Best Banks for Personal Loans in India for 2021

20 Sep 2021 7 min read
Personal Loan: Apply Best Personal Loans in India for 2021 | Afinoz

The personal loan market has been expanding by leaps and bounds over the past several years in India.  Dozens of lenders customized personal loans to cater to different segments of customers. Borrowers should compare interest rates, processing fees, prepayment charges, and loan tenure before applying for a personal loan.

Best Bank for personal loan in India 2021

While a loan with the lowest interest rate is the least expensive, not necessarily the best. The definition of the best personal loan, to a larger extent, varies from borrower to borrower. There might be lenders that offer lower interest rates but have strict eligibility criteria and heavy penalties on late payment or prepayment. We have cherry-picked the best lenders based on a host of underlying factors.    

Summary of best personal loans 2021 at a glance

Lender

Interest Rate

Processing Fee

Loan Amount

Loan Tenure

HDFC Bank

10.75% to 21.30% p.a.

Up to 2.50% of the loan amount

Up to Rs. 15 lakh

12 months to 60 months

ICICI  Bank

11.25% to 21.00% p.a.

Up to 2.25% of principal + GST

Up to Rs. 20 lakh

12 months to 60 months

State Bank of India

Depends on loan schemes 

11.7% to 16.60% p.a.

Up to 1% of the principal

Up to Rs. 15 lakh

Up to 84 months

Punjab National Bank

12% to 15% p.a.

Up to 1.8% of the loan amount

Rs.10 lakh or 20 times the monthly net income

Up to 60 months

Axis Bank

15.75% to 24% p.a.

1.5% to 2% of the principal + GST

Up to Rs. 15 lakh

Up to 60 months

Kotak Mahindra Bank

10.75% p.a. onwards

Up to 2.5% of the principal + GST 

Up to Rs. 15 lakh

Up to 60 months

Tata Capital

Starts at 10.99% p.a.

Up to 2.5% of the principal + GST

Up to Rs. 25 lakh

Up to 72 months

Bajaj Finserv

12.99% p.a. onwards

Up to 4.13% of the principal

Up to Rs. 25 lakh

Up to 60 months

IDFC First Bank

11.00% to 14.50% p.a.

Up to 3.5% of the principal

Up to Rs. 25 lakh

Up to 60 months

Fullerton India

12.99% - 36% 

Up to 3% of the principal + GST

Up to Rs. 25 lakh

Up to 60 months

IDBI Bank

12% to 14% p.a.

1% of the principal

Up to Rs. 5 lakh

Up to 60 months

1#. HDFC Bank personal loan

HDFC Bank is a leading private sector bank that offers a personal loan at attractive interest rates. You can get a personal loan of up to Rs. 15 lakhs for your various financial needs such as wedding, home repair, travel, medical emergency, and more. The procedure of applying for a personal loan with HDFC Bank is quick and simple.

Key features of HDFC Bank personal loan

  • Minimum documentation: Online application with minimal documentation. 
  • Fastest disbursal: Existing customers of the bank can get a pre-approved loan in 10 seconds and other customers within 4 hours.
  • Minimum salary required: 
  •  Rs. 20,000 in Mumbai, Delhi, Bangalore, Chennai, Hyderabad, Pune, Kolkata, Ahmadabad, Cochin
  • Rs. 15, 000 elsewhere
  • Prepayment charges:
  • 13-24 months - 4% of principal outstanding,
  • 25-36 months - 3% of principal outstanding
  • >36 months - 2% of principal outstanding
  • Personal loan balance transfer: By transferring your loan from the existing lender to HDFC Bank, you can enjoy the following benefits.
  • Interest rate as low as 11.49%
  • Flat processing fee of Rs. 3999

Generic Eligibility Criteria of HDFC Bank Personal Loan

A Personal Loan is available to the following individuals:

  • Employees of select private limited companies, as well as employees of public sector organisations such as the federal, state, and local governments
  • Individuals between the ages of 21 and 60 who have worked for at least 2 years, with at least 1 year with the same employer
  • Customers who receive a monthly net income of at least 25,000 rupees can open a salary account with HDFC Bank.
  • Holder of a salary account with a bank other than HDFC: A monthly net income of at least $50,000 is needed.

