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11 Best Banks for Personal Loan in India – 2019 Review

Personal loans should be taken only in emergency conditions.

I won’t recommend anyone to take a personal loan.  A personal loan should be the last option because of the high-interest charges.

You should repay your personal loan within 3 to 6 months.

If you take Rs. 100,000 loan for 3 months at the interest of 24% then you would end up re-paying around Rs. 1,10,000.

That’s great if this could help you sort out short term financial crisis.

But don’t misuse the personal loan facility otherwise you won’t be able to get the loan in your life.

Understand how CIBIL score plays a role in your loan approval process.

You can take a personal loan either from a bank or from a private company.

Bank approval takes time.

Skip the banks and get the approval of a personal loan from Bajaj Finance.

11 Best Banks for Availing Personal Loan in India

#1. State Bank of India Personal Loan

SBI, Personal Loan

SBI personal loan is accessible to all salaried professionals and self-employed with a minimum of 2 years standing.  SBI Bank offers personal loan under three categories – SBI Xpress Credit Personal Loan, SBI Pension Loan, and SBI Xpress Power Personal Loan.

SBI Xpress Credit Personal Loan

SBI provides Xpress credit personal loans to the employees of noted entities maintaining salary account with SBI.

The entities include Central & State Government, Quasi-Government, Central & profit making State PSUs, Educational Institutions of National Repute, and Selected Corporates who have a business relationship with the Bank.

SBI Pension Loan

SBI pension loan is for persons who are Central, State Government, or Defence Pensioners. Drawing their pension through one of the SBI branches and are not more than 76 years of age.

SBI Xpress Power Personal Loan

SBI Xpress power personal loan is available to employees working with Central & State Government, Quasi-Government, Defence Establishments, PSUs, Educational Institutions of National Repute, and Select Rated Corporates.

The employees should have a minimum gross monthly income of Rs. 50,000 and there is no requirement of maintaining a salary account with SBI.

If you are thinking to take a personal loan for educational then you should first check the best bank for an education loan in India

SBI Personal Loan Interest Rates

Ranges from 11.30% to 15.55%

Other Personal Loan Details

Loan Amount Up to 15 Lakh
Processing Fee Up to 1% + Applicable Tax
Late Fee  24% p.a
Pre-closure Charges   3%
Loan Tenure  Up to 60 months

No pre-closure charges if the account is closed from the proceeds of a new loan account opened under the same scheme.

Why You Should Apply for SBI Personal Loan
  • Lowest net monthly income requirement (Rs. 5000 for Xpress Credit)
  • Three categories of personal loan- SBI Xpress Credit, SBI Pension Loan, and SBI Xpress Power Personal Loan.
  • The wide network of SBI branches makes service availability for people residing anywhere in the country.
Concerns
  • Loan allowed only upto Rs. 15 Lakhs.

Eligibility Criteria

Abbreviation Used:

NMI- Net Monthly Income

EMI- Equated Monthly Installments

NMP- Net Monthly Pension

SBI Xpress Credit

Minimum NMI of Rs. 5000

EMI/NMI ratio should not exceed 50%

SBI Xpress Power

Minimum gross monthly income of Rs. 50,000

EMI/NMI ratio up to 50%

SBI Pension Loan

Not more than 76 years of age

EMI/NMP ratio should not exceed 50%

Documents Required

  • Application Form or online application through SBI web portal
  • PAN Card
  • ID Proof & Address Proof
  • Latest Salary Slip with Form 16, Salary account statement for last 6 months, Audited/ Certified ITR for last 2 years for Professionals
  • Your salary/ pension account number with SBI for Xpress Credit & Pension Loan.

#2. HDFC Bank Personal Loan

HDFC Bank Personal Loan

You have options to borrow from Rs. 50,000 to Rs. 40 Lakhs without having a guarantor or collateral security.

HDFC personal loan is available for a salaried individual across corporate and government institutions.

Once the documentation is complete, your personal loan will be disbursed within 4 hours. The existing HDFC customers can get loan approvals in 10 seconds.

Along with loan, you can also avail an accident or critical illness insurance cover at a nominal premium.

