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IndiakaLoan.com is an unbiased comparison portal for banking products. Along with making your process free from documentation hassles, we offer round-the-clock customer support that helps you plan your finances. We analyze your needs and accordingly suggest plans. We strive to make your financial planning as easy and transparent as possible.

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At IndiakaLoan.com, we help you compare products, such as loans, insurance plans, and offered by banks or financial institutions. We simplify fine print and inform you about the eligibility criteria, repayment options, types of interest rates, and other parameters.

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As we are not associated with any bank or financial institution, our analysis is unbiased and is structured to facilitate your decision-making process.

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IndiakaLoan.com is an unbiased comparison portal for banking products. Along with making your process free from documentation hassles, we offer round-the-clock customer support that helps you plan your finances. We analyze your needs and accordingly suggest plans. We strive to make your financial planning as easy and transparent as possible.

Q: What is a Home Loan?

Home loan is a loan disbursed by a bank or financial institution (lender) to an individual specifically for buying a residential property. Here, the lender holds the title of property until the loan is paid back in full along with interest.

Q: What is the tenure of a home loan?

Home loans are long term borrowing instruments with a minimum tenure of 5 years and a maximum tenure of 30 years. The tenure offered to you for your personal loan depends on the loan amount that is sanctioned to you by the lender along with other factors.

Q: What is the Eligibility Criteria for a Home Loan?

Anyone - whether self employed or salaried individuals/professionals - with a regular source of income can apply for home loans. One must be at least 21 years old when the loan period begins and should not exceed an age of 65 years when the loan ends or at the time of superannuation. This is the generic eligibility criteria and specifics such as the minimum and maximum age limits, minimum income level, etc. may differ from one lender to another.

Q: Why should I apply for a home loan on IndiakaLoan.com?

When you log on to the home loan section of IndiakaLoan.com, you can apply for a home loan in minutes by following a few key steps:

  • Find out the various lenders who would be interested in providing you with a home loan based on loan amount, income level and related criteria provided by you.
  • Compare the home loan offers based on factors such as interest rates, processing fees and other relevant factors.
  • Just choose and click to apply for the home loan with the specific provider with the click of a button.
  • Subsequently your prospective lender will get in touch with you to get supporting documents and complete other formalities.

In short by applying through IndiakaLoan.com, the process of comparing and choosing home loans is simplified by saving you a lot of time and effort.

Q: What do banks consider when granting a home loan?

Once repayment capacity determines your eligibility to apply for home loan, lenders consider the following factors:

  • Income level of the applicant
  • Age of the applicant
  • Qualification (stability and occupation continuity)
  • Resident status (maximum limit for an Indian resident differs from that of a non-resident)
  • Spouse's income (household income is taken into account when there is a co-applicant)
  • No. of dependants (it is a measure of repayment capacity)
  • Credit history and score (past repayment track record)
  • Status of existing loans

Q: Can I apply for a joint loan with my friend?

No. A lender would only allow you to apply for a joint home loan if the application is co-signed by one or more members of your immediate family. Thus, your friend does not qualify.

Q: Who can be joint borrowers in case of a home loan?

Immediate family members such as your parents, spouse and children are allowed to be joint borrowers in case of a home loan.

Q: What is the maximum number of joint borrowers for a home loan?

The maximum number of joint borrowers in case of a home loan is fixed at 6. However, only family members such as parents, siblings and spouse can be co-borrowers for a home loan in India. Additionally, having a co-borrower who has a robust credit history and good credit score is preferable as compared to one with a low credit score.

Q: What is floating rate home loan?

If the interest rate on the loan varies periodically over the loan tenure, then it is called a floating rate home loan. Lenders have their own base rate which determines the rate of interest charged on a home loan. The base rates of banks are revised from time to time based on RBI directives as well as other factors, which leads to an increase or decrease in the EMI amount payable.

Q: What is a fixed rate home loan?

Fixed rate home loans are offered at a predetermined interest rate during the loan period and these remain unchanged during the loan period irrespective of market conditions. This can be a huge benefit when market volatility starts affecting interest rates. For instance, if the RBI increases interest rates on loans, then people with fixed rate home loan will not be affected by any increase or decrease in the market interest rates and the EMI amount will remain unchanged. This type of home loan is less popular these days.

Q: How is the MCLR method going to affect my current home loan?

