You need money fast and banks are giving you the runaround.
You’ve probably heard about Prefr personal loan but wondering if it’s legit or just another app trying to trap you.
Let me break it down for you straight.
Prefr Personal Loan Quick Overview
Prefr Personal Loan
Interest Rate: 16% to 26% p.a
Tenure : Upto 24 Months
Age Required : 21 ā 55 Years
Income Range : 8,000+ Net Salary
10 Minutes Disbursal
What Is Prefr Personal Loan Actually?
Prefr isn’t some fancy fintech startup with a billion-dollar valuation.
It’s a digital lending platform that gives personal loans without the drama.
No branch visits. No dealing with grumpy bank managers. No waiting for weeks.
I’ve seen friends get approved in minutes and money in their account the same day.
But here’s what most people don’t tell you about Prefr.
The Real Benefits of Prefr Personal Loan
Lightning Fast Approval
Most banks take 15-20 days to approve your loan.
Prefr does it in under 24 hours.
Sometimes even in 30 minutes.
My cousin needed ā¹50,000 for his wedding expenses last month.
Applied at 2 PM. Got approved by 4 PM. Money was in his account by evening.
Try doing that with SBI or HDFC.
No Paperwork Nightmare
Remember the last time you applied for a bank loan?
You probably needed:
- Salary slips for 6 months
- Bank statements for 1 year
- Form 16
- ITR for 2 years
- Property documents
- And 10 other things nobody told you about
With Prefr personal loan, it’s just:
- Aadhaar card
- PAN card
- Bank statements (3-6 months)
- Salary slips (2-3 months)
That’s it.
Flexible Loan Amounts
Need ā¹10,000 for a phone? Or ā¹5 lakhs for home renovation?
Prefr covers you from ā¹10,000 to ā¹10 lakhs.
Most traditional lenders won’t even look at you if you need less than ā¹50,000.
Reasonable Interest Rates
Here’s where it gets interesting.
Banks advertise 10-12% interest rates.
But that’s only for people with 800+ credit scores and government jobs.
For regular folks like us, they charge 18-24%.
Prefr is upfront about their rates. Usually between 14-30% depending on your profile.
At least they’re honest about it.
Prefr Personal Loan Eligibility Criteria
Let me save you some time.
You can’t get a Prefr personal loan if you’re:
- Under 21 years old
- Over 60 years old
- Unemployed
- Earning less than ā¹15,000 per month
You CAN get approved if you’re:
- Salaried employee (21-60 years)
- Self-employed (25-65 years)
- Earning ā¹15,000+ monthly
- Have a decent credit score (650+)
The Credit Score Reality Check
Here’s what nobody tells you about credit scores and Prefr.
They say minimum 650 credit score.
But I’ve seen people with 620 scores get approved.
And people with 720 scores get rejected.
Why?
Because they look at more than just your score:
- Your spending patterns
- Loan repayment history
- Income stability
- Existing debt obligations
One friend had a 680 score but was spending 80% of his salary on EMIs.
Rejected instantly.
Another had 640 but steady income for 3 years with no defaults.
Approved for ā¹2 lakhs.
Required Documents for Prefr Personal Loan
Stop overthinking this.
For salaried employees, you need:
Identity Proof:
- Aadhaar card
- Passport
- Voter ID
- Driving license
Address Proof:
- Aadhaar card
- Passport
- Utility bills (electricity/water)
- Rent agreement
Income Proof:
- Last 3 salary slips
- Bank statements (3-6 months)
- Employment certificate
For self-employed folks:
Business Proof:
- Business registration certificate
- GST registration
- Shop establishment license
Financial Documents:
- ITR for last 2 years
- Bank statements (6-12 months)
- Profit & loss statement
- Balance sheet
Pro tip: Have everything in PDF format ready on your phone.
Makes the process 10x faster.
How to Apply for Prefr Personal Loan (Step by Step)
I’m going to walk you through this like I’m sitting right next to you.
Step 1: Download the App
Go to Google Play Store or App Store. Search “Prefr.” Download it. Don’t download fake apps with similar names.
Step 2: Create Your Account
Enter your mobile number. Verify with OTP. Set up your profile with basic details.
Step 3: Check Your Loan Eligibility
The app will ask for:
- Monthly income
- Employment type
- City you live in
Takes 2 minutes to get a pre-approved amount.
Step 4: Upload Documents
Take clear photos of your documents. Make sure everything is readable. Blurry photos = instant rejection.
Step 5: Wait for Verification
Usually takes 2-24 hours. They’ll call you to verify details. Answer honestly.
Step 6: Accept Loan Terms
Read the interest rate. Check the processing fee. Understand the tenure options.
Step 7: Get Money
Once approved, money hits your account within hours.
Interest Rates and Charges Breakdown
Let me give you the real numbers.
