Top Banks for Personal Loans in India

To meet the various financial requirements, lending institutions offer a variety of loans. With the help of technology, people may have easier access to all loans and the loan application process has become much faster.

In India’s financial market, personal loan is a very most popular product. Generally, the loan amount offered by banks ranges from Rs.20,000 to 50 Lakhs. The offered loan tenure is usually from 1 to 5 years and the interest rates range between 10.25% to 29.50% per annum.

The public and private banks provide the best personal loans but you must be aware of the top banks and their terms and conditions. For a sensible choice, you should carefully compare the borrower’s loan interest rates, processing costs, pre-closure fees, eligibility requirements, and other crucial things affecting it.

Below is the list of top banks for personal loans in India. These banks are providing a large sum of personal loans at competitive interest rates, longer repayment tenure, and higher loan amounts available.

Banks Name	Loan Amount	Interest Rates	Loan Tenure
HDFC Bank	Rs.50,000 to 40 Lakhs	10.50%-21% p.a.	1 to 5 years
ICICI Bank	Rs.50,000 to 50 Lakhs	10.75%-19% p.a.	1 to 6 years
Axis Bank	Rs.50,000 to 40 Lakhs	10.25%-21% p.a.	1 to 5 years
IDFC First Bank	Up to 1 Crore	Starts at 10.75%	6 to 60 months
IndusInd Bank	Rs.30,000 to 50 Lakhs	10.49%-29.5% p.a.	1 to 5 years
Kotak Bank	Rs.50,000 to 25 Lakhs	Starts at 10.99% p.a.	1 to 5 years
Bandhan Bank	Rs.50,000 to 25 Lakhs	Starts at 10.25% p.a.	Up to 5 years
State Bank of India	Up to Rs.20 Lakhs	9.60% p.a. onwards	Up to 6 years
Bank of Baroda	1 Lakh to 20 Lakhs	10.20%-17.55% p.a.	Up to 7 years
Punjab National Bank	Up to 20 Lakhs	9.80%-16.35% p.a.	Up to 7 years

 

 

 

Things to Consider Before Choosing a Personal Loan Lender

You need to take the following things into consideration carefully before selecting the right lender for you because the selection of a lender is the crucial part when you’re applying for a personal loan.

• Loan amount- Depending on a borrower’s financial needs, it is essential to opt for a lender whose maximum and minimum loan amount limit would be reasonable. Some lenders also offer higher loan amounts at no collateral security when you need so many funds.
• Processing time for application- The faster the loan gets approved, it is the better option. Choose a lender who does not delay the process by adding unnecessary steps for verification and documentation.
• Flexibility in repayment- Due to arising unexpected circumstances, it is essential to choose a lender that allows a flexible repayment schedule. Try to look for a bank that offers the option to increase equated monthly installments with time. It is also important to choose a lender who does not charge any extra fees for prepayment or part-payment of the loan.

• Competitive interest rates- This is maybe one of the primary deciding factors when selecting a lender. Personal loan interest rates can differ from one lender to another lender. Some banks also charge higher hidden costs like processing fees, etc. You need to conduct a market survey to decide suitable lender with the most attractive and lower interest rates.
• Reputation and trustworthiness - When it comes to matters involving funds, the credibility of the lender plays an important role. The applicant also needs to verify the reliability of the loan provider. Individuals can check online reviews, loan policies, overall costs included, etc. before deciding bank for a personal loan. It is always suggested to stick to reputed and trusted banks in the market.

 

 

 

 

Details of Top 10 Best Personal Loan Banks In India

1. HDFC Bank Personal Loan

HDFC Bank provides a variety of financial products at competitive interest rates and loans without a guarantor or collateral security to the employees of private limited companies, and public sector undertakings, including central, state, and local bodies and self-employed individuals.

