How to get personal loans in India?

  • People borrow. It might be to cover the costs of an emergency or to invest in an education or to expand a business. To borrow they might turn to a bank or a bank-like financial institution, a friend or family member, an informal lender. According to the Global Financial Inclusion (Global Findex) database (launched by the World Bank in 2011 to provide comparable indicators showing how people around the world save, borrow, make payments, and manage risk), the % of people in the 25+ age group who have borrower in the year 2014 is as follows,

    Financial Inclusion Indicators (India)                                                                              2014
    Borrowed any money in the past year, older adults (% ages 25+)                                    49.1
    Borrowed from family or friends, older adults (% ages 25+)                                            34.3
    Borrowed from a financial institution in the past year, older adults (% ages 35+)                8.2

    That is, 6.6% of the then population borrowed from a source other than a financial institution or a family member/friend. That is a staggering 4.4 crore people who are outside the ambit of the current set of financial institutions. Also, even those who can borrower from financial institutions are subject to a wide variety of interest rates.

    The number of personal loans disbursed in India is increasing on a monthly basis with Bangalore, Chennai, Mumbai, Pune and Delhi NCR being the cities with the most disbursals.

    For a variety of reasons, including the lack of a credit history or a presence of a checked credit history, people who most need credit do not get access to it via traditional sources of finance. This is where Peer-to-peer lending (P2P) comes in. P2P loans are most suitable for people who are outside the immediate purview of banks and Non-Banking Financial Corporations (NBFCs) operating in India. One of the country’s regulators, the Reserve Bank of India (RBI), has recognized the potential for far reaching impact that the P2P lending industry holds and has moved to regulate the industry. To avail a loan or to become a lender in the P2P space, please visit