Best Personal Loans In India

Discover the perfect personal loan for your needs in India. Compare options, interest rates, and benefits to make the right financial choice. Explore now!

12 Jun,2023 12:51 IST 2731 Views
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.


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.

Disclaimer: The information contained in this post is for general information purposes only. IIFL Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. Given the changing nature of laws, rules and regulations, there may be delays, omissions or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Gold/ Personal/ Business) loan product specifications and information that maybe stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Gold/ Personal/ Business) loan.

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