Additional Reading: Review of HDFC Bank Personal Loan

Important Information

Age Limit	21 years to 60 years
Minimum Income Required	Rs.25,000 per month.
Processing Fees	Up to 2.5% of the loan amount with a maximum of Rs.4,999.
Pre-payment Charge	13 to 24 month’s tenure- 4% of the outstanding amount. 25 to 36 month’s tenure - 3% of principal outstanding. More than 36 month’s tenure- 2% of the outstanding amount.

2. ICICI Bank Personal Loan

Both salaried and self-employed individuals can apply for ICICI Bank personal loan up to 50 Lakhs with attractive interest rates starting from 10.75% per annum. Their approval process is quick.

Age Limit	1. Salaried individuals- 23 to 58 years 2. Self-employed- 25 to 65 years
Minimum Income Required	1. Salaried Individuals- Rs.30,000 per month. 2. Self-employed- Rs40 Lakhs for non-professionals and Rs15 Lakhs for professionals.
Processing Fees	Up to 2.50% of loan amount + taxes
Pre-payment Charge	1. Applicable charges are 3%+taxes on the principal outstanding amount after payment of 1st EMI. 2. Nil if 12 or more 12 EMIs are paid.

3. Axis Bank Personal Loan

Axis Bank personal loans ranging from Rs.50,000 to 40 lakhs. Their flexible payback terms and features are amazing, they charged interest rates up to 21% per annum and less paperwork is involved.

Age Limit	21 to 60 years
Minimum Income Required	Rs.15000 per month
Processing Fees	1.5% to 2% of the loan amount + applicable GST
Pre-payment Charge	On outstanding loan amount. 5% for 0 to 12 months 4% for 13 to 24 months 3% for 25 to 36 months 2% for more than 36 months

4. IDFC First Bank Personal Loan

IDFC first bank provides provide personal loans to salaried and self-employed individuals up to 1crore and their interest rates start from 10.75% per annum for up to 5 years.

Age Limit	1. Salaried individuals- 23 to 60 years or retirement, what comes first. 2. Self-employed- 25 to 65 years
Minimum Income Required	NA
Processing Fees	Up to 3.5% of the loan amount
Pre-payment Charge	5% on the principal outstanding amount (prepayment of the loan is possible after payment of 6 or more EMIs)

5. IndusInd Bank Personal Loan

IndusInd bank personal loans are available at lower interest rates for salaried as well as self-employed persons which can be used for various purposes. Their loan amount ranges between Rs.30,000 to Rs.50 Lakhs for 5 years of tenure.

Age Limit	1. Salaried individuals- 21 - 60 years or retirement whichever is earlier. 2. Self-employed- 25 to 65 years.
Minimum Income Required	For salaried employees- Rs.25,000 per month Self-employed professionals- Minimum annual should be Rs4.8 lakhs or more.
Processing Fees	Up to 3% of the principal loan amount + GST
Pre-payment Charge	4% of the principal outstanding amount after repayment of 12 EMIs.

6. Kotak Bank Personal Loan

Kotak Mahindra bank grants loans for salaried and self-employed up to 25 lakhs which can be used for the fulfillment of various urgent needs without pledging any security. They give special concessions to Kotak bank employees.

Additional Reading: Kotak Personal Loan : A Review

Age Limit	21 to 60 years
Minimum Income Required	For public or private company- Rs.25,000 Self-employed- Rs.30,000 Kotak Bank employee- Rs.20,000
Processing Fees	Up to 3% of the loan amount + GST
Pre-payment Charge	Up to 3 years - 4% on the outstanding amount. After 3 years - 2% on the outstanding amount.

7. Bandhan Bank Personal Loan

Bandhan bank provides customized options to meet the requirement of salaried and self-employed borrowers. You can avail of hassle-free loans up to 25lakhs and the interest rates start at 10.25% per annum.

Age Limit	1. Minimum age – 21 years for salaried individuals, 23 years for self-employed. 2. Maximum age required at time of loan maturity – 60 years
Minimum Income Required	NA
Processing Fees	1% of the loan amount.
Pre-payment Charge	If loans are repaid for less the 12 months 4% otherwise 2% of the principal amount.