Interest Rates: 14% to 30% per annum
Your rate depends on:
- Credit score
- Income level
- Employment stability
- Existing loans
Processing Fee: 2% to 6% of loan amount
Late Payment Charges: ā¹500 to ā¹1,000 per missed EMI
Prepayment Charges: Usually 2-5% if you close early
Here’s a real example:
ā¹1 lakh loan at 18% for 2 years:
- Monthly EMI: ā¹4,992
- Total interest: ā¹19,808
- Processing fee: ā¹3,000
Total cost = ā¹22,808
Prefr vs Other Personal Loan Apps
I’ve tried most lending apps.
Here’s how Prefr compares:
Prefr vs MoneyTap:
- Prefr: Fixed EMI loans
- MoneyTap: Credit line facility
- Winner: Depends on your need
Prefr vs Bajaj Finserv:
- Prefr: Faster approval
- Bajaj: Lower rates for good credit
- Winner: Prefr for speed, Bajaj for rates
Prefr vs CASHe:
- Prefr: Higher loan amounts
- CASHe: Better for small loans
- Winner: Prefr for big expenses
Common Reasons for Prefr Loan Rejection
I’ve helped dozens of friends with loan applications.
Here are the main reasons people get rejected:
Low Credit Score Below 600 is almost always a no.
Insufficient Income Less than ā¹15,000 monthly won’t cut it.
Too Many Existing Loans If your EMI-to-income ratio is above 50%, forget it.
Incomplete Documents Blurry photos or missing papers = instant rejection.
Job Hopping Changed jobs 3 times in 2 years? Red flag for lenders.
High Credit Utilization Using more than 80% of your credit card limit hurts.
Tips to Improve Your Approval Chances
Want to maximize your chances?
Here’s what actually works:
Before Applying:
- Check your credit score (free on Paisabazaar)
- Pay off any pending credit card dues
- Don’t apply to multiple lenders simultaneously
During Application:
- Fill accurate information
- Upload clear document photos
- Respond to verification calls promptly
Income Documentation:
- Show consistent salary credits
- Avoid cash deposits before applying
- Keep bank statements clean
What to Do After Getting Your Prefr Loan
You got the money.
Now don’t mess it up.
Set Up Auto-Debit: Never miss an EMI. Late payments destroy your credit score.
Use Money Wisely: Don’t blow it on unnecessary stuff. Stick to your original purpose.
Plan for Prepayment: If you get extra money, consider closing early. Saves on interest despite prepayment charges.
Monitor Your Credit Score: Your timely payments will improve your score. Better score = better rates next time.
Red Flags to Watch Out For
Not everything is sunshine and rainbows.
Here are the warning signs:
Hidden Charges: Read the fine print. Some apps add random fees later.
Aggressive Recovery: If you miss payments, expect calls. Lots of them.
Data Privacy: These apps access your phone data. Read their privacy policy.
Over-borrowing: Just because you’re eligible doesn’t mean you should max out.
Alternatives to Prefr Personal Loan
Maybe Prefr isn’t right for you.
Here are other options:
Traditional Banks:
- Lower rates
- Longer processing time
- More paperwork
Credit Cards:
- Instant access
- Higher interest rates
- Good for short-term needs
Friends and Family:
- No interest
- Relationship risks
- Limited amounts
Gold Loans:
- Lower rates
- Need gold as collateral
- Faster than bank loans
Frequently Asked Questions
Q: How long does Prefr loan approval take?
Usually 2-24 hours. Sometimes as fast as 30 minutes for existing customers.
Q: What’s the minimum and maximum loan amount?
Minimum: ā¹10,000 Maximum: ā¹10 lakhs
Q: Can I prepay my Prefr personal loan?
Yes, but you’ll pay a prepayment penalty. Usually 2-5% of outstanding amount.
Q: What happens if I miss an EMI payment?
Late fee of ā¹500-ā¹1,000. Negative impact on credit score. Recovery calls start immediately.
Q: Is Prefr RBI approved?
Yes, Prefr works with RBI-registered NBFCs. Your money is safe.
Q: Can I get a second loan while first one is running?
Possible, but they’ll check your repayment capacity. Better to clear first loan before applying again.
Q: Do I need a guarantor for Prefr personal loan?
No guarantor required. It’s an unsecured personal loan.
Q: What’s the processing time for loan disbursement?
Once approved, money reaches your account within 2-6 hours.
Q: Can I increase my loan amount after approval?
Not possible to increase existing loan. You’ll need to apply fresh after closing current one.
Q: Is there any charge for early loan closure?
Yes, prepayment penalty applies. Check your loan agreement for exact percentage.
Bottom Line
Look, Prefr personal loan isn’t perfect.
No lending app is.
But if you need money fast and don’t want to deal with traditional banks, it’s a decent option.
Just remember:
- Borrow only what you need
- Read all terms carefully
- Never miss EMI payments
- Use the money for productive purposes
At the end of the day, any loan is a responsibility.
Handle it wisely, and Prefr personal loan can help you achieve your financial goals without the usual banking drama.