HDFC Personal Loan Interest Rates

Ranging between 15.50% to 21.50%

Other Personal Loan Details

Loan Amount Up to 40 Lakh
Processing Fee Up to 2.5% + GST
Late Fee  24% p.a
Pre-closure Charges  Up to 12 months- not allowed
13-24 months – 4%
25-36 months-3%
>36 months- 2%
Loan Tenure  Up to 60 months

Preclosure can be made after the payment of 12 EMIs.

Part payment allowed up to 25% of the principal outstanding.

Why You Should Apply for HDFC Personal Loan
  • 2% pre-closure charges (after 36 months) is lower than other banks
  • Zero hidden charges, and convenient repayment options
  • Minimal paperwork and documentation.
Concerns
  • Interest rate is comparatively on the higher side.

Eligibility Criteria

Particulars Eligibility
Employees of Pvt Ltd, PSU including central, state and local bodies
Age Between 21 and 60 years
Work Period Job for at least 2 years,
with a minimum of 1 year with the current employer
Net income
per month
Minimum of Rs. 15,000

Minimum net income of Rs. 20,000 in Mumbai, Delhi, Bengaluru, Chennai, Hyderabad, Pune, Kolkata, Ahmedabad and Cochin.

Documents Required

  • Application Form or online application through HDFC web portal
  • ID Proof, Address Proof
  • 3 Month bank statement (Passbook of previous six months)
  • Latest salary slip or current dated salary certificate with the latest Form 16.

#3. Axis Bank Personal Loan

Axis Bank, Personal Loan

If you are not sure about the repayment period then the Axis bank is a good option. Axis bank offers no foreclosure or part payment charges on personal loans.

At the time of application, you can choose to repay the loan in 60 months. In case if you want to repay the loan earlier then you don’t have to bear any pre-closure charges.

Personal Loan Interest Rates Axis Bank

Ranging from 15.75% to 24%

Personal Loan Details

Loan Amount Up to 15 Lakh
Processing Fee 1.5% to 2% + GST
Late Fee  24% p.a
Pre-closure Charges  NIL
Loan Tenure  Up to 60 months
Why You Should Apply for Axis Bank Personal Loan
  • No preclosure charges.
  • No part payment charges
  • Quick approval with minimum documents
  • You can earn reward points while applying for a personal loan
Concerns
  • High Interest rate.
  • More preference for salaried persons

Eligibility Criteria

Particulars Eligibility
Employees of Govt (including PSU, central, state and local bodies),
Pvt Ltd and salaried doctors
Minimum Age  21 years
Maximum Age 60 years at the time of maturity of the personal loan
Net monthly income Minimum of Rs. 15,000

Documents Required

  • Application form
  • Photograph
  • Age proof
  • ID proof, & Residence proof
  • Income proof and Bank statement
  • Signature verification proof

You may also like to read – Best Bank for Home Loan in India

#4. Bajaj Finserv Personal Loan

Bajaj Finserv, Personal Loan

Bajaj Finserv offers personal loan only to salaried professionals. The loan procedure is entirely online, which means you can get instant online loan approval and the loan amount is disbursed within 24 hours.

Bajaj FinServe is the only financial institution that lets you repay whole of the outstanding loan amount after the first EMI.

Bajaj Finserv Personal Loan Interest Rates

Starting from 12.99% onwards

Other Personal Loan Details

Loan Amount Up to 25 Lakh
Processing Fee Up to 3.99%
Late Fee  24% p.a.
Pre-closure Charges  4%
Loan Tenure  Up to 60 months

Preclosure Condition – preclosure can be made after the payment of first EMI.

Secure Fees (for online approvals): Rs. 4499

Annual maintenance charges: 0.25%

Why You Should Apply for Bajaj Finserv Personal Loan
  • Get instant approval and the loan amount is disbursed within 24 hours.
  • You can repay loan amount even after the first EMIs.
Concerns
  • High preclosure charges
  • High minimum salary requirement
  • Focused only on salaried class.
  • Secure fee for online approvals

Eligibility Criteria

Eligibility Salaried
Age 23 to 55 years
Monthly Income Rs. 25,000 to Rs. 35,000 per month
(depending upon the city you are residing in)

Documents Required

  • Online Application at Bajajfinserve web portal
  • KYC Documents
  • Employee ID Card
  • Salary Slip of the previous 2 months
  • Previous 3 months Bank account statement of salary account

#5. Bank of Baroda Personal Loan

Bank of Baroda, Personal Loan

Bank of Baroda offers a personal loan to both salaried and self-employed individuals. Depending upon your eligibility, the loan amount can be up to Rs. 10 Lakh for a maximum tenure of up to 60 months.

