Things you need to know about personal loan

In today’s generation, many individuals face a variety of demands in funding, starting from college funding to medical emergency coverage. Personal loans have become the best option for individuals facing financial demands. Many people choose personal loans because they do not need collateral, but the borrowed money must be repaid with an added interest charged by the lender or banks. In this blogs learn about the Things to know about personal loan

Lower interest rate:  

Usually, personal loans have high interest rates because they are unsecured and interest rates start from 11% charged by lenders. Taking personal loans with low-interest rates is always a good choice for the borrower and makes a significant difference in loan costs when you need money at an instant. There are many online apps to get instant digital personal loans like Zap Money. Zap Money offers instant personal loans with reasonable interest rates and flexible repayment periods for people with good credit scores.  

CIBIL score :

CIBIL score is a three-digit numeric representation of the credit history and creditworthiness of an individual. An individual with a low credit score is not eligible for a personal loan. The CIBIL score varies between 300 and 900, with a higher number suggesting a lower credit risk. 

CIBIL Score Range Interpretation 
800 – 900 Excellent Credit Score 
750 – 799 Very Good Credit Score 
700 – 749 Good Credit Score 
650 – 699 Average Credit Score 
600 – 649 Below Average Credit Score 
550 – 599 Poor Credit Score 
300 – 549 Very Poor Credit Score 


When taking a personal loan, EMI plays a very important includes part of the principal (the original loan amount) and interest. A higher EMI means faster loan repayment, but a lower EMI means a longer repayment period and more interest paid. Missing even a single monthly repayment can affect your credit score. Consider these factors before applying for a personal loan.  

Lender’s Reputation

A lender’s reputation is crucial when taking a personal loan, as it affects the loan repayment process. So, it is important to make sure the lenders are credible and have good reputations in the market. Zap Money is Powered by Monexo, an NBFC P2P Platform. Monexo Fintech Private Limited ( is having a valid certificate of registration (CoR), dated 28th June 2018, issued by Reserve Bank of India under Section 45 IA of the Reserve bank of India Act, 1934. Getting a loan from a well-reputed RBI regulated company like Zap Money will safeguard customer’s interests and ensure a smooth lending experience.

Ability to repay the loan :

Before taking a personal loan, make sure you can repay it comfortably. It is important to use an EMI calculator to determine the monthly repayment amount, interest rate, and tenure. Loan tenure can also affect the EMI. A shorter tenure yields higher EMIs but lower overall interest, whereas a longer tenure yields lower EMIs, but higher total interest paid. Consider these factors carefully before deciding on a personal loan.  

Advantages of Personal Loan:  

Offer Versatility:  

Personal loans are insecure since they’re insecure. They are flexible to use. They can be used almost for anything like debt consolidation, starting a small business, and funding a wedding.

Build Credit Score :

Personal loan helps in building your credit score, if you make monthly repayments on time.  

Manage Debt:  

For individuals with outstanding debt and credit card balances, personal loans are the best option to manage outstanding balances.  

Also read:

How to get a 20000 PAN card loan instantly


In conclusion, personal loans can be a convenient solution for financial needs, but it is important to approach it with careful consideration. Ensure you understand all the terms and conditions, and borrow only what you can afford to repay without hurting your financial situation. To make this process easy for finding a personal loan convenient and transparent, we suggest using the Zap Money app. Zap Money’s secure platform makes sure that your personal and financial information is protected, giving you peace of mind throughout the loan application process.


Do personal loans run your credit?

What is a good credit score?

Does a personal loan hurt your credit?

Why are personal loans considered unsecured loans?

Who is eligible to avail themselves of a personal loan?

Hariharan Ravichandran

Understanding the ever-changing environment of money may be a difficult experience.I'm Hariharan, a seasoned finance explorer and blogger. I am right there with you, beginning on this journey of financial enlightenment as a fellow traveler.


The ZapMoney app makes personal finance easy, accessible, and affordable. The App is available on Google Play Store and App Store for download, allowing you to sign up and access easy personal loans. ZapMoney is powered by Monexo Fintech Private Limited which is a registered NBFC-P2P.
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