7 Best Banks for Personal Loan in India 2018

A Personal Loan is one of the most popular loan option in India. In financial crisis people generally approach friends and relatives for borrowing money. But, when friends and relatives are not ready to help only option left is opting for a personal loan. It is very easy to get a personal loan. You can use loan money for any purpose like medical treatment, vacation, down payment for buying a home, a car etc.

Personal loan can be obtained with limited paperwork. The approval process of personal loan is very fast. You can get money quickly in your account.

Personal loan has many advantages. However, it is not advisable to take personal loan unless it’s absolutely necessary.  You should have your emergency fund which can be used in case of emergency.

If you have already decided to take personal loan and looking for best banks for personal loan here is a list of best banks for personal loan in India.

Best banks

7 Best Banks for Personal Loan in India 2018

  1. State Bank of India

State Bank of India is leading public sector bank of India. There are two types of personal loan options available with SBI. (1) Xpress credit personal loan (2) SBI Xpress Bandhan.

Xpress credit personal loan is offered to the employees of few entities maintaining salary account with SBI. On the other hand, SBI Xpress Bandhan is offered to employees working with central/ state and defence and PSU.

Loan Limit – Personal loan with loan amount from Rs.25000 to Rs.15 Lakh

Interest Rate – 11.15% – 15.15%

Processing Fee – 1% + GST

Prepayment Charges – 3% of the amount prepaid

Charges For Late Payment – 24% per annum

Eligibility

Age should lie between 21 to 58 years. Maximum 65 years for the self-employed.

Minimum gross monthly income Rs. 50000 for Xpress Bandhan.

  1. ICICI Bank

ICICI is leading private sector bank in India. ICICI bank provides personal loan for various purpose including wedding, holiday, home renovation, fresher funding etc. It is easy to get personal loan from ICICI Bank. The feature set and benefits of ICICI Bank personal loan is given below.

 Loan Limit – Personal Loan with loan amount up to 20 Lakh

Interest Rate – 10.99% – 17.99%

Processing Fee – 2.25% + GST

Prepayment Charges – 5% per annum of principal outstanding plus GST

Charges For Late Payment – 24% per annum.

Eligibility

Age should be between 23 to 58 years for salaried and in between 28 to 65 for self-employed.

Minimum gross yearly income 2.1 Lakh per annum.

  1. Kotak Bank

Kotak Bank is leading private sector bank. Kotak bank provides personal loan at attractive interest rate. Key features and benefit details of personal loan offered by kotak bank is given below.

Loan Limit – Personal Loan with loan amount up to 25 Lakh

Interest Rate – 10.99% – 18.15%

Processing Fee – up to 2.5% + GST

Prepayment Charges – 5% of the principal outstanding plus applicable tax

Prepayment Condition – Prepayment can be made after the payment of 12 EMIs.

Eligibility

Age Limit 21 years to 55 years.

Minimum net monthly income of Rs 25,000.

  1. HDFC Bank

HDFC personal loan is quick option for a variety of purposes. A speedy loan approval and transparent processing are few positive side of HDFC personal loan. Key feature of HDFC Bank personal loan is given below.

Loan Limit – Personal loan up to 40 Lakh

Interest Rate – 10.99% – 21.25%

Processing Fee – 2.5% of loan amount plus applicable GST

Prepayment conditions –

Part payments are allowed only twice during the loan tenure and once a year. Amount cannot exceed 25% of the principal outstanding.

Prepayment is allowed only after first year.

Eligibility

Age should lie between 21 to 60 years for salaried.  For self-employed maximum age limit is 65 years.

The minimum monthly income should be Rs.20000 per month.

  1. Standard Chartered Bank

Standard Chartered bank personal loan can help you to make your dream true. Online application and instant approval are plus point of standard chartered bank.

Loan Amount – Maximum loan amount up to 30 Lakh

Interest Rate – 10.99% – 14.49%

Processing Fee – No processing fees

Prepayment Charges – 5% of the principal outstanding

Charges For Late Payment – 2% per month

Prepayment Condition – Prepayment is allowed only after payment of 12 EMIs.

Eligibility

Age of applicant should be between 22 to 58 years.

Minimum monthly income should be Rs.60,000.

  1. Citi Bank

Next best bank for personal loan is Citi Bank. Citi bank personal loan is quick and convenient way to fulfil your dreams. Key features of Citi personal loan is given below.

Loan Amount – Maximum loan amount up to 30 Lakh.

Interest Rate – 10.99% – 16.49%

Processing Fee – No Processing Fee

Prepayment Charges – No Prepayment Charges

Prepayment Condition – Prepayment is allowed only after 12 EMIs.

Eligibility

Age should be between 23 years to 60 years for salaried

Minimum Monthly income Rs.30000

  1. Axis Bank

Axis Bank is popular choice for the personal loan in India. The key features of Axis Bank personal loan is given below.

Loan Amount – Loan Amount up to 15 lakh

Interest Rate – 15.50% – 24%

Processing Fee – 1.5 – 2% of loan amount plus GST

Prepayment Charges – Nil

Prepayment Condition – Prepayment can be made after the payment of 12 EMIs.

Eligibility

Age between 21 to 60 years.

Minimum net monthly income Rs.15000. 

Factors to Consider before selecting Bank for Personal Loan

You should consider following factors before selecting best bank for personal loan.

  • Interest rate offered on the personal loan. Lower the interest rate better is loan.
  • Loan processing charge is next factor of consideration. Processing charges should be as low as possible.
  • Prepayment option and foreclosure charges for the personal loan should be known to you.
  • Another factor for the consideration is documentation and approval timeline for the loan.
  • Flexible tenure is another factor for the consideration.
  • You should also check for other hidden charges applicable on the loan.

Before taking a personal loan make sure that your need is unavoidable and can be fulfilled by only personal loan. Taking a personal loan is financial burden.

Article by Raviraj

Raviraj is the man behind moneyalpha.com. He is graduate in finance, engaged in blogging since 6 years. He is not affiliated with any financial product, service provider, agent or broker. The purpose of this blog is to spread financial awareness and help people in achieving excellence for money. Please note that the views expressed on this Blog/Comments are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment advice or legal opinion.

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