Bank of Baroda is a good option for those who want to take a personal loan for a small amount of Rs. 20,000.

Personal Loan Interest Rates Bank of Baroda

Bank of Baroda does not explicitly discloses the interest rates.

Personal Loan is charged at One year MCLR+SP*+3% to one year MCLR+SP+8% based on the risk rating of applicants.

One year MCLR for March 2019 is 8.65%.

*SP- Strategic Premium

Other Personal Loan Details

Loan Amount Up to 10 Lakh
Processing Fee 2%. Maximum Rs. 10,000
Late Fee  24% p.a.
Pre-closure Charges NIL
Loan Tenure  Up to 60 months
Why You Should Apply for Bank of Baroda Personal Loan
  • No preclosure charges
  • Lower loan amount
Concerns
  • Max loan amount Rs. 10 lakhs
  • Rate of interest not indicated

Eligibility Criteria

Eligibility Salaried Self Employed/Business
Age 21 to 60 21 to 65
Minimum Work Experience/ Service 1 year 1 year of stable business.

Insurance Agents: minimum of 2 years of business

Specific guidelines for loan eligibility:

Parameter Salaried employees* Others**
Repayment Capacity 60 % of GMI 40% to 60% of GMI
Period Maximum 60 months Maximum 48 months

*Means: Salaried employees with 1-year service and having salary account with Bank of Baroda

**For others:

  • Loan Amount up to Rs. 2 Lakhs: Satisfactory account relationship with Bank of Baroda or any other Bank.
  • Above Rs. 2 Lakhs: Satisfactory account relationship for at least 6 months with Bank of Baroda.

Documents Required

Salaried Self Employed/Business
Application Form Application Form
ID Proof, Address Proof ID Proof, Address Proof
Last 3-month payslip Last 2 years RTI
6 Month bank statement 6 Month bank statement

Best Bank that gives Lowest Interest Rate for Personal Loan

#6. Standard Chartered Bank Personal Loan

Standard Chartered Bank Personal Loan

Standard Chartered Bank charges one of the lowest starting interest rates of 10.89%. The interest rates on personal loans range from 10.89% to 21% for the loan amount of up to Rs. 30 Lakhs.

Standard Chartered Bank Personal Loan Interest Rates

Ranging from 10.89% to 21%

Other Personal Loan Details

Loan Amount Up to 30 Lakh
Processing Fee 3%
Late Fee  24% p.a.+ Rs. 495
Pre-closure Charges 0 to 12 EMI- 5%
12 to 24 EMI- 4%
25 to 36 EMI- 2%
> 36 EMI – 1%
Loan Tenure  Up to 60 months
Why You Should Apply for Standard Chartered Personal Loan
  • Lower interest rate starting at 10.89%
  • You can take loan up to Rs. 30 Lakh
  • No securities, collaterals, or guarantors required
  • Easy process to apply online.
Concerns
  • High processing fee
  • High preclosure charges
  • Bank branches are not available everywhere

Eligibility Criteria

The bank provides with the facility of EMI Calculator for eligibility. The Loan Amount is sanctioned depending on the borrower’s repayment capacity, income, location and age.

Eligibility Salaried Self Employed/Business
Age 21 to 58 21 to 58
Income/Profit Rs 22000 pm Rs 2 Lakh p.a
Min. Work Experience 1 year 1 year at least
in the current business.

Document Required

  • Application Form
  • ID Proof, Address Proof
  • Age Proof
  • Signature Proof
  • 3 Months Bank Statement
  • Latest ITR or Form 16 for salaried and Income report for self-employed/ business persons.

