Personal Loan Lowest Interest Rates 2023

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

BankInterest RatePer Lac EMITenureMax. Loan Amount
Bank Of India10.25% onwards₹ 1673Maximum Tenure of 84 MonthsMaximum 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)
Indusind Bank10.25% to 26%₹ 2137Maximum Tenure 60 monthsFrom Rs.30,000 to 50,00,000
Processing Fee: Up to 3% of loan amount
Federal Bank10.49% to 17.99%₹ 2560Maximum Tenure of 48 MonthsMaximum Loan amount of Rs.25 Lakh
Axis Bank10.49% to 22%₹ 214912 to 60 MonthsMinimum loan amount Rs. 50,000 and Maximum loan amount Rs. 40 lakh
Processing Fee: From 1.5% to 2% of loan amount + GST
Idfc First Bank10.49% to 36%₹ 17180Minimum Tenure 6 months and Maximum Tenure 60 monthsMin loan amount Rs. 20,000 and Max Rs. 1 Crore (for salaried) & Rs. 9 Lakh (for self-employed)
Hdfc Bank10.5% to 24%₹ 881512 months to 60 monthsLoan 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
Idbi Bank10.50% to 13.25%₹ 2149Maximum Tenure 60 monthsMin. Rs. 25,000 to max. Rs. 5 lakh
Processing Fees: 1% of the loan amount subject to minimum Rs.2500 plus GST
Icici Bank Limited10.50% to 16.00%₹ 1878Maximum Tenure 72 monthsMaximum Rs. 50 Lakh
Processing Charges: Upto 2.50% of loan amount plus Applicable taxes
Bank Of Baroda10.90%-18.25%₹ 1707Maximum Tenure of 84 MonthsMinimum 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 Bank10.90%-18.25%₹ 1707Maximum Tenure of 84 MonthsMinimum 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 Bank10.90%-18.25%₹ 1707Maximum Tenure of 84 MonthsMinimum 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)
Uco Bank10.95% to 12.95%₹ 1710Maximum Tenure 84 monthsFor 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)
Kotak Mahindra Bank Limited10.99%₹ 2174Maximum Tenure 60 monthsLoan Amount from Rs 50,000 to Rs. 40 lakh
Processing Fee: Up to 3% of the final loan amount plus applicable taxes
Yes Bank10.99% to 20%₹ 883812 to 72 MonthsLoan amount min. Rs. 50,000 and max. Rs. 50,00,000
Processing Fees: Upto 2% on loan amount
The Nainital Bank Limited10% to 10.50%₹ 1686Maximum Tenure 84 monthsLoan Amount max. upto Rs. 15,00,000
Processing Charges: 2% of the loan amount (Minimum Rs. 500)
Bank Of Maharashtra10% to 12.80%₹ 1808Maximum Tenure 84 monthsLoan amount is 20 times of Gross Monthly Income, maximum Rs 20.00 Lakh
Processing Fees: 1.00 % of the loan amount + GST
Karur Vysya Bank11.13% to 13.03%₹ 20560Tenure Max. upto 5 yearsLoan amount min. Rs. 50,000 and max. Rs. 10,00,000
Processing Fee: 1.50% of the loan amount
Punjab And Sind Bank11.15% to 12.75%₹ 1911Maximum Tenure 72 monthsPermanent 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
Oriental Bank Of Commerce11.40% to 16.95%₹ 1924Maximum Tenure 72 monthsUp 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 Bank11.40% to 16.95%₹ 1924Maximum Tenure 72 monthsUp 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 India11.40% to 16.95%₹ 1924Maximum Tenure 72 monthsUp 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
Bandhan Bank Limited11.55% to 16%₹ 8864Tenure is between 12 months and 60 months Loan amount from Rs. 50,000 to Rs. 25 lakhs
Processing Fees: 1.00% of loan amount
State Bank Of India11% to 14%₹ 1903Maximum Tenure 72 monthsMaximum up to Rs 20 lakh
Processing Fees: Nil Processing Fees due to festive offer
Bharatiya Mahila Bank Limited11% to 14%₹ 1903Maximum Tenure 72 monthsMaximum up to Rs 20 lakh
Processing Fees: Nil Processing Fees due to festive offer
State Bank Of Mysore11% to 14%₹ 1903Maximum Tenure 72 monthsMaximum up to Rs 20 lakh
Processing Fees: Nil Processing Fees due to festive offer
State Bank Of Hyderabad11% to 14%₹ 1903Maximum Tenure 72 monthsMaximum up to Rs 20 lakh
Processing Fees: Nil Processing Fees due to festive offer
State Bank Of Patiala11% to 14%₹ 1903Maximum Tenure 72 monthsMaximum up to Rs 20 lakh
Processing Fees: Nil Processing Fees due to festive offer
State Bank Of Travancore11% to 14%₹ 1903Maximum Tenure 72 monthsMaximum up to Rs 20 lakh
Processing Fees: Nil Processing Fees due to festive offer
State Bank Of Bikaner And Jaipur11% to 14%₹ 1903Maximum Tenure 72 monthsMaximum up to Rs 20 lakh
Processing Fees: Nil Processing Fees due to festive offer
Allahabad Bank11% to 15% ₹ 10511Maximum Tenure 10 YearsMin. Rs. 25,000 to max. Rs. 5 lakh
Processing Fees: Up to Rs 25,000: NIL
Over Rs 25,000: Rs 250
Indian Bank11% to 15% ₹ 10511Maximum Tenure 10 YearsMin. Rs. 25,000 to max. Rs. 5 lakh
Processing Fees: Up to Rs 25,000: NIL
Over Rs 25,000: Rs 250
Central Bank Of India12.35% to 12.55%₹ 1784Maximum Tenure of 84 Months24 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 Bank12.50% to 13.50%₹ 2250Maximum Tenure 60 months10 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
Dhanalakshmi Bank12.70%-15.90%₹ 2260Maximum Tenure 60 monthsMin. Rs. 1 lakh to max. Rs. 15 lakh
South Indian Bank13.10% to 20.60%₹ 228012 to 60 MonthsLoan Amount min. Rs. 1 lakh to max. upto Rs. 20 lakh
Processing fee: Up to 2% of the loan amount
Andhra Bank13.40% to 15.50%₹ 2296Maximum Tenure 60 monthsMaximum loan up to Rs. 15 lakh

