Best Banks For A Personal Loan In India
A personal loan comes under the category of unsecured loan, which doesn’t require any collateral. Anyone working under someone or self-employed can avail it. It can help you overcome financial difficulties like medical emergency, credit card bill payment, travel, financing of new business, to improve one’s credit score, etc. When you opt for a personal loan, the loan amount you take depends entirely on your eligibility and EMI.
But it should be chosen only when there’s a financial emergency because a personal loan has high-interest rates. And it should be repaid within 3 to 6 months.
One should know that a personal loan should be used appropriately. If you misuse the advantages of your loan, you might not be able to get another loan approved ever. To get a loan approved, you need to have a good CIBIL score and a well-maintained credit history.
When you decide to opt for a personal loan, you should look through all the schemes and offers you can get on a personal loan from different banks and go for the best bank.
Some of the best banks for loans in India that offer personal loans are:
1) State Bank of India
Personal loans offered by SBI are provided to everyone, whether working in an organization or self-employed, but there is a requirement that the person should have been in that job for at least 2 years.
SBI provides a personal loan in three different categories. They are:
i) SBI Xpress Credit Personal loan:
This type of personal loan is provided to employees who work under specific sectors and have salary accounts in SBI Bank.
The sectors that come under these are the Educational institutions of national repute, Central and State governments, Quasi-government, Central and profit-making state PSUs, and some specific corporate that are in a relationship with the bank in terms of business.
Particulars | Effective Interest Rate | Loan amount |
Term Loan | 12.05% p.a. onwards | Rs.25,000 onwards |
Overdraft Facility | 12.55% p.a. onwards | Rs.5 lakh onwards |
Key Benefits
- Loans can be repaid over a duration of 5 years
- A second loan can be taken by borrowers
Eligibility for Xpress Credit Personal Loan
- Monthly income should be Rs.5,000.
- The EMI/NMI Ratio (Net Monthly Income) should not be above 50%.
ii) SBI pension loan:
This loan is provided to employees who are under the central, state government or are Defence pensioners.
Eligibility for SBI Pension Loan:
- The employee should be withdrawing his pension through the SBI bank
- He must not be more than 76 years of age.
- The EMI (Equated Monthly Instalments) or NMP (Net Monthly Pension) should not be above 50% for every pensioner. For family pensioners, the EMI or NMP should not be above 33%.
Effective Interest Rate | Loan amount |
12% p.a. | Rs.25,000 onwards |
Key Benefits
- Pensioners do not have to pay a processing fee.
iii) SBI Xpress Power Personal Loan:
This loan is available for employees who are working under the Central and State government, Quasi-government, Defence establishment, PSUs, Educational Institutions of National Repute and Selected Rated Corporate.
Particulars | Effective Interest Rate | Loan amount |
Term Loan | 12.15% p.a. onwards | Rs.25,000 onwards |
Overdraft Facility | 12.65% p.a. onwards | Rs.5 lakh onwards |
Key Benefits
- Nominal processing fee
- No Salary Account with SBI necessary
The prerequisites for SBI Xpress power personal loan are:
- Monthly income of Rs 50,000.
- It isn’t necessary to have a salary account with the bank.
- The interest rates of SBI personal loan starts from 11.30 percent up to 15.5 percent.
