Personal loans in India are among the most popular financial products because they provide quick access to funds without collateral. Whether you need money for medical emergencies, education, travel, or debt consolidation, a personal loan can be your ideal solution.
In this guide, we will cover:
- ✅ What is a personal loan
- ✅ Best banks/NBFCs offering personal loans in India
- ✅ Interest rates & eligibility
- ✅ How to apply online for instant approval
- ✅ Tips to get low interest & high loan amount
What is a Personal Loan?
A personal loan is an unsecured loan that allows you to borrow money without pledging any asset. You repay it in EMIs (Equated Monthly Installments) over a fixed tenure.
- Loan Amount: ₹50,000 – ₹50,00,000
- Tenure: 1 – 7 years
- Interest Rate: Starting from 9.99% p.a.
- Processing Fee: 1% – 3%
Top Banks & NBFCs Offering Personal Loans in India
Below is a comparison table of the best banks and NBFCs for personal loans:
| Bank/NBFC | Interest Rate (p.a.) | Loan Amount | Tenure | Processing Fee |
|---|---|---|---|---|
| HDFC Bank | 10.5% – 21% | ₹50,000 – ₹40 Lakh | 1–6 yrs | Up to 2.5% |
| ICICI Bank | 10.75% – 19% | ₹50,000 – ₹25 Lakh | 1–6 yrs | Up to 2.5% |
| SBI Personal Loan | 11% – 15% | ₹25,000 – ₹20 Lakh | 1–7 yrs | 1.5% |
| Axis Bank | 10.49% onwards | ₹50,000 – ₹40 Lakh | 1–5 yrs | Up to 2% |
| Bajaj Finserv | 11% – 25% | ₹30,000 – ₹25 Lakh | 1–5 yrs | Up to 3% |
| Kotak Mahindra Bank | 10.5% – 24% | ₹50,000 – ₹20 Lakh | 1–5 yrs | Up to 2.5% |
| Tata Capital | 11.25% – 19% | ₹75,000 – ₹25 Lakh | 1–6 yrs | Up to 2.5% |
Eligibility Criteria for Personal Loans in India
The general eligibility criteria are:
- Age: 21 – 60 years
- Employment: Salaried or Self-Employed
- Monthly Income: Minimum ₹15,000 – ₹25,000 (varies by bank)
- Credit Score: 700+ preferred for quick approval
- Work Experience: At least 1 year (salaried) / 2 years (self-employed)
Documents Required
- PAN Card / Aadhaar Card
- Salary Slips / Bank Statements
- Address Proof (Utility Bill, Rent Agreement, Passport)
- Passport Size Photo
How to Apply for a Personal Loan Online
Applying for a personal loan is simple:
- Visit the official bank/NBFC website
- Fill the online loan application form
- Upload documents (KYC, income proof)
- Get instant approval in minutes (if eligible)
- Loan amount is disbursed directly to your bank account
💡 Pro Tip: Use online loan aggregators like Paisabazaar, BankBazaar, or Policybazaar to compare offers from multiple lenders.
Benefits of Taking a Personal Loan
- ✅ No Collateral Required
- ✅ Quick Approval & Instant Disbursal
- ✅ Flexible Tenure Options
- ✅ Can be used for multiple purposes (education, marriage, travel, emergencies)
- ✅ Improves credit history if EMIs are paid on time
How to Get the Lowest Personal Loan Interest Rate?
Here are smart tips:
- Maintain a high credit score (750+)
- Apply with a stable income & employment record
- Choose a shorter loan tenure
- Compare different lenders before applying
- Look for pre-approved offers from your bank
Common Mistakes to Avoid While Taking a Personal Loan
- ❌ Not checking hidden charges like foreclosure & processing fee
- ❌ Borrowing more than required
- ❌ Ignoring your credit score impact
- ❌ Applying to multiple lenders at once
Frequently Asked Questions (FAQs)
Q1: Which bank gives the lowest personal loan interest rate in India?
Ans: HDFC Bank, Axis Bank, and SBI often provide the lowest rates starting from 10.49% p.a., depending on your eligibility.
Q:2 Can I get a personal loan without a salary slip?
Ans: Yes, some NBFCs and fintech companies offer personal loans against bank statements or alternate income proofs.
Q3: What is the minimum salary required for a personal loan?
Most banks require a minimum monthly income of ₹15,000 – ₹25,000 in metro cities.
