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

Lowest Personal Loan Interest Rates in India 2017

Read Reviews 4.1/5.0 from 429 users
Last Updated 24th Feb 2017
  • Lowest personal loan interest rates starting @11.25%*. Compare and get the best personal loan offers from banks
  • Apply personal loan online
  • Maximum loan tenure upto 5 years
  • Part Payment, nil foreclosure charges options available
Apply Personal Loan Online @11.25%*
 Salaried   Self Employed - Professional   Self Employed - Business 





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Personal Loan Interest Rates Comparison, Lowest EMI Feb 2017, Best rates

Bank Personal Loan Interest