Personal loans are now one of the easiest and quickest ways to get money for urgent needs, like hospital bills, home repairs, travel, or consolidating loans. The best thing is they are unsecured loans, therefore, you do not need to provide any collateral, and the process is much easier and faster, especially when you apply online. Nowadays, many banks and non-banking financial companies give several options for personal loans with features such as paperless applications, instant approval, and attractive low interest rates.
If you are looking for the best personal loans offered in India with the lowest interest rate, check out this blog for the list of top banks and NBFCs providing wonderful loan services, fast online applications, and easy repayment plans.
Top Banks & NBFCs for Personal Loans
Here are the leading banks and NBFCs offering some of the best low-interest personal loans in India.
1. HDFC Bank
HDFC Bank is one of the most trusted names in the Indian banking sector, with the highest range of personal loans offered in the country. It offers something to anyone who requires a loan, and most borrowers have more than once availed of this facility. Some key features are as follows:
- HDFC Bank boasts of quick loan processing. Loans are processed in a matter of hours and then disbursed as quickly as possible when needed the most.
- Competitive Interest Rate: HDFC offers attractive interest rates, starting from a minimum of 10.5% to 11% for personal loans - compared to many other lenders.
- Flexible Tenure Options: The borrower can choose between varying long tenures - 1 to 5 years- to tailor the repayment plan according to his or her financial conditions regarding the repayment tenures.
- Application Process: This will make the loan application an easy process for the bank, and the potential borrowers would be in a better position to make the applications directly from their homes.
HDFC Bank is also among the best options for personal loans, not only due to its strong reputation regarding customer service but also for having an exhaustive network of branches.
2. ICICI Bank
ICICI Bank is also one of the principal contributors to the Indian banking market. The bank offers a comprehensive personal loan product portfolio as per the needs of diversified customers. Here is why a customer prefers to apply to ICICI Bank:
- Minimum Documentation: The entire application procedure of ICICI Bank is very hassle-free. With minimum documentation, borrowers easily submit their applications.
- Fast disbursal: Once sanctioned, it can be disbursed as early as within 48 hours, and access to money would be available without a lag.
- Customized Loan Amount: Personal loans begin from ₹50,000 and go up to ₹20 lakhs with different offers and deals according to personal requirements.
- Competitive Interest Rates: With ICICI Bank, one of the leading lenders in India, competitive interest rates are as low as 10.75%.
Their digital infrastructure is strong, and their experience in online applications runs quite smoothly. Their customer service stands high.
3. State Bank of India (SBI)
As one of India's largest banks, the offering for personal loans with SBI is very attractive and appeals to a larger section of customers. These are some of the most notable features of SBI personal loan services:
- Lower Interest Rates: The Bank offers some of the lowest interest rates in the markets and now presents rates close to 9.60%, which makes it the most attractive option for price-sensitive borrowers.
- Tenure Flexibility: The loans offered by the bank are up to a tenure of 1-6 years, thus, the borrower can repay his loan without getting burdened financially.
- Comprehensive Branch Network: It has thousands of branches throughout the nation, making easy access possible for the services.
- Online Loan Application: The facility of online loan application provided by SBI helps with an easy application by the borrower, tracking application status, and easy repayment management.
This has greatly contributed to the highly successful reputation of SBI that it carries over its long history, owing to the reliability and affordability it offers for personal loans.
4. Axis Bank
Axis Bank has become the name by catering to its customers and by introducing novel banking solutions. Here is how Axis Bank excels in the personal loan segment:
- Loan processing time is less: Axis Bank offers services that help in the least possible time processing of loans. It can take only one day, sometimes less.
- Repayment terms: Repayment tenure varies from 1 to 5 years as per the chosen financial plan.
- Attractive Interest Rates: The interest rates range from 10.49% in Axis Bank, thus making it a cost-effective deal for the borrower in the long run.
- Easy Online Application: The online application process is very user-friendly and allows customers to upload documents and track their application status very easily.
- Focus on customer satisfaction and fast service makes Axis Bank a reliable choice for personal loans.
5. Kotak Mahindra Bank
Kotak Mahindra Bank is one of the highly innovative financial product companies with also provides fantastic customer service. Let's take a little closer look at their loan schemes.
- Simplified Documentation: Kotak has also worked to reduce the amount of documentation it requires. Hence, getting a loan approval happens very fast.
- Funds Disbursement: Kotak disburses funds for any approved loan in almost no time, so the customers need not worry about money shortages when needed.
- Competitive Interest Rates: It has attractive interest rates that range as low as 10.75%, making it a very good option for many.
- Flexibility in Loan Amount: Customers can avail of loans of ₹50,000 up to ₹20 lakhs, catering to various needs.