The documents they ask for to process your loan are: This personal loan is available to both earning, and self-employed population over corporate and government institutions. You can borrow an amount of Rs 50000 to 40 lakhs. And being one of the best banks for a loan, they ask for no collateral. After the processing is done, the amount gets credited to your account within 4 hours. And if you already have an account with HDFC Bank, your loan gets approved within 10 seconds. However, personal loans do come with a higher interest rate, HDFC Bank personal loan rates start from 11.25% and goes up to 21.50%. The eligibility criteria for opting for this loan: The documents you’ll require to apply for this loan: Another best bank for a loan, Axis bank offers personal loans with no foreclosure charges. You can make your loan repayments in 60 months or even if you want to settle the loan amount prior to the tenure, then also there will be no prepayment charges on loan. The interest rate on loan starts from 15.75 percent up to 24%. You can get a loan amount of maximum 15lakh rupees and repayment tenure of 60 months. To be eligible for this loan, you need to: The documents you’ll require to apply for this personal loan: This loan is provided to only those people who are earning a monthly income. You will have to apply online for this loan, and you will get instant approval. After the processing, the loan amount is credited to your account within 24 hours. The lowest interest rate offered is 12.99%. You can borrow a loan amount of up to Rs 25 lakh. Also, you can make a pre-closure payment just after the first EMI. To be eligible for this loan, you need to: The documents you’ll require to apply for this loan: Amongst the best banks for a loan, the loan given by Bank of Baroda is provided to both earning monthly income and earning money. The maximum loan amount offered is Rs. 10 lakh and make your repayments up to 60 months. To be eligible for this loan, you need to: The documents you’ll require to apply for this loan: Standard Chartered Bank has the lowest interest rates on personal loans starting from 11.99% to 21%, and you can get a loan amount of up to 30 lakhs. To be eligible for this loan, you need to be: The documents you’ll require to apply for this loan: This loan is mainly beneficial for the employees earning monthly income. These employees can get a personal loan at a low-interest rate than the self-employed class. Their interest rates start from 10.99% and go up to 18.99%. To be eligible for this loan, you need to: The documents you’ll require to apply for this loan: In the list of best banks for loans, the loan amount you can avail through an ICICI Bank personal loan is up to Rs 20 lakhs that too, without any collateral or security. Their interest rates begin from 11.50% and go up to 19.25%. Attractive benefits are offered to existing account holders with the bank. The documents required for them are minimal, and they are already eligible for opting the loan. The repayment tenure offered is up to 60 months. To be eligible for this loan, the requirements are: Other Charges and Penalties: The documents you’ll require to apply for this loan: This personal loan is for everyone, whether salaried or self-employed individuals. The loan amount can be extended up to Rs. 15 lakhs starting from Rs. 50,000. The interest rates on loan start from 11.25% and go up to 19.99%. To be eligible for this loan, you need to be: The documents you’ll require to apply for this loan: This financing institute offers loans up to Rs 25 lakh. The tenure for Tata Capital personal loans can be extended up to 60 months, and so you can have low EMIs. The interest rates start from 11.25% and go up to 19.75 %. To be eligible for this loan, you need to: The documents you’ll require to apply for this loan: YES Bank promises to be the best bank for a loan, and it offers personal loan starting from Rs 1 lakh to Rs 40 lakhs. Their interest rates start from 10.75%, and they don’t ask you for any collateral. Your approval chances can be known within 60 seconds through an online eligibility calculator. It takes 5 days for the verification and processing to be done, and after that, the loan amount is credited within a few hours. To know if you are eligible for this loan, you can use the online eligibility calculator. And the information you’ll need to provide for the calculation is: The documents you’ll require to apply for this loan: COMPARING ALL THE BANKS WITH THE BENEFITS PROVIDED AND THE INTEREST RATES: You can take personal loans to help with your financial emergencies. It offers the flexibility to use the funds wherever you want. You can know your EMI, which means your equated monthly installments and other important things through a personal calculator before you opt for a personal loan and also pre-plan your repayments according to your earnings. There are many financial reasons a personal loan can help you with. It can be used for any small or big purpose. Like: You can take a personal loan cover expenses in a lot of situations as it is easy to avail with no inconvenience. It has low-interest rates and hence is a wise option to choose to finance your needs. So, the banks mentioned above are the top best banks for a loan in India that provide the best personal loans with the best benefits and easy processing. There are several other factors a personal loan depends on like: But since in the case of self-employed people, banks fear to take any risk. This is why they have higher interest rates than people earning a monthly income. The loan amount you take decides your interest rate and repayment tenure. In many instances, your repayment capacity greatly influences your loan eligibility. Various other factors do too. When you submit your application for a personal loan, the lender or bank or the financial institution will examine if you are financially capable of making repayments on time, i.e., the discussed tenure. Your credit score, outstanding loans, current earnings, and continuity of income is checked thoroughly by your lender.
Loan Scheme
Processing Fee
Prepayment charge
Penal Interest
Xpress Credit
1% of the loan amount
3% on the prepaid amount
2% p.a.
Xpress Power
1% of the loan amount
NIL
2% p.a.
SBI Pension
0.5% of the loan amount
3% on the prepaid amount
2% p.a.
2) HDFC BANK
Loan processing fee
Up to a maximum of 2.5% of the loan amount, subject to a minimum fee of Rs.1,999 and a maximum fee of Rs.25,000
Pre-payment/Part-payment charges
Overdue EMI interest
2% per month will be charged on the principal or EMI that is overdue
Cheque swapping fee
Rs.500
Amortization schedule fee
Rs.200
Cheque bounce charges
Rs.550 per event
3) Axis Bank Personal loan
Interest Rate
15.75% to 24% p.a.
Loan Amount
Rs.50,000 to Rs.15 lakh
Processing Fee
1.5% to 2% p.a. of the loan amount + GST
Pre-Payement
NIL (Repayment tenure varies from 12 to 60 months.)
