Personal Loan

Personal Loan Highlights 2023
Interest Rate	Usually 10.49% p.a. onwards; some PSUs may offer lower rates
Loan Amount	Can go up to Rs 40 lakh; some lenders may offer higher loan amounts
Tenure	Up to 5 years (some lenders offer repayment period till 8 years)
Processing Fees	0.5% to 4% of loan amount (may vary across lenders)

Personal Loan Interest Rates Offered By Partner Banks & NBFCs

Banks/NBFCs	Interest Rates(p.a.)
Axis Bank	10.49% onwards	Apply Now
IndusInd Bank	10.49% onwards	Apply Now
IDFC First Bank	10.49% onwards	Apply Now
HDFC Bank	10.50% onwards	Apply Now
ICICI Bank	10.50% onwards	Apply Now
Kotak Mahindra Bank	10.99% onwards	Apply Now
Tata Capital	10.99% onwards	Apply Now
Bajaj Finserv	11.00% onwards	Apply Now
Federal Bank	11.49% onwards	Apply Now
DMI Finance	12.00% - 40.00%	Apply Now
L&T Finance	12.00% onwards	Apply Now
Kreditbee	12.25% - 30.00%	Apply Now
MoneyTap	12.96% onwards	Apply Now
Piramal Finance	12.99% onwards	Apply Now
Aditya Birla	13.00% onwards	Apply Now
MoneyView	15.96% onwards	Apply Now
Cashe	27.00% onwards	Apply Now

Note: Rates as of 20 September 2023

HDFC Bank

The personal loan interest rates of HDFC Bank start from 10.50% p.a. The tenure of the scheme can go up to 6 years whereas the loan amount can go up to Rs 40 lakh. The bank also offers pre-approved personal loans with ‘10 second disbursal’ to its select existing customers based on their credit profiles. Existing customers of HDFC Bank can click here to check if they qualify for the pre-approved loan offer.

Interest Rate	10.50% p.a. onwards
Loan Amount	Up to Rs 40 lakh
Tenure	Up to 6 years
Minimum Monthly Salary	Rs 25,000
Age	21-60 years
Credit Score	At least 650
Processing Fee	Up to Rs 4,999

ICICI Bank

ICICI Bank extends personal loan to cater to the varied financial requirements of its borrowers. The bank also offers Fresher Funding, a special scheme for funding immediate and other financial requirements of younger salaried individuals. For its select existing customers, the bank offers overdraft facility, pre-approved offers and top up loan facility. Its pre-approved offers feature minimal documentation and 3-second disbursals.

Interest rate	10.50% p.a. onwards
Loan Amount	Up to Rs 50 lakh
Tenure	1-6 years
Minimum Monthly Salary	Rs 30,000
Age	Salaried: 23-58 years Self-employed: 25-65 years
Processing Fee	Up to 2.5% of loan amount

Axis Bank

Axis Bank’s Personal Loan covers expenses related to wedding, home renovation, travel, medical emergency and much more. The bank also extends pre-approved offers to its select existing customers. Such offers have digital processing and instant approvals. Axis Bank has also collaborated with Paisabazaar to extend its select customers pre-qualified offers.

Interest rate	10.49% p.a. onwards
Loan Amount	Rs 50,000- Rs 40 lakh
Tenure	1-5 years
Age	21-60 years
Minimum Monthly Salary	Rs 15,000
Processing Fees	1.5% – 2%

Kotak Mahindra Bank

Kotak Mahindra Bank offers personal loans only to salaried individuals. Existing personal loan borrowers of other banks/NBFCs can avail balance transfer facility to transfer their outstanding loan to Kotak Bank at lower personal loan interest rates. Those exercising balance transfer facility can also avail top up loans of up to 100% of their loan amount. Kotak Mahindra Bank also offers overdraft facility, giving borrowers the flexibility of withdrawing their funds from their loan account anytime and repaying it as per their convenience.

