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Personal Loan Interest Rates - HDFC, SBI, Bajaj, ICICI, All Banks

Last Updated 22nd Sep 2017

Lowest Personal Loan Interest Rates in India 2017

  • Interest rates starting @10.99%*
  • Most banks offer fixed rate loans
  • Relatively short term loans with a tenure of 1 to 5 years
  • Option of part payment and nil foreclosure charges available
  • No collateral or guarantor is required
  • Loans can get sanctioned within a few hours to a few days
  • Apply for personal loan online and avail attractive cashback upto Rs. 2,500
  • Check your loan eligibility at Personal Loan Eligibility Calculator
  • Check personal loan rates for your organization
Apply Personal Loan @ 10.99%*
Rs.
Rs.
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Personal Loan Interest Rates Comparison, Lowest EMI Sep 2017, Best rates

Bank Personal Loan Interest Rates* Processing Fee
HDFC Bank (4.2/5.0) 393 Users 10.99% - 20.00% Upto 2.50%, Min Rs. 1,000 and Max Rs. 25,000 Explore More
ICICI Bank (4.2/5.0) 64 Users 10.99% - 22.00% Upto 2.25% Explore More
Bajaj Finserv (3.7/5.0) 65 Users 11.99% - 15.50% 2.25% - 3% Explore More
Citibank (4.2/5.0) 156 Users 10.99% - 16.49% Flat 0.5% for MyLoanCare Applications Explore More
IDFC Bank (4.3/5.0) 23 Users 11.00% - 19.50% Upto 2.5% Explore More
IndusInd Bank (4.1/5.0) 47 Users 11.99% - 23.00% Upto 2.50% Explore More
Axis Bank (4.2/5.0) 64 Users 11.25% - 24.00% 1.50% to 2.00% Explore More
Tata Capital (4.8/5.0) 3 Users 11.99% - 18.00% 2% Explore More
SBI (3.4/5.0) 4 Users 12.50% - 16.60% 2% to 3% Explore More
Fullerton India (2.7/5.0) 4 Users 14.00% - 34.00% Upto 6.50% Explore More
Kotak Bank (3.5/5.0) 12 Users 11.50% - 24.00% Upto 2.5% Explore More
Standard Chartered Bank (4.2/5.0) 13 Users 11.49% - 20.00% 1.00% Explore More
Union Bank of India (3.3/5.0) 1 Users 14.40% - 14.40% 0.5%, Min Rs. 500 Explore More
RBL Bank (4/5.0) 3 Users 13.99% - 16.00% Upto 1.25% Explore More
Vijaya Bank 12.50% - 13.50% 0.25%, Max. Rs. 10000 + ST Explore More
PNB 12.25% - 15.25% 1.8% + taxes Explore More
Karur Vysya Bank 13.90% - 16.40% 0.40% Explore More
Syndicate Bank 14.20% - 14.20% 0.5%, Min Rs. 500 Explore More
Indian Overseas Bank 12.70% - 15.25% Rs. 204 per lakh Explore More
Andhra Bank 13.05% - 14.30% Case to Case Explore More
Bank of Baroda 11.60% - 16.60% 2%, Min Rs. 250 Explore More
Bank of Maharashtra 15.10% - 15.10% 1 %, Min- Rs. 1000 Explore More
Canara Bank 13.65% - 13.65% 0.50% Explore More
Corporation Bank 12.75% - 13.75% 1.5%, Min Rs. 500 Explore More
Dena Bank 13.00% - 14.00% 1% Explore More
Federal Bank 13.32% - 15.12% 0.5%, Min Rs. 500 Explore More
IDBI Bank 13.20% - 13.75% 1% Explore More
Allahabad Bank 13.10% - 13.10% 1.22%, Min- Rs. 612 Explore More
Indian Bank 14.35% - 14.85% 0.5%, Min- Rs. 508 Explore More
Yes Bank 11.99% - 20.00% 1.50% Explore More

Personal Loan

Personal loans are available for both salaried and self-employed borrowers to help meet their general personal expenses that are urgent and immediate in nature.You should consider this loan if,

  • You do not have immediate funds available to bear the expenses during a financial crisis.
  • You do not have a collateral to take a secured loan.
  • The expense is urgent and you want to avoid the detailed documentation and lengthy loan process.

Purpose of personal loan

Some of the basic purposes for which this loan is granted include vacation or travel, higher education, wedding, medical treatment, credit card payment and many more. Banks specify the purpose for which they are willing to grant this loan.

