Many individuals opt for a personal loan as a strategic way to tackle their accumulated debts for a variety of important reasons. The challenge of managing several loans, each with distinct interest rates and repayment schedules, can quickly turn into a financial mess. However, one strategy that you can consider to streamline your debt is using a personal loan to repay existing loans.

This approach, known as debt consolidation, can offer several advantages such as loan repayment, emergency funds and more. It includes advantages such as simplified payments, potential savings on interest, and improved financial management.

The basics of debt consolidation

Debt consolidation involves taking out a new loan, often a personal loan, to pay off multiple existing debts. By consolidating your debts, you effectively combine them into a single manageable loan. This new loan can be used to settle your existing debts, leaving you with just one monthly payment to make.

Benefits of using a personal loan for repaying existing loans

Streamlined payments

Managing multiple loans with different due dates can be overwhelming. By consolidating your debts with a personal loan, you simplify your financial life by making just one payment each month.

Potentially lower interest rates

If you have high-interest loans, such as credit card debt, using a personal loan to consolidate these debts could lead to significant interest savings. A personal loan often has lower interest rates compared to credit cards and some other types of loans.

Fixed repayment schedule

A personal loan usually comes with fixed monthly payments and a set repayment schedule. This predictability can help you budget more effectively and avoid the uncertainty that can come with variable interest rates.

Potential credit score improvement

Successfully consolidating and managing your debts can positively impact your credit score. As you repay the new personal loan on time, your credit score might gradually improve.

Improved financial organisation

Consolidating your debts can help you gain a clearer picture of your financial situation. You will have a better understanding of the total amount owed and the interest being paid.

Considerations and tips

Here are certain things that you should keep in mind before applying for a personal loan:

Assess your total debt

Before deciding to use a personal loan for debt consolidation, calculate your total debt amount and compare it with your ability to repay a new loan. Ensure that the new loan terms are favourable and that you can comfortably afford the monthly payments.

Check the loan terms

When considering a personal loan for debt consolidation, pay attention to the interest rate, repayment tenure, and any associated fees. Make sure that the new loan terms are better than or at least comparable to your existing debts.

Avoid new debt accumulation

After consolidating your debts, it’s important to avoid accumulating any new debt. Focus on responsible spending and budgeting to prevent falling into the same debt cycle.

Consult financial advisers

If you are uncertain about whether debt consolidation is the right option for you, consider seeking advice from financial advisors or credit counselling services. They can provide personalised guidance based on your financial situation.

Benefits of getting a personal loan from IndusInd Bank

• IndusInd Bank’s loan application process is straightforward and 100% paperless.
• The bank offers an instant personal loan at attractive rates starting from 10.49% p.a.
• The flexible loan tenure ranging from 12 to 48 months allows you to choose the tenure as per your requirement and need.
• The approval and disbursal process usually takes just a few hours.

IndusInd Bank ensures a quick and hassle-free process while cutting the need for hefty paperwork. You can apply for a personal loan from the comfort of your home and get the amount disbursed to your account in just a few hours.

To ensure that repaying the loan does not become a burden on your finances, you should choose an amount that fits comfortably within your budget. A personal loan EMI calculator can help you determine an EMI amount that does not disrupt your monthly finances.

Advantages of using a personal loan EMI calculator

Using a personal loan EMI (Equated Monthly Installment) calculator can provide you with valuable insights and advantages when considering borrowing funds via a personal loan. Here are some of the key advantages of using a personal loan EMI calculator:

Accurate payment estimations

A personal loan EMI calculator accurately estimates your monthly instalment based on the loan amount, interest rate and loan tenure. This ensures that you have a clear understanding of how much money you need to budget for each month.

Financial planning

The calculator helps you plan your finances better by giving you a comprehensive overview of your repayment schedule. You can adjust the loan tenure or amount to find a payment plan that aligns with your financial capabilities.

Budgeting assistance

Knowing your monthly EMI enables you to create an accurate budget that incorporates your loan repayment. This helps you manage your expenses and ensure that you can comfortably meet your financial obligations.

Interest calculation

The EMI calculator also provides insights into the total interest you will pay over the life of the loan. This information helps you assess the overall cost of borrowing and make more informed decisions about the loan amount and tenure.

Quick decision-making

Instead of manually performing complex calculations, an EMI calculator provides instant results. This streamlines the decision-making process and helps you compare multiple loan options efficiently.