Kotak Mahindra Bank provides a hassle-free experience for personal loan applicants with a strong digital platform.
6. My Mudra
Among the top NBFCs, My Mudra has made its mark for its innovative approach towards personal loans. Here's why My Mudra has made it to this list:
- Personalized Loan Options: My Mudra offers personal loans that are available for any individual requirement, from doctor visits to business travel or home improvement.
- Easy Online Application Process: The whole process can be done online-from application to disbursal-and hence easy for borrowers.
- Quick Approvals and Disbursal: The procedure of My Mudra has very fast approval; they disburse funds to clients within 24 hours after application.
- Flexible Terms: Amounts and tenures of repayment are flexible, thereby easily finding a solution suitable for the financial situation of customers.
- Transparent Processes: The procedures at My Mudra are transparent, and they keep borrowers well-informed regarding terms and conditions before accepting any loan.
My Mudra focuses on the needs of its customers and provides rapid services, which makes it a preferred choice for personal loans in India.
7. Bajaj Finserv
Bajaj Finserv is one of the strongest NBFCs in the country and is considered of high quality for loan offers. Here's what makes Bajaj Finserv distinct:
- Instant Approval: Most of the loans provided under Bajaj Finserv are known to happen instantly, as decisions upon loan applications are often released within a few minutes after submission.
- Flexible Tenure and Amounts: Multiple loan amounts and tenure options are available for making repayment plans personalized for any borrower.
- Competitive Rates: Interest rates start from 11% and vary in that ballpark, which places it at the competitive forefront as compared to other NBFC participants.
- Online Application: Everything about the application of funds is online. Clients can now apply easily even if based overseas.
- Bajaj Finserv's client-friendly and trustful practices make it most desirable for personal loans.
8. Tata Capital
Tata Capital is a brand under the Tata Group. It has been built as a company with reputation and customer-friendly loan services. Some of the salient features of personal loans that Tata Capital provides are mentioned below.
- Less Documentation: The application process is quite less paper-intensive. Thus, it is easier for all categories of people.
- Rapid Processing: The approval process for loans is also fast. Usually, money is available in the bank account in a few days after application.
- Competitive Interest Rates: The interest rates are quite attractive, and it start from around 11%, which makes the option cost-effective for the borrower.
- Flexible Repayment Options: Tata Capital offers a wide range of repayment tenures; hence, customers can select what best suits their financial conditions.
The strong reputation of Tata Capital for reliability and customer service makes it an excellent option for personal loans.
9. Fullerton India
Fullerton India is one of the leading NBFCs in the country offering personal loans to individuals. The following are some of the features of Fullerton India's personal loan schemes:
- Quick Disbursal: Fullerton India ensures that the amount is received by the applicant shortly after the loan approval.
- Personalized Loan Options: Loan seekers can select the amount they need and the repayment period for the loan, according to their convenience.
- Attractive Interest Rates: Fullerton has competitive interest rates, which are in the range of 11%, and this makes the option reasonable for personal loans.
- Easy Application Process: The online application platform is easy and simple for borrowers to fill out, and this is why they complete their applications very quickly.
Customer-centric approach by Fullerton India provides a reliable solution for personal loans.
10. IndusInd Bank
IndusInd Bank has been popular for its exciting banking solutions and exemplary customer service. Here's why IndusInd Bank is worth choosing for personal loans:
- Fast Processing: IndusInd Bank is reputed for its fast loan processing where approvals are provided within 24 hours.
- Flexible Repayment Options: Borrowers can opt for various loan amounts and repayment tenures to be compatible with individual financial planning.
- Competitive Interest Rates: The interest rates begin at around 10.75% at IndusInd Bank, which is very competitive with most other lenders.
- Online Application Process: The bank has simplified the application process for a loan through online applications and that has made it pretty convenient for the customers.
Through innovation and customer satisfaction, IndusInd Bank is a very strong contender when it comes to personal loans in India.
Conclusion
The right bank or NBFC can make a huge difference in the amount you pay over time, and it also makes the application process easier and the overall borrowing experience. From major banks like SBI and HDFC to specialized NBFCs like My Mudra and Tata Capital, there is a lender that can fit your financial profile and loan needs.
Remember to prioritize factors like interest rates, processing fees, and approval times, especially if you want instant approval and the convenience of paperless personal loan applications. While some banks may offer the cheapest personal loan rates, NBFCs often provide more flexibility with quicker processing.
With careful comparison and knowledge of your financial goals, you can secure a loan that works for you, setting you on the path toward better financial freedom and stability. Get started today, taking your first step toward securing your financial dreams.
Also read: Tips to Avail a Low Rate Personal Loans with My Mudra