4) Bajaj Finserv
Interest Rates
12.99% onwards
Processing fees
Up to 3.99% of the loan amount
Bounce Charges
Rs. 600 – 1200 Per bounce
Penal interest
2% of EMI amount per month or Rs. 200 per month, whichever is higher.
Secure fee
(only for online approvals)Rs. 4,499
5) Bank of Baroda
Interest Rate
11.35% to 16.35%
Processing Fees
Rs.1,000 to Rs.10,000
Pre-closure Charges
Within 6 Months – 6% of Principal outstanding
After Six Months – Nil
Loan Tenure
4 years
Minimum loan amount
Rs.1 lakh Semi-urban and rural areas: Rs.50,000
Maximum loan amount
Rs.10 lakh Semi-urban and rural areas: Rs.5 lakh
6) Standard Chartered Bank
Type of Fees
Charges Applicable
Interest Rate
11.99% onwards
Processing Fee
Up to 3% of the Loan Amount
Pre-Payment Charges
Late Payment Fees
Rs. 495
Interest on arrears
2% per month
*Swap Charges
Rs. 500
7) Citibank
Loan Amount
Minimum: Rs.25,000 Maximum: Rs.30 lakh
Tenure
6 months to 60 months
Interest Rate
10.99% to 18.99%
Processing Fees
0.50% – 3.00%
Booking Fee
Up to 3.00% of the loan amount sanctioned.
8) ICICI Bank
Maximum Loan Amount
Rs.20 lakh
Tenure
12 months to 60 months
Interest Rate
11.50% onwards
Processing Fees
Up to 2.25% p.a. of the loan amount + GST
Prepayment Charges
5% p.a. of the principal outstanding amount + GST
Loan Cancellation Charges
Rs.3,000 + GST
Additional interest on late payment
24% p.a.
Repayment mode swap charges
Rs.500 per transaction + GST
EMI bounce charges
Rs.400 per bounce + GST
9) Kotak Mahindra Bank
Schedule of charges
Rates
Processing charges
up to 2.5% of the loan amount + GST
Dishonor
Rs. 750 per instance (inclusive of GST)
Collection charges
30% of dishonor charges + overdue interest
No due certificate
Rs.500 + GST
Swap Charges( Replacement of PDCs)
Up to Rs. 500 per Swap per Instance+ GST and other applicable statutory levies
Prepayment Interest / Foreclosure Charges
Lock-in period for 12 months. After 12 months, 5% foreclosure charges + GST on principal outstanding
10) TATA CAPITAL
Interest Rate
11.25% onwards
Loan Processing Charges
Up to 2.5% of the loan amount + GST
Prepayment
Part Prepayment Charges
Penal Interest/ Additional Interest
3% on the overdue amount per month + GST
Post-dated cheque charges
Rs. 850 + GST
Bounce Charges
Rs. 600 for every Cheque/ Payment Instrument/ ECS Dishonour + GST
Cancellation charges
2% of the loan amount or Rs. 5750, whichever is higher + GST
Instrument swapping charges
Rs. 550 + GST
Foreclosure charges
No Foreclosure is allowed in the first 6 months. 4.5% of the principal outstanding at the time of foreclosure + GST
11) YES Bank
Interest Rate
10.75% onwards
Loan Tenure
12-60 Months
Loan Processing Charges
Up to 2.50% of the loan amount subject to a minimum of Rs. 999/- plus GST
Pre-Payment Charges
Prepayment only allowed after 12 EMIs. 2% plus GST on part prepayment amount paid.
Foreclosure Charges
Duplicate No Due Certificate or NOC
Rs. 250 per event
Late Payment Charges
24% per annum on the amount outstanding from the date of Default
All Banks Interest Rates:
Name
Interest Rate
(Min)Interest Rate
(Max)Processing
FeePre-closure
Charge
SBI
11.30%
11.30%
Up to 2.5%
3%
HDFC Bank
11.25%
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
Baroda11.35%
16.35%
Rs.1,000 to Rs.10,000
NIL
SCB
11.99%
21%
3%
1-5%
Citibank
10.99%
18.99%
0.50% – 3.00%
4%
ICICI Bank
11.50%
19.25%
Up to 2.25% + GST
5% + GST
Kotak Bank
11.25%
19.99%
Up to 2.5%
5%+ service tax
Tata Capital
11.25%
19.75%
Up to 2.5% of the loan amount + GST
4.5%
Yes Bank
10.75%
N.A.
Up to 2.5%
2-4%