Conclusion

Using a personal loan to repay existing loans through debt consolidation can offer several benefits, including simplified payments, potential interest savings, and improved financial management. However, it’s essential to carefully assess your financial situation, compare loan terms, and ensure that the consolidation loan aligns with your budget and goals. By approaching debt consolidation strategically, you can take significant steps toward achieving financial stability and reducing the burden of multiple debts.

Apply for an online personal loan with IndusInd Bank and start reaping the benefits today!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.

When it comes to securing a personal loan, the choice between a traditional bank and a Non-Banking Financial Company (NBFC) can be confusing. Both have their merits, but understanding the differences and benefits is crucial to making an informed decision.

In this blog, we will explore the distinct features that set a personal loan from a bank apart from one offered by an NBFC. Moreover, we will discuss the advantages of obtaining a personal loan from a bank and contrast them with those from an NBFC.

How is a personal loan from a bank and an NBFC different?

A personal loan from a bank or an NBFC provides financial assistance if you need funds to meet various kinds of expenses. However, several key distinctions set a personal loan from a bank apart from one secured via an NBFC.

1. Regulation and licensing

Banks are regulated by the Reserve Bank of India (RBI) and adhere to strict guidelines, ensuring financial stability and security. NBFCs are also regulated by the RBI, but they have more flexibility in their operations and require lower capital to be established.

2. Interest rates

Banks generally offer lower interest rates on a personal loan due to their stable funding sources. Whereas, NBFCs might have slightly higher interest rates to compensate for their increased risk appetite.

For instance, IndusInd Bank offers one of the lowest personal loan interest rates in the sector. The bank offers a 100% digital and paperless application process. This makes loan approvals lightning fast and you can acquire funds almost instantly.

3. Loan approval process

Not always, but banks usually have a rigorous approval process when loan amounts are high, including credit checks, income verification, and stringent documentation. NBFCs, on the other hand, often have a more relaxed approval process due to lower loan amounts, thus making them accessible to a wider range of borrowers.

4. Loan amount and tenure

Banks typically offer higher loan amounts and longer repayment tenures. Whereas, NBFCs may have lower loan amount limits and shorter tenures.

Both banks and NBFCs are viable sources for getting a personal loan. However, you must explore their offerings, benefits and flexibility to repay the amount. Knowing key aspects before applying for a personal loan can help you navigate any hassle at later stages.

Benefits of a personal loan from a bank

Banks are comprehensively regulated by the RBI and have a legacy of operation. They have built their reputation over decades and offer numerous financial services, such as bank accounts, loans and credit services, investments, and corporate banking services. Opting for a personal loan from a bank can offer you several notable benefits, such as:

• Lower interest rates: Banks generally provide a personal loan at affordable interest rates, resulting in lower overall borrowing costs.
  
  
• Flexible repayment options: Banks offer flexible repayment schedules, allowing you to choose a tenure that suits your financial situation.
  
  
• Higher loan amounts: Banks often provide higher loan amounts, making it easier to finance significant expenses like home renovations or weddings.
  
  
• Transparent terms: Banks are known for their transparency in loan terms and conditions, ensuring you fully understand the contract.
  
  
• Credit score improvement: Timely repayment of a bank loan can boost your credit score, enhancing your financial profile for future borrowing.

Benefits of a personal loan from an NBFC

NBFCs are a good alternative to banks for securing a personal loan. A personal loan from an NBFC comes with its unique advantages, like:

• Quick approval: NBFCs typically process loan applications faster, making them an excellent choice for urgent financial needs.
  
  
• Flexible eligibility: NBFCs may be more lenient in their eligibility criteria, catering to individuals with varied credit histories.
  
  
• Documentation: The documentation requirements for NBFCs are often simpler and more straightforward, reducing paperwork hassles.
  
  
• Tailored solutions: NBFCs often offer personalised loan products catering to specific niches, such as small business owners or self-employed individuals.
  
  
• Accessibility: NBFCs are more prevalent in smaller towns and rural areas, making them accessible to a broader segment of the population.

However, popular banks like IndusInd Bank have a wide network of branches, which operate in urban, rural and remote areas to provide their services to the extensive Indian demography. The bank offers extensive services and affordable interest rates, thus making it a popular choice for securing a personal loan.

Why should you opt for an IndusInd Bank Personal Loan?

IndusInd Bank stands out as a top choice for personal loans for several compelling reasons:

• Competitive interest rates: IndusInd Bank offers competitive interest rates starting from just 10.49% per annum, ensuring you get the best deal possible.
  
  
• Quick approval: The bank streamlines its loan approval process through a 100% digital channel for quicker turnaround, thus allowing you to meet your urgent financial needs.
  