Purposes for which personal loan is granted Purposes for which personal loan is not granted
Credit card payments Home construction
Medical expenses Business expansion
Child education Land purchase
Wedding or vacation

Personal loan benefits

  • Unsecured in nature with no requirement of collateral or a security
  • Fast turnaround with loan approval in as quick as a few hours
  • Minimum documentation with approval based on basic KYC, quick background checks, CIBIL score and income proofs

Personal Loan Eligibility Check

You may be eligible for loan in India from one or more banks if you meet the following eligibility conditions:

Eligibility Criteria
Minimum and Maximum Age
    21 Yrs. – 65 Yrs.

Note: However, many banks require minimum age of 23 years
Loan Amount
  • Upto Rs. 50 lakhs. Most banks restrict maximum eligibility to Rs. 25 lakhs

Note: Some banks also restrict the maximum eligibility at 10 – 22 times net monthly income
Net Monthly Income
  • Min. Rs. 15,000 (For Semi & Rural) and 20,000 (For Metro)

Note: Some banks specify higher minimum income requirement for people staying on rent
Employment Type
  • Salaried customers have more choices
  • Interest rates are typically in the range of 11.49% to 18.00% per annum
  • Loans to self employed professionals and businessmen are classified as Business Loan
Note: Eligibility conditions for self employed may be different from that of salaried customers for a personal loan.
Minimum Work Experience
  • 3 years of total work experience
  • Tenure with the current company should not be less than 6 – 12 months
  • Business tenure should of 5 years & ITR required for at least 3 years (For Self Employed only)
CIBIL Score for Personal Loan
  • 700 & more credit history
Note: Most banks avoid giving loans if you have low credit score

How to improve your chances of getting a personal loan

These loans are mostly unsecured in nature, banks have a pre decided set of rules (credit policies). Many loan applications get rejected as the borrower do not fulfil the basic set of rules of banks for approval of personal loan. Hence, it is important that the borrower works on improving his or her chances of getting a loan using some simple tips.

  • Calculate your credit score and improve it - Always check and calculate your credit score before applying for loan. Credit bureaus operating in India such as CIBIL, Equifax, Experian and CRIF High Mark usually help in providing personalised credit report within 24 hours of applying. Low credit score implies that there are higher chances of defaulting on loan payments whereas a high score not only increases the chances of getting a personal loan approval but also getting low interest rates for borrowers. So, it’s necessary to improve your score above 750 to get the loan approved.
  • Identify options for bad credit loans - In case your credit score is less than 750, you might want to wait for a few months and work on improving your credit score. However, if you are not in a position to wait, you should look for NBFCs or banks that provide loan for a lower credit score as well. In such situations you can also take gold loan or loan against fixed deposits which do not take into account your past credit score.
  • Identify the right product for you - You should carefully compare and select the right bank for loan as different banks have different interest rates and eligibility criteria. Always, make a comparison for best interest charges and other loan terms such as tenure, foreclosure charges and other hidden charges before finalising the loan. Approaching banks through online market places may provide you a quick and detailed comparison of key loan offers and help you make the right choice.
  • Avoid multiple loan applications - Sometimes, customers in a hurry to get a loan, apply for a loan with multiple banks to improve their chance of getting a loan on time. However, applying for multiple loan applications increases the probability of the loan being rejected as each query gets captured in your credit report and multiple queries can adversely impact your CIBIL score.
  • Try to keep a gap of minimum 6 months between personal loan applications - Most of the banks do not grant a new loan to a borrower who has availed an unsecured personal loan in the last six months. In such cases, banks may doubt that you will not be able to bear the burden of additional EMI payments. There should always be a gap of 6 months between two loan applications.
  • Be honest and provide accurate information - Always be honest by providing accurate details to the bank. This makes the process easy and convenient for both lenders and customers. Lenders verify the information provided by you. They also call to confirm your personal data and if they feel it’s incorrect, they may reject the loan application.
  • Maintain job stability - Lenders require that the customer has at least two years of work experience in a particular job. So, avoid switching jobs if you want to improve your chances of getting a personal loan.
  • Apply for a loan amount based on your repayment capacity - Before applying for loan; determine the loan amount that you will be able to repay in future. Use online eligibility calculators to calculate your loan amount eligibility. Requesting for loan amount higher than your eligibility might increase the chances of rejection of the loan application. Banks also calculate the ratio of fixed expenses to income ratio of a potential borrower to estimate the amount of loan that can be serviced by the potential borrowers. Lower the ratio, higher the chances of loan being approved.

