Personal loans provide financial flexibility to meet urgent needs like medical expenses, weddings, or home renovations. Choosing the right lender can help secure a lower interest rate, reducing the overall cost of borrowing. Here are the top 5 banks and NBFCs in India offering personal loans at competitive interest rates.
1. State Bank of India (SBI) Personal Loan
SBI offers personal loans with attractive interest rates and minimal processing fees. It is a preferred choice for salaried professionals and pensioners.
- Interest Rate: 10.55% – 15.30% p.a.
- Loan Amount: Up to ₹20 lakhs
- Tenure: 6 months to 6 years
- Processing Fee: Up to 1.50% of the loan amount
2. HDFC Bank Personal Loan
HDFC Bank provides instant personal loan approval for pre-approved customers. With competitive interest rates and flexible repayment options, it is a popular choice.
- Interest Rate: 10.50% – 21.00% p.a.
- Loan Amount: Up to ₹40 lakhs
- Tenure: 12 to 72 months
- Processing Fee: Up to 2.50% of the loan amount
3. ICICI Bank Personal Loan
ICICI Bank offers quick loan disbursal with minimal paperwork. Existing customers can benefit from instant pre-approved loan offers.
- Interest Rate: 10.75% – 19.00% p.a.
- Loan Amount: Up to ₹50 lakhs
- Tenure: 12 to 72 months
- Processing Fee: Up to 2.50% of the loan amount
4. Bajaj Finserv Personal Loan
Bajaj Finserv, a leading NBFC, provides hassle-free personal loans with flexible repayment options. The digital application process ensures quick approvals.
- Interest Rate: 11.00% – 24.00% p.a.
- Loan Amount: Up to ₹40 lakhs
- Tenure: 12 to 84 months
- Processing Fee: Up to 3.99% of the loan amount
5. Axis Bank Personal Loan
Axis Bank offers competitive personal loan rates with a simple documentation process. The bank provides fast disbursals, making it a preferred choice.
- Interest Rate: 10.49% – 21.00% p.a.
- Loan Amount: Up to ₹40 lakhs
- Tenure: 12 to 60 months
- Processing Fee: Up to 2% of the loan amount
How to Choose the Best Personal Loan
- Compare interest rates: Lower rates help reduce EMI burden.
- Check processing fees: High fees increase loan costs.
- Consider loan tenure: Choose a tenure that balances EMI affordability and interest payout.
- Look for pre-approved offers: Banks offer special rates to existing customers.
- Evaluate customer service: A responsive lender ensures a smooth loan experience.
Selecting the right bank or NBFC for a personal loan can significantly impact your financial health. SBI, HDFC Bank, ICICI Bank, Bajaj Finserv, and Axis Bank offer some of the best low-interest personal loans in India. Compare loan features and eligibility criteria before applying to secure the best deal.
