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Categories that ease the Choice of Personal Loan


A personal loan is a type of loan where it is famous for the wide range of uses, flexible tenure, no collateral, etc. there is no collateral in a personal loan. However, when the individual has a low credit score and still wants a personal loan -in such a case, you have to submit collateral, one can apply online through Personal Loan Apply Online. Below are some of the categories that you must maintain to get easy access to a personal loan.

Considering your monthly income:

Evaluating your expense and savings rate is the most preferred method for determining the suitable personal loan tenure and EMI amount. Make a list of your monthly obligations and how much you can save before taking out the loan. Consider whether you have any existing liabilities and how long they will last. You can choose your EMI loan amount and loan term based on your savings and spending habits. Following the 50/30/20 thumb rule, which states that 50% of your income should go toward meeting expenses (fixed and variable), 30% should go toward non-essential expenses. The remaining 20% should go toward savings debt repayment and chart a proper repayment plan.

Loan amount:

The amount that you want to buy using personal loans has a significant impact on the loan tenure. For small loan amounts, such as borrowing 2-3 times your monthly income, shorter loan tenure is preferable, as a longer tenure increases your interest cost. Similarly, if you borrow a large sum of money, approximately equal to 6-8 times your monthly income, you should choose a longer-term. Choosing a short tenure strains your finances and may result in default, which is more dangerous.

Calculating the interest rate:

The interest rate of personal loans mainly depends on the loan score and determines your loan eligibility.
The selected loan tenure affects the interest rate, in addition to the credit score. A lower rate reduces the loan, and the loan is lower by a more extended period. You should choose a shorter-term based on your credit score and avoid paying more interest if a lower interest rate is offered. And it is ideal for you to pick a longer tenure if your loan scores are poor since short-term payments are higher and will have negative repercussions on your finances. The longer-term decision also helps you improve your loan scores so that you can apply for future loans. You can combine different loan tenure with the proposed loan amount and get to the most suitable loan tenure.

Future assessment:

You should consider any increase in expected salary soon while making your budget or calculating your personal EMI loan. You can then set a higher EMI and lower your tenure of the loan. Initially or until the increase happens, paying higher EMI will be a problem, but your total interest output is significantly lower in the long run.

Using EMI calculator:

You can still use the personal loan EMI calculator if you are confused about choosing a suitable personal loan tenure. An easily accessible free online tool helps you calculate the EMI amount and determine the loan’s tenure. You can get detailed information on the total interest and overall payment (interest + capital) to be made during the loan term with an EMI personal loan calculator.


Standard Chartered Bank Personal Loan provides individuals with a reasonable interest rate. Some of the features of a standard chartered bank are:

  • Flexible repayment with tenor up to 60 months
  • Personal Loans offered up to ₹ 50 lacs
  • No Security or Guarantor required
  • Hassle-free documentation process
  • Interest Rates from 11.99%* onwards