2#. ICICI Bank personal loan

ICICI Bank is one of the best lenders of a personal loan in India. The bank offers customized personal loans under different categories to help you meet specific needs. You can get a personal loan of up to Rs. 20 lakhs for a flexible repayment tenure ranging from 12 to 60 months. 

Key features of ICICI Bank personal loan:

  • Completely digital process: From application to disbursal, the entire process is completely online. You can apply for the loan with basic KYC documents. 
  • Instant fund transfer: Pre-approved customers can avail of a personal loan in just 3 seconds after document verification.
  • Minimum income required:   

Generic Eligibility Criteria of ICICI Bank Personal Loan

For salaried:

  • For applicants residing in Mumbai & Delhi Rs. 25,000.
  • For applicants residing in Chennai, Hyderabad, Bangalore, Pune, and Kolkata Rs. 20,000. 
  • For others Rs. 17,500.

For self-employed

  • Minimum turnover of Rs. 40 lakhs for self-employed non-professionals. 
  • Minimum turnover of Rs. 15 lakhs for professionals.
  • Prepayment charges: 5% on principal outstanding plus GST.
  • Personal loan balance transfer: The bank provides a personal loan balance transfer facility at lower interest rates to the existing customers of a personal loan who want to shift their loan from a current lender to ICICI Bank. 

3#. State Bank of India personal loan

State Bank of India offers a personal loan for salaried employees and self-employed individuals under three categories – SBI Xpress Credit personal loan, SBI pension loan, SBI Xpress power loan. 

SBI Xpress Credit Personal Loan

Central and state government employees and individuals working with reputed organizations who have a salary account with SBI can get SBI Xpress personal loan. A personal loan of up to Rs. 20 lakhs is available for a variety of financial needs. 

Some notable features of SBI Xpress credit personal loan are as under:

Age limit

21 to 60 years

Loan amount

Up to Rs. 20 lakh/ 24 times NMI

Minimum income

Rs. 15,000 per month

EMI/NMI ratio

Less than 50%

Interest rate

11.55% p.a. onwards

Processing fee

1% of the loan amount + applicable tax

Minimum income 

Rs. 15000 per month

Loan tenure

Maximum 72 months or the remaining period of service (whichever is less)

SBI Xpress Power Loan

Salaried employees working with central & state government, PSUs, and renowned corporates can get an instant personal loan even without having a salary account with the State Bank of India. A personal loan of up to Rs. 15 lakhs can be availed under SBI Xpress Power Loan to fulfill your immediate and short-term financial needs.   

Some notable features of SBI Xpress Power personal loan are as follows:

Interest rate

From 11.65% p.a. onwards

Age

21 to 60 years

Loan amount

Minimum loan amount: Rs. 25,000

Maximum loan amount: 24 times NMI / Rs. 15 lakhs

Minimum income 

Rs. 50,000 per month

Loan tenure

Up to 60 months or the remaining period of service (whichever is lower)

Processing fee

1% of the loan amount + applicable taxes

Prepayment charges

3% on prepaid amount

SBI Pension Loan

State Bank of India offers exclusive personal loans for central and state government pensioners, defense pensioners, and family pensioners below 76 years old. Retired government employees who draw their pension from one of the bank’s branches can get the SBI Pension Loan in financial emergencies. 

Defense pensioners are exempt from processing fees and under this scheme. Important features of the SBI Pension Loan are as under:

Interest rate

12% p.a. onwards

Maximum age

76 years

Loan amount

From Rs. 25,000 to Rs. 14 lakhs depending on pensioner type, age of the pensioner and monthly pension

Loan tenure

Up to 84 months for defence pensioners and 60 months for others

Processing fee

  • Zero processing fee for defence pensioners
  • For others: 0.50% of the loan amount + Tax

Prepayment charges

3% on the prepaid amount

4#. Punjab National Bank personal loan

Punjab National Bank offers a personal loan up to Rs. 15 lakh at attractive interest rates under various categories such as a Personal Loan for Public, Personal Loan for Doctors, and Personal Loan for Pensioners. 

Key features of Punjab National Bank personal loan:

  • Various schemes: Punjab National Bank provides a range of personal loan schemes tailored to various types of borrowers.
  • Sum of the loan: Punjab National Bank provides a personal loan of up to Rs. 15 lakhs starting at a minimum loan amount of Rs. 25,000.
  • The application is simple: Individuals may apply for a personal loan from Punjab National Bank either online or offline, depending on their needs.
  • PNB personal loans have a flexible repayment period ranging from 12 to 60 months, with the option of foreclosure, making them one of the most flexible ways to borrow.
  • There are no secret fees: The bank straightforwardly charges for its services, so a borrower is aware of all fees when applying for a loan.

