Top 10 Banks & NBFCs for Low-Interest Personal Loans in India

 Personal loans are a popular financing option for individuals seeking funds for a variety of needs, including home renovations, medical emergencies, travel, or debt consolidation. In India, banks and non-banking financial companies (NBFCs) offer competitive personal loans at low-interest rates, making it easier for borrowers to manage their finances. Here’s a list of the top 10 banks and NBFCs in India providing the cheapest personal loan in India at attractive rates, with details on their features and benefits.

1. State Bank of India (SBI)

  • Interest Rate: Starting at 9.60% per annum

  • Loan Amount: Up to ₹20 lakhs

  • Tenure: Up to 6 years

  • Features: SBI provides one of the lowest interest rates for personal loans, along with quick processing and minimal documentation. It also offers pre-approved loans to eligible customers through digital channels, making the loan disbursement faster.

2. HDFC Bank

  • Interest Rate: Starting at 10.50% per annum

  • Loan Amount: Up to ₹40 lakhs

  • Tenure: Up to 5 years

  • Features: HDFC Bank is known for its quick loan approval process, especially for existing customers who can receive funds in as little as 10 seconds. It also has a strong digital platform, allowing users to apply for loans online seamlessly.

3. ICICI Bank

  • Interest Rate: Starting at 10.75% per annum

  • Loan Amount: Up to ₹25 lakhs

  • Tenure: Up to 5 years

  • Features: ICICI Bank provides personal loans with a high degree of flexibility in repayment options and minimal paperwork. Its Express Loans for pre-approved customers ensure fast disbursal.

4. My Mudra

  • Interest Rate: Starting at 10.49% per annum

  • Loan Amount: Up to ₹15 lakhs

  • Tenure: Up to 5 years

  • Features: My Mudra personal loans are ideal for salaried and self-employed individuals, with flexible repayment tenures and a quick disbursal process. My Mudra also offers instant personal loans to existing customers.

5. Bajaj Finserv

  • Interest Rate: Starting at 11.00% per annum

  • Loan Amount: Up to ₹25 lakhs

  • Tenure: Up to 5 years

  • Features: Bajaj Finserv, a leading NBFC, offers easy and fast personal loans with flexible repayment options. It’s known for quick disbursal within 24 hours and allows borrowers to manage their loan accounts digitally.

6. Tata Capital

  • Interest Rate: Starting at 10.99% per annum

  • Loan Amount: Up to ₹25 lakhs

  • Tenure: Up to 6 years

  • Features: Tata Capital offers a range of customized personal loans with attractive interest rates, minimal documentation, and flexible EMI options. The company also offers a unique ‘Flexi EMI’ option, allowing borrowers to pay lower EMIs at the beginning of the tenure.

7. Kotak Mahindra Bank

  • Interest Rate: Starting at 10.25% per annum

  • Loan Amount: Up to ₹25 lakhs

  • Tenure: Up to 5 years

  • Features: Kotak Mahindra Bank offers quick personal loans for various purposes, with a paperless application process for existing customers. Its lower interest rates make it a popular choice among salaried professionals.

8. IndusInd Bank

  • Interest Rate: Starting at 11.00% per annum

  • Loan Amount: Up to ₹15 lakhs

  • Tenure: Up to 5 years

  • Features: IndusInd Bank provides personal loans with competitive interest rates and a simple application process. It is especially popular for its quick loan approvals and transparent loan policies, with no hidden fees.

9. Fullerton India

  • Interest Rate: Starting at 11.99% per annum

  • Loan Amount: Up to ₹25 lakhs

  • Tenure: Up to 5 years

  • Features: Fullerton India offers personal loans designed for both salaried and self-employed individuals. It has a swift application and disbursal process, especially for customers with stable income and good credit scores.

10. IDFC First Bank

  • Interest Rate: Starting at 10.49% per annum

  • Loan Amount: Up to ₹40 lakhs

  • Tenure: Up to 5 years

  • Features: IDFC First Bank’s personal loans come with attractive interest rates and minimal processing fees. Known for its flexible loan structures, IDFC also allows customers to reduce their EMIs mid-tenure if needed.

Key Factors to Consider When Choosing a Personal Loan Provider

When selecting a bank or NBFC for a personal loan, it’s essential to consider the following:

  1. Interest Rates: Lower interest rates reduce the total cost of the loan, so compare rates across providers.

  2. Processing Fees: Many banks charge a processing fee ranging from 1% to 2% of the loan amount. Look for providers with low or zero processing fees.

  3. Prepayment and Foreclosure Charges: Some lenders charge penalties for early repayment. Choose a lender with flexible prepayment options if you intend to pay off the loan early.

  4. Eligibility and Documentation: Check the eligibility requirements and required documents to ensure a smooth application process.

  5. Loan Tenure: Select a tenure that allows comfortable EMIs without compromising financial stability.

Conclusion

Selecting the right bank or NBFC for a personal loan depends on individual financial needs and eligibility criteria. The institutions listed here provide some of the best low interest personal loans options in India. By choosing a lender that offers low-interest rates, flexible tenures, and minimal fees, borrowers can manage their loans efficiently and meet their financial needs without stress.

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