Loan FAQs — India 2026

12 to 84 months (7 years). Most borrowers choose 36-60 months to balance EMI affordability with total interest. A Rs. 5 lakh loan at 14% costs ~Rs. 1.94 lakh in interest over 5 years vs ~Rs. 2.83 lakh over 7 years.

Yes. Self-employed individuals can apply with ITR + bank statements. Some fintech NBFCs accept GST returns or 12 months of bank statements. Pensioners can use pension slips. Rates may be 1-3% higher when using alternative income proof.

Unsecured: 13%-22% p.a. Secured (against property/FDs): 9.5%-14% p.a. Working capital (CC/OD): 9%-15% p.a. Government MSME schemes (Mudra, CGTMSE): 8.5%-12% p.a. Rates depend on vintage, turnover, profitability and promoter credit.

KYC (PAN, Aadhaar of all promoters), business proof (GST, Udyam/MSME certificate, S&E licence), 2 years ITR with computation, audited B/S and P&L, 12 months business + personal bank statements, partnership deed/MoA/AoA, property docs if secured.

Unsecured: NBFCs/Fintechs up to Rs. 50 lakh (some up to Rs. 2 crore for top borrowers); Banks up to Rs. 75 lakh for established businesses. Secured business loans: up to Rs. 25 crore based on collateral. Generally capped at 1x-1.5x annual turnover.

Under the OLD tax regime: Section 80C — principal repayment deduction up to Rs. 1.5 lakh/year. Section 24(b) — interest deduction up to Rs. 2 lakh/year for self-occupied property. Section 80EEA — additional Rs. 1.5 lakh on interest for first-time buyers (loan up to Rs. 35 lakh, property up to Rs. 45 lakh). Total potential: up to Rs. 5 lakh/year. New tax regime does not allow these.

Rates start from 7.20 % p.a. for women borrowers with high CIBIL scores at PSU banks. Most home loans are priced 8.50%-10.50% p.a., linked to RBI repo rate (RLLR). Salaried borrowers from top employers get the best rates; self-employed see 0.5-1% higher.

Yes for floating-rate home loans — RBI has banned prepayment/foreclosure penalties on individual floating-rate home loans regardless of source of funds. Always check your loan agreement.

Residential property: 60%-70% of market value. Commercial property: 50%-65%. Industrial: 50%-60%. Maximum loan amounts range from Rs. 50 lakh to Rs. 25 crore depending on lender, panel valuer's valuation (often 10-20% below market), and your repayment capacity.

Yes — through a top-up loan or balance transfer with top-up. If your home loan is in good standing for 12+ months and the property has appreciated, you can borrow against the equity. Top-up loans are priced at home loan rates + 0.5-1%, much cheaper than a personal loan.

Cash Credit (CC): Working capital limit secured by inventory and receivables (hypothecation). Interest charged only on amount used. Reviewed annually with monthly stock/debtor statements. Purely for business operations. Overdraft (OD): Credit limit on current account, secured by FDs, property, or salary. More flexible, can be used for personal or business. CC is purpose-bound for business inventory; OD is broader.

Two methods: Turnover Method (limits up to Rs. 5 crore) — working capital = 25% of projected annual turnover, of which 20% bank-funded and 5% promoter margin (so Rs. 4 crore turnover = up to Rs. 80 lakh limit). MPBF Method (above Rs. 5 crore) — bank assesses operating cycle (debtor days + inventory days minus creditor days). Actual sanction depends on profitability, banking conduct, collateral.

Education loans have a moratorium (repayment holiday) covering the entire course duration plus 6-12 months after course completion OR until you get a job, whichever is earlier. Simple interest accrues during moratorium and is added to principal when EMIs start. Many lenders offer 1% concession if you service interest during moratorium.

Yes. Covers tuition, hostel/living, travel, books, laptop, exam/library fees. Up to Rs. 1.5 crore WITHOUT collateral for premier universities (Ivy League, top US/UK/Canada/Australia universities). Rs. 40 lakh-1 crore with property collateral for non-premier institutions. NBFCs (Credila, Avanse, Auxilo, Propelld) approve faster than banks for overseas. Most lenders cover up to 100% of total cost. Forex disbursal directly to university.

PSU banks (SBI, BoB, PNB): 8.5%-11.5% p.a. — usually cheapest, women get additional 0.5% concession. Private banks (HDFC, ICICI, Axis): 10.5%-13.5%. NBFCs (Credila, Avanse): 11%-15% — higher rates but faster approvals and larger collateral-free amounts. Premier institutions and STEM courses get best rates. SC/ST/EBC students get government interest subsidies.

