Personal Loan

We are not immune from the most diverse situations that arise in life. Often you have to put up with small inconveniences, hoping that they do not grow into major problems. And then you take a loan from friends and family, credit cards and much more. But the most optimal solution to a financial problem would be a simple and convenient Personal Loan.

What is a Personal Loan?

A personal loan is an amount of money provided by a lender to be repaid by the borrower within a set period of time, together with interest that acts as a fee to the lender for providing this service. Usually, after you have submitted your application, the lender is given time to review it, if you pass the eligibility check, then the required amount will be credited to your account as a whole. Generally, all personal loans are usually issued by licensed banks or financial institutions. But there are also other companies that also offer this service, although they are not recommended.

Personal Loan - Best Lenders of Sri Lanka

0% for first loan
Lotus Loan

Lotus Loan to Rs.40 000

Loan Amount 10000 - 40000 Rs.
Loan period 10 days to 122 days
Interest Rate 0.01 to 1% per day (max APR 12%)

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0% for first loan

RoboCash to Rs.25 000

Loan Amount 5000 - 25000 Rs.
Loan period 120 days to 180 days
Interest Rate 0.01 to 1% per day (max APR 180%)

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0% for first loan

FastRupee to Rs.50 000

Loan Amount 3000 - 50000 Rs.
Loan period 1 days to 180 days
Interest Rate 0.01 to 1% per day (max APR 365%)

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What is the loan term?

  • Minimum loan term: 122 days
  • Maximum loan term: 122 days for first loan
  • Maximum loan term: 182 days for repeat loan

The loan is calculated as follows

  • Loan amount: RS 30.000
  • Loan period: 122 days
  • Consulting fee: RS 3.600
  • Service fee: RS 13.920
  • Interest rate (12% / year) : RS 754
  • Total payment: RS 48.274

Am I eligible for a loan?

You are eligible to apply for a loan if you are:
  • A citizen of Sri Lanka
  • Residing in Sri Lanka
  • Between the ages of 20 to 65 years old
  • Currently employed or generating a steady income

The borrowable value is calculated based on a number of criteria and requirements (see below) and repayment period usually starts from 3 years and can even stretch up to 10-15 years depending on the lender. These can either be secured (with collateral) or unsecured (with no collateral), with secured loans tending to be higher value with lower interest rates.

A personal loan is an amount of money provided

Reasons for Getting a Personal Loan

A personal loan can be used for almost any purpose you like, without needing to explicitly state the purpose during time of application. Here are some popular reasons:

  • Settling outstanding high-interest debt (like credit card debt)
  • Buying a house or a vehicle (without going for a mortgage)
  • Higher education
  • Wedding expenses
  • Overseas travel
  • Large medical bills not covered by health insurance
  • Home renovations
  • and so much more!

Personal Loans with Low Interest Rates

Personal Loans are also generally considered to have lower interest rates than other forms of credit. While rates differ across lenders and various types, it is possible to secure very attractive rates by selecting the right vendor. Depending on the rate, you might even find that taking out a line of credit to pay for or fund a large expense instead of paying the bulk sum upfront might actually save you some money if you are able to invest the bulk of the money for higher returns than the loan interest.


Personal loans have benefits that are far greater than any other types of credit facility, such as:

Flexible Value

Depending on your required amount as well as how well you meet the lender’s criteria, the borrowable value you are eligible for varies. There are ways for you to increase this value such as canceling other lines of credit (e.g. credit cards) and improving your credit score. If you offer collateral, your borrowable value will further increase. So it can be said that the level of flexibility afforded to customers is really high.

Flexible Repayment

Certain lenders offer extremely flexible repayment terms and periods. Flexibility offers various types of benefits, such as paying off only interest at first, making payments at your convenience, withdrawing already-deposited payments etc. If your financial situation is volatile, asking for flexible options might be prudent.

No Questions Asked

Unlike housing mortgages or vehicle leasing which require all the details about why you need to borrow money, you are able to keep all your personal affairs completely private. The discretion afforded is a great benefit for certain individuals when dealing with sensitive matters such as medical or other expenses.

Lower Interest Rates

Personal loans also tend to have lower interests especially when compared to other types of unsecured credit facilities. The rate is further reduced in the case of secured loans. Of course, these rates depend entirely on the global/national economic situation as well as the lending party.


Personal loans can be processed and cleared within just a matter of days, which makes it a godsend in times when you need large sums of money very urgently. The processing period can be shortened further if you submit all documents properly, and possess a pristine credit score without any payment delays on record.

No Collateral Needed (sometimes)

Unsecured personal loans don’t require you to put up any of your assets as collateral. In fact, most personal loans are unsecured, although almost all usually require you to have a regular source of income for the duration of the repayment period, as well as certain other criteria e.g. solid credit score, reliable employment history at reputed/recognised organisations. This allows you limited liability and the freedom of applying for more lines of credit using your existing assets.

most personal loans are unsecured

Personal vs Other Loans



Flexible Value

Fixed Value (depending on requirement)

Flexible Repayment

Fixed Payments and Repayment Periods

No Questions Asked

Many Details Required (house details, vehicle details, business details etc.)

