Most people think about personal loans only when an expense appears that their savings cannot comfortably handle. In those moments, understanding how a personal loan works becomes essential.
This guide clearly explains the meaning, purpose, and benefits of personal loans, helping you decide when they are a practical choice. Read on!

Many borrowers feel stuck with high monthly instalments, long repayment schedules, or interest rates that no longer suit their financial goals. However, this situation is more common than the borrowers realise.

Loan approvals don’t happen by chance. Lenders study your income stability, credit history, and debt levels closely. For businesses, they go a step further and evaluate the Debt Service Coverage Ratio (DSCR), a powerful indicator of how financially strong and reliable your operations appear

This is something most of us can relate to: our muscle memory failing us at the worst possible time. Sometimes you end a call instead of answering it, hit Shift + Delete instead of just delete, and lose critical data or files.  

Things could get worse, for instance, when you enter the wrong UPI pin thrice and get your UPI app locked, especially when there is a long queue behind you.  

As Neha and Sameer explored home loan options, something stood out to them. Neha earns about ₹30,000 each month as a nurse in Kolkata, while Sameer earns ₹60,000 working in marketing in Ahmedabad

Preparing your next loan application? Great! But what about your credit score?
In India, the credit score plays a crucial role in loan approval, whether you want a small personal loan or a huge home loan. It is one of the many factors lenders evaluate before waving a green flag. 

India’s loan delinquency rate shot up from 3.3% to 3.6% in March 2025. What does this suggest? Borrowers are increasingly defaulting on loan repayments these days. As a result, getting loan approvals has become tougher. Any hint of default risk, and your application is rejected.

To improve their chances, borrowers usually focus on credit score and debt-to-income ratio, since these directly impact creditworthiness. But that’s not all; FOIR also plays a key role. 

When Renu’s husband’s salary got delayed. This one wrench in the works threw the whole household’s rhythm off. The bills lined up. We’re talking school fees, groceries, utilities, petty cash, and more. She felt helpless, wishing she could help but unsure how. 
What if she actually could?