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Top 10 Personal Loan Banks in India for 2024

Are you in urgent need of funds but lack the necessary resources to finance your needs? Personal loans can help you meet your financial needs in such situations. With multiple banks and financial institutions offering personal loans in India, it can be a difficult task to choose the right one for your needs. In this article, we will guide you through the best personal loan banks in India that you can consider.

What is a Personal Loan?

Personal loans are unsecured loans that can be availed without any collateral. It is a popular form of credit as it does not require any asset as security. Personal loans can be used for various purposes such as funding medical expenses, education, travel, and home renovations. The best part is that personal loans are available with flexible repayment options, and the borrower can choose the repayment period as per their convenience.

Why Banks are the Best Sources of Personal Loans?

When it comes to availing personal loans, banks are the most trusted source. Banks offer personal loans with low-interest rates, minimal documentation, and hassle-free processing. However, not all banks are the same. Some banks offer better interest rates, while others provide more flexible repayment options. Therefore, it is essential to compare the offerings of different banks before choosing the right one for you.

Read: Best Personal Loan Apps in India

List of 10 Best Personal Loan Banks in India

1. State Bank of India (SBI)

State Bank of India (SBI) is one of the largest public sector banks in India. It offers personal loans at competitive interest rates with flexible repayment options. The bank offers personal loans to both salaried and self-employed individuals.

Features and Benefits of SBI Personal Loan

  • Low-interest rates starting at 9.60% p.a.
  • No prepayment penalty
  • Minimal documentation
  • Flexible repayment tenure ranging from 12 to 60 months
  • SBI offers personal loan balance transfer facilities at attractive interest rates.

2. HDFC Bank

HDFC Bank is a leading private sector bank in India. It offers personal loans at competitive interest rates with flexible repayment options. The bank offers personal loans to both salaried and self-employed individuals.

Features and Benefits of HDFC Bank Personal Loan

  • Low-interest rates starting at 10.50% p.a.
  • No prepayment penalty
  • Minimal documentation
  • Flexible repayment tenure ranging from 12 to 60 months
  • HDFC Bank offers personal loan balance transfer facilities at attractive interest rates.

3. ICICI Bank

ICICI Bank is another leading private-sector bank in India. It offers personal loans at competitive interest rates with flexible repayment options. The bank offers personal loans to both salaried and self-employed individuals.

Features and Benefits of ICICI Bank Personal Loan

  • Low-interest rates starting at 10.50% p.a.
  • No prepayment penalty
  • Minimal documentation
  • Flexible repayment tenure ranging from 12 to 60 months
  • ICICI Bank offers personal loan balance transfer facilities at attractive interest rates.

4. Axis Bank

Axis Bank is a major private-sector bank in India at present. It offers personal loans at competitive interest rates with flexible repayment options. The bank offers personal loans to both salaried and self-employed individuals.

Features and Benefits of Axis Bank Personal Loan

  • Low-interest rates starting at 10.50% p.a.
  • No prepayment penalty
  • Minimal documentation
  • Flexible repayment tenure ranging from 12 to 60 months
  • Axis Bank offers personal loan balance transfer facilities at attractive interest rates.

5. Bajaj Finserv

Bajaj Finserv is a leading NBFC in India that offers personal loans at competitive interest rates. The NBFC offers personal loans are offered to both salaried and self-employed professionals.

Features and Benefits of Bajaj Finserv Personal Loan

  • Competitive interest rates starting at 12.99% p.a.
  • Minimal documentation
  • Approval within 5 minutes
  • Flexible repayment tenure ranging from 12 to 60 months
  • Bajaj Finserv offers personal loan balance transfer facilities at attractive interest rates.

Read: Best Credit Cards in India

6. Citibank

Citibank is a foremost foreign bank operating in India. It offers personal loans to both salaried and self-employed individuals at competitive interest rates with flexible repayment options.

Features and Benefits of Citibank Personal Loan

  • Low-interest rates starting at 9.99% p.a.
  • No prepayment penalty
  • Minimal documentation
  • Flexible repayment tenure ranging from 12 to 60 months
  • Citibank offers personal loan balance transfer facilities at attractive interest rates.

7. Kotak Mahindra Bank

Kotak Mahindra Bank presently is a notable private-sector bank in India. It offers personal loans to both salaried and self-employed individuals at competitive interest rates with flexible repayment options.

