Are you in need of financial assistance to fulfil your dreams or overcome unexpected expenses? Personal loans can provide the necessary funds to support your aspirations. However, with numerous lenders offering personal loans in India, it can be challenging to determine which one is the best fit for your needs. In this article, let’s explore banks that offer the best personal loans in India, considering factors such as interest rates, loan amounts, processing fees, and tenure. Let’s dive in.
Table of Contents
List of best personal loans in India
| List of personal loans | Interest rates | Loan Amount | Processing Fee | Tenure |
| Axis Bank Personal Loan | 10.49% – 21.00% | Up to Rs. 40 Lakh | Up to 2% of loan amount + GST | 12 to 60 months |
| Bajaj Finserv Personal Loan | 11% – 35% | Up to Rs. 40 Lakh | Upto 3.93% of the loan amount | Upto 96 months |
| Bank of Baroda Personal Loan | 10.90% – 18.25% | Maximum Rs. 20 lakh (it is linked with the borrower’s occupation and accounts relationship with Bank). Minimum Rs. 1 lakh for Metro and Urban Branch Rs. 50,000 for Rural & Semi-Urban Branch | 2% of the loan amount, subject to a minimum and maximum limit of Rs. 1,000 and Rs. 10,000, respectively. The fee will also include applicable GST. For Government employees maintaining salary accounts with Bank of Baroda- NIL | Upto 7 yrs |
| Canara Bank Personal Loan | 10.65%- 15.65% | Upto Rs. 3 lakh or 6 to 10 times of gross salary | 0.50% of the loan amount, subject to a minimum and maximum of Rs. 1,000 and Rs. 5,000, respectively | 3 months to 18 months |
| HDFC Bank Personal Loan | 10.50% – 24.00% | Upto Rs. 50 Lakh | Upto Rs. 4.999/- | 1 – 5 yrs |
| ICICI Bank Personal Loan | 10.75% – 19.00% | Upto Rs. 50 lakh | Rs. 4,999 (>=10 lakh) or 2% of the loan amount + GST | 12 to 72 months |
| IndusInd Bank Personal Loan | 10.25% – 27% | Rs. 30,000 – Rs. 50 lakh | Upto 3% + GST | 1-6 yrs |
| Kotak Personal Loan | 10.99% onwards | Upto Rs. 40 lakh | Upto 3% of loan amount + Applicable Taxes | Upto 60 months |
| Punjab National Bank (PNB) Personal Loan | 10.15% – 16.70% | Upto 24 times of the gross monthly income of the applicant subject to a maximum amount of Rs. 20 lakh | 1% of the loan amount | Upto 84 months |
| Standard Chartered Personal Loan | 11.50% – 15% | Upto Rs. 50 lakh | 1% of the loan amount plus applicable GST | Upto 60 months |
| SBI Personal Loan | 9.60% – 15.65% | Upto Rs. 20 lakh | 1.5% of loan amount + tax | Upto 72 months |
Note: This list of best options for a personal loan in India is in no particular order of preference.
Details of the best loans in India
Axis Bank Personal Loan
If you are looking for a personal loan with a tenure of up to 5 yrs, then you may want to check out Axis Bank. The eligibility criteria for getting this personal loan are mentioned below.
- The minimum and maximum age requirements are 21 yrs and 60 yrs, respectively.
- Eligible employment types: Salaried employees, private limited company employees, and government employees, including PSU, Central, and local bodies.
- The net salary of the individual should be a minimum of Rs. 15,000 per month.
The bank offers multiple channels for repayment, including RTGS, NEFT, and ECS.
Bajaj Finserv Personal Loan
You have the option to borrow up to Rs. 40 lakh if you opt for Bajaj Finserv. They also offer complete transparency and have zero hidden fees. The eligibility criteria for getting a personal loan from Bajaj Finserv.
- The age requirement for the loan is 21 yrs and 80 yrs.
- The individual should be employed with a public, private, or MNC.
- The CIBIL score of the individual should be 685 or higher.
- The monthly salary of the individual should be starting Rs. 25,001, based on the city you live in.