  
• Flexible tenure: You can select a repayment tenure between 12 and 48 months that aligns with your financial capabilities, reducing the burden of monthly instalments.
  
  
• High loan amounts: IndusInd Bank provides substantial loan amounts ranging from ₹30,000 to ₹5 lakhs. You can obtain a loan instantly, enabling you to fulfil your diverse financial aspirations.
  
  
• 100% paperless documentation: The bank simplifies paperwork by removing physical documentation altogether. Now you can apply for an IndusInd Bank Personal Loan with just your PAN and Aadhaar details, making the loan application process hassle-free.
  
  
• Transparency and customer-centric approach: IndusInd Bank maintains transparent terms and conditions, ensuring you understand every aspect of your personal loan. The bank is also committed to delivering exceptional customer service, ensuring a seamless borrowing experience.

To make your financial planning easier, you may also use the integrated IndusInd Bank Personal Loan EMI Calculator and choose a loan plan according to your repayment capabilities. 

The bottom line

Choosing between a personal loan from a bank or an NBFC depends on your unique financial situation and preferences. Banks offer stability, lower interest rates and higher loan amounts, making them suitable for long-term financial goals. On the other hand, NBFCs provide quick approvals, flexible eligibility, and minimal documentation, catering to immediate needs.

IndusInd Bank shines as a reliable option for a personal loan, striking a balance between competitive interest rates, instant approvals, and customer-focused services. Your financial well-being is paramount, and with the reliability of IndusInd Bank, you can achieve your goals while managing your finances prudently. Apply for an IndusInd Bank Personal Loan now!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.

Being your own boss comes with freedom and flexibility—but when it comes to getting a personal loan, self-employed individuals often face more scrutiny than salaried professionals. Whether you’re a freelancer, consultant, or if you run your own business, accessing quick funds during emergencies or for planned expenses can be challenging without a regular paycheck.

Thankfully, several banks—including IndusInd Bank—offer personal loans tailored to meet the unique financial needs of self-employed individuals. In this guide, we’ll walk you through why personal loans are a smart option for self-employed professionals, what to expect, and how to apply with ease.

Why is a Personal Loan for Self-Employed a Good Option?

Self-employed individuals often face unpredictable income flows. A personal loan can help bridge financial gaps, manage urgent expenses, or invest in business expansion without dipping into savings.

Here’s why a personal loan makes sense:

• No Collateral Needed: Most personal loans are unsecured, so you don’t have to pledge assets.
• Flexible End Use: Use the funds for anything—business upgrades, medical needs, education, travel, or even home repairs.
• Quick Disbursal: Once approved, funds are typically credited within a day or two.
• Build Credit: Timely repayment helps build your credit score, giving you access to better credit in the future.

For self-employed borrowers, a personal loan offers both convenience and control—something every entrepreneur values.

Features and Benefits of IndusInd Bank Personal Loan for Self-Employed Individuals

IndusInd Bank offers tailored personal loan solutions for self-employed professionals with a simple, digital-first process. Here are some key features:

• Loan Amount: Borrow anywhere from ₹30,000 to ₹5 lakh based on eligibility.
• 100% Digital Process: No branch visits—apply and get approval online.
• Quick Turnaround: Get approval within minutes and funds disbursed within 24–48 hours.
• No Collateral Needed: Completely unsecured, so your personal or business assets stay safe.
• Flexible Tenure: Repayment period ranging from 12 to 48 months.
• Minimal Documentation: Submit only essential documents—PAN, Aadhaar, bank statements, and basic income proof.

With transparent terms and competitive interest rates starting from 10.49% p.a., IndusInd Bank Personal Loan is designed to empower self-employed professionals with financial agility.

Eligibility Criteria for Securing Personal Loan for Self-Employed Individuals

To ensure a smooth loan approval process, self-employed individuals need to meet a few basic eligibility criteria. These may vary slightly by lender, but generally include:

• Age: Between 25 and 65 years
• Business Vintage: Minimum 2–3 years of business continuity
• Income Proof: Sufficient and consistent income demonstrated via ITRs or bank statements
• Credit Score: Preferably 700 or above
• Banking History: Healthy cash flow and account activity over the last 6–12 months

Having organized finances and a good repayment track record significantly boosts your chances of approval.

How to apply for an IndusInd Bank Personal Loan for Self-Employed Individuals

Applying for a personal loan is now easier than ever with IndusInd Bank. Here’s a quick step-by-step:

1. Visit the Bank’s Website or App
   Head to the IndusInd Bank Personal Loan page.
2. Check Your Eligibility
   Use the online personal loan calculator or eligibility checker.
3. Fill Out the Application Form
   Enter basic details like name, contact info, income, and business type.
4. Upload Documents
   Submit digital copies of PAN, Aadhaar, income proof (ITR or GST returns), and bank statements.
5. Get Instant Approval
   If eligible, you’ll receive instant approval and the loan offer.
6. Disbursal
   Once you accept the offer, the amount is credited to your bank account, often within hours.

