With multiple lending options available, borrowers often struggle to decide between personal loans and microloans. Here’s a side-by-side comparison to help you choose the right one based on your profile and financial needs.

Comparison Table
Feature	Personal Loan	Microloan
Loan Amount	₹10,000 – ₹25,00,000	₹1,000 – ₹1,00,000
Ideal Borrower	Salaried or self-employed	Rural/Low-income/Small biz
Credit Score Needed	Yes (650+)	Not mandatory
Collateral	Not required	Often not required
Disbursement Speed	24–72 hours	1–7 days
Repayment Tenure	12–60 months	3–18 months
Interest Rate	10.5% – 24%	18% – 28%

When to Choose a Personal Loan

• If you have a stable income and good credit
• Need higher loan amount
• Want lower interest rate and longer repayment terms

When to Choose a Microloan

• If you have low/no credit history
• Need small funds for working capital
• Live in semi-urban or rural areas

Both loan types serve unique purposes. Evaluate your income level, credit history, and loan size requirement before applying.

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Not sure where you fit? Take our free loan matching quiz to find the best type of loan for your needs instantly.