Recent changes in the rules for personal loans from banks and financial institutions have come into effect with the new year. The new rules for personal loans in 2025 will have an impact on both interest rates and how eligible you are for a loan, along with the payment installments. If you are applying for a personal loan to build a house, get married or for a different need, then this information will be very helpful to you. There are certain things you should remember when applying for a personal loan in the new year.
Change in Interest Rates
In 2025, the rate you pay for a personal loan can vary from 9.5% up to 16%, depending on your credit and your income. A credit score influences whether a borrower gets a lower or slightly higher interest rate on a loan. Interest rates for loans are now set by banks according to the size of the loan and how long it will take to pay it off.
Improvement in Loan Eligibility
Under the new policy, the minimum income required for personal loans has lowered. Nowadays, people earning Rs 20,000 each month are eligible to get a personal loan. Additionally, self-employed professionals now find it easier to get a loan. Income can also be proved with official copies of your bank statements or your annual income tax prints.
Flexibility in Loan Tenure and Installments
Personal loans will have a tenure of up to 7 years in 2025, making it easier for people to pay off the loan. Some banks provide flexible EMI plans for paying back your loans, where you can adjust the size of your EMI according to your convenience. Those who have changing incomes can take advantage of this type of loan.
Convenience in Online Application Process
Nowadays, the process of applying for a personal loan is much easier. Majority of banks and NBFCs are now offering digital onboarding which allows KYC and document checking to occur online. There are institutions advertising same-day loan decisions and disbursements in as little as 15 minutes.
Prepayment Charge Waiver
So far, banks charged 2-5% when someone decided to pay off their personal loan early. No extra fee will be charged for prepaying after the loan reaches the 6-month point in 2025. The change is most helpful to those who wish to settle their debt sooner.
Conclusion
Borrowers now find many benefits in the personal loan rules introduced in 2025. Due to better interest rates, simpler requirements to qualify and flexible payment options, it is now much more convenient for people to take a personal loan. Should you take a personal loan, check out the offers from different banks and pick the most fitting plan for you. If you use the right information and careful planning, a personal loan can solve your financial problems.
Also Read: EPS-95 Pension Raised to ₹7,500! A Major Relief for Retirees