ranges up to 60 months. |
| Minimal documentation | Prior, a personal loan requires a lot of paperwork which is quite stressful, to make the process easy is the best way to handle and save time. |
| High loan amount | The borrower can get loan amounts up to Rs. 25 lakhs, depending on many factors like age, work experience, repayment history, etc. |
| Collateral free loan | It is an unsecured loan where the borrower does not require to pledge any security or collateral for acquiring a personal loan. |
| Speedy approval | Once the loan is approved, the amount will be disbursed to your respective account within 2 to 3 days. |
| Multi-purpose | Personal loans can be used for several purposes like marriage, travel, renovation, education, etc. |
The eligibility of a personal loan depends on many factors like the age of the borrower, repayment history, work experience, etc.
| Self-employed individuals | Salaried individuals |
Age criteria: Minimum – 21 years Maximum – 68 years | Age criteria: Minimum – 20 years Maximum – 60 years |
| The Credit score must be 750 or above | The Credit score must be 750 or above |
| Nationality should be Resident of India | Nationality should be Resident of India |
| The continuation of a business should be a minimum of 2 to 5 years. | The minimum salary should be Rs. 25,000 |
A professional loan is an unsecured loan that is provided to professionals such as doctors, lawyers, CS, Chartered Accountants, architects, engineers, etc., who are going to start their own organization or expand an existing one. There are many banks or financial institutions in India that provide professional loans to customers to meet their specific requirements.
| High loan amount | An applicant can get a loan amount up to Rs. 50 lakhs, depending on their profile. |
| Repayment tenure | Professional loans have a flexible repayment tenure that ranges up to 60 months. |
| Easily accessible | Several banks provide professional loans to applicants, and the process of loans is easy and hassle-free. |
| Online process | The whole process of the loan is online, the applicant has to fill in the form and attach all the required documents. |
| No collateral required | The borrower doesn’t need to pledge for the security or collateral as it is an unsecured loan. |
The eligibility criteria for a professional loan depend on various factors such as the age of the borrower, repayment capacity, business turnover, creditworthiness, etc.
Also read: - Professional loans for Doctors, CA, Architects
| Bank name | Personal loan | Professional loan |
| Kotak Mahindra Bank | 10.25% | 11% |
| ICICI Bank Ltd | 10.75% | 10.25% |
| Aditya Birla Housing Finance Ltd. | 14.50% | 12% |
| Axis Bank Ltd. | 10.50% | 10.50% |
| Standard Chartered Bank | 12.00% | 14% |
| HDFC Bank Ltd. | 10.50% | 10.50% |
| IDFC First Bank | 10.50% | 10.50% |
| Yes Bank Ltd. | 10.50% | 11% |
| Tata Capital Financial Services Limited | 12.00% | 10.99% |
| Hero FinCorp Limited | 20.00% | 11% |
| Fullerton India Private Limited | 12.50% | 11.99% |
| Bajaj Finance Limited | 13% | 13% |
Conclusion: - As you can see, a personal loan and a professional loan differ from each other. The individual can select the type of loan on the basis of their eligibility and requirements. Before applying for the loan, make sure that you match the eligibility and evaluate the EMI to know the loan amount that will be taken.
Therefore, knowing the facts about financeseva allow you to choose and compare the best deals.
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