As per recently updated RBI rules, banks are required to use the MCLR (Marginal cost of lending rate) method to determine the interest rate on home loans. In case of a floating rate home loan, the banks are now required to change the interest rate either yearly or every six months. In case you have a fixed rate home loan, you can get in touch with your bank to get information regarding conversion of your fixed rate home loan to the new MCLR-based floating interest rate. At present, introduction of the new MCLR regime has led to a reduction in applicable home loan interest rates.

Q: Can I switch from a floating rate home loan to a fixed rate?

Yes. A few lenders do offer you the option of switching from a floating rate to a fixed rate home loan and the other way around. However, this is not applicable to all home loans and there are a few charges involved in implementing this conversion. Get in touch with your lender to get details regarding the procedure and requirements.

Q: How do I repay my home loan?

There are different ways to pay off your loan such as issuing post-dated cheques for the tenure of the home loan, getting the amount deducted automatically from your salary or by issuing standard instructions to the lender for ECS (Electronic Clearing System) wherein the EMI is automatically deducted from your bank every month.

Q: Should I apply for a home loan with a public or private bank?

Before zeroing in on a home loan, it is best to compare the various interest rates that would be applicable to you. When you apply for a home loan through IndiakaLoan.com, you get the opportunity to apply for a home loan through both private and public-sector banks. Also take into account, the fact that banks charge various processing and other related fees when you apply for a home loan and you should also consider these, when applying for a home loan.

Q: Is prepayment of home loan allowed?

Yes, one can repay the loan amount before completion of the scheduled loan tenure by making a lump sum payment towards paying off the loan. In such cases, the bank may decide to apply some penalties in the range 2-3% of the principal amount outstanding. Some banks and NMFC (non-banking financial companies) do not charge any penalty on making prepayment of a home loan.

Q: What are the key charges associated with a home loan process?

  • Processing Fee- When applying for a loan, a fee is paid to the lender known as processing fee. The amount paid could be either a percentage of the loan amount or a fixed amount that is paid in lieu of carrying out the loan sanction formalities.
  • Commitment Fee- It is essential to avail the loan within a stipulated time period after it is processed and sanctioned otherwise some financial institutions levy a commitment fee. By paying the commitment fee, you are assured that you can access the loan at the interest rate and for the tenure that was initially agreed on. Most banks no longer charge this fee.
  • Pre-payment Charges- Banks/ financial institutions might charge a penalty if the entire loan amount is paid off before completion of the loan tenure. The penalty amount also known as foreclosure/pre-payment charges could be a maximum of 5% of the loan amount that is paid off before the completion of loan tenure.
  • Miscellaneous charges- Documentation, stamp duty, credit bureau report issuance charges and consultant charges are generally considered as miscellaneous charges by few lenders.

Q: What documents do I need to submit with my home loan application?

The documents that need to be submitted may vary from one lender to the other. Some of the necessary documents to be submitted include the following-

  • Completed loan application form
  • Passport size photographs
  • Identity proof - PAN card/Passport/ DL/ Voters ID
  • Residence proof- telephone or electricity bill/ passport/ voter ID / property tax receipt
  • Bank statement for at least past 6 months and salary certificates/ latest acknowledged ITR
  • Copy of plan approved for the proposed construction/extension
  • Cost estimation/ valuation report from Bank's (or finance company) authorised surveyor/evaluator
  • Allotment letter of housing board/ NOC of the society/Builder etc. as well as any other land use certificate/other

Q: Is there any tax benefit available on home loans?

The tax benefit on home loan is divided into two sections-

  • Tax exemption on repayment of the home loan principal: This is the deduction allowed under Tax Section 80C with a maximum annual tax deduction of Rs, 150,000 under the section.
  • Tax benefit on the interest rate for home loan- Under Section 24 of the Income Tax Act, you can avail the tax benefit on the amount of interest paid on a home loan to the maximum limit of Rs. 2 lakhs for a self occupied property.
  • Tax benefit for Joint Borrowers: In case of joint home loans, each of the co-borrowers is eligible to receive a total of Rs. 3.5 lakhs (1.5 lakhs under section 80C + 2 lakhs under section 24) as tax exemption. Hence, if a married couple co-signs for a home loan, they can claim a total tax exemption of Rs. 7 lakhs on their home loan.

Q: What is a top up loan?

