First Loan: Getting your first loan can feel like a big step—and it is. Whether you’re planning to buy a phone, fund your education, start a side hustle, or deal with a sudden emergency, loans can help you achieve your goals without draining your savings.
If you’re new to the world of finance, this guide will walk you through the basics of getting your first loan—safely and smartly.
✅ What is a Loan?
A loan is money that you borrow from a bank, NBFC (Non-Banking Financial Company), or digital lender. You agree to pay it back in EMIs (Equated Monthly Installments), which include both the principal (the money you borrowed) and interest (the fee the lender charges for lending you the money).
🎯 Types of Loans for First-Timers
As a beginner, you may qualify for:
1. Personal Loan
- Unsecured (no collateral needed)
- Use for anything: education, travel, emergencies
- Loan amount: ₹10,000 – ₹5 lakh
2. Education Loan
- For higher studies in India or abroad
- Usually needs a co-signer (like a parent)
- May come with a moratorium period (pay later)
3. Consumer Durable Loan
- Buy electronics like mobile phones, laptops, TVs
- 0% EMI options often available
4. Credit Card Loan
- A pre-approved loan on your card limit
- Instant but often high interest rates
📋 Eligibility Criteria (Basic Requirements)
To get approved for your first loan, most lenders expect:
- Age: At least 21 years (some fintechs allow 18+)
- Income: ₹12,000/month or more
- Employment: Salaried or self-employed
- Credit Score: 650+ (or no score if you’re new)
- Documents: Aadhaar, PAN, salary slips, bank statement
🧾 Documents You’ll Need
Keep these ready when applying:
- ID Proof: PAN Card, Aadhaar Card
- Address Proof: Utility bill, rent agreement
- Income Proof: Salary slips, bank statement (last 3–6 months)
- Selfie or Passport-size Photo (for online KYC)
📱 Where to Get a First Loan in India
Here are beginner-friendly platforms:
| Lender/App | Loan Amount | Special For |
|---|---|---|
| KreditBee | ₹1,000 – ₹2 lakh | First-time borrowers |
| LazyPay | Up to ₹1 lakh | Small short-term loans |
| Navi App | Up to ₹20 lakh | Instant approval, low docs |
| Slice / OneCard | Credit card + loan | Students, young earners |
| Banks (HDFC, ICICI) | ₹50k – ₹5 lakh | Regular personal loans |
💡 How to Apply for a Loan (Step-by-Step)
- Check Eligibility: Use the lender’s website/app to check
- Fill Out Application: Basic details like name, income, and loan purpose
- Submit Documents: Aadhaar, PAN, bank statement, etc.
- Wait for Approval: Can be instant or take 1–3 days
- Loan Disbursal: Amount gets credited to your bank account
- Start Repaying in EMIs
🔍 What is a Credit Score & Why It Matters
Your credit score (300–900) tells lenders how trustworthy you are with money. A score of 700+ improves chances of approval and better interest rates. If this is your first loan, you might have a “no credit history”, which some lenders still accept.
🚫 Common Mistakes First-Timers Should Avoid
- Borrowing more than needed
- Not checking interest rate & total repayment
- Skipping EMI payments (hurts your credit score)
- Falling for loan scams (always apply through trusted sources)
- Taking a loan without a repayment plan
💰 Tips for Managing Your First Loan
- Set a budget and make sure your EMI is affordable
- Enable auto-debit from your bank to avoid missing payments
- Try to pay on time to build a strong credit history
- Consider prepaying the loan if you have extra money (check for charges)
🧠 Final Thoughts
Getting your first loan is a financial milestone. It gives you access to money when you need it—and builds your credit profile for the future. But remember: a loan is not free money. It comes with the responsibility to repay it on time, every time.
So take your time, compare options, read the terms carefully, and borrow smart.