8. State Bank of India Personal Loan

State Bank of India offers personal loans to salaried professionals and independent individuals. SBI Xpress Credit, SBI pension loan, pre-approved personal loan, loan against securities, SBI quick personal loan, SBI Xpress elite, and real-time Xpress credit are the categories offered by SBI bank for personal loans. They don’t charge any hidden fees from their customers and provide loans up to 20 lakhs for attractive interest rates of 9.60% p.a. onwards.

Age Limit	Should not be more than 76 years of age.
Minimum Income Required	Rs.15000 per month
Processing Fees	Up to 1.5% of loan amount + GST
Pre-payment Charge	Up to 3% on the principal outstanding loan amount.

9. Bank of Baroda Personal Loan

Personal loans are available with the bank of Baroda for salaried and non-salaried persons. The maximum loan amount given by them is 20 lakhs for up to 7 years. Their interest may vary between 10.20% to 17.55% per annum.

Age Limit	Minimum age- 21 years Maximum age- 60 years for salaried individuals and 65 for non-salaried persons.
Minimum Income Required	NA
Processing Fees	1. For govt. employees who maintain a salary account with Bank of Baroda processing fees is NIL. 2. For other bank account holders- Up to 2.00% plus GST (Minimum Rs.1,000+GST and maximum Rs.10,000+GST)
Pre-payment Charge	NA

10. Punjab National Bank Personal Loan

Punjab national bank provides personal loans as per their own terms and conditions for individuals having different profiles. You can avail of loans up to 20 lakhs till 7 years from them at decent interest rates starting at 9.80% per annum.

Age Limit	As per the bank terms and conditions.
Minimum Income Required	Professionals having minimum gross annual income of Rs.6lakhs for the last two years.
Processing Fees	Up to 1% of the loan amount + GST
Pre-payment Charge	NA

Important Details for Personal Loans

• Starts creating and maintaining a credit score of at least 750 or more.
• Check pre-approved offers from time to time.
• Consult the banks whenever needed with which you ready have an existing loan and savings account.
• If you don’t have enough CIBIL score apply with NBFCs because banks are having tough terms and conditions.
• If it is not urgent to take a loan check reduced interest rate during the festival seasons.
• To verify and make a comparison of personal loan offers from multiple online lenders like: - NBFCs, Banks, or Fintechs.

Frequently Asked Questions for Personal Loans

1. Which type of bank offers personal loans with the lowest interest rates?

Various factors are helpful in determining interest rates like- an individual's salary, CIBIL Score, loan repayment capacity, credit history, etc. all these play a role in determining the rate of interest on a personal loan. If you’re looking for cheap interest rates public sector banks are better comparatively than others.

2. What is meant by ‘fixed’ personal loan interest rate?

It is the interest rate stays the same throughout the tenure of the loan and it does not change with the changing in economic conditions of the overall economy.

3. What are the cons of availing of personal loans from banks?

Bank’s policies are rigid as compared to NBFCs, and fintech. Their approval process takes more time due to strict verification. You’re not able to apply with a poor CIBIL score. Not much suitable for self-employed professionals due to terms and conditions.

4. What does reducing interest rate on personal loan means?

The interest rate is calculated each month on the outstanding principal loan amount.

For example- Radha avails a loan of Rs.1 Lakhs for 5 years at reducing interest rate. In the first year, she has to pay an interest of Rs.9270. In the second year, 83,773 principal amounts are left now she has to pay interest of Rs.7570.

5. Does the CIBIL score affects the personal loan eligibility criteria?

Yes, as a personal loan is unsecured loan approval is critically influenced by your current CIBIL score.

Conclusion- This blog is only for assisting you by providing information. But, it is necessary to get into details of each of the lenders who have been shortlisted so as to make a more informed choice.