If you have an existing home loan and have made timely repayments towards the existing home loan, you may get the option of borrowing an additional loan equal to the amount you have paid off on your current home loan. This is termed as a top up loan. The interest rates on a top up loan are less than a personal loan and it requires little or no paperwork to process this loan and the money can be used for a range of expenses.

Q: Can I have a co-applicant when I sign up for a home loan?

Yes. You can have a family member like your spouse or your parents co-sign with your when you apply for a home loan. Having a co-signor for your home loan improves your chances of being approved for a larger home loan amount. A co-signor is specially recommended if the primary applicant has a low credit score or has had problems when applying/paying off a loan in the past.

Q: Is having a good credit record important in case of a home loan?

A home loan is a long term loan (5 to 30 years tenure), hence lenders want to ensure that they will get their money back in the long term. Therefore, the loan sanctioning authority will definitely check your credit history before sanctioning a home loan to you. By having a good credit record/history you would be classified as a low risk borrower and you may be able to get preferred (low) interest rates and waivers on various bank fees on the basis of your credit history.

Q: I have low credit score. Can I still apply for a home loan?

In case you have a poor credit score, you will find it difficult to get a home loan. However, you can improve your chances by getting a co-borrower. The co-borrower needs to be a family member like your spouse or parents. Ideally, you should choose a co-borrower who has a regular source of income and good credit history to bolter your chances of a successful application.

Q: What is pre-EMI Interest?

When banks sanction you a home loan, the EMI payments may not start immediately. In such a situation, the bank is liable to charge a pre-EMI interest on your loan. This interest is payable monthly from the time the loan is disbursed till the time the EMI payments start off. The pre-EMI interest amount is lower than the home loan EMI as the principal payment portion is excluded for pre-EMI interest payments.

Q: What is the margin on a home loan?

The margin on a home loan refers to the percentage of the cost of the home that is not covered by the lender providing you with the home loan. On an average, lenders implement a 20% margin on home loans i.e. the home loan amount sanctioned to you will be 80% of the actual cost of the property. The remaining 20% of the home loan cost will have to be borne by you. Though the 20% margin is the industry average, lenders may increase or decrease their home loan margins on a case by case basis.

Q: What costs are not covered by a home loan?

Apart from the margin, some other costs will have to borne by you. Some of the key expenses in this regard include the initial down payment, stamp duty costs, registration costs and transfer charges among others.

Q: Why should I take a business loan?

Mobilizing money is critical for any business to perform well, An unsecured business loan gives you access to credit, which can be repaid over a period of time, It can be used for expansion of an existing business or investing in a new one without pledging anything against the borrowed amount,

Q: Who all can avail a business loan?

Self-employed individuals/ professionals (like doctors, architects, chartered accountants, business consultants)

  • Sole proprietorship firms
  • Partnership firms
  • Private limited companies
  • Closely-held and public limited companies

Q: What is the eligibility criteria for availing of a business loan?

Your firm should be at least 3 years old, On a net income of up to Rs 1,5 lakhs, a firm can avail of a loan of up to Rs, 15 lakhs, For net income above Rs 1,5 lakhs, a firm can avail of a loan above Rs 15 lakhs, The above figures are only indicative and the actual eligibility criteria varies across financial institutions,

Q: What is the loan processing time?

Typically, 4 working days after all documents are submitted,

Q: What is the loan amount one can avail?

An unsecured business loan ranges from Rs 10 lakhs up to Rs 40 lakhs, depending upon the financial eligibility,

Q: What is the minimum and maximum tenure of the loan?

The loan tenure generally ranges between 12 to 36 months,

Q: What is the interest rate? Is it fixed or floating?

Interest rates entirely depend upon the loan amount, credit assessment, and other risk-based parameters applicable from time to time, The rate is usually fixed,

Q: How do I pay the EMI?

For monthly payments, banks may request for an Electronic Clearing System (ECS) form to be signed by you linking your salary or operational account, Besides ECS, at the time of applying for the loan, banks may ask you to submit post-dated cheques, Do clarify your ECS debit date with the bank so you can ensure sufficient balance for payment clearance,

Q: Can I pre-pay my loan?

Yes, but most financial institutions allow part pay after 6 months from the date of disbursement,

Q: Will I be charged by IndiakaLoan.com for services offered?

No, The services offered by IndiakaLoan.com are completely free of charge,

Q: I submitted my application to IndiakaLoan.com. Now, what next?

