Personal Loan Lowest Interest Rates in India
When you have some important expenses like a holiday trip abroad, household shifting, marriage in the family, payment of credit card bill, repayment of an existing loan, medical emergencies and many more but don't have enough money for the same, personal loan helps you to easily pay off such expenses.
Personal loans are unsecured loans offered by banks without any collateral such as your home, flat, property, etc. Personal loans are usually available at fixed interest rates where interest rates are based on your credit score. The better your credit score, the lower your interest rate and vice-versa.
Personal loans aren't cheap but expensive one. The beneficial part is that they can be easily available and their processing is very fast as compared to other types of loans like home loan, education loan, car loan, gold loan, etc.
A personal loan is offered at a higher interest rate than a secured loan due to higher risk involved as you are not asked for any collateral to ensure repayment.
These personal loans allow you to repay them from 12 to 60 months.
A personal loan may help you gain financing or pay off your bills but there a few things you should know before you take out a loan.
Banks will use your credit score to help them determine the quantum of loan, interest rate, repayment tenure and whether to offer you a personal loan.
Personal Loan at lower Interest Rate Feb 2023
| Bank | Interest Rate | Per Lac EMI | Tenure | Max. Loan Amount |
|---|---|---|---|---|
| Oriental Bank Of Commerce | 10.15% to 16.70% | ₹ 1860 | Maximum Tenure 72 months | Up to 24 times of Gross Monthly Salary with a maximum of Rs.20.00 Lakh depending upon the repaying capacity Processing Fees: 1.00% of loan amount; For Defence Personnel: Nil Processing Fees |
| Punjab National Bank | 10.15% to 16.70% | ₹ 1860 | Maximum Tenure 72 months | Up to 24 times of Gross Monthly Salary with a maximum of Rs.20.00 Lakh depending upon the repaying capacity Processing Fees: 1.00% of loan amount; For Defence Personnel: Nil Processing Fees |
| United Bank Of India | 10.15% to 16.70% | ₹ 1860 | Maximum Tenure 72 months | Up to 24 times of Gross Monthly Salary with a maximum of Rs.20.00 Lakh depending upon the repaying capacity Processing Fees: 1.00% of loan amount; For Defence Personnel: Nil Processing Fees |
| Karur Vysya Bank | 10.20% to 13.20% | ₹ 20513 | Tenure Max. upto 5 years | Loan amount min. Rs. 50,000 and max. Rs. 10,00,000 Processing Fee: 1.50% of the loan amount |
| Idbi Bank | 10.25% to 13.00% | ₹ 2137 | Maximum Tenure 60 months | Min. Rs. 25,000 to max. Rs. 5 lakh Processing Fees: 1% of the loan amount subject to minimum Rs.2500 plus GST |
| Bandhan Bank Limited | 10.25% to 20% | ₹ 8803 | Tenure is between 12 months and 60 months | Loan amount from Rs. 50,000 to Rs. 25 lakh Processing Fees: 1.00% of loan amount |
| Axis Bank | 10.49% onwards | ₹ 2149 | 12 to 60 Months | Minimum loan amount Rs. 50,000 and Maximum loan amount Rs. 40 lakh Processing Fee: From 1.5% to 2% of loan amount + GST |
| Indusind Bank | 10.49% onwards | ₹ 2149 | Maximum Tenure 60 months | From Rs.30,000 to 50,00,000 Processing Fee: Up to 3% of loan amount |
| Yes Bank | 10.49% to 16% | ₹ 8814 | 12 to 72 Months | Loan amount min. Rs. 50,000 and max. Rs. 50,00,000 Processing Fees: Upto 2% on loan amount |
| Federal Bank | 10.49% to 17.99% | ₹ 2560 | Maximum Tenure of 48 Months | Maximum Loan amount of Rs.25 Lakh |
| Catholic Syrian Bank Limited | 10.49% to 24% | ₹ 2149 | Maximum Tenure 60 months | Minimum Rs. 75,000 to Maximum Rs. 40 Lakh Processing Fee: Up to 1% of loan/ limit sanctioned, subject to minimum Rs 250 |