Features and Benefits of Kotak Mahindra Bank Personal Loan

  • Low-interest rates starting at 10.50% p.a.
  • No prepayment penalty
  • Minimal documentation
  • Flexible repayment tenure ranging from 12 to 60 months
  • Kotak Mahindra Bank offers personal loan balance transfer facilities at attractive interest rates.

8. IDFC First Bank

IDFC First Bank is fast becoming a popular private-sector bank in India. It offers personal loans to both salaried and self-employed individuals at competitive interest rates with flexible repayment options.

Features and Benefits of IDFC First Bank Personal Loan

  • Low-interest rates starting at 10.49% p.a.
  • No prepayment penalty
  • Minimal documentation
  • Flexible repayment tenure ranging from 12 to 60 months
  • IDFC First Bank offers personal loan balance transfer facilities at attractive interest rates.

9. Yes Bank

Yes Bank is a prime private-sector bank in India. It offers personal loans to both salaried and self-employed individuals at competitive interest rates with flexible repayment options.

Features and Benefits of Yes Bank Personal Loan

  • Low-interest rates starting at 10.75% p.a.
  • No prepayment penalty
  • Minimal documentation
  • Flexible repayment tenure ranging from 12 to 60 months
  • Yes Bank offers personal loan balance transfer facilities at attractive interest rates.

10. Standard Chartered Bank

Standard Chartered Bank is one of the top-ranked foreign banks operating in India. It offers personal loans to both salaried and self-employed individuals at competitive interest rates with flexible repayment options.

Features and Benefits of Standard Chartered Bank Personal Loan

  • Low-interest rates starting at 10.99% p.a.
  • No prepayment penalty
  • Minimal documentation
  • Flexible repayment tenure ranging from 12 to 60 months
  • Standard Chartered Bank offers personal loan balance transfer facilities at attractive interest rates.

Choosing the right personal loan bank is crucial, as it can save you a lot of money in interest payments. The above-listed banks are some of the best personal loan banks in India that you can consider. However, it is always advisable to compare the offerings of different banks and choose the one that suits your needs the best.

Frequently Asked Questions 

What is the minimum and maximum loan amount that I can avail of through a personal loan?

The minimum and maximum loan amount that you can avail of through a personal loan varies from bank to bank. Generally, the minimum loan amount is Rs 50,000, while the maximum loan amount can go up to Rs. 50 lakhs or more, depending on the bank and your eligibility.

How do I know if I am eligible for a personal loan?

To know if you are eligible for a personal loan, you need to check the eligibility criteria of the bank that you are interested in. Generally, banks look for a stable income source, a good credit score, and a low debt-to-income ratio while assessing your eligibility for a personal loan.

How can I apply for a personal loan from a bank?

You can apply for a personal loan from a bank online or offline. To apply online, you can visit the bank’s website or use a loan aggregator website to compare loan offers from different banks. To apply offline, you can visit the nearest branch of the bank and fill in the application form.

How long does it take for a bank to approve a personal loan?

The time taken for a bank to approve a personal loan varies from bank to bank. Generally, banks take 1-7 working days to approve a personal loan, depending on their internal processes and the completeness of your application.

Can I prepay my personal loan before the end of the repayment tenure?

Yes, you can prepay your personal loan before the end of the repayment tenure. However, some banks may charge a prepayment penalty, so it is advisable to check with the bank before prepaying your loan.

How do I choose the right personal loan bank for me?

To choose the right personal loan bank for you, you need to compare the interest rates, fees and charges, repayment tenure, and other features of different banks. You should also check the eligibility criteria and documentation requirements of different banks before making a decision.

Conclusion

In conclusion, personal loans can be a good way to finance your immediate needs or fulfill your long-term goals. However, it is important to choose the right personal loan bank to get the best deal. The above-listed banks are some of the best personal loan banks in India that you can consider. It is advisable to compare the offerings of different banks and choose the one that suits your needs the best.

Remember to check the interest rates, fees and charges, repayment tenure, eligibility criteria, and documentation requirements before applying for a personal loan. With the right personal loan bank and a well-planned repayment strategy, you can achieve your financial goals and fulfill your dreams.

About Next What Business Research Team

The Editorial Staffs at NextWhatBusiness is a team of Business Consultants with years of experience in small and medium-scale manufacturing and service-based businesses.