Once your application has been electronically processed and received, it will be securely sent to the financial institution of your choice, We will be in touch with you throughout the disbursement process,

Q: What if my application is rejected?

In an unlikely scenario of rejection, we will help you rectify the shortcoming and re-process the application,

Q: What are the documentation required?

KYC documents ID proof : PAN card, Passport, Driving license etc, (any one), Address proof of office and residence: Electricity bill/ telephone bill/ property tax receipt/ registered rent agreement/ post-paid phone bill/ sale deed of agreement Partnership deed and PAN card (for partnership firm) MOA & AOA, COI, PAN and Form 32 (for Companies)

Q: How do I apply for a Business loan?

You can browse, compare and apply for a loan from here,

Q: What can Loan against Property be used for?

Any loan against a residential or commercial property can be used for both personal and business purposes. In fact, you can use it for anything other than speculative or non-prohibitive activities.

Q: How does the lending bank decide on the amount I can get as loan against property?

Basically, the bank looks at your repayment capacity. For calculating the loan amount, your income, age, qualifications, number of dependants, spouse's income, assets, liabilities, stability and continuity of occupation and savings history are taken into consideration. However the eligibility of loan does not, generally, exceed 60 percent of the market value of the property.

Q: Can there be a co-applicant for loan against property? If yes, who can be co-applicant?

You can include your spuse as a co-applicant and that results in a higher amount being lent. However, if the property is co-owned, all co-owners mandatorily need to be co-applicants.

Q: What are the processing fees for such a loan?

Processing fee for loan against any property varies from bank to bank and is generally around 1 percent.

Q: How is the rate of interest on loan against property calculated?

Interest is calculated on daily reducing balance. Your monthly out-go (equated monthly installment - EMI) is much lower as compared to the interest on annual reducing balance.

Q: What is the tenure of the loan?

Loans against property has a maximum tenure of 15 years, subject to the condition it does not exceed your retirement age. This condition however can be flexible in certain cases

Q: How to repay my loan?

You repay the loan in Equated Monthly Installments (EMIs) comprising principal and interest. Repayment by way of EMI commences from the month following the month in which you take full disbursement.

Q: What security will I have to provide?

As the name implies you need to mortgage your property for availing this loan. This mortgage is Equitable mortgage by Memorandum of Entry by way of deposit of title deeds and/or such other collateral security, as may be necessary. Collateral security for by way of assignment of insurance policy or any such other assignable financial instruments are also required, as security to loan if deem necessary by the Bank.
Please do ensure that the title to the property is clear, marketable and free from encumbrance. To elaborate, there should not be any existing mortgage, loan or litigation which is likely to affect the title to the property adversely

Q: Can I repay the loan ahead of schedule?

Yes. Prepayment is possible and there is no prepayment fee if you repay the loan after six months of availing the loan if you pay from your own source of funds without transferring the loan.

Q: How is my loan reassessed if there is a change in status from Non-Resident Indian to Resident Indian?

The repayment capacity of the applicant(s) based on Resident status is reassessed and a revised repayment schedule worked out. The new rate of interest will be as per the currently applicable rate of Resident Indian loans (for that specific loan product). This revised rate of interest would be applicable on the outstanding balance being converted. A letter is given to the customer confirming the change of status.

Q: What can I use a personal loan for?

A personal loan can be used for almost any type of expense ranging from big ticket appliance purchases and home renovations to luxury vacations and debt consolidation. Some other cases where personal loans may be useful include payment to unexpected medical bills, investment in business, fixing your car, down payment of new house and much more.

Q: Am I eligible for personal loan?

You must have a regular source of income to avail a personal loan whether you are a salaried individual, self-employed business person or a professional. A person's eligibility is also affected by the company he/she is employed with, his/her credit history his/her residential location and other factors as per the lender's criteria.

Q: Is there a minimum personal loan amount that I need to borrow?

Yes. Though the exact amount of the minimum personal loan amount varies from one lending institution to another, most lenders have set their minimum personal loan principal amount at Rs. 30,000.

Q: How is the maximum loan amount decided?

When calculating the maximum personal loan amount in case of salaried people, the bank/financial institution takes care that the EMI does not exceed 30% to40% of the applicant's take home salary. Any existing loans that are being serviced by the applicant are also considered when calculating the personal loan amount. And, for the self employed, the loan value is determined on the basis of the profit earned as per the most recent acknowledged Profit/Loss statement, while taking into account any additional liabilities (such as current loans for business etc.) that the applicant might have.