At the end of the tenure, you should be 67 yrs or younger.
Bank of Baroda Personal Loan
If you are looking for a personal loan that offers extended timelines for repayment and flexible usage of funds, then you may want to check out Bank of Baroda. The eligibility criteria for getting a personal loan is mentioned below.
- Employees of central/state Government/autonomous bodies/public/joint sector undertakings, public limited companies/MNCs & educational institutions with minimum continuous service for 1 yr.
- Employees of Private Limited Companies, Trust, Limited Liability Partnerships – with minimum continuous service for 1 yr.
- Insurance agents doing business for a minimum of the last 2 yrs.
- Self-employed professionals and business persons with a minimum 1-yr stable business.
- Staff members and NRI/PIO are not eligible.
- The minimum age requirement for this personal loan is 21 yrs.
- The maximum age requirement is as follows:
- For salaried persons: The age of the borrower plus the repayment period should not exceed retirement age or 60 yrs, whichever is lower.
- For non-salaried persons: Age of borrower plus repayment period should not exceed 65 yrs.
For government employees who maintain a salary account with the Bank of Baroda, the processing fee is zero. For others, it ranges from 1.00% of the loan amount to 2.00% plus GST. The minimum amount for this is Rs. 1,000 with GST, and the maximum amount is Rs. 10,000 plus GST.
Canara Bank Personal Loan
If you are looking to get a personal loan with an amount of 6 to 10 times of your gross salary, then you may want to check out Canara Bank Personal Loan. The eligibility criteria for getting a personal loan from Canara Bank include the following.
- The individual should be a salaried employee of reputed PSUs and joint stock companies.
- Various government officials may also apply for this loan.
- The minimum take-home salary of the individual should not be less than 25% of their take-home salary or at least Rs. 10,000 per month (whichever is higher) after paying the loan instalments.
- The salary account of the individual has to be maintained with the Canara Bank.
The processing fee for the personal loan from Canara Bank is 0.50% of the loan amount, subject to a minimum and maximum of Rs. 1,000 and Rs. 5,000, respectively.
ICICI Bank Personal Loan
Getting your loan amount credited in 3 seconds after approval of your personal loan is one of the top offerings of ICICI Bank. The eligibility criteria for getting a personal loan from ICICI Bank are mentioned below.
- The age of the individual should be over 21 yrs old, and they must be a resident of India.
- They should be a salaried individual, having a regular monthly income.
- The individual must have a good bureau score.
- They must have a savings account with any of the banks in India.
One other notable feature of ICICI Bank’s personal loan is that the bank does not ask for collateral or security.
HDFC Bank Personal Loan
With a conditional pre-closure after 1 yr, you can obtain a personal loan from HDFC Bank up to Rs. 50 lakh. The eligibility criteria for getting this personal loan is mentioned below.
- For salaried individuals – Age at least 21 and less than 60.
- For self-employed individuals – Age at least 21 and less than 65.
- Applicant should be earning at least Rs. 20,000 per month as net income (Rs. 25,000 for applicants from Madhya Pradesh).
HDFC Bank personal loan is popular for its 100% paperless approval process.
IndusInd Bank Personal Loan
If you are looking to get a personal loan with a guarantor, then a personal loan from IndusInd Bank may be perfect for you. The bank offers personal loans with no guarantor required and offers a pre-closure option with a fee. The eligibility criteria for getting a personal loan is mentioned below.
- For salaried individuals
- Age at least 23 yrs and less than 58 yrs.
- 2 yrs minimum overall work experience with 1 yr minimum experience in the current company.
- at least 5 yrs of experience after relevant qualification.
- For self-employed individuals: Age at least 28 yrs and less than 68 yrs, and at least 5 yrs of experience after relevant qualification.
IndusInd Bank offers top-up loans, e-approval, door-step services, and 100% paperless approval.
Kotak Mahindra Personal Loan
If you are looking to get a loan of up to Rs. 40 lakh, then you may want to check out personal loan options from Kotak Mahindra Bank. The eligibility criteria for getting a personal loan from Kotak Mahindra Bank are mentioned below.