Interest Rate	10.99% p.a. onwards
Loan Amount	Up to Rs 40 lakh
Tenure	Up to 6 years
Credit score	At least 700
Age	21-60 years
Processing Fees	Up to 3% of loan amount
Minimum Monthly Income	For Corporate Borrowers- Rs 25,000 For Non-corporate Salary Borrowers- Rs 30,000 Employee of Kotak Mahindra Bank- Rs 20,000

IndusInd Bank

IndusInd Bank offers multiple personal loan schemes including wedding loan, home renovation loan, loan for medical expenses and loan for education. The bank also offers balance transfer facility to existing personal loan borrowers of other banks and NBFCs. For those requiring quick financing, the bank extends instant online personal loans with quick processing and loan approvals.

Interest Rate	10.49% p.a. onwards
Loan Amount	Rs 30,000-Rs 50 lakh
Tenure	1 to 5 years
Age	Salaried: 21-60 years Self-employed: 25-65 years
Processing Fees	Up to 3% of the sanctioned loan amount
Minimum Monthly Salary	Rs 25,000

Federal Bank

Federal Bank’s FedPremia Personal Loan caters to the personal financing needs of only salaried individuals. The bank also has collaboration with Paisabazaar to offer pre-approved loan offers to its select customers with quick disbursal.

Interest rate	11.49% p.a. onwards
Loan Amount	Up to Rs 25 lakh
Tenure	Up to 5 years
Age	60 years at the time of loan maturity
Processing Fees	Up to 3%
Minimum Monthly Salary	Rs 25,000

IDFC First Bank

Borrowers can avail IDFC First Bank Personal Loan to meet any of their personal financing requirements. Existing personal loan borrowers of other banks and NBFCs can avail balance transfer facility to transfer their outstanding loan to IDFC First Bank at lower interest rates. The bank also offers instant personal loans with paperless digital loan processing.

Interest rate	10.49% p.a. onwards
Loan Amount	Up to Rs 1 crore
Tenure	Up to 5 years
Age	Salaried: 23-60 yrs./retirement age, whichever is earlier Self-employed: 25-60 years
Credit Score	At least 700
Processing Fees	Up to 3.5% of the loan amount

Bajaj Finance

Bajaj Finance offers personal loans to both salaried and self-employed individuals, with special variants being offered for doctors and Chartered Accountants. Those requiring overdraft facility can also avail Bajaj Finance’s Flexi Personal Loan. For its select existing customers, the NBFC offers pre-approved offers. The loan features instant approval, minimal documentation and same-day loan disbursals.

Interest Rate	11% p.a. onwards
Loan Amount	Up to Rs 55 lakh
Tenure	Up to 8 years
Credit Score	685 or higher
Age	Salaried: 21-80 years Self-employed: 24-70 years
Processing Fee	Up to 3.93% of loan amount
Minimum Monthly Salary	Rs 25,001

Tata Capital

Tata Capital provides multiple personal loan schemes to cover expenses related to wedding, travel, education, select medical facilities and home renovation. It also extends customized schemes for salaried employees, government employees, doctors and women applicants; a pre-approved facility with instant disbursal to select customers and an overdraft facility to applicants seeking higher flexibility in loan repayment.

Interest Rate	10.99% p.a. onwards
Loan Amount	Doctors- Rs 5 lakh to Rs 75 lakh Women- Rs 2 lakh onwards Others- Up to Rs 35 lakh
Tenure	Up to 6 years
Age	21-58 years For Home Renovation: 24-65 years For Education: 16-26 years
Minimum Monthly Salary	Rs 20,000 (Rs 15,000 for Government Employees, Salaried Employees, Doctors, Women, Education, Travel Loan)
Processing Fees	Flat Rs 76

Piramal Finance

Piramal Capital and Housing Finance Ltd., also known as Piramal Finance, offers personal loans to only salaried individuals. These loans can be availed for covering various personal expenses related to wedding, travel, home renovation, debt consolidation, etc. Piramal Finance Personal Loans come with minimal documentation and quick loan disbursals. The lender also has a tie-up with Paisabazaar.com to extend pre-qualified offers to its select customers.

Interest rates	12.99% p.a onwards
Loan amount	Up to Rs 50 lakh
Loan tenure	Up to 5 years
Processing Fees	Up to 4% of the loan amount

L&T Finance

L&T Finance Holdings Ltd. provides personal loans to both salaried and self-employed individuals to finance their expenses related to home renovation, festivals, marriage, education and medical needs. It also offers micro loans to low income women borrowers. L&T Finance Personal Loan features digital application process, minimal documentation and quick approval process.