Generic Eligibility Criteria of ICICI Bank Personal Loan

Personal Loan Program for the General Public

  • Both permanent defense personnel, including officials from Military Station Headquarters, the Central Reserve Police Force, the Border Security Force, the Indo Tibetan Border Police, and the Central Industrial Security Force, among others. Loan requests from Defense personnel who are expected to retire within the next 24 months will not be considered.
  • Confirmed/permanent employees of all reputable companies/institutions, including schools, universities, colleges, autonomous bodies, hospitals/nursing homes, who are either drawing their wages from accounts maintained with our branches or whether these employer’s consent to sign off facility.
  • At all centers, the minimum net monthly salary for qualified Defence personnel and teachers is Rs. 7500.

Doctor's Delight by PNB

  • Professionally eligible practicing/serving doctors, such as MBBS, BDS, and others, may apply for this loan.
  • Doctors must have been taxpayers for at least the previous two years and have a net annual income/salary of Rs. 5.00 lakh or more.
  • He or she must have stayed at their current address for a minimum of two years (this does not extend to doctors who work for the government/institutions, etc.).

Pensioners' Personal Loan Program

The minimum net monthly wage for eligible Defence personnel and teachers is Rs. 7500 at all locations. 

5#. Axis Bank personal loan

Axis Bank is one of the top private sector banks in India and has a pan India presence. It offers a hassle-free personal loan to salaried employees and self-employed individuals with minimum documentation. Borrowers can avail of a personal loan to meet their household needs like a dream vacation, daughter’s wedding, and renovation of home. 

Axis Bank personal loan key features

  • Age limit: Anyone aged between 21 years and 60 years can apply for Axis Bank personal loan. 
  • Income criteria: The minimum salary required to get a personal loan from Axis Bank is Rs. 15,000. 
  • Simplified documentation: The personal loan can be availed online with minimum documentation in a hassle-free manner. 
  • Prepayment charges: Borrowers can prepay or foreclose the loan without incurring any charges. 
  • Multiple channels to repay the loan: Axis Bank personal loan borrowers can repay the loan through multiple methods including RTGS, NEFT, and ECS. You can use Axis Bank personal loan EMI calculator to understand your monthly outgo and plan your finance with ease.

Generic Eligibility Criteria of Axis Bank Personal Loan

Who

Salaried Employees

Salaried Doctors

Employees of various public and private companies

Government sector employees, including Public Sector Undertakings, Central and Local Bodies

Age

Minimum: 21 years

Maximum: 60 years at the time of personal loan maturity

Minimum Net Monthly Income

Rs. 15,000

6#. Kotak Mahindra Bank personal loan

Any Indian resident working with an MNC, public or private limited company with a decent income can apply for a personal loan from Kotak Mahindra Bank. Borrowers can get a personal loan up to Rs. 15 lakhs for any purposes including higher education, holiday vacation, purchase of new gadgets and appliances.

Key features of Kotak Mahindra Bank personal loan

  • Easy application: The procedure of applying for a personal loan is completely digital and needs minimal documentation. 
  • Eligibility criteria: Anyone graduate Indian resident aged between 21 years and 58 years can apply for a personal loan. The applicant should have at least 1-year of work experience and must be residing in the current city for at least one year. 
  • Prepayment charges: No prepayment or foreclosure will be allowed for the first 12 months. After 12 months, 5% foreclosure charges + GST on principal outstanding will be applicable. 

Note: 30-day prior intimation is mandatory for the Kotak Mahindra Bank personal loan foreclosure.  

Generic Eligibility Criteria of Kotak Mahindra Bank Personal Loan

  • You must be a citizen of India.
  • You must be at least 21 years old and no older than 58 years old.
  • You must be an active/permanent employee of a multinational corporation, a public or private limited company, with at least one year of work experience.
  • Your monthly net salary should be at least Rs. 20,000.
  • You should have at least a bachelor's degree.
  • You should have lived in a city for at least one year.