Last, but not the least. Practice a healthy credit discipline regimen to maintain a healthy score and improve the chances of getting a loan. This regimen includes paying EMIs on time (every late payment reduces your credit score), restricting the number of credit cards, reducing the limit usage on credit cards, resort to taking a secured credit, wherever possible and regularly checking your credit report to ensure timely course corrections.
So, follow the above tips to get your loan application being approved easily and reduce the chances of rejection.

Do’s and Don’ts while taking Personal Loan

To get best and lowest personal loan interest rate online, read the do’s and don’ts mentioned below.

Do’s Don’ts
  • Check best discount and offers for salaried customers – Always check current offers and loan interest rates offered to employees of large reputed companies
  • Do not apply for loan amount more than what you are eligible for – Applying for an amount higher than your eligibility may lead to rejection of your loan application. Always check eligibility and your credit score
  • Compare personal loan rates based on loan amount – Some banks offer lowest interest rate for personal loan at higher loan amount
  • Do not apply with multiple banks for your personal needs - Simultaneous loan applications gets recorded in your CIBIL report and can hurt your chances of getting a loan
  • Check for tenure based discount – Banks may offer lower rates on personal loan for certain tenure and if possible, opt for tenures with lower interest rates
  • Your salary bank may not offer the cheapest personal loan – Various banks keep offering attractive schemes to acquire premium customers. Hence, the offer from your salary bank may not be the best option

Lowest EMI for Personal Loan

Personal Loan EMI is the amount or instalment that you pay every month to the bank or financial institution in order to repay your loan. EMI is composed of principal amount and interest. Interest component in your EMI is higher in early months and gets reduced with each EMI. Similarly, principal repaid is a significantly small component in total EMI in early months and gets higher with each EMI. EMI Calculator helps you to calculate your monthly EMI at desired interest rate for a particular tenure.

EMI depends upon loan amount, interest rate and loan tenure

  • Loan amount – Higher the loan amount taken, higher will be the EMI
  • Interest rate - Higher interest rate on your loan leads to higher amount of EMI
  • Loan tenure – Longer the loan tenure, lower the EMI and vice versa

Comparison of Personal Loan Interest Rates in India

  • Interest rates for personal loans: Banks launch attractive schemes with low interest rates on personal loans a regular basis, especially for individuals working with large reputed companies. Rate of interest varies based on the categorisation of your company in the internal categories of banks which can vary from bank to bank. Hence, always check for personal loan offers from multiple banks to get the best rates
  • Personal loan processing fees – Most banks charge a processing fees of Rs. 999 to upto 2% of loan amount, whichever is higher. Since these loans are short tenure loans, higher processing fees can result in significantly high cost on loans. Hence, it is important to compare the All Inclusive Rates (AIRs) for personal loans to compare and shortlist the best offer. Get detailed comparison on interest rate, processing fees and attractive cash back offers by applying online through MyLoanCare.
  • Insurance premium - Since these are unsecured loans, banks request the borrower to take an insurance policy when availing a loan. However, the premium varies from bank to bank depending upon the risk coverage under various policies. So, check the loan sanction letter carefully to know the coverage and premium. You may also want to do a comparison of various insurance policies to be able to choose a policy which gives you adequate coverage at lowest premium.
  • Personal loan prepayment and foreclosure – Nobody wants to keep paying interest on a loan when you have surplus money available to repay it. Sometimes you may want to repay a part of your loan before time which is called part prepayment. In case you decide to pay the entire loan amount before time, it is called foreclosure. Banks typically levy prepayment or foreclosure charges on personal loans ranging from nil to up to 5%. So, check carefully if the low interest rate personal loan you are getting comes with high prepayment or foreclosure charges. Some banks, might not allow you to prepay your loans before few months and the same needs to be considered while taking a loan.

Illustration on Personal Loan

Maximum Annual Percentage Rate (APR) 11.39% to 22.4%
Representative example of the total cost of the loan, including all applicable fees
Here is an illustration of the total cost of the loan:
  • Total amount borrowed: Rs. 100,000
  • Time period: 12 months to 60 months
  • Interest Rate: 10.99% to 22%
  • Processing Fee payable to: Upto Rs. 2,000
  • Fee payable to MyLoanCare: NIL
  • Total Monthly Cost – From Rs. 2,174 for a months Rs. 100,000 loan at 10.99% (lowest rate, longest time period) to Rs. 9,359 for a 12 months Rs. 100,000 loan at 22% (highest rate, shortest time period). This is inclusive of principal repayment.
  • Annual Percentage Rate (APR) of charge including all applicable fees: 11.39% to 22.4%
  • Total cost payable over loan tenure: Rs. 14,313 for 12 months loan to Rs. 32,424 for 60 months loan