#7. CitiBank Personal Loan

Citi Bank, Personal Loan

Citibank gives preference to the salaried class for personal loans. The salaried person can get a personal loan at a lower interest rate compared to the self-employed person.

In addition, Citibank personal loan starts at the lowest rate of 10.99% especially for Citibank’s salaried borrowers employed with reputed companies.

CitiBank Personal Loan Interest Rates

Ranging from 10.99% to 18.99%

Other Specification

Loan Amount Up to 30 Lakh
Processing Fee Up to 3%
Late Fee  There are no late payment charges
Pre-closure Charges  4%
Loan Tenure  Up to 60 months
Why You Should Apply for CitiBank Personal Loan
  • Lower interest rate for salaried persons depending upon net take-home salary
  • Loan amount from Rs. 25,000 to Rs. 30,00,000
  • Get quick approval on loan within 48 hours
  • Citibank customer get a rebate on interest rate
Concerns
  • 4% pre-closure charges

Eligibility Criteria

Citibank does not explicitly specifies eligibility criteria but the personal loan is based on factors such as your income, quantum of loan, loan tenure and credit score.

The website only discloses that the following persons are eligible for Citibank Personal Loan:

  • All salaried individuals, self-employed professionals and business owners
  • Existing Citibank customers with a Suvidha, Branch or a Mortgage relationship

The quantum of loan and interest rate vary based on:

  • Net take-home salary in case of a salaried person and
  • Annual gross take-home income for professionals and non-professionals.

Documents Required

Salaried Self Employed
Proof of Identity & Residence Proof of Identity & Residence
Proof of Age Proof of Age
Length of employment/ Continuity of business:
1.Letter from employer
2. Old pay slip/ Form 16
Length of employment/ Continuity of business:
1. Lease Deed
2. Ownership documents
3.Utility Bills
4.Tax returns from the same city
5. 3-year-old bank statement
Proof of income & occupation:
1. Latest 1 or two salary slip
2. Latest Form 16
3. Last 3 month Bank Statement
Proof of income & occupation:
1. Last 2 year IT Returns
2. CA certified P&L and BS
3. CA certified Audit Report
4. Last 6 month Bank statement

#8. ICICI Bank Personal Loan

ICICI Bank Personal Loan

ICICI bank personal loans interest rates start at just 10.99%. You can avail loan up to Rs. 20 Lakhs without any guarantor or collateral security.

For existing ICICI Bank customers, there are attractive benefits such as reduced documentation and automatic pre-eligibility condition.

The above benefits are based on your relationship with the bank, which can be via a bank account, credit card, or any other loan account.

ICICI Bank Personal Loan Interest Rates

Ranging from 10.99% to 21%

Other Personal Loan Details

Loan Amount Up to 20 Lakh
Processing Fee Up to 2.25% + GST
Late Fee  24% p.a
Pre-closure Charges   5% + GST
Loan Tenure  Up to 60 months

Pre-closure charges waived off if  12 or more EMIs have been paid.

Why You Should Apply for ICICI Personal Loan
  • Lowest starting interest rate of 10.99%.
  • Loan disbursed within 72 hours of documents submission( if approved)
Concerns
  • High preclosure charges of 5%

Eligibility Criteria

Salaried

Age: 23 to 58 years

Monthly Income: Minimum of Rs 17,500

(Rs.25,000 for applicants residing in Mumbai & Delhi and Rs.20,000 for applicants residing in Chennai, Hyderabad, Bangalore, Pune & Kolkatta)

Total years in job/profession: 2 Years

Years in current residence: 1 Year

Self Employed

Age: 25 to 65 years

Minimum Turnover: Rs. 40 Lakhs (Non-Professionals) Rs. 15 Lakhs(Professionals)

Minimum PAT: Rs. 1 Lakh (Non-Professionals) Rs. 2 Lakhs for self-employed individuals

Business Stability: At least 5 years, 3 years for doctors

Existing relationship with ICICI Bank: Minimum 1 year

Documents Required

Salaried Self Employed/Business
Application Form Application Form
ID Proof, Address Proof ID Proof, Address Proof.
Proof of Residence or Office ownership
Latest 3-month salary slips &
Bank Statement
Audited Financial for the last 2 years,
6 months Bank Statement,
2 Passport size photographs Proof of continuity of business

#9. Kotak Mahindra Bank Personal Loan

kotak Mahindra Bank, Personal Loan

Kotak Mahindra bank extends personal loans to all individuals whether they are salaried or self-employed. You can take a personal loan from Rs. 50,000 to Rs. 15 Lakh with an interest rate ranging from 10.99% to 24%.