Interest rates	Consumer Loan: 12% p.a. onwards Micro Loan: 24% p.a.
Loan amount	Consumer Loan: Rs 50,000 to Rs 7 lakh Micro Loan: Rs 30,000 to Rs 1.1 lakh
Repayment tenure	Consumer Loan: 1-4 years Micro Loan: 2-3 years
Processing fees	Consumer Loan: Up to 2% of principal outstanding plus applicable taxes Micro Loan: 1% of loan amount plus applicable taxes

DMI Finance

DMI Finance offers personal loans at 12% p.a. onwards. The loan tenure offered ranges from 2 months to 5 years and the loan amount can be anywhere between Rs 1,000 and Rs 25 lakh. The loan is offered through channel partners have end-to-end digital process and are entirely paperless.

Interest rate	12%-40% p.a.
Loan amount	Rs 1,000 to Rs 25 lakhs
Repayment tenure	2 months to 5 years
Processing fee	Up to 4% of the loan amount

MoneyTap

MoneyTap Personal Loan can be availed for covering expenses related to home renovation, education, travel, weddings, medical emergencies, etc. This loan facility is offered in the form of credit line, thereby offering higher repayment flexibility to the borrowers.

Interest Rate	1.08% per month (12.96% p.a.) onwards
Loan Amount	Rs 3,000 to Rs 5 lakh
Loan Tenure	2 months to 3 years
Processing Fees	Up to 2% of the total amount
Age	23-55 years
Minimum monthly income	Rs 30,000

Aditya Birla Finance Ltd.

Aditya Birla Finance Limited offers fixed rate personal loans to salaried individuals to finance varied personal requirements including medical emergencies, child’s education, wedding, travel, home improvement, purchase of electronic and household goods, etc.

Interest rate	13% p.a. onwards
Loan Amount	Up to Rs 50 lakh
Tenure	Up to 7 years
Age	23-60 years
Processing Fees	Up to 3% of the loan amount

Money View

Money View Personal Loan comes with end-to-end digital process and quick disbursals (within 24 hours of loan approval). The lender has developed an alternative credit-scoring model to increase the loan eligibility for applicants having low credit scores. Money View has also tied-up with Paisabazaar.com to provide pre-approved offer with quick disbursal to select applicants.

Interest Rate	1.33% per month onwards
Tenure	Up to 5 years
Loan Amount	Rs 5,000 to Rs 5 lakh
Loan processing charges	2% – 8% of approved loan amount
Age	21-57 years
Credit Score	CIBIL score of at least 600 or Experian score of at least 650
Minimum Monthly Income	For Salaried: Rs 13,500 For Self-employed: Rs 15,000

CASHe

CASHe is an app-based lending platform offering instant short-term personal loans to young salaried people, including to those without a formal credit history. It uses an AI-based credit scoring model to assess their borrowers’ creditworthiness.

Interest Rate	2.25% per month onwards
Loan Amount	Rs 1,000 to Rs 4 lakh
Tenure	90 days to 540 days
Processing Fee	Up to 3% of the loan amount
Age	23-58 years

KreditBee

KreditBee is an online loan platform, which claims to offer personal loan schemes from various banks and NBFCs with instant disbursal. The lending platform claims to offer disbursals (within 10 minutes) with minimal documentation.

Interest Rates	12.25% p.a. onwards
Tenure	62 days to 2 years
Loan Amount	Rs 1,000 to Rs 4 lakh
Processing Fees	Flexi Personal Loan: Rs 85 to Rs 1,250 For Salaried (for loan amount from Rs 10,000 to Rs 2 lakh): Rs 500 to 6% of loan amount Online Purchase Loan/E-Voucher Loan: Up to 5% of loan amount
Age	Flexi Personal Loan & Personal Loan for Salaried: 21-45 years Online Purchase Loan/E-Voucher Loan: Above 21 years
Minimum Net Monthly Income	Flexi Personal Loans: More than Rs 10,000 Personal Loans for Salaried: More than Rs 10,000

Features & Benefits

• Collateral-free loan
• No end-use restriction
• Interest rate usually starts from 10.49% p.a.
• Loan amount of up to Rs. 40 lakh, which can exceed depending on lenders’ discretion
• Repayment tenure up to 60 months, which may exceed on case-by-case basis
• Top up loans for additional requirements are offered by many lenders
• Minimal documentation
• Quick disbursals

Fees & Charges

While the fees and charges of personal loans usually vary widely depending on lender and the credit profile of the loan applicants, the following table will give you a fair idea of the personal loan fees and charges levied by the lenders:

Other fees and charges levied by the lenders include documentation charges, verification charges, duplicate statement charges and NOC certificate charges.