Checklist and List of Documents for Personal Loan

  • Identity proof
  • Residence address and ownership proof
  • Income proof
  • Photo identity proof
  • Bank continuity proof
  • Bank statement
  • 1 passport size photograph
  • Latest ITR
  • CIBIL Score and report
  • Investment proof if you have any Fixed Deposit, Shares, Fixed Assets, etc

Documents Required for Personal Loan

Documents ID Individuals Firms, Partnerships
Signed Application Form Required
Identity Proof PAN card, Passport, Driving License, Aadhar Card, Voter id, Govt issued i-card
Certificate and Proof of Business Existence PAN , sales tax/ excise/ VAT/ service tax registration, Copy of partnership deed, Trade license, certificate of practice, registration certificate issued by RBI, SEBI
Address Proof Passport, Driving License, Election ID card, Electricity/ Telephone/ Mobile bill/ bank statement (not more than 3 months old) Bank statement, utility bill, Registry copy, lease or rent agreement, TAN allotment letter
Age Proof PAN card, Passport, Driving License, Voter id card, Birth certificate, Employee ID card (only for PSU/ Government employees), School/ college leaving certificate
Income Proof Last 2 years Form 16, last 6 months salary slip, last 6 months' bank account statement showing salary credit Last 2 years ITR, last 6 months bank account statement

Frequently Asked Questions on Personal Loan

Why do I need Personal loan?

This loan is usually taken to meet short term needs. Generally the purpose of this loan is to pay off credit card debts, family vacation, wedding, medical emergency, etc. Personal loan rates are mostly fixed and higher than other loan types. So, loan should be taken only in case of emergencies. Also, you should have a plan that you can make all your repayments on time. If you have a low CIBIL score, then you should not apply in multiple banks for loan as each rejection will drop your CIBIL score.

How can I apply for personal loan

You can apply in several ways. You can directly visit the bank branch and meet the sales person, contact a loan agent or apply online at any bank or NBFC’s website. You can also compare best interest rates of all banks online at MyLoanCare and apply for loan.

What is the minimum and maximum tenure of personal loan?

These are generally taken for a short period of time. Generally, the loan tenure is between 12 months to 60 months.

What are the charges for personal loan?

In addition to rate of interest, banks charge the following two fees on personal loans.

  • Processing fee: This fees is charged when you apply for a loan. The processing fee can range between 2 – 3% of the loan amount and can be negotiated down, if you bargain. It also helps, if you approach the bank through an online market place like myloancare.in, as we negotiate with the bank on your behalf and also, offer attractive cash backs on sanctioned loans. Sometimes, we also get to offer exclusive loan schemes on behalf of the banks such as nil processing fees for our valued customers.
  • Pre-closure fee: This fees is charged when you decide to close your loan before the completion of loan tenure. Banks imposes this penalty to cover the loss it can incur due to premature closing of a fixed rate loan. Prepayment penalty can range up to 5% of the loan amount. You need to read the terms and conditions of your loan agreement carefully to check on the prepayment clause and ensure that it is not too strict compared to market benchmarks. Banks are also open to revise the prepayment clauses if negotiated and discussed by the borrower or his loan care representative.
Is CIBIL Score for personal loan important?

CIBIL score is very important to get the loan. Good CIBIL score indicates a strong repayment record and hence, banks can offer you higher loan amount at lowest rate of interest. Bad CIBIL Score could mean higher chances of rejection of your loan or getting a loan with high interest rates. So, it is important to make all your payments on time and maintain a good CIBIL score to get best personal loan rates.

Do I need to open a bank account to service my personal loan?

Yes, you need to have at least one functional bank account in your name. It is even better if you have an account with the same bank from which you would like to get a loan.

Can I apply for personal loan jointly with my spouse?

Yes, you can apply jointly with a co-applicant (either be your spouse or your parents). This helps you to increase your eligibility and you can also avail for a higher amount of loan as your co-applicant’s income also gets added to your income and that total is taken into consideration for calculating the loan amount you will be eligible for.

Does it affect my co-applicant if I default in personal loan?

Yes, if you fail to pay the loan on time then it will also affect your co-applicant as default in loan will affect his/her CIBIL rating as well.

What are the main factors that affect interest rate of personal loan?