Yes. Vehicle should not be older than 7 years at application and 10 years at loan maturity. Lenders finance 70%-85% of car valuation (not seller's asking price). Tenures 12-60 months. Vehicle must have valid registration, insurance, PUC, clean ownership chain. Buying from organised dealers (Maruti True Value, Mahindra First Choice, Spinny, Cars24) gets faster approvals than private sale. The car itself acts as collateral.

New cars: 10%-25% of on-road price (most lenders finance 85-90%). Used cars: 15%-30% of valuation. EVs and select models: some lenders offer 100% financing under manufacturer tie-ups. Higher down payment reduces EMI burden, total interest, and improves approval chances if you have a moderate credit score.

Professional loans offer better terms: max Rs. 75 lakh+ vs Rs. 40 lakh for personal loans; rates 11-15% vs 11-24%; tenure up to 84 months vs 60 months; tax-deductible if used for business (interest is a business expense). Doctors with MBBS/MD/MS qualifications and 2+ years of practice should always opt for a professional loan instead of a personal loan.

Most rigorous documentation: Detailed Project Report (DPR) with feasibility study, market analysis, financial projections (5-7 years); land documents (title, land use, conversion); statutory approvals (RERA, environmental clearance, NOC, fire safety, pollution control); 3 years audited financials of promoter companies; promoter contribution commitment (25-30% of project cost); architectural/engineering plans; vendor & equipment quotations; tie-ups (off-take, supplier, JV agreements). Sanction takes 60-120 days.

9.5%-14% p.a. depending on promoter category (listed/large corporates get lower rates), project type (infrastructure, RE, manufacturing get preferential rates under priority sector lending), risk profile (cash-flow visibility, off-take agreements, security cover), and lender (PSU banks cheaper, NBFCs/private banks faster). Most project loans are floating-rate linked to MCLR or repo. Government-backed schemes (PLI, FAME, MNRE solar) further reduce effective cost.

No. We use a soft enquiry — invisible to lenders, zero impact on your credit score, no matter how often you check. Hard enquiry only happens if you formally proceed with a specific loan application.

Personal loans: 24-48 hours, sometimes same-day for select salary-account holders. Home loans and LAP: 7-15 days. Business loans: 3-10 days depending on lender and loan size.

Personal Loan/Credit Card: 750+ for best rates, 700+ for approval, 650+ for higher rates. Home Loan: 750+ for best rates, 700+ for standard. Business Loan: 700+ on borrower (and 650+ on entity if registered). Car Loan: 700+ for new car. Below 650: limited options at high rates.

Our team helps you understand the rejection reason — usually low credit score, insufficient income, FOIR breach, or document issues — and recommends alternative lenders or steps to improve your profile (paying down debt, adding co-applicant, switching to secured loan). Rejection by one lender does NOT get reported to other lenders.

Yes. Some fintech NBFCs accept GST returns + bank statements as alternative to ITR, especially for working capital and short-term business loans. Rates are typically 1-2% higher.

No, in most cases. Almost all our partner lenders accept digital uploads (clear photos or PDFs). Aadhaar e-KYC and DigiLocker integration make it faster. Physical paperwork only required for some home loan and LAP cases where original property documents must be inspected.

Harder but not impossible. Options: (a) employer letter + 12 months bank statements showing regular cash deposits, (b) NBFCs that accept alternative income proof, (c) co-applicant with bank-credited salary.

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No hidden charges from Kuvik. All lender charges — processing fee, GST, stamp duty, insurance, etc. — are disclosed upfront in the Key Fact Statement (KFS) before you sign.

Standardised one-page document that every RBI-regulated lender must give borrowers before agreement signing. States loan amount, tenure, EMI, Annual Percentage Rate (APR — all-in cost including processing fee), total amount payable, all charges (processing, foreclosure, late payment, bounce), recovery and grievance contacts. Mandated by RBI under Digital Lending Guidelines 2022.

Per RBI guidelines, floating-rate retail loans cannot be charged foreclosure penalty. Fixed-rate and business loans may attract 2-5% foreclosure fees. Always check KFS.

Late payment penalty (1-3% of EMI) plus bounce charge if auto-debit fails. Missed EMIs reported to credit bureaus and damage your CIBIL score. Contact the lender BEFORE the due date — most offer one-time grace or restructuring.