Processing Fees: Up to 1% (maximum Rs. 7,500)
Corporation Bank13.40% to 15.50%₹ 2296Maximum Tenure 60 monthsMaximum loan up to Rs. 15 lakh

Processing Fees: Up to 1% (maximum Rs. 7,500)
Union Bank Of India13.40% to 15.50%₹ 2296Maximum Tenure 60 monthsMaximum loan up to Rs. 15 lakh

Processing Fees: Up to 1% (maximum Rs. 7,500)
Tamilnad Mercantile Bank Limited13.90% to 16.00%₹ 2322Maximum Tenure 60 months
  • With Collateral cover of 200% and Registration of check-off facility: 10 times of the gross salary as per latest salary bill with a maximum of Rs.10 lakh
  • Without collateral and Registration of check-off facility: 6 times of the gross salary as per latest salary bill with a maximum of Rs.5 lakh
  • Without collateral and Registration of check-off facility: 6 times of the gross salary as per latest salary bill with a maximum of Rs.5 lakh
Karnataka Bank Limited14.17%₹ 4809Tenure max. upto 24 MonthsTwo 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 Bank14.75% to 16.25%₹ 2770Maximum Tenure of 48 Months25 months gross salary or maximum Rs. 30.00 lakhs, 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); presently 100% waived
Syndicate Bank14.75% to 16.25%₹ 2770Maximum Tenure of 48 Months25 months gross salary or maximum Rs. 30.00 lakhs, 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); presently 100% waived
Catholic Syrian Bank Limited15.55% to 18.30%₹ 2408Maximum Tenure 60 monthsMinimum Rs. 75,000 to Maximum Rs. 40 Lakh
Processing Fee: Up to 1% of loan/ limit sanctioned, subject to minimum Rs 250
City Union Bank Limited18.50% to 18.75%₹ 9192Maximum Tenure 12 MonthsMinimum loan amount Rs. 5,000 and Maximum Rs. 5 Lakh

Personal Loan Eligibility

  1. Age: 21 to 58 years.
  2. Permanent employees of State/Central Govt., Public Sector Undertakings, Corporations, Private Sector Companies and reputed establishments.
  3. Income Salaried - Minimum net monthly income of INR 15,000 to 20,000.
  4. Self-employed - Loan eligibility is based on the profit that comes after the incidence of tax.
  5. 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

  1. 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.
  2. Secondly, if you feel to pay off your personal loan too early i.e. before a certain date, there may be huge penalty.
  3. Thirdly, don't lure by a false advertising and enter into a fake loan agreement.

Benefits of Personal Loan

  1. Collateral Not Required: Being an unsecured loan, personal loan does not require any kind of security or collateral against loan.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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.