Q: What is the tenure of a personal loan?

Personal loans feature tenure of 1 year to 5 years or 12 to 60 months. In rare cases, shorter or longer personal loan tenures may be allowed by the borrower on a case by case basis.

Q: Can I apply for a personal loan jointly with my spouse?

Yes, personal loan can be applied either by yourself (singly) or together with a co-applicant (jointly).The co-applicant needs to be a family member like your spouse or parents. By getting a co-borrower, your loan application will be processed in a higher income bracket, enabling you to avail a larger loan amount. However, keep in mind that if either you or your co-applicant have poor credit history, the chances of success of your loan application may be adversely affected.

Q: What are the key documents required when applying for a personal loan?

Though the documentation requirements of personal loans vary from one financial institution to another, some of the key documents that you would need to provide with your personal loan application include:

  • Income proof (Salary Slip for salaried/recent acknowledged ITR for self-employed)
  • Address Proof Documents
  • Identity Proof Documents and others
  • Certified copies of degree/license (in case of self-employed professional) and others as per the lender's criteria.

Q: What are the key steps in the loan approval process?

Approval of loan is at the sole discretion of the loan sanctioning officer who bases his/her decision on the basis of the criteria specified by the bank/ financial institution. The entire process can take from about 48 hours to about two week's time. Once all the necessary documents are submitted and the verification process is completed, the loan, if sanctioned, is disbursed within seven working days by the bank. In order to avoid delays in loan processing and disbursement, do keep all necessary documents ready along with the post dated checks (PDC) and/or signed Electronic Clearing System form.

Q: How to decide which bank/financial institution to take the loan from?

It is always a good idea to compare the offers of individual banks before you decide to settle on a specific provider. Use online tools like the loan eligibility calculator and personal loan EMI calculator to find the loan option that suits you the best. Some of the key factors to consider when deciding on a loan provider include interest rates, loan tenure, processing fees and others.

Q: How do banks decide the maximum personal loan amount that I can get?

Though loan sanctioning criteria may differ from one bank to another, some of the key factors that determine the maximum loan amount that may be sanctioned to you include - credit score, your current income level and your current liabilities. A high credit score (closer to 900) shows that you have serviced your previous loans and/or credit card dues in a proper manner, which would lead lenders to feel that you are a safe borrower leading to the sanction of a higher loan amount. Your current income level and your liabilities (outstanding credit card dues, unpaid loans, current EMI's etc.) have a direct bearing on your repayment capacity. Therefore, if you are in a lower income bracket or have a large amount of unpaid credit card bills or outstanding loan EMI, you would be sanctioned for a lower personal loan amount compared to an individual with a higher income or fewer financial liabilities.

Q: Should I always choose the lowest possible EMI when choosing my loan provider?

Low EMI offers can typically result from a low interest rate, a long repayment term or a combination of the two factors. Thus in some cases, you might end up paying a lot more to your lender as interest if you choose the lower EMI option. Instead use online tools like the personal loan EMI calculator to figure out your interest payout over the loan tenure and your repayment capacity before making your decision.

Q: What are the prevailing rates for personal loans?

Being unsecured loans, personal loans feature a higher rate of interest as compared to secured loans such as home loans and car loans. At present, many leading banks and NBFCs in India are offering personal loans at interest rates as low as 11.49 %. However, the rate of interest applicable to a specific applicant would be contingent on key factors including credit score, income level, loan amount and tenure, previous relationship (savings account, loans or credit cards) with the lender as well as other factors.

Q: How do I compare the interest rates of personal loans?

Log on to IndiakaLoan.com and fill out our personal loan eligibility tool to get a list of all available personal loan option along with key data such as applicable interest rate, processing fees as well as information about other charges such as pre-payment charges. Using these data, you can easily compare the various personal loan options available with multiple banks and NBFCs.

Q: How do I get the lowest interest rates on personal loan?

Earlier, you might have had to go to multiple lenders in order to get the information regarding interest rates, tenures, processing fees etc. Not anymore. Just log on to IndiakaLoan.com and fill out the simple form in our Personal Loan sections and in seconds you get information regarding numerous prospective lenders along with the applicable interest rates and various charges including processing fees. You can easily choose the lowest interest rate from the available list and apply for a personal loan within minutes from the convenience of your home or workplace.