7#. Tata Capital personal loan

Tata Capital is a recognized financial and investment service provider in India. A personal loan is one of its key products. Tata Capital personal loans are available at one of the lowest interest rates for a variety of reasons including weddings, higher education, travel, medical bills, and home improvement. Apply for Tata Capital personal loan online with minimum documentation. 

Key features of Tata Capital personal loan

  • Affordable interest rate: Tata Capital personal loans are available at attractive interest rates starting from as low as 10.99% p.a. 
  • Flexible repayment plans: Borrowers can choose from flexible repayment plans as under as per their cash flow:
  • Standard EMI plan: If you opt for Standard EMI Plan, your EMI will be the same over the loan tenure.
  • Step Up Flexi EMI Plan: You can pay lower EMI in the beginning and increase the EMI with an increase in your salary or income. 
  • Foreclosure: No foreclosure is allowed in the first 6 months. A fee of 4.5% of the principal outstanding + GST would be applicable at the time of foreclosure after 6 months. 
  • Part-prepayment: No part-prepayment is allowed in the first 6 months. After that 25% of principal outstanding can be paid without any charge once a year. Part-prepayment over and above 25% will attract a prepayment charge of 2.5% + GST on the same amount. 

Generic Eligibility Criteria of Tata Capital Personal Loan

The following are the most important requirements for obtaining a Tata Capital personal loan:

Salaried Employees

  • You must be at least 22 years old to apply.
  • At the time of loan maturity, you should be no older than 58 years old.
  • Your monthly minimum income should be Rs. 15,000
  • You must have at least one year of work experience.

Self-Employed

  • You must be at least 22 years old to apply.
  • At the time of loan maturity, you should be no older than 58 years old.
  • A minimum monthly income of Rs. 15,000 is needed.
  • You must have at least three years of experience in the current industry.

8#. Bajaj Finserv personal loan

Bajaj Finserv offers a quick personal loan at very reasonable rates to help borrowers fulfill a host of household obligations such as dream weddings, foreign vacation, and credit card bill payment. You can get a personal loan of up to Rs. 25 lakhs with minimal paperwork for a flexible repayment tenure ranging from 12 months to 60 months. 

Key features of Bajaj Finserv personal loan

  • Pre-approved offers: Pre-approved offers are available when you apply for a personal loan from Bajaj Finserv
  • Fast disbursal: Borrowers can enjoy fast disbursal in minutes after document verification. 
  • Flexible tenure: Personal loans up to Rs. 25 lakhs can be availed for a flexible repayment tenure which ranges from 12 months to 60 months.  
  • Income criteria: Minimum salary varies based on your city of residence:
  • Rs. 25,000 per Month: Goa, Lucknow, Baroda, Indore, Bhubaneswar, Vizag, Nasik, Aurangabad, Madurai, Mysore, Bhopal, Jamnagar, Kolhapur, Raipur, Trichy, Trivandrum, Vapi, Vijayawada, Jodhpur, Calicut, Rajkot
  • Rs. 28,000 per month: Jaipur, Chandigarh, Nagpur, Surat, Cochin
  • Rs. 30,000 per month: Ahmedabad, Kolkata
  • Rs. 35,000 per month: Bangalore, Delhi, Pune, Mumbai, Hyderabad, Chennai, Coimbatore, Ghaziabad, Noida, Thane

9#. IDFC First Bank personal loan

IDFC First Bank offers a personal loan for its customers to help them overcome financial problems. You can get a personal loan for multiple purposes and pay back the loan in flexible EMIs. Salaried or self-employed individuals within the age limit of 28 – 68 years can apply for IDFC Bank personal loan.

Key features of IDFC First Bank personal loan

  • Interest rate: The bank offers personal loans at affordable interest rates starting from as low as 11.0%. 
  • Hassle-free approval: IDFC’s loan application process is paperless, fast, and simple. 
  • Prepayment charges: Part-prepayment facility is not available for Simple Personal Loans. For Smart Personal Loans, prepayment of 40% of the current principal outstanding is allowed after 3 EMIs once a year with 2% prepayment charges. 
  •  Foreclosure charges: You will need to pay 5% of the principal outstanding for foreclosure of Simple and Smart personal loans. 
  • Flexible tenure: IDFC personal loan tenure ranges between 1 and 5 years. Borrowers can opt for flexible EMIs or even modify EMIs as per their requirements and preference. 

