10 Best Personal Loan Banks’ List In India

Expenses such as spending on a lavish wedding or emergencies such as hospitalization can leave a big dent in your pocket. Sometimes spending on leisure such as a vacation in a foreign country can also disrupt household budgets. In such a scenario, opting for personal loans can be a good idea. It allows salaried as well as self-employed individuals to meet their cash requirements and repay in installments over time.

The good part is banks and non-bank lenders understand that people have unplanned expenses and emergencies and are ready to give personal loans on easy repayment terms.

The process of opting for a personal loan is easy and can be done online and instantly in most cases. Banks assess the documents such as salary slips, credit scores, and other documents before disbursing the amount. Other than the interest rate, borrowers should understand details such as processing fees and charges for early closure to ensure that repayment is easy. Here's a list of 10 banks offering personal loans:

State Bank of India:

SBI, the country largest bank, offers different personal loans starting at a 10.90% interest rate. It offers a personal loan of a minimum of Rs 25,000 and up to Rs 20 lakh or 24 times the net monthly income of the borrower. Borrowers having salary accounts with SBI or those working with central or state governments or public sector companies are eligible. Select private-sector employees are also eligible. The minimum monthly income must be Rs 15,000. SBI charges 1% of the loan amount plus applicable taxes as processing fees.

HDFC Bank:

This leading private sector bank offers personal loans starting at 10.50%. It gives loans with amounts up to Rs 40 lakh with a processing time of four working days subject to verification. HDFC Bank claims its customers with pre-approved loans can get funds within 10 seconds. The repayment schedule can be anywhere between three and 72 months. The bank charges a processing fee of up to Rs 4,999 plus GST.  

ICICI Bank:

The bank offers personal loans of up to Rs 50 lakh without any collateral with an interest rate ranging from 10.75% to 19.00% to individuals aged between 23 and 58 years. The loan can be repaid in EMIs ranging from 12 to 72 months. Salaried employees with a minimum monthly income of Rs 30,000 are eligible. Existing customers can check if they are eligible for a pre-approved personal loan through the bank's iMobile app or internet banking.

Kotak Mahindra Bank:

The bank is offering up to Rs 5 lakh of personal loans. The money can be availed following a three-step process online. By following a few additional steps, Kotak Mahindra Bank also offers personal loans of up to Rs 40 lakh with a flexible repayment schedule of 12-60 months. The interest rate starts from 10.99%.

Axis Bank:

The bank gives a maximum of Rs 40 lakh as loan that can be repaid in up to 60 EMIs. At a best rate of 10.49%, the EMI for a minimum loan amount of Rs 50,000 works out to be a little over Rs 4,400, which can be repaid in 12 installments. Those with a minimum monthly income of Rs 15,000 are eligible to take a loan from Axis Bank.

IndusInd Bank:

This private-sector bank offers loans starting from Rs 30,000 to up to Rs 50 lakh. Those with a net monthly income of Rs 25,000 are eligible to take loans that can be repaid in 12-60 months. The interest rate starts from 10.49% and the processing fee is up to 3%.

Bank of Baroda:

This public-sector bank is offering personal loans ranging from Rs 1 lakh to up to Rs 20 lakh. The minimum amount of personal loans for borrowers from rural and semi-urban branches is set at Rs 50,000. The interest rate starts from 10.90%. Additional concession of up to 0.50% is offered for those who have applied via digital mode. The repayment period is 48-60 months but government and PSU employees get up to 72-84 months.

Punjab National Bank:

PNB has various personal loan schemes. There are specific schemes for employees of LIC, doctors, and also for pensioners. For the general public, the bank is offering personal loans of up to 24 times of gross monthly salary with a maximum cap of Rs 20 lakh subject to repaying capacity. The interest rate starts from 12.75% and the maximum repayment period is 72 months of EMIs.

IDFC First Bank:

This bank offers loans as high as Rs 1 crore that can be repaid in 60 months. The interest rate ranges between 10.40% and 25% and the processing fee of up to 3.5%. It also offers flexibility to make up to 40% of part-payment. An existing personal loan can also be transferred to IDFC First Bank at a flat 1% lower rate of interest.

DBS Bank India:

This foreign bank is offering collateral-free personal Loans of up to Rs 15 lakh at an interest rate starting at 10.99%. It allows repayment with tenures ranging from 12 to 60 months.

Conclusion

With no requirement of providing collateral or restriction on the end-use of funds, personal loans can come in handy to meet unscheduled expenses as well as to spend on leisure.

Interest on personal loans starts from around 10.00% but the final rates depend on the amount, the borrower’s income and credit score, etc. Usually, public sector banks offer better rates but private bank and NBFCs are quicker in disbursing the loan amount and are more flexible on repayment terms.

IIFL Finance, one of India’s NBFCs, offers personal loans starting as low as Rs 5,000 at attractive interest rates. The company also customizes the repayment schedules to help borrowers avoid any undue burden while paying back the loan over a tenure of up to three and a half years.