Lower Interest Rates

Higher, Fixed Interest Rates


Takes Time to Process and Receive Money


What are the requirements?

Even though a personal loan might be the ideal solution for your current requirement, obtaining one might not be as easy as people think. It requires you to meet a number of criteria that not only decide your eligibility for obtaining this credit facility, but also the borrowable value you are able to take out. Although the requirements depend largely on the selected financial institution and the exact nature of credit facility you are taking out, here are some of the most common and basic criteria you need to meet before obtaining a personal loan:

  1. Be of legal age (above 18 years of age)
  2. Be below retirement age (usually 60 years of age)
  3. A confirmed employee with a regular source of income (there is a minimum amount you need to earn to be eligible)
  4. Assets as collateral
  5. Declare any other outstanding credit facilities
  6. 1-2 guarantors who agree to take on the responsibility of settlement in case you default

What documents are required?

The documents you need to provide are usually to verify that you meet the aforementioned criteria. Some of the basic documentation you need to provide are as follows:

  1. Filled application form
  2. A National Identity Card, valid driver’s license or passport
  3. 3 months’ salary slips with the income stated
  4. Letters from employers stating your confirmed position and salary
  5. Proof of permanent residency (a utility bill etc.)
  6. Proof of assets as collateral

How long can I get one for?

The repayment period for a personal loan varies greatly, with some flexibility allowed for you. The interest rates and the borrowable value are subject to change along with the selected repayment period. Longer repayment periods tend to carry higher interest rates as well as higher loan values. Depending on your monthly income, you will receive greater flexibility in terms of value, as well as rates and repayment periods.

A sample interest vs. repayment period is given below (Gost Finance Sri Lanka):

Repayment Period Monthly Salary
LKR 20,000 - 50,000

Monthly Salary
LKR 50,001 - 75,000

Monthly Salary
LKR 75,000 - 100,000

3 years


7.5% 7.0%
5 years 8.5%


7 years




10 years


9.0% 8.5%


Fixed vs Floating Interest Rates

When applying for personal loans, you will be offered the option of selecting a fixed interest rate or a floating one. A floating rate means that every time your selected company adjusts their rates (which varies based on the current economic situation), the new value will apply to your ongoing loan. A fixed rate means that the interest rate at the time you submitted your application will apply for the entirety of the repayment period.

A fixed rate means that the interest rate at the time you submitted your application 0%

The advantage of going for a floating rate is that you will have to pay less in interest every time the rate drops. Therefore if you borrow money from a lending party during a time with a very high interest rate, when it eventually drops again, the lower rate will apply. Most financial institutions even allow the facility to convert your fixed interest rate to a floating rate (and vice versa) for a fee.

Loan Calculators

When dealing with various interest rates, repayment periods and salary scales, it’s hard to try and get an understanding of what the financial difference between all those really is. At the end of the day, what it really boils down to is your monthly instalment value as well as the total amount that you will be paying extra by way of interest. Due to this common complaint, most financial institutions offer their potential customers Loan Calculators.

These are interactive tools that allow you to see your monthly instalment amount as well as the total interest portion in real-time by entering in your required amount of money, repayment period and applicable rate. This not only allows you to compare different schemes and different lenders, it also gives you the big picture of the financial commitment that you are about to undertake. Finding out you need to pay Rs. 150,000 each month for the next ten years might make you reconsider your requirement.

Which brings us to the next most important aspect.

Do I really need it?

Finally, the question of whether you really need to take out this kind of credit facility at all is something that you need to address from the get-go. Even though you are eligible to receive one, you should think long and hard about whether it is the best course of action for you. Personal loans are the safest and most trusted way of borrowing money so if you are faced with no other choice, it can be recommended. However, if you ever lose your source of income, you might find yourself in a very difficult situation. If you are sure about receiving a regular source of income for the entirety of the repayment period as well as not foreseeing any large expenses in the near future, a personal loan might not be too impossible to manage and will help you achieve a great many things in life.

FAQ - Personal Loan

How do I get the money

You will receive the money into your bank account that you provided in the application form. Once we transfer the money we will inform you with an SMS.

What can I use the money for❓

It’s up to you how to spend this money. We are helping you with any plan you have in mind to improve your life or to resolve a problem.

Any prerequisites before applying for a loan❓

You won’t need to submit any personal documents. Just have the following details ready when you apply: Personal Information; Your bank account details.

How long does it take to receive the money from the loan application❓

Generally, once your loan is approved upon verification, within 2 hours your money will be credited to your Bank account provided in the application process.

When is my loan due❓

You can check when your loan is due during the application process, or upon approval you will receive an email with the agreement attached which will state the loan due date. If you are still in trouble finding it, you may reach us through our general line or general email for details.