Types of Personal Loans

• Instant Personal Loans are usually pre-approved loans with instant disbursals. These loans are usually offered by banks and NBFCs to their select customers on the basis of their credit profiles.
• Short-term Personal Loans have short repayment periods ranging from a few days to 12 months.
• Pre-approved Personal Loans are usually offered by banks and NBFCs to their existing customers on the basis of their credit history, income, employer’s profile, etc.
• Consumer Durable Loans can be used to purchase any consumer durable items like smartphones, furniture, microwave, etc. The purchase amount gets divided into EMIs and can be repaid within the tenure decided. Some products may require a down payment or a processing fee while others may not.
• Personal Loan Balance Transfer facility allows borrowers to transfer their outstanding personal loan to a new lender for lower interest rates or better loan terms. However, opt for this facility only when the savings made through the transfer outweighs the cost of the loan transfer.
• Personal Loan Top Up is offered to existing personal loan borrowers who need additional funds to meet their financial requirements. This loan facility is usually offered to select borrowers having satisfactory loan repayment history and/or have completed a specified number of EMIs.
• Personal Loan for Education is for individuals requiring funds for pursuing higher education in India and abroad, vocational courses, etc., and are unable to get a conventional education loan.

Eligibility Criteria

• Age: 18 – 60 years
• Salary: At least Rs 15,000 per month for salaried customers
• Income: At least Rs 5 lakh p.a. for self-employed customers
• Credit Score: Preferably 750 and above as having higher credit scores improve chances of loan approval
• Employment Stability: Usually 1 year with some lenders requiring longer work experience
• Business Continuity: Usually 3 years of business continuity with some lenders requiring longer period of business continuity
• Employment Type: Salaried employees working with reputed organisations, MNCs, Private and Public Limited Companies, Govt. organisations, PSUs, and large enterprises

Documentation Required for Availing Personal Loans

• Identity Proof: Passport/PAN Card/ Voter’s ID/ Aadhaar Card/ Driving License
• Address Proof: Passport/ Aadhaar Card/ Lease/ Property Purchase Agreement/ Utility Bills (not more than 3 months old)/ Passport/ Driving License
• Income Proof For Salaried Individuals: Salary Slips/ Bank Account Statement/ Form 16
• Income Proof For Self-employed Professionals: Previous Years’ ITR/ P&L Statement and Balance Sheet/ Bank Account Statement
• Business Proof For Self-employed Individuals: Business Incorporation Certificate/ Professional Degree/ Certificate of Practice/ Partnership Deed/ GST Registration and Filing Documents/ MOA & AOA/ Shop Act License

How to Improve your Chances of Getting a Personal Loan?

Why Should I Avail Personal Loans from Paisabazaar?

• Compare personal loan offers from 30+ partner banks and NBFCs
• Get pre-approved offers with instant disbursals
• Know your chances of loan approval based on your credit score and other aspects of your credit profile
• Apply for personal loan online through end-to-end digital process

How to Apply Online for a Personal Loan?

Paisabazaar.com allows customers to compare personal loan offers from 30+ banks and NBFCs and apply for the best-suited offer online with ease. The steps for the same are as below:

• Enter your mobile number.
• Enter personal details like desired loan amount, employment type, net monthly income, current residing city, bank where you receive your salary and company name.
• Provide OTP for verification and check for available pre-approved offers.
• For viewing other offers, provide more details like total EMI you pay currently, PAN, total work experience, tenure in current organisation, etc.
• Compare various offers and apply for the one that best suits your requirements.

FAQ

1. What is the minimum credit score required to get a personal loan?

Ans. It depends on the eligibility criteria set by the lender. Most lenders do not specify a minimum credit score for a personal loan. Some lenders might lend to applicants with low credit scores (less than 750) but the interest rate applicable is usually higher in such cases.

