Top 10 Banks & NBFCs for Low-Interest Personal Loans in India

Personal loans are an efficient way to secure funds for various needs, from medical emergencies and home renovations to travel and weddings. In India, both banks and non-banking financial companies (NBFCs) offer competitive personal loans with attractive interest rates and easy repayment terms. This article lists the top 10 banks and NBFCs known for providing the cheapest personal loan in India with low-interest rates, flexible tenures, and hassle-free processing.

1. State Bank of India (SBI)

As one of India’s largest banks, SBI is known for its attractive personal loan options. SBI offers personal loans with interest rates starting around 10.30%, depending on the applicant’s credit profile. SBI’s loans come with flexible repayment options ranging from 6 months to 6 years, and its SBI Xpress Credit loan is especially popular among salaried professionals.

• Interest Rate: Starting from 10.30%
• Tenure: Up to 6 years
• Processing Fee: 1-2% of the loan amount

2. HDFC Bank

HDFC Bank provides quick and easy personal loans with interest rates as low as 10.50%. With minimal documentation and a quick approval process, HDFC is a preferred choice for salaried and self-employed individuals alike. Existing HDFC customers often enjoy faster processing times and pre-approved offers.

• Interest Rate: Starting from 10.50%
• Tenure: Up to 5 years
• Processing Fee: Up to 2.5% of the loan amount

3. ICICI Bank

ICICI Bank offers personal loans with competitive interest rates and flexible repayment options. ICICI provides personal loans with interest rates starting from 10.75% for salaried and self-employed individuals. They also offer quick disbursals, making ICICI a top choice for those needing fast access to funds.

• Interest Rate: Starting from 10.75%
• Tenure: Up to 5 years
• Processing Fee: Up to 2.5% of the loan amount

4. Bajaj Finserv

Bajaj Finserv, a leading NBFC, provides personal loans with flexible options and low-interest rates starting from 11%. Known for its high loan amounts and quick processing, Bajaj Finserv is suitable for both salaried and self-employed individuals. Their online application process is simple, and pre-approved offers are available to existing customers.

• Interest Rate: Starting from 11%
• Tenure: Up to 5 years
• Processing Fee: 1.5-3% of the loan amount

5. Axis Bank

Axis Bank is renowned for its attractive personal loan rates and hassle-free processing. With interest rates starting from 10.49%, Axis Bank offers loans for various personal needs. The bank provides a quick loan approval process, and customers can check their eligibility online for a smoother experience.

• Interest Rate: Starting from 10.49%
• Tenure: Up to 5 years
• Processing Fee: Up to 2% of the loan amount

6. Kotak Mahindra Bank

Kotak Mahindra Bank offers personal loans with one of the lowest starting interest rates in the market, at 10.25%. They provide a range of loan amounts for salaried individuals, with quick approval and disbursal, especially for existing customers with a good credit score.

• Interest Rate: Starting from 10.25%
• Tenure: Up to 5 years
• Processing Fee: Up to 2.5% of the loan amount

7. IDFC FIRST Bank

IDFC FIRST Bank offers attractive personal loan options with interest rates starting from 10.49%. Known for its transparent processing and minimal hidden charges, IDFC FIRST Bank provides personal loans with flexible repayment options and quick online processing.

• Interest Rate: Starting from 10.49%
• Tenure: Up to 5 years
• Processing Fee: Up to 2% of the loan amount

8. Tata Capital

As one of the prominent NBFCs, Tata Capital offers personal loans with competitive interest rates starting from 10.99%. Tata Capital has simplified the personal loan application process by offering online application options and quick approvals, especially for existing Tata Capital customers.

• Interest Rate: Starting from 10.99%
• Tenure: Up to 6 years
• Processing Fee: 1-2.5% of the loan amount

9. PNB Housing Finance

PNB Housing Finance, a part of Punjab National Bank, offers personal loans with interest rates starting from 11%. They cater to various customer needs and have easy eligibility requirements, making them accessible to a wider audience.

• Interest Rate: Starting from 11%
• Tenure: Up to 5 years
• Processing Fee: Up to 2% of the loan amount

10. Fullerton India

Fullerton India is an NBFC that offers personal loans with interest rates starting around 11.99%. Known for its accessible online application process and easy eligibility criteria, Fullerton India provides personal loans to both salaried and self-employed individuals.

• Interest Rate: Starting from 11.99%
• Tenure: Up to 5 years
• Processing Fee: 1.5-2% of the loan amount

Tips for Selecting the Right Personal Loan

1. Compare Interest Rates: Even a small difference in interest rates can make a significant impact on your overall loan cost.
2. Consider Processing Fees and Other Charges: Some banks and NBFCs have higher processing fees, which may impact the total cost of the loan.
3. Check Eligibility and Documentation Requirements: Ensure that you meet the eligibility criteria of the chosen bank or NBFC and prepare the necessary documents in advance for a smoother application process.
4. Evaluate Loan Tenure and EMI Options: Choose a tenure that aligns with your repayment capacity to manage EMIs comfortably.

Final Thoughts

Choosing the right bank or NBFC for a personal loan is crucial to ensure that you receive favorable terms that suit your financial needs. The above list highlights some of the best options available in India for the best personal loan rates. Compare offers, check eligibility, and apply for a loan with the provider that offers you the best interest rate and loan terms.