Personal loans are unsecured credit products that can come in handy in case of financial need. The reasons for seeking loans vary from person to person. For instance, some may require money for a wedding while some may need it for home renovation. These unsecured loans are different from secured loans as they do not require any collateral such as liquid or capital assets for loan acquisition and the borrower is free to use the amount for any reason he or she may choose.
A personal loan can rescue you from immediate financial distress. Most banks process the loan applications quite quickly and the approved loan amount is transferred to your bank account either instantly or within a few days.
Getting a personal loan is probably easy, but deciding where to get it from is not that simple. To make this decision easy, we have compiled a list of five best personal loan options in India and their salient features for you. We have considered important factors such as interest rates, maximum and minimum loan amount sanctioned, processing fee charged and overall loan tenure while listing the most suitable options for you. Read on to be able to make more informed decisions while taking a personal loan:
- The bank offers personal loans at highly competitive interest rates starting from as low as 10.99%.
- Most salaried and self-employed applicants are eligible to apply for a personal loan from HDFC Bank. The bank is well known for approving loans swiftly and with minimal documentation.
- Quick and transparent processing has made it a top choice among applicants who apply for personal loans in India.
- HDFC Bank account holders may avail special offers on interest rates and in certain cases loan charges may also be waived.
- Lately, the bank has been promoting their pre-approved 10 second paperless loan offer.
- The bank offers personal loan options across three key categories – wedding loans, holiday loans and home renovation loans.
- The interest rate is charged on a daily reducing balance and is as low as 11.29%.
- The bank offers loan to both salaried and self-employed individuals, however the eligibility criteria for these two categories of applicants varies.
- Easy documentation and simple repayment options make personal loans offered by ICICI Bank a suitable choice.
State Bank of India
- The bank offers personal loans across various categories such as SBI Xpress Credit loan, SBI Saral Personal loan, Loan to pensioners and SBI Festival personal loan.
- The maximum loan amount sanctioned under SBI personal loan scheme can go up to 25 times of the individual’s monthly salary.
- SBI as a brand has the tag of trustworthiness and therefore personal loans from SBI can be rightfully called a reliable option.
- The interest rates applicable to SBI personal loans range from 12.45% to 14.95%
- The wide network of SBI makes it a suitable loan option across all locations of the country.
- To be eligible for a SBI personal loan scheme, you must either be a salaried person or self employed individual (Doctor, Engineer, Architect, CA or MBA with minimum 2 years standing experience)
- Personal loans from Axis Bank are known for their short Turn Around Time (TAT) The bank has a record of conveying decisions within 30 days from the date of receipt of application
- The bank offers loan only to salaried individuals and self-employed individuals not having a regular monthly source of income do not qualify for the loan.
- Starting from 11.49% the interest rates offered on personal loans by Axis Bank are quite reasonable
- The bank also offers Axis eDGE Reward points to loan applicants depending upon the amount they have borrowed. These points can be redeemed at select online and offline stores.
Punjab National Bank
- PNB personal loan scheme is offered under two categories: Personal loan scheme for public and personal loan scheme for pensioners.
- The personal loan interest rates of PNB starting from 11.90% are one of the most competitive rates in the market.
- The bank considers the income of the spouse while calculating repayment capacity for sanctioning loan.
- The loan amount offered as personal loan from the bank ranges from Rs. 25,000 (Rs. 50,000 for non-pensioners) to Rs. 40 lakhs ( or 20 times of the monthly salary of the applicant whichever is lower)
- Especially suitable for defense personnel, central/state government employees and self employees professionals.
|Bank||Interest Rate|| Processing Fee |
(On Loan Amount)
|ICICI Bank||11.29% onwards|| Up to 2.25%|
(Min- Rs.1000 & Max- Rs.25,000)
| Min. Rs. 50,000 &|
Max. Rs. 20 lakhs
|PNB||11.90% onwards||1.80%|| Min. Rs. 50,000 |
Max. Rs. 40 lakhs or
20 times monthly salary
|Axis Bank||11.49%||1.50% – 2%|| Min. Rs. 50,000 &|
Max. Rs. 15 lakh
|HDFC Bank||10.99% onwards||Up to 2.50%||Up to Rs. 15 lakhs||1-5 Years|
|SBI||12.45% – 14.95%||1% + ST||Min. Rs. 25,000 & Max. 24 times of net monthly income||1-4 Years|
*Note: The information stated above is indicative and is liable to change.