Read more: How to build/improve your credit score using Step UP Credit Card co-branded with SBM Bank India Ltd.

2. Can I cancel a personal loan after the loan amount is disbursed?

Ans. In some cases, you may cancel a personal loan after disbursal subject to the terms and conditions of the lender. Loan cancellation will lead to cancellation charges and processing fees. Please note that all banks do not allow loan cancellation once the amount is disbursed. However, you can always prepay the loan amount as per the terms and conditions of the bank and save on the interest component.

3. What is the minimum salary required to get a personal loan?

Ans. The minimum monthly salary required to avail a personal loan varies from lender to lender. However, for large lenders like private and public sector banks, the minimum income eligibility is Rs 15,000 per month and above.

4. Can I get a personal loan being a pensioner, if I have a pension account with one of the leading banks in India?

Ans. Lenders offer personal loans to pensioners in the form of pension loan. However, these loans are offered only to those pensioners who maintain their pension account with the respective bank.

5. Can a student apply for a personal loan?

Ans. Students can apply for personal loans only if they satisfy the various eligibility requirements related to age, income, credit score, etc. set by the lenders.

6. Can I get a personal loan if I have a home loan?

Ans. Yes, you can apply for a personal loan even if you already have a home loan. However, the chances of getting the loan approved will depend on whether you have adequate repayment capacity to repay the proposed loan.

7. Can I get a personal loan without a salary slip?

Ans. Yes, you can get a personal loan without providing salary slips. You can submit your bank account statement/ a copy of Form 16/ employee certificate from the employer, etc. as proof of income to fulfil the eligibility criteria. However, it is always recommended to confirm the list of required documents with the lender as it may vary from one bank to another.

8. Can I use a personal loan for marriage purposes?

Ans. Yes, you can avail a personal loan or its variants like wedding loan and marriage loan to finance various marriage-related expenditures.

9. Can I take a personal loan from two different banks at the same time?

Ans. Yes, you may avail personal loans from two different lenders at the same time, provided the lender of your second personal loan is satisfied with your repayment capacity. However, it is better to take a single loan of a larger amount from the lender providing lower interest rates and/or better terms and conditions.

10. Are there any charges for prepaying my personal loan?

Ans. Lenders are free to levy prepayment/foreclosure charges on personal loans availed at fixed interest rates. However, the RBI has barred the lenders from levying these charges on loans availed at floating interest rates.

11. Do I need to provide any security or collateral to apply for a personal loan?

Ans. Traditionally, personal loans are unsecured loans, which implies that the borrower does not need to pledge collateral or security to avail the loan. However, some lenders also offer secured personal loans wherein the borrower needs to provide security or collateral to avail the loan. An applicant should opt for the secured loan facility only when he is ineligible for availing unsecured personal loan or is charged very high interest rates for it.

12. How to calculate EMI for a personal loan?

Ans. Banks and NBFCs generally use the reducing balance method to calculate personal loan EMI. And as for individuals, there are several personal loan EMI calculators available online on lenders’ websites and other websites. These EMI calculators also use the reducing balance method for calculating the EMIs.

13. What is the maximum loan amount I can get on my personal loan?

Ans. Lenders usually offer personal loans between Rs 10,000 and Rs 40 lakhs. However, the amount that they approve of is primarily dependent on your income and existing loan repayment obligations, if any. Some banks and NBFCs use the Multiplier Method, wherein the eligible loan amount is calculated on the basis of a predetermined multiple (ranging between 10 and 24 times) of an applicant’s net monthly income. Other lenders use the EMI/NMI Ratio, wherein the EMI of the proposed loan cannot exceed a pre-determined proportion of the applicant. Some lenders also use a combination of both of these methods to find the loan amount eligible of the applicant.

14. Can I get a personal loan if my salary is Rs. 12,000 per month?

Ans. The minimum income requirements set for availing personal loans vary across lenders. While the minimum monthly salary requirements set by top lenders usually ranges between Rs. 15,000 and Rs 30,000, some lenders also offer personal loans to applicants having lower monthly income. Hence, individuals having low salary should visit online financial marketplaces to check if they are eligible for any personal loan offers based on their current income.