5 Best Personal Loans in India

Personal Loans are unsecured loans that are offered to both salaried and self-employed to meet an urgent cash requirement. Personal loans are offered quickly without any collateral. The rate of interest on personal loans is higher than that on secured loans.

Let’s assume you have an emergency cash requirement, may be due to medical emergency, unexpected expense or anything else. The first thing you do is arranging money from the emergency fund. However, if your cash requirement is not fulfilled by an emergency fund you have no other option but to approach your friends or relative for a short-term loan. If friends and relative is unable to extend the help, you can approach bank for the personal loan.

Well, the decision of taking a personal loan is entirely up to you. But, one thing is sure that selecting a Best personal loan in India is difficult task. There are multiple personal loan providers in India which offer cheap and quick loans. You need to be careful in selecting personal loan. To help you here is 5 Best Personal Loans in India. Before looking at best personal loan here are important factors to consider before taking a loan.

best personal loan

Factors to consider before taking a personal loan

Interest rates

The first thing to consider is interest rates. You should consider a personal loan with minimum interest rates. It will help you to save money.

Other Cost

You should also look at the other associated cost. This includes processing fees, administrative fees, documentation charges etc.

Processing Time

Next important factor to consider is processing time. It is a time taken by the bank to process your request and credit your bank account with the loan amount.

Closure

The closure rule is important if you are planning to close the loan earlier. The bank should not enforce restriction on closure of loan or prepayment penalty.

Terms & Condition

Terms and condition of loan offer should be simple and clear. You should be able to understand them very easily. It should not contain multiple legal bindings and terms.

After looking at factors for selection of personal loan. Here is 5 Best Personal Loans in India

5 Best Personal Loans in India

#1 ICICI Bank Personal Loans

The first best bank for availing personal loan is ICICI Bank. ICICI bank offers fixed interest rate personal loan on monthly reducing basis. The maximum loan amount for personal loan is 20 Lakh. This loan is offered without any collateral.  Tenure is 1 year to 5 years. This loan can be availed by salaried as well as self-employed.

Interest Rate

ICICI Bank Personal Loan Interest Rate – 10.99% to 22% per annum

Other Charges

  • Loan Processing Charges – Up to 2.25% per annum plus GST
  • Prepayment Charges – 5% per annum of principal outstanding plus GST
  • Late Payment Interest – 24% per annum
  • EMI Bounce Charges – Rs.400 per bounce plus GST

Key Features

  • Selection of Loan tenure from 12 to 60 months.
  • Fixed interest loan. Interest will be charged on monthly reducing basis.
  • Auto Debit ECS facility for repayment of EMI.
  • All-purpose loan with faster approval.

Eligibility Criteria

EligibilitySalariedSelf Employed/Business
Age23 to 5825 to 65
Monthly Income/ProfitMinimum of Rs 17,500 (Rs.25,000 for applicants residing in Mumbai & Delhi)Minimum net profit of Rs. 2 lac
Minimum Work Experience2 years. Also tenure should be a minimum of 1 year with current employer.5 years at least in current business.
CIBIL Score700+700+

Documents Required

SalariedSelf Employed/Business
Application FormApplication Form
ID Proof, Address ProofID Proof, Address Proof
3 month salary slip with form 166 month Income report
3 Month bank statement3         Month bank statement

#2 SBI Bank Personal Loan

Next best personal loan is from SBI. It is low interest personal loan with daily reducing balance. There are three types of personal loan offered by SBI namely SBI Xpress Credit Loan, SBI Pension Loan, and SBI Saral Personal Loan. SBI offers a personal loan up to 10 Lakh. However, the loan amount will be variable based on your eligibility and income documents.

SBI Xpress Credit Loan

SBI Xpress Credit Loan is for salaried people maintaining salary account with SBI. This includes central state government employee, central PSU employees and few selected corporates.

SBI Pension Loan

SBI Pension Loan is for central or state government pensioner drawing pension via SBI with age less than 76 years.

SBI Saral Personal Loan

SBI Saral Personal Loan is personal loan given for salaried and self-employed engineer, doctor, architect, MBA etc. Details about SBI Saral Personal Loan is given below.

SBI Festival Season Loan

SBI Festival Season Loan is offered by the bank to meet any kind of festival related expenses.

