Which bank is most suitable for personal loan?

Personal Loans

In today’s consumer world one of the most popular financial products for various types of uses is personal loans from banks and non-banking financial institutions. Among these loan providers borrowers will choose the best bank according to their loan suitability. Some of the common criteria considered by the borrower to decide the most suitable bank for personal loan in India are interest rate offers, loan approval process, eligibility factors, offers and discounts, pre-closure and part payment facilities, minimal and less complicated documentation.

These are the top banks in India for personal loan. Each of these banks has lots of fund contribution to the economy and borrowers go for the one that best suits their needs.

Banks and non-banking financial institutions offer unsecured loans to applicants in the form of personal loan based on their CIBIL score. The better you have CIBIL score, lower will be the rate of interest on the loan plus high loan amount will be sanctioned by the bank. High CIBIL score showcases the financial stability and loan repayment capacity of the borrower. If the bank is confident of the borrower’s financial stability, they will reduce charges and rate of interest as the risk of loss of money is low in such cases.

In India, it is possible to get loan amount ranging from Rs.50,000 to Rs. 5,00,000 as unsecured loan.  Online Loans Facility can be enjoyed by salaried and self-employed individuals in India. However, the eligibility criteria, loan amount, rate of interest and documentation will slightly vary.

Here are some of the best banks in India that are most suitable for personal loans:

Best Personal loan Interest Rates June 2017
Standard Chartered 10.99 – 14.49%
ICICI Bank 11.70% – 18.85%
HDFC Bank 11.29% – 19.50%
SBI 11.95% – 16.55%
Kotak Mahindra 11.50% – 19.65%
Axis Bank 15.00% – 20.00%
Bajaj Finserv 11.99% onwards
Standard Chartered 11.99% – 13.49%
Fullerton India 16.00% – 32.00%
IndusInd Bank 14% – 16.5%
Best Personal loan as Per, Processing fee Charges
ICICI Bank 1999 to 2.50%
HDFC Bank Rs 999/- for Special companies Else 1% – 2.5%
Bajaj Finserv 2.00% – 2.5%
Kotak Mahindra Zero
SBI 2.00%-3.00%
Axis Bank 2.00%
Standard Chartered Zero for all
Fullerton India 2.00%
IndusInd Bank 1-2 %
Best Personal loan based on Prepayment Charges
Bajaj Finserv Upto 4.00%
Axis Bank Nil
SBI NIL
Standard Chartered upto 2.00%
HDFC Bank Zero (For LA-10 Lakhs & Above with Salary 75k) else- 4%
Fullerton India Upto 6.00%
Kotak Mahindra Bank Zero above 10 lakh, Otherwise 5.00%
ICICI Bank 5% Or Nil (For Loan Amount More Than 10 Lacs)
IndusInd Bank upto 4.00%

Let’s now do a quick comparison between the top 5 banks in India for personal loan:

  • HDFC bank:

HDFC bank is top in the list of best banks in India. With low rate of interest and least documentation, this bank has highest rate of customer satisfaction as well. HDFC bank offers personal loans starting from 10.99% onwards and loans will be approved within 2-10 business days. This bank also has introduced 10 seconds paperless loan for promoting personal loans across the country. The bank is very transparent in its processing and also is known for its quick loan approval process. There are lots of special offers and discounts offered to HDFC bank customers in various forms.

  • ICICI bank:

Personal loans are offered by ICICI bank mainly for 3 specific purposes. The three main purposes are holiday loans, home renovation loans and for wedding purposes. When it comes to these needs, choosing ICICI bank will be the best option. Though the rate of interest on personal loan starts at 11.29%, it is at reduced balance method. This type of personal loan is offered for both self-employed and salaried individuals. With simple repayment options, ICICI personal loan customers are generally very happy with their personal loan experience.

  • State Bank of India:

Personal loans are offered by this bank through different ways. Some of the most popular ones are SBI Saral Personal loan, SBI Xpress Credit loan, SBI Festival personal loan and Loan to pensioners. The borrower can get up to 25 times of their monthly salary as loan amount from this bank. Also SBI bank is considered as the most trustworthy bank for all types of loans. The rate of interest is between 12.45% and 14.95% however lot of concessions and offered are provided by this bank. In order to be eligible for SBI bank personal loan you must either be a salaried person or should be a self-employed individual in professions such as Doctor, Architect, Engineer, CA or MBA with at least 2 years’ experience.

  • Axis Bank:

A bank that is known for shortest TAT- Turn Around Time is Axis bank. This bank offers quickest personal loans. Unless there is regular source of income, loan will not be provided by this bank. Interest rate on personal loan starts at 11.49%. Axis bank offers reward points on personal loan repayment, these reward points can be redeemed for online shopping and gift vouchers.

  • Punjab National Bank:

Personal loan is offered by Punjab National Bank for public and for pensioners. Thus there are two schemes called – Personal loan scheme for pensioners and Personal loan scheme for public. Interest rate at this bank starts from 11.9% and this is one of the most competitive rate at which personal loan is offered in the market. Loan is offered from Rs. 25,000 to Rs. 40 lakhs or 20 times of the monthly salary (whichever is lower). The loan for pensioners is especially beneficial for borrowers such as defense personnel, state or central government employees and for self-employees professionals.

It is easy to get a personal, however deciding where to get it from is what matters. Do a thorough research on the bank that you wish to take personal loan from. Do comparison with its competitors to find the best banks that offers personal loan according to your requirements. There is no need to compromise when there are so many best banks in India to offer personal loans.

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