| Idfc First Bank | 10.49% to 25% | ₹ 17180 | Minimum Tenure 6 months and Maximum Tenure 60 months | Min loan amount Rs. 20,000 and Max Rs. 1 Crore (for salaried) & Rs. 9 Lakh (for self-employed) |
| Bank Of Baroda | 10.60% to 17.95% | ₹ 1691 | Maximum Tenure of 84 Months | Minimum Rs.1 lakh for Metro & Urban Branch Rs.0.50 lakh for Rural & Semi-Urban Branch Maximum Rs.20 lakh (depending upon borrower's occupation and account relationship with Bank) Processing Fees: From 1% to 2% of loan amount plus GST (Mini. Rs.1,000 + GST to Max. Rs.10,000 + GST) |
| Dena Bank | 10.60% to 17.95% | ₹ 1691 | Maximum Tenure of 84 Months | Minimum Rs.1 lakh for Metro & Urban Branch Rs.0.50 lakh for Rural & Semi-Urban Branch Maximum Rs.20 lakh (depending upon borrower's occupation and account relationship with Bank) Processing Fees: From 1% to 2% of loan amount plus GST (Mini. Rs.1,000 + GST to Max. Rs.10,000 + GST) |
| Vijaya Bank | 10.60% to 17.95% | ₹ 1691 | Maximum Tenure of 84 Months | Minimum Rs.1 lakh for Metro & Urban Branch Rs.0.50 lakh for Rural & Semi-Urban Branch Maximum Rs.20 lakh (depending upon borrower's occupation and account relationship with Bank) Processing Fees: From 1% to 2% of loan amount plus GST (Mini. Rs.1,000 + GST to Max. Rs.10,000 + GST) |
| Icici Bank Limited | 10.75% to 19% | ₹ 1891 | Maximum Tenure 72 months | Maximum Rs. 50 Lakh Processing Charges: Upto 2.50% of loan amount plus Applicable taxes |
| State Bank Of India | 10.90% - 13.90% | ₹ 1898 | Maximum Tenure 72 months | Maximum up to Rs 20 lakh Processing Fees: Nil Processing Fees due to festive offer |
| Bharatiya Mahila Bank Limited | 10.90% - 13.90% | ₹ 1898 | Maximum Tenure 72 months | Maximum up to Rs 20 lakh Processing Fees: Nil Processing Fees due to festive offer |
| State Bank Of Mysore | 10.90% - 13.90% | ₹ 1898 | Maximum Tenure 72 months | Maximum up to Rs 20 lakh Processing Fees: Nil Processing Fees due to festive offer |
| State Bank Of Hyderabad | 10.90% - 13.90% | ₹ 1898 | Maximum Tenure 72 months | Maximum up to Rs 20 lakh Processing Fees: Nil Processing Fees due to festive offer |
| State Bank Of Patiala | 10.90% - 13.90% | ₹ 1898 | Maximum Tenure 72 months | Maximum up to Rs 20 lakh Processing Fees: Nil Processing Fees due to festive offer |
| State Bank Of Travancore | 10.90% - 13.90% | ₹ 1898 | Maximum Tenure 72 months | Maximum up to Rs 20 lakh Processing Fees: Nil Processing Fees due to festive offer |
| State Bank Of Bikaner And Jaipur | 10.90% - 13.90% | ₹ 1898 | Maximum Tenure 72 months | Maximum up to Rs 20 lakh Processing Fees: Nil Processing Fees due to festive offer |
| Punjab And Sind Bank | 10.90% to 12.50% | ₹ 1898 | Maximum Tenure 72 months | Permanent Govt. Employees/PSU Employees/ Employees of MNC / Employees of approved Education Institute: up to 18 times monthly net salary Or, Rs. 10.00 lakh, whichever is less Permanent Employees of other private institutions: up to 18 times monthly net salary Or, Rs. 5.00 lakh, whichever is less Pensioners upto the age of 65 years : Upto 15 times monthly net pension or Rs.3 lakh, whichever is less For Pensioners above the age of 65 years and upto the age of 70 years : Upto 10 times monthly net pension or Rs.1 lakh, whichever is less |
| Kotak Mahindra Bank Limited | 10.99% onwards | ₹ 2174 | Maximum Tenure 60 months | Loan Amount from Rs 50,000 to Rs. 40 lakh Processing Fee: Up to 3% of the final loan amount plus applicable taxes |
| The Nainital Bank Limited | 11.95% onwards | ₹ 1763 | Maximum Tenure 84 months | Loan Amount max. upto Rs. 15,00,000 Processing Charges: 2% of the loan amount (Minimum Rs. 500) |
| Hdfc Bank | 11% to 21% | ₹ 8838 | 12 months to 60 months | Loan amount is from Rs. 50,000 to Rs. 40,00,000 Loan is offered on the basis monthly salary and the present company the applicant is working for Processing Fees: Up to Rs. 4,999 |