- Age – At least 21 and less than 55.
- Applicants must be salaried Indian residents working at MNCs, public companies or other large private organisations.
- Monthly income should be more than Rs. 25,000.
The pre-closure fee is 5% of the principal outstanding (plus applicable tax). Plus, the personal loan offers top-up loans, e-approval, doorstep services, and no guarantor required.
Punjab National Bank (PNB) Personal Loan
If you are looking for a loan with an amount up to 24 times of gross monthly salary, then you must check out personal loans offered by Punjab National Bank. The eligibility criteria for
For salaried employees:
- Age: Minimum – 21 yrs and maximum – 58 yrs.
- Income:
- Rs. 15,000 per month at metro centres
- Rs. 12,500 per month at urban centres
- Rs. 10,000 per month at semi-urban and rural centres
- Total years in the profession: 2 yrs
- Years in current residence: 1 yr
For self-employed individuals:
- Age: Minimum – 21 yrs and maximum – 65 yrs.
- Income: An applicant should have a minimum monthly income of Rs. 20,000
- Total years in the profession: 2 yrs
- Years in current residence: NA.
Attractive interest rates, no guarantor required, flexible repayment options, minimal paperwork, and the convenience of doorstep service are a few of the features of the personal loan for Punjab National Bank.
Standard Chartered Personal Loan
With a loan amount of up to Rs. 50 lakh, Standard Chartered offers an interest rate of 11.50% – 15%. The eligibility criteria for getting a personal loan are mentioned below.
For self-employed individuals:
- The individual needs to have income proof by way of tax returns, bank statements or audited financials.
- The individual needs to demonstrate a minimum income of Rs 25,000 per month.
- The business should have been in operation for a minimum of two years.
- The individual would also need to be between 22-58 yrs of age.
For salaried employees:
- The individual must have income proof by way of tax returns, bank statements or audited financials.
- The individual must demonstrate a minimum income of Rs. 25,000 per month.
- The individual would have to be between 22-58 yrs of age.
The processing fee for the personal loan is 1% of the loan amount plus applicable GST, and the tenure is of 60 months.
SBI Personal Loan
There are various personal loan offers by the State Bank of India (SBI). The bank offers loans with an amount of up to Rs. 20 lakh for a tenure of up to 72 months. The eligibility criteria depend on the type of loan that you are applying for. The processing fee for a personal loan is 1.5% of the loan amount plus the tax amount.
Conclusion
When applying for a personal loan, it’s crucial not to compromise your existing investments or monthly contributions dedicated to achieving important financial goals in order to make higher EMI payments. To ensure a smooth personal loan application process, consider the following key steps:
- First, check the personal loan offers available from banks and NBFCs where you already have deposit, loan, or credit card accounts. This can provide you with a sense of familiarity and potentially better terms.
- Next, it’s wise to visit online financial marketplaces like Paisabazaar.com to compare interest rates and other loan features offered by different banks and NBFCs. This allows you to make an informed decision based on a comprehensive understanding of available options.
- When evaluating loan offers, take into account whether the tenures offered by lenders align with your repayment capacity. It’s important to choose a loan term that allows you to comfortably manage your monthly payments without straining your finances.
- Comparing processing fees, admin/login fees, and prepayment/foreclosure charges across various lenders is also crucial. This will help you understand the associated costs and choose a loan with reasonable charges.
- Finally, consider the turnaround time for loan disbursement. Depending on your urgency, it’s essential to select a lender that can provide timely loan disbursals to meet your specific needs.
By following these steps and conducting thorough research, you can make a well-informed decision while applying for a personal loan that aligns with your financial goals and capabilities. Remember to carefully consider your existing financial commitments and choose a loan option that allows you to maintain a healthy financial balance.
As an insatiable reader and learner, I’ve spent the last two years exploring the world of finance. With my creative mind and curious spirit, I love making complex finance topics easy and fun for everyone to understand. Join me on my journey as we navigate the world of finance together!