These are unsecured loans so it has higher rate of interest. Personal loan lowest interest rate depends upon factors like loan amount, company category and your net income. High income and good company profile can lend you high loan amount at low interest rate. Personal loan rates for government employee and defence personnel may be different from that for private salaried employees.

Can I do balance transfer on personal loan?

Yes, if you are getting higher rate of interest and paying higher EMI than other banks, then you can opt for personal loan balance transfer and reduce your monthly burden.

Can I get top up on personal loan?

Yes, you can get top up loan but terms and conditions vary from bank to bank.

How can I prevent rejection of my loan application?

Banks or NBFCs give loan to those borrowers about whom they are sure that he/she can repay the loan. You need to know few details if you don’t want your application to get rejected:

  • In this case, if you have a spouse who is also working, you can add her as a co-applicant to boost the combined salary levels.
  • Clear your old debts first so that your leverage levels come down.
  • You can also balance transfer your existing loans so that the rate of interest on loans can come down and additional loan can be availed.
  • If your loan application is rejected due to a low CIBIL score, you can opt for loans where a CIBIL check is not required. Regular repayment track record on this loans can actually improve your CIBIL score. You can also try taking a loan from lenders which lend to borrowers with a low CIBIL score. However, the rate of interest offered by these lenders are generally higher than those offered by banks.
Can I make payment of loan amount when I am outside India?

Yes, you can make payments from outside India through net-banking or online banking facility provided by banks.

Can I get a personal loan for pensioner if I have a pension account with one of the leading private banks in India?

There are several private as well as public sector banks which offer loan to pensioners.You can get loan of up to 10-20 times of your monthly pension.

What are the benefits of part prepayment of a loan?

Part prepayment allows to you utilize any surplus income you have towards repaying your loan and hence, decrease your fixed expenses burden. It also allows you to reduce the total interest cost of a loan by either decreasing your EMI or reducing your loan tenure. Banks allows prepayment and foreclosure after a few initial months. However, as personal loans are fixed rate loans, banks typically charge a prepayment penalty of 2-5% over prepaid principal amount. It is important to understand the cost implications of prepayment, before taking a loan as well as before taking a decision to prepay.

Are there any tax benefits associated with personal loan?

Personal loans have no explicit tax benefits but you may sometimes get a tax exemption, based on the purpose of personal loan. If you take a personal loan for home renovations and/or down payment, you may be eligible for Income Tax deduction under Section 24 of Income Tax Act. This tax benefit available only on the interest paid on the loan and not for the principal amount. Similarly, if you have taken the personal loan for meeting your business expenses, you can claim the interest paid on such loans against your taxable income, thus reducing your tax liability.

Do I need to contact financial institution directly, if I take a personal loan from www.myloancare.in?

If you decide to take a loan through www.myloancare.in, you are not required to contact the bank directly. Our company representative will process your application with the bank and will regularly stay in touch with you until your loan get sanctioned. The bank officials may call your for checks and documentation, but our assigned loan officer will assist you at each step of the loan process.

Do lending institutions change interest rates after sanction of loan?

Usually, personal loans are given at fixed interest rates and hence banks do not change these rates after sanction. However, if you have opted for a floating interest rate, the rate of interest will be reset at regular intervals by the bank in response to fluctuations in market interest rates.

Why MyLoanCare???

Nowadays, banks give various offers on Personal Loan to give the best rates to individuals. To get Personal Loan with lowest interest rate and lowest EMI, compare new rates and offers of all banks at MyLoanCare. You can do rates comparison, check your eligibility, apply online and get the cheapest rate on Personal Loan. MyLoanCare helps you throughout the loan process from the day you apply to the time you get complete disbursement. You can even track your loan status after getting registered with us. MyLoanCare make it easy for you to get hassle free Personal Loan with ultimate cashback and refer and earn benefits. So, apply for Personal Loan today and enjoy the benefits.

 Personal Loan

*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. MyLoanCare is an independent professional service provider and is not related to the government or government bodies or any regulator or any credit information bureau in any way. Information carried at this website is not and should not be construed as an offer or solicitation or invitation to borrow or lend. The Company does not undertake any liability with respect to the correctness of the content, information and calculations. Information is subject to change without notice. By submitting your query or using any tools or calculators, you authorize MyLoanCare to share your information with lender(s), consent for such lender(s) to access your credit information report and contact you regarding your query overriding your number being in National Do Not Call Registry. This is a free service and no charges are payable by the borrower to MyLoanCare. The Company may receive remuneration from lenders for services provided to them.