No paperwork, no long queues—just a simple, hassle-free journey to securing the funds you need.

Wrapping Up

For self-employed individuals, securing financing doesn’t have to be complicated. A personal loan can be a practical solution for managing cash flow, dealing with emergencies, or even growing your business. With banks like IndusInd Bank offering quick, digital, and flexible loan options, access to credit is now just a few clicks away.

Ready to drive your business towards success? Apply now for an IndusInd Bank Personal Loan!

Are tax exemptions and deductions available for a personal loan, as they are generally available for loans like home loans and student loans?

Well, the answer is not straightforward. A personal loan is an ideal option for handling a variety of significant expenditures because they have no restrictions on the end-use. However, are there tax exemptions available for a personal loan as well. Read on to find out.

Importance of utilising tax benefits on a personal loan

Without requiring you to put up any assets as collateral, a personal loan is an adaptable and accessible choice for financial assistance. Their accessibility and versatility make them a popular choice. The best news is that a personal loan could qualify for a number of tax breaks! You can save money and obtain the assistance you require financially by taking advantage of these tax benefits. 

Basics of tax implications of a personal loan

Personal loans, according to the Income Tax Act of 1961, stand eligible for tax deductions or exemptions in India under section 80C. The catch is, it depends on how you use the funds. The following are some of the cases wherein you could lower your tax outgo: 

• Business expansion: You could utilise a personal loan to finance business expansion and increase revenue. In this case, the interest paid on the loan can be claimed as a tax-deductible expense. This would help you reduce your net taxable profits and the income tax liability. 
  
  
• Purchase or construction of residential properties: You get to enjoy tax deductions, according to Section 24 (b) of the Income Tax Act, if you are using a personal loan to purchase or construct a residential property.
  
  
• Other assets: If the funds received from a personal loan are utilised to buy assets like non-residential real estate, jewellery, stocks, or shares, they may qualify for tax exemption. The interest component can be included in the asset’s acquisition cost. By doing this, the capital gains from selling the asset are reduced. The interest will be incorporated into the acquisition cost but cannot be deducted by the borrower in the year it is paid. Only once the asset is sold can the borrower take advantage of the tax deduction.

It is crucial to remember that the tax deduction is restricted to the interest paid, not the loan’s principal. No tax benefits will be given on the personal loan if it has been requested for any other reason than those listed above. 

Why choose an IndusInd Bank Personal Loan?

IndusInd Bank gives excellent personal loan deals if you’re considering applying for one. The entire process is marked by no paperwork, quick processing, and immediate fund disbursal. No need to stress about providing security or collateral! You can apply for as much funding as you require, with loan amounts that range from ₹30,000 to ₹5 lakh. The best thing, though? The interest rates are truly attractive! Not only that, but you can also choose the repayment terms that best suit your budget because they are flexible. Take a look at all the reasons why an instant personal loan from IndusInd Bank could be your best option:

• No documentation: An instant personal loan from IndusInd Bank comes with no documentation, quick processing, and quick disbursals. 
  
  
• Flexible tenures: You get to apply for a personal loan online and pick a loan tenure that is convenient for you which may range between 12 to 48 months. 
  
  
• Additional features: You may take advantage of the low personal loan interest rate, and so much more with a personal loan from IndusInd Bank. 

As you can see, obtaining a personal loan can be a fantastic way to get additional funds when you require them. Your Aadhaar Card and PAN Card information are all that are needed when applying for a loan. Additionally, benefits like flexible tenure and low-interest rates make it a viable option for paid individuals with stable but constrained revenues. You can use the IndusInd Bank Personal Loan EMI Calculator to simplify things and gain a better grasp of your finances. 

Find a solution to your financial problems with simplicity by applying for a hassle-free, instant personal loan from IndusInd Bank right away. 

Conclusion

There are a few situations where a personal loan is free from taxes. For queries on tax benefits related to your loan’s purpose, consult your lender or a tax expert. Make sure you have sufficient documentation demonstrating how you spent the proceeds from your personal loan so that you can easily and legally take advantage of the tax benefits such as deductions and exemptions. 

Now that you understand what the tax implications are for a personal loan, what are you waiting for? Apply now to get an instant personal loan with IndusInd Bank!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.