Kotak Mahindra Bank Personal Loan Interest Rates

Ranging from 10.99% to 24%

Personal Loan Details

Loan Amount Up to 15 Lakh
Processing Fee Up to 2.5% + GST
Late Fee  36% p.a
Pre-closure Charges  Up to 12 months- not allowed
> 12 months – 5%
Loan Tenure  Up to 60 months
Why You Should Apply for Kotak Mahindra Personal Loan
  • Personal loan from Rs. 50,000 to Rs. 15,00,000
  • Can refinance any existing personal
Concerns
  • High preclosure charges.
  • 3% per month late payment charges

Eligibility Criteria

Employee of MNC, Public or Pvt limited company
Age Between 21- 58 years
 Net salary Rs. 20,000/- per month
Min. educational qualification Graduate
Min. work experience At least 1 year

Document Required

  • ID Proof, Address Proof
  • 3 Month bank statement with income details
  • Salary slip for the last 3 months
  • 2-3 Passport size photograph

#10. Tata Capital Personal Loan

Tata Capital, Personal Loan

Tata capital offers personal loan of up to Rs. 25 Lakh. You can have lower EMI as the personal loans are for an extended period of up to 72 months.

Tata Capital Personal Loan Interest Rates

Ranging between 11.25% to 19%

Other Personal Loan Details

Loan Amount Up to 25 Lakh
Processing Fee vary depending on the loan amount
Late Fee  24% p.a.
Pre-closure Charges 4.5%
Loan Tenure  Up to 72 months

Pre-payment can be done after 6 months of availment without any penalty or additional fees. Fees of 2% is charged if you prepay more than 25% of the outstanding principal.

Why You Should Apply for Tata Capital Personal Loan
  • Minimal paperwork and documentation
  • The loan amount ranges from Rs. 75,000 to Rs. 25,00,000
  • Repayment tenures ranging from 12 to 72 months
Concerns
  • High preclosure charges.

Eligibility Criteria

Eligibility  Details
Age 22- 58 years
Minimum monthly income Rs. 15,000
Job Should be in the same job for six months
Work experience  Minimum of one-year

Documents Required

  • Photo Identity Proof & Address Proof
  • Income Proof: Bank statement for last 6 months
  • Salary slips for last 3 months
  • Employment certificate stating one year of continuous employment

#11. Yes Bank Personal LoanYes Bank

You can get personal loans ranging from Rs. 1 Lakh to Rs. 40 Lakhs from Yes Bank and that too at the lowest interest rate starting from 10.75%. Yes Bank does not require you to bring in any collateral for availing personal loans.

The personal loan eligibility can be checked in 60 seconds through an online eligibility calculator or mPowered Bot.

Yes Bank takes approximately 5 days (after all documentation has been completed) for appraisal decision and if sanctioned the funds are disbursed in a matter of hours.

Yes Bank Personal Loan Interest Rates

Starting from 10.75%

Personal Loan Details

Loan Amount Up to 40 Lakh
Processing Fee Up to 2.5% + GST
Late Fee  24% p.a
Pre-closure Charges  Up to 12 months- not allowed
13-24 months-4%
25-36 months-3%
37-48 months-2%
> 48 months – NIL
Loan Tenure  Up to 60 months
Why You Should Apply for Yes Bank Personal Loan
  • Personal loan amount from Rs. 1 Lakh to Rs. 40 Lakhs
  • Lowest interest rate, starting from 10.75%
  • 1-minute eligibility calculator (Online + mPowered Bot)
Concerns
  • Interest rate not transparent
  • Pre-part payment charges

Eligibility Criteria

Yes Bank uses an online eligibility calculator and mPowered Bot for assessing personal loan eligibility. You need to provide the following information to check eligibility:

  • Age
  • Monthly income
  • PAN no and contact details
  • EMIs and other recurring expenses
  • Employer details
  • Employment history
  • Residence details like rented/or owned and the period of residence

Document Required

  • Application form
  • ID Proof, Address Proof
  • 3 Month bank statement with income details
  • Salary slip for the last 3 months

Best Personal Loan Interest Rates Comparison

Name Interest Rate
(Min)
Interest Rate
(Max)
Processing
Fee
Pre-closure
Charge
SBI 11.30% 15.55% Up to 1% 3%
HDFC Bank 15.50% 21.50% Up to 2.5% 2-4%
Axis Bank 15.75% 24% 1.5 to 2% NIL
Bajaj Finserv 12.99% N.A. Up to 3.99% 4%
Bank of
Baroda
11.65%+SP 16.65%+SP 2% NIL
SCB 10.89% 21% 3% 1-5%
Citibank 10.99% 18.99% Up to 3% 4%
ICICI Bank 10.99% 21% Up to 2.25% 5%
Kotak Bank 10.99% 24% Up to 2.5% 5%
Tata Capital 11.25% 19% vary 4.5%
Yes Bank 10.75% N.A. Up to 2.5% 2-4%

Factors Affecting Interest Rate of Personal Loan

Personal loan interest rates are not fixed even for customers of the bank. The interest rate for every personal loan application is based on various factors such as  CIBIL score, applicant’s profession, income level, and relationship with the bank.

Let’s discuss these factors affecting the personal loan interest rates in detail.

#1. CIBIL Score

CIBIL score plays the most important role when you apply for any type of loan or a credit card.

CIBIL score reflects your repayment ability. Low credit score implies that there are higher chances of defaulting on loan payments. Whereas a high score not only increases the chances of loan approval but also getting low-interest rates.

Take a look at the SBI personal loan interest rate variation due to the CIBIL score.

persona loan cibil score

In case you have a lower score, here are the Steps to 11 Powerful Ways to Improve the CIBIL Score. In case you don’t know your CIBIL score then you should read how to check CIBIL score for free.

#2. Salaried or Self-Employed

Salaried individuals have a fixed source of income which makes banks confident about the regular payment of the EMIs & repayment of the loan amount.

Whereas in case of self- employed individuals, banks are suspicious of their ability to pay EMIs on time.

As a result, the personal loan interest rate is cheaper for salaried individuals than self-employed individuals.

For example, HDFC personal loan rate ranges from 10.99% to 14.50% for salaried class and 16% to 18.99% for the self-employed class. A clear cut difference.

#3. Level of Income

Income level is always the indicator of the financial status. Higher the income level higher will be the financial status and higher is the probability of repayment of the loan.

Therefore, banks impose a certain minimum income clause in the eligibility criteria. Besides, in some cases, the income level is the deciding factor of interest rate.

For example, look at the Citi bank interest rate chart below

personal loan

personal loan 2

#4. Loan Amount

Interest rates could also vary due to the loan amount. Some banks fix loan amount slabs for deciding the interest rates.

To promote bigger loans, banks can reduce interest rates for customers as bigger the loan amount higher is the bank’s income.

So, if you are looking for a bigger personal loan. Chances are that you may get one at a lower interest rate. See below how the interest rate varies with respect to  the loan amount

personal loan interest vary as per loan amount

#5. Employer Reputation

Employer reputation is also a contributing factor that decides the interest rate. If the borrower is working with a reputed company, there are higher chances of getting a loan at a lower interest rate.

As seen below the interest rate is varying with respect to the rating of the employer.

personal loan sbi employer rating

#6. Relationship with Bank

Your prior relation with the bank also affects the interest rate at which you can avail personal loan. If you have a good relation with the bank, there are decent chances of getting the loan at lower rates.

In general, banks charge lower interest rates for customers who have been with them for a long period of time.

personal loan relationship with bank

My Final Advice

Most of the time borrowers only consider the interest rate while applying for personal loan and neglect all other fees & charges. As a result, they end up paying a decent sum of money as charges.

Therefore, when applying for a personal loan,  keep in mind other factors like processing charges, preclosure charges, late payment charges and other charges.

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