Q: Is there any extra charge payable when applying for personal loan?

Yes. In addition to the interest payable on the principal amount, there is an additional non-refundable charge that needs to be paid when applying for a personal loan. Processing fees, which are usually 1%-2% of the loan principal, are charged by the lender to take care of any paperwork that needs to be processed as part of the personal loan application process. This charge may be waived by your lender in case you have a long term association with the lender.

Q: Are personal loan interest rates fixed or floating?

In case of a fixed rate personal loan, your EMI amount remains fixed therefore every month during the loan tenure, you will pay the exact same amount as EMI. In case of a floating rate personal loan, the EMI amount will keep decreasing as it follows the reducing balance method of calculating interest payout on a personal loan. In case of a floating rate, the applicable interest rate may be varied by the bank periodically as per the new MCLR rules, floating interest rates may be changed either on a half yearly or yearly basis.

Q: What is the difference between reducing and flat interest rate?

As the name implies, Reducing Balance Interest Rate involves the borrower to pay interest only on the outstanding loan balance, i.e. the balance that remains outstanding after getting reduced by the principal repayment. Flat Interest Rate is wherein the borrower needs to pay interest on the entire loan balance throughout the loan term. Thus, the interest payable does not decrease even as the borrower makes the periodic payments (EMIs).

Q: What is relationship discount?

Relationship discount is an additional benefit that is provided by the banks or lenders to a prospective applicant if they have a pre-existing relationship with the lender. Such pre-existing relationship may include having a salary/savings account with the bank or having an existing credit card, fixed deposit or loan with the prospective lender. Relationship discounts may result in the lender providing you with discounts when applying for the loan like - waiver of the processing fees, lower interest rates or others.

Q: How is the personal loan disbursed?

Once you get approved for a personal loan, you may either receive an account payee cheque/draft equal to the loan amount or get the money deposited automatically into your savings account electronically.

Q: How long does it take for personal loan to be disbursed?

You can choose and apply for a personal loan within minutes through IndiakaLoan.com. After you have filled out the online application form on our website, the prospective lender gets in touch with you and asks you to provide the relevant documents to support you loan application. Once you have submitted all the relevant documents, the bank may disburse your personal loan as early as the next 48 hours. The usually time frame to complete the loan disbursal process is 3 to 4 working days.

Q: Which are the best banks and NBFCs for a personal loan?

Personal loans are offered by all leading banks and numerous NBFCs (non-banking financial companies). Some of the leading providers of personal loans include HDFC Bank, IndusInd Bank, Citibank, Axis Bank, Fullerton India, Capital First, State Bank of India and Associates, Indian Bank, Karnataka Bank, Standard Chartered Bank and many others.

Q: Is there any Balance Transfer offer on a personal loan? Are there any benefits of this balance transfer?

In some cases, a lender would allow you to transfer the current balance (amount still to be repaid) on your current personal loan from current lender to a new one. In this case, the new lender would pay off the balance amount to the current lender. At the end of the balance transfer process, you will owe the new lender whatever payments plus applicable interest that is left on your current loan. A balance transfer helps you benefit from the lower interest rate offered by the new lender, however, there are a few charges such as balance transfer fee, pre-payment charges, etc. that may be applicable to the procedure.

Q: Why do my initial EMIs have little impact on the principal amount due?

A major portion of your initial EMIs are actually used to pay off the interest dues on your home loan. This process is termed as "front loading", hence only a small portion of the principal is paid off initially. As you progress further with your EMI, these small decreases in the principal amount add up leading to a decrease in the interest charged on the outstanding amount, thus a larger portion of the EMI is used for paying off the loan principal in later years.

Q: What if I default on my scheduled Personal Loan EMIs?

In case you miss your scheduled personal loan EMIs and are unable to make future payments on your personal loan, the lender initially make attempts to recover the due amount through settlements and recovery agents. If such attempts fail and your loan account is marked as a default, this personal loan will show up on your credit report as a default, which will adversely affect your credit score and make it difficult for you to get approval for loans and credit cards in the future.

Q: Are there any tax benefits associated with personal loan?

Personal loans usually have no tax benefits, however, in case you take a personal loan for home renovations/down payment, you may be eligible for income tax deduction under section 24. However, this tax benefit is limited to only the interest on the loan and not the principal amount. Also you would have to furnish proper receipts to claim deduction.