Reference
Loans Explained
Personal loans, home loans, car loans, and business loans — every EMI formula, eligibility rule, prepayment trick, and tax benefit in plain English. No jargon. No fine print.
Browse by loan type
Personal Loan
EMI · Eligibility · Prepayment · Balance transfer
EMI, eligibility, comparison, prepayment, and balance transfer for personal loans — in plain English.
Home Loan
EMI · Principal vs interest · Prepayment · Tax benefit
EMI breakdown, principal versus interest, prepayment, balance transfer, and tax benefits on home loans.
Car Loan
On-road price · Depreciation · Foreclosure · Insurance
On-road pricing, depreciation, foreclosure, and how to finance a new or used car in India.
Business Loan
MSME · Mudra · Working capital · LAP
MSME loans, Mudra, working capital, and business finance options for Indian enterprises.
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Frequently asked questions
- How does a loan EMI work?
- EMI stands for Equated Monthly Instalment. It is the fixed amount you pay each month towards repaying a loan — part principal and part interest. The interest portion is highest at the start and reduces with each payment.
- What is the difference between a personal loan and a home loan?
- A personal loan is unsecured — no collateral is required. A home loan is secured against the property you are buying. Home loans therefore carry lower interest rates but require property documents and longer tenure.
- Can I prepay a loan early?
- Most Indian lenders allow prepayment or foreclosure after a lock-in period, usually 6–12 months. Floating-rate loans can usually be prepaid without penalty; fixed-rate loans may carry a charge of 1–2% of the outstanding amount.
- What credit score do I need for a loan?
- Most lenders prefer a CIBIL score of 750 or above for personal loans. Home loans are more flexible — scores above 650 may qualify with a higher interest rate. Business loans consider both the borrower's and the business's credit history.
Sources
Sources: Reserve Bank of India (RBI) loan guidelines · Bank rate announcements · Income Tax Act 2025 (home loan tax benefit under Section 24 / 80EE) · Mudra loan programme guidelines · SIDBI. Last reviewed by FinWiz24 Research Desk.