Best Banks For Personal Loans In India

Personal loans are a blessing in times of distress since it provides individuals with instant liquidity that can be used for any purpose. More than 50% of loan requests in the Indian debt market fall into this segment of loans. That being the case, these loans can act as the medical emergency loan or vacation loan or even wedding loan.

The Indian credit market has an ample number of banks and NBFCs that have attractive schemes and deals on personal loan products. But mulling over all options must be of particular interest to every applicant since the term and the conditions of personal loans vary for every borrower. Personal loan requirements vary by lender. Mostly, it depends on the applicant’s credit profile and the lending policy of the bank.

Some of the best banks for personal loans in India are listed below:

• State Bank of India (SBI):

It is a public sector bank and the largest bank in India. SBI has a plethora of personal loan offers to meet the requirement of every salaried or self-employed individual. Some of these are SBI Xpress Credit for salaried professionals having SBI accounts, SBI Pension loan for pensioners, Xpress Flexi which is an overdraft facility for salaried customers, etc. All these loans require minimal documentation and no guarantor or security.

The interest rate on personal loans starts from 11 % p.a. Most of these loans are short-term loans with a maximum tenure of up to 75 months. The loan amount ranges from Rs.25,000 to Rs.20 lakh depending on the eligibility of the applicant. Borrowers are also required to pay a processing fee which is up to 1.5% of the total loan amount and a 3 % prepayment charge in case of loan foreclosure.

• HDFC Bank:

HDFC personal loans can be taken for any purpose as there is no restriction on the utility of funds from the lender’s side. These loans have easy eligibility criteria, minimal documentation and faster processing time for approvals. HDFC bank's personal loan can be availed up to a maximum amount of Rs.40 lakhs.

Those who already have an HDFC Bank account, may sometimes qualify for a pre-approved loan. To check if this facility is available, individuals can use the NetBanking feature and cross verify. The interest rate on personal loans starts from 10.50 %. In addition, a 2.5 % processing fee is also applicable. Borrowers are eligible to prepay the loan after a lock-in period of 12 months but against a prepayment charge ranging between 2%-4% depending on the repayment tenure.

• ICICI Bank:

ICICI offers personal loans of up to Rs.20- 25 lakhs without any collateral. These loans come with short disbursal time and minimal paperwork required for its approval. The maximum tenure of all personal loan schemes is 72 months. In addition to the personal loan interest rates which range between 10.75- 16%, a processing fee of up to 2.50% on the total loan amount is also applicable. But it must be noted that the specific interest rate applicable to a customer also depends on the segment and location.

Applicants who need quick cash can apply for personal loans online and can get access to funds within 3 seconds. Individuals can use the Personal Loan EMI calculator to check the amount they are entitled to pay every month to the bank.

• Axis Bank:

Personal loans from Axis bank can be taken for a minimum amount of Rs.50,000 to a maximum of Rs.25 lakhs for a loan tenure of up to 60 months. While the interest rate on Axis bank personal loans start from 10.49%, the pre-payment charges are from 2% to 5% based on the loan amount and repayment tenure.

Axis Bank provides customers with convenient payment plans. Applicants can also take advantage of instant sanctioning of funds after submission of the online application form.

• Induslnd Bank:

Induslnd Bank personal loans are offered to customers for a minimal Annual Percentage Rate of 10.49% . The maximum loan amount is for Rs.15 lakhs which can be taken for a tenure of 12 - 60 months. The bank also charges processing fees of up to 3% of loan amount. The pre-payment charges vary based on the loan amount and repayment tenure.

Conclusion

Borrowing is a responsibility. So, before making the final decision, applicants should weigh all the options and then decide if it is the right choice. Personal loans, if repaid on time, can help to boost the credit score. It is also a practical way to achieve financial and lifestyle goals if planned judiciously.

In addition to the lending institutions mentioned above, there are a number of other players in the market that offer attractive personal loan deals. Hence applicants must evaluate the borrowing terms and repayment structures of all the available options before signing the dotted line. Also, it is imperative to check the interest rates to get the best financial help with a personal loan.

Are you worried about exhausting your savings to manage an unexpected expense? Rest at ease for IIFL Finance offers attractive personal loans that can be used for a variety of reasons, right from debt consolidation to fund your child’s education expenses. However, before applying for a loan check the eligibility criteria and list of documents required. You can also avail personal loans online with the IIFL Finance mobile app.