Generic Eligibility Criteria of IDFC First Bank Personal Loan

To be eligible for a personal loan from IDFC First Bank, you must meet the following criteria:

Self-Employed Individuals

  • At the time the loan matures, the borrower must be at least 28 years old and no older than 68 years old.
  • The company must have been in service for at least three years.
  • The profit after tax (PAT) of the business must be positive.

Salaried Employee

At the time the loan matures, the borrower must be at least 23 years old and no older than 58 years old.

10#. Fullerton India personal loan

Fullerton India offers personal loans with a wide range of options for all types of customers to fulfill their financial needs. Borrowers can enjoy quick eligibility checks, instant online approval, and quick fund transfer. Get a personal loan from Rs. 60,000 up to Rs. 25 lakhs from Fullerton India for up to 60 months. 

Key features of Fullerton personal loan

  • Flexible interest rates: Fullerton India offers customized interest rates on personal loans based on eligibility, requirement, and repayment capacity of a wide range of customers from different segments of society. User-friendly services: The lender listens, understands, and advises customers at every step of the way so that customers have a user-friendly experience. 
  • Additional benefits for existing customers: The existing customers can enjoy a host of extra benefits, such as top-up loans, digital query servicing, and prolonged flexible repayment tenure. 
  • Foreclosure charges: Foreclosure is not allowed before 6 months from the loan agreement date. After 6 months foreclosure charges on Fullerton India personal loans are as under:
  • Loan closed between 7 – 17 EMIs – 7% of the principal outstanding
  • Loan closed between 18 – 23 EMIs – 5% of principal outstanding
  • Loan closed between 24 – 35 EMIs – 3% of principal outstanding
  • Loan closed after 35 months – Nil

Generic Eligibility Criteria of Fullerton India Personal Loan

Profession

Salaried employee of a private limited company or public sector undertaking, or self-employed with a minimum turnover as per the current policy

Eligible Age

21 years to 60 years

Minimum Income for Loan Eligibility

For salaried: `25,000 per month in Mumbai/ Delhi, `20,000 per month in rest of India

For self-employed: a minimum yearly profit after tax determined based on profession/industry

Work Experience Required

1 year

Experience in Current Company

6 months

Minimum CIBIL Score

750*

Maximum EMI as percent of Income

65.00%*

Document required for personal loans

While the documents may vary from lender to lender, here is a checklist of basic documents for a personal loan:

For salaried employees

  • Proof of identity: Passport / Driving license / Voters ID / PAN card /Aadhaar card 
  • Proof of residence: Leave & License Agreement/ Ration card /Utility bill (not more than 3 months old) / Passport - provided the passport has the present address mentioned in the loan application form
  • Income proof: Salary slips for the last 3 months along with salary certificate and latest Form 16
  • Bank statement: Bank statement showing salary being credit for the last 3 months 

For self-employed professionals

  • Identity proof: Passport / Driving license / Voters ID / PAN card /Aadhaar card 
  • Address proof: Leave & License Agreement/ Ration card / Sales tax certificate / Utility bill (not more than 3 months old) / Passport - provided the passport has the present address mentioned in loan application form
  • Business address proof
  • Proof of qualification: Highest professional degree
  • Latest 2 years ITR along with computation of income, B/S, P&L a/c with all schedules audited by a Chartered Accountant 
  • Bank statement: Business (current account) statement for latest 6 months
  • Profession continuity proof 

For self-employed individuals

  • Identity proof: Passport / Driving license / Voters ID / PAN card /Aadhaar card 
  • Address proof: Leave & License Agreement/ Ration card / Sales tax certificate / Utility bill (not more than 3 months old) / Passport - provided the passport has the present address mentioned in loan application form
  • Business address proof
  • Latest 2 years ITR along with computation of income, B/S, P&L a/c with all schedules audited by a Chartered Accountant 
  • Bank statement: Business (current account) statement for latest 6 months
  • Business continuity proof
  • Additional documents: 
  • Sole proprietorship declaration
  • In case of partnership: Certified copy of partnership deed /certified copy of MOA, AOA, and Board resolution 
  • Latest 2 years partnership firm's B/S, P&L a/c with all schedules certified by a CA in case income comes from partnership firm

Conclusion:

This detailed and intensive analysis of personal loan lending institutions will help you find the best loan in India 2020. Borrowers must use an online personal loan EMI calculator to figure out the monthly outgo. 

 

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