Best Personal Loans In India

A personal loan is a short- to medium-term loan that can be secured for any purpose within a few hours if the lender considers the borrower creditworthy.

A personal loan is simple to apply for and comes with no collateral requirements. In other words, so long as a person has a positive credit history and a high credit score, they are not required to surrender any assets in order to obtain such a loan.

As unsecured personal loans do not require collateral, lenders incur a greater risk when making such loans. As a result, these loans have higher interest rates than secured personal loans. Therefore, one must weigh all the pros and cons and consider their ability to repay before applying for such loan.

Before selecting the best option, it is advisable to familiarise oneself with the features, costs, and terms and conditions of all the alternatives.

Some Of The Best Options For Personal Loans In India Are:

HDFC Bank Personal Loan - 10.50% p.a. Onwards

HDFC Bank offers competitive interest rates to make loans of up to Rs. 40 lakh more affordable. It offers flexible tenure of up to 5 years, and has a minimal processing fee and documentation requirement.

For  pre-approved HDFC Bank customers, the lender offers no Paperwork and quick disbursals.

ICICI Bank Personal Loan - 10.50% p.a. Onwards

One can easily apply for an ICICI Bank Personal Loan online up to Rs 50 lakh depending on the borrower’s eligibility without any collateral security. It also offers a personal loan EMI calculator, so that one can check the EMI that the borrower will have to pay each month.

With ICICI instant personal loan online services, eligible applicants can get access to the funds within short time.

Kotak Personal Loan- 10.99% p.a. Onwards

Kotak Mahindra Bank offers instant, online personal loan of up to Rs. 5 lakhs through a simple 3-step online application process.

One may also apply for a personal loan of up to Rs. 40 lakhs with few additional steps and documentation at low interest rates and with flexible repayment options. Such loans take up to 48 hours to be disbursed.

IIFL Finance Personal Loan- 12.75% p.a. Onwards

IIFL offers customised personal loans that are designed around the borrower’s capital requirements with a hassle-free application process.

Its personal loans range from Rs 5,000 to Rs 5,00,000. They come with attractive, affordable, and lowest interest rates to help one to raise funds instantly without any extensive documentation.

State Bank of India Personal Loan- 11% p.a. Onwards

The public sector lender offer different types of personal loans catering to the different needs of borrowers. These include SBI Quick Personal Loan, Pre-Approved Personal Loans, and Xpress Credit, among others.

Bajaj Finserv Personal Loan- 13.00% p.a. Onwards

Bajaj Finserv is a reputed non-banking financial company that offers personal loans at a competitive interest rate for various needs. It offers flexible terms for repayment and immediate disbursal of funds within 48 hours.

The complete loan application process is done online without any hassle.

How To Get The Best Deal For A Personal Loan

Research And Secure The Best Rate Of Interest

Interest rates are possibly the most important thing to think about when it comes to loans. Always compare loan offers from many lenders to see which has the best interest rate.

Ensure Complete Documentation

Both the application form and additional supporting documents are essential to getting a loan. All necessary documents, including bank statements and proofs of income or employment, must filled in correctly and submitted with the application by prospective borrowers.

Maintain A Good CIBIL Score

A strong credit score implies good financial health because it reflects one's ability to repay loans on time. A healthy credit score is essential for maintaining excellent financial health.

Opt For Shorter-Tenure Loans

A longer-term would result in cheaper EMIs, whilst a shorter term would need the borrower to make a greater monthly payment.

Watch Out For Extra Charges

In addition to the interest rate, banks and non-banking finance organisations impose numerous extra fees, including processing charges, administrative costs, prepayment charges, and a plethora of other fees. These factors add together to increase the borrower's overall payback amount.

Look For Offers

Always keep an eye out for any seasonal or holiday discounts that lenders could occasionally offer. A lender may offer specific incentives for personal loans, such as lower interest rates or no processing fees.

Conclusion

The process of obtaining a personal loan and securing a good deal usually begins with a search for the lowest interest rate and suitable terms and conditions.

While banks may provide cheaper interest rates, their approval processes are often longer and their eligibility requirements are more stringent. Personal loans with minimal documentation are made easier by NBFCs such as IIFL Finance.

In fact, IIFL Finance processes a personal loan application within minutes and credits the money into the borrower’s account within short time. Moreover, it also offers competitive interest rates than other NBFCs.