Interest Rate

SBI Bank Personal Loan Interest rate – 11.85% to 15.10% per annum

Other Charges

  • Loan processing Fees – 2 to 3% of the loan amount + GST
  • Prepayment Charges – 3% on prepaid amount
  • Late Fess – 24% per annum
  • Loan Tenure – 48 months

Key Features

  • Interest charged on a daily reducing balance.
  • Comparatively Less interest rate.
  • No hidden cost/administrative charges.
  • Maximum loan amount can go up to 24 time’s net monthly income.
  • Trustworthy brand with wide network of SBI branches.

Eligibility Criteria

EligibilitySalariedSelf Employed/Business
Age21 to 5821 to 65
Monthly Income/ProfitMinimum of Rs 15000Minimum net profit of Rs. 2 lac
Minimum Work Experience2 years2 years at least in current business.
Account neededRequired salary account with SBIRequired business account with SBI

Documents Required

SalariedSelf Employed/Business
Application FormApplication Form
ID Proof, Address ProofID Proof, Address Proof
Latest salary slip with form 16Income report with form 16
3 Month bank statement3 Month bank statement

#3 HDFC Bank Personal Loan

HDFC Bank is one of the best personal loan providers in India. You can avail loan up to 25 Lakh using HDFC Bank. The loan disbursement take place within two days. You can take accidental coverage along with this loan.

Interest Rate

HDFC Bank personal loan Interest rate is in range of 14.75% to 20.70%.

Other Charges

  • Processing Fees – 2.5%
  • Late Fee – 24% per annum
  • Preclosure charges applicable

Key Features

  • Lowest processing fees and convenient repayment option.
  • Preclosure charges after 36 months is 2% which is lower than other banks.
  • Minimum paperwork and documentation.

Eligibility Criteria

EligibilitySalariedSelf Employed/Business
Age 21 to 6021 to 65
Monthly Income/ProfitMinimum of Rs 12000Minimum net profit of Rs. 1 lac
Minimum Work Experience2 years5 years at least in current business.
Loan Amount25 Lakh15 Lakh

Documents Required

SalariedSelf Employed/Business
Application FormApplication Form
ID Proof, Address ProofID Proof, Address Proof
Latest salary slip with form 16Income report with form 16
3 Month bank statement3 Month bank statement

#4 Axis Bank Personal Loan

Axis Bank personal loan is popular among all other personal loans. Axis bank personal loan is available with low processing fee, no prepayment, and no preclosure charges. Key features and interest rate applicable on Axis Bank personal loan is given below.

Interest Rate

Axis Bank personal loan Interest rate is in range of 15.5% to 24%

Other Charges

  • Processing Fee – 1.50% to 2.0%
  • Preclosure charges – NIL
  • Late Fee Applicable

Key Features

  • Quick Loan Approval with minimum documents.
  • Earn Reward points while applying for personal loan.
  • No Preclosure charges.

 

Eligibility Criteria

EligibilitySalariedSelf Employed/Business
Age 21 to 6021 to 65
Monthly Income/ProfitMinimum of Rs 15000Minimum net profit of Rs. 2 lac

Documents Required

SalariedSelf Employed/Business
Application FormApplication Form
ID Proof, Address ProofID Proof, Address Proof
Last 3 Month payslipIncome Proof

#5 Bajaj Finserv Personal Loan

Bajaj Finserv offers personal loan to only salaried professionals. Bajaj Finserv offers loan at the lucrative rates. The loan process of Bajaj Finserv is completely online. This means you can get quick loan approval within 48 hours.

Interest Rate

Bajaj Finserv personal loan interest rate is in range of 12.49% to 16%.

Other Charges

  • Processing Fee – 2.25% to 3%
  • Preclosure Charges – 4%

Key Features

  • You can get loan up to 25 Lakh.
  • Lowest average interest rates.
  • Instant approval and online process.
  • You can repay loan amount even after first EMIs.

Eligibility

Age 21 to 55 Years

Monthly Income – Rs.30000 to Rs.40000 per month

Documents Required

  • Identity Proof and Address Proof
  • Last 2 months salary slip.
  • 3 Month  bank statement.

Conclusion –

Whatever is your financial crisis and personal circumstances, you should compare features of all personal loans available in the market including cost factor. This will help you to take a wise decision while borrowing money. 

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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