Top 5 Personal Loan Lending Companies In India
Explore the top 5 personal loan lending companies in India and find the best fit for your financial needs. Read to know more here!
Whether it is an expensive wedding or travel to an exotic foreign location or even medical emergencies, personal loans are fast becoming the easiest route for people to meet their cash requirements without disturbing household budgets.
In fact, many banks and non-banking finance companies are offering pre-approved personal loans to some of their best customers—those with higher transaction history and a good credit score, etc. Some lenders even claim to transfer money to this set of pre-selected customers within a few minutes.
Since there is no need to give any collateral, taking out a personal loan from banks as well as from NBFCs is much easier than taking most other types of loans. With just a few clicks, personal loans are offered at an attractive rate starting around 10.50% per annum. The documentation list is also minimal. In addition to PAN and Aadhaar Card number, salaried individuals have to provide salary slips. Self-employed individuals can submit documents such as income tax return proofs, business proof, and profit and loss statement.
Even the repayment schedule in the form of equated monthly installments is flexible and designed in a way that is suitable for borrowers. Here is a list of the top five personal loan lending companies in India.
State Bank of India:
SBI, the country’s largest bank, has a variety of personal loan products catering to different customer segments. The interest rate for SBI personal loan starts from 10.90%. Those earning a minimum monthly income of Rs 15,000 are eligible to take a personal loan. The bank offers a loan amount of a minimum of Rs 25,000 and a maximum of Rs 20 lakh, or 24 times the net monthly income of the applicant under its Xpress Credit Personal Loan product.
High-valued salaried customers earning Rs 1 lakh a month are eligible to take personal loans of up to Rs 35 lakh from SBI. The repayment period is six months to 72 months and the bank charges up to 1.5% of the loan amount as a processing fee plus taxes.
SBI offers an overdraft facility to salaried customers and also has a dedicated personal loan product for pensioners.
SBI account holders have been offered a facility to avail of a pre-approved personal loan in just four clicks through the bank mobile phone application YONO. This is offered to certain customers on a pre-defined parameter.
With minimal paperwork, this private sector bank is offering personal loans amounting to up to Rs 40 lakh with interest rates ranging from 10.50% to 25.00%. The EMI for a loan of Rs 1 lakh at 10.5% interest comes to around Rs 2,150 rupees and the same can be repaid in five years.
The bank has simplified the application process and the same can be completed digitally. Borrowers with a net monthly income of Rs 25,000 can opt for personal loans from HDFC Bank. The bank charges up to Rs 4,999 plus GST as processing fees.
HDFC Bank claims that pre-approved customers of the bank can get funds in just few seconds. For others, the loan is given within four working days subject to the verification process of the bank.
Kotak Mahindra Bank:
By following three steps online, this private sector bank is offering up to Rs 5 lakh of personal loan instantly with no hidden charges. Those who are ready with documents—PAN Card, Aadhaar Card and three months’ bank statements of salary account or net banking credentials—can avail personal loans from Kotak Mahindra Bank quickly. By following additional steps, borrowers can apply for a personal loan of up to Rs 40 lakh.
The personal loan interest rate starts at 10.99% and the repayment period ranges between 12 and 60 months.
Kotak Mahindra Bank also offers debt consolidation services. Here, borrowers can opt for one personal loan to pay off existing debt or convert different loan accounts into one.
This leading NBFC is offering personal loans of up to Rs 35 lakh that can be repaid in a maximum of 84 months. Those with a minimum salary of Rs 35,000 a month are eligible to avail a personal loan from Bajaj Finance with an interest rate starting at 11%.
Bajaj Finance also offers two unique personal loan products, flexi term loan, and flexi hybrid loan. Under flexi term loans, after paying a few EMIs, borrowers can avail an additional amount to meet unforeseen expenses by simply logging into the company’s website. Interest rates also get automatically adjusted and the borrower only pays on the outstanding amount.
Borrowers can take personal loans ranging from as low as Rs 5,000 to up to Rs 5 lakh from IIFL Finance with minimal documentation. The amount can be repaid in three to 42 monthly installments.
IIFL Finance uses a fully digital application process and sanctions a loan within few minutes. The leading NBFC follows a customer-oriented and transparent loan process with no hidden charges. It also makes loan EMIs flexible and customizes the repayment schedule to allow borrowers better liquidity.
Banks and NBFCs have made it easier for borrowers to take personal loans in just a few clicks for purposes ranging from medical emergencies to lifestyle requirements such as dream weddings or foreign vacations.
There are many banks and NBFCs offering personal loans in India. Usually, people opt for their home bank but it is important to compare a few things such as the interest rate charged by these financial institutions, processing fees, charges for early closure and other terms and conditions before taking a final decision.
While many state-owned banks often offer lower interest rates, they usually have onerous loan application and repayment processes. This is where leading NBFCs such as IIFL Finance have an advantage as they provide a quick and hassle-free loan application process as well as customized repayment schedules and better customer service.