| Central Bank Of India | 12.10% to 12.30% | ₹ 1771 | Maximum Tenure of 84 Months | 24 times of gross salary, subject to maximum of Rs.20,00,000 Processing Fees: 1.00% of loan amount. For Defence Personnel: NIL Processing Fees |
| Indian Overseas Bank | 12.25% to 13.25% | ₹ 2237 | Maximum Tenure 60 months | 10 times of salary or Rs. 15 lakh, whichever is lower, if your employer undertakes to deduct the loan installment from salary and remit to us or the salary is routed through the loan granting branch of IOB For others, it is 5 times of salary or Rs. 1 lakh, whichever is lower Processing Fees: Up to 0.75% of Loan amount + GST |
| Uco Bank | 12.30% to 12.55% | ₹ 1781 | Maximum Tenure 84 months | For Employees of Central/State Government as defined under Eligibility: 20 times of Gross Monthly Income subject to maximum of Rs.15 Lakh For other than Government Emoloyees: 10 times of Gross Monthly Income subject to maximum of Rs.10.00 Lakh Processing Fees: 1% of loan amount (minimum Rs.750) |
| Dhanalakshmi Bank | 12.40% to 15.80% | ₹ 2245 | Maximum Tenure 60 months | Min. Rs. 1 lakh to max. Rs. 15 lakh |
| South Indian Bank | 12.85% to 20.35% | ₹ 2268 | 12 to 60 Months | Loan Amount min. Rs. 1 lakh to max. upto Rs. 20 lakh Processing fee: Up to 2% of the loan amount |
| Andhra Bank | 13.15% to 15.25% | ₹ 2283 | Maximum Tenure 60 months | Maximum loan up to Rs. 15 lakh Processing Fees: Up to 1% (maximum Rs. 7,500) |
| Corporation Bank | 13.15% to 15.25% | ₹ 2283 | Maximum Tenure 60 months | Maximum loan up to Rs. 15 lakh Processing Fees: Up to 1% (maximum Rs. 7,500) |
| Union Bank Of India | 13.15% to 15.25% | ₹ 2283 | Maximum Tenure 60 months | Maximum loan up to Rs. 15 lakh Processing Fees: Up to 1% (maximum Rs. 7,500) |
| Tamilnad Mercantile Bank Limited | 13.40% to 14.50% | ₹ 2296 | Maximum Tenure 60 months |
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| Karnataka Bank Limited | 13.81% | ₹ 4792 | Tenure max. upto 24 Months | Two times of the average annual income of last two years / 24 times of the latest take home salary whichever is lower, subjected to minimum of Rs. 1 lakh and maximum loan of Rs. 25 lakh Processing Fee: 0.50% of loan amount, minimum of Rs 250 |
| Canara Bank | 14.65% to 16.15% | ₹ 2765 | Maximum Tenure of 48 Months | Six months gross salary or Rs.3.00 lakh, whichever is lower, however, higher quantum also considered selectively Processing Fees: 0.5% of the loan amount (Min. Rs. 1,000 and max. Rs. 5,000) |
| Syndicate Bank | 14.65% to 16.15% | ₹ 2765 | Maximum Tenure of 48 Months | Six months gross salary or Rs.3.00 lakh, whichever is lower, however, higher quantum also considered selectively Processing Fees: 0.5% of the loan amount (Min. Rs. 1,000 and max. Rs. 5,000) |
| City Union Bank Limited | 18.50% to 18.75% | ₹ 9192 | Maximum Tenure 12 Months | Minimum loan amount Rs. 5,000 and Maximum Rs. 5 Lakh |
| Bank Of India | 9.10% onwards | ₹ 1614 | Maximum Tenure of 84 Months | Maximum quantum up 36 times the gross monthly salary (maximum upto Rs. 25,00,000) Processing Fees: Upto 1% of Loan amount (Min. Rs. 750 and max. Rs. 5,000) |
| Bank Of Maharashtra | 9.25% to 15.05% | ₹ 1622 | Maximum Tenure 84 months | Loan amount is 20 times of Gross Monthly Income, maximum Rs 20.00 Lakh Processing Fees: 1.00 % of the loan amount + GST |
| Allahabad Bank | 9.75%-12.15% | ₹ 10452 | Maximum Tenure 10 Years | Min. Rs. 25,000 to max. Rs. 5 lakh Processing Fees: Up to Rs 25,000: NIL Over Rs 25,000: Rs 250 |
| Indian Bank | 9.75%-12.15% | ₹ 10452 | Maximum Tenure 10 Years | Min. Rs. 25,000 to max. Rs. 5 lakh Processing Fees: Up to Rs 25,000: NIL Over Rs 25,000: Rs 250 |
Personal Loan Eligibility
- Age: 21 to 58 years.
- Permanent employees of State/Central Govt., Public Sector Undertakings, Corporations, Private Sector Companies and reputed establishments.
- Income Salaried - Minimum net monthly income of INR 15,000 to 20,000.
- Self-employed - Loan eligibility is based on the profit that comes after the incidence of tax.
- Number of years in the present job/ business/ profession: upto 3 years
Important Link About Personal Loan
5 Important Factors Lenders Consider before Approving a Personal Loan Application
(1) Income
You must have a regular income no matter you are salaried or self-employed. Sometimes there is also some minimum income criteria imposed by banks for extending personal loan such as you should earn Rs 3 lakhs per annum to apply for a personal loan. You must be aware of this factor.
(2) Employment
Lenders also pay attention towards the employment status that you have. Whether you are salaried or self-employed? If you are salaried then they will check:
- For how long are you working?
- Who is your employer?
- Since when you are working with your existing employer?
(3) Repayment History
Lenders also check your repayment history of your past as well as your existing loans. They also check if you have made any default or delay in making your payments in time.
(4) Credit Score
For getting your instant Personal Loan approval you should be having credit score should be above 750. Credit score of 750 is considered as a decent credit score and you will easily get the loan because it indicates that you have a very good loan repayment history.
(5) EMI to Income Ratio
Lenders calculate the proportion of your existing loans to your salary during the loan approval process. Your chances of getting loan are less when your total EMIs exceed your monthly salary by 40%.
KYC documents for Personal Loan
- Proof of Identity (Passport / Voters ID card/ Driving License/PAN Card)
- Address Proof (Ration card Tel/ Electricity Bill/ Lease agreement/ Passport)
- Copy of PAN Card
- Latest Passport size photo of the applicant (2 copies)
Income documents for Personal Loan
- Latest salary certificate/ Last 3 months salary slips
- Form 16/Income Tax Returns( last 2 years)
- Last 6 months salary account statement
Risks Associated with Personal Loan
- If you don't repay personal loan on time, the lender bank has the right to sue you and take you to court, as it is not backed by any security.
- Secondly, if you feel to pay off your personal loan too early i.e. before a certain date, there may be huge penalty.
- Thirdly, don't lure by a false advertising and enter into a fake loan agreement.
Benefits of Personal Loan
- Collateral Not Required: Being an unsecured loan, personal loan does not require any kind of security or collateral against loan.
- Can be Availed for any Purpose: Personal loan can be availed for any purpose. There is not need to disclose the reason to avail the loan and also the usage of funds.
- Hassle Free Loan Approval Process: Loan is approved very fast and also disbursed within 24 to 72 hours. Some of the people also get a pre-approval of personal loan upto some specific amount through SMS.
- Competitive Rate of Interest: As this loan is very demanding and popular among the borrowers, there are many banks and NBFCs which are offering this loan at very low interest rate and with negotiable terms.
- Negotiable Interest Rates: Interest rate charges vary from customer to customer and bank to bank. Applicants having good CIBIL score (above 750) and a regular income may negotiate on interest rate and other terms with the lenders.
- Flexible Tenure: You can decide the tenure according to your need. You can get the loan repayment tenure ranging from 12 months to 60 months.
- Helps Building Credit Score: Persons who want to build their credit score can avail this loan for short term and repay it properly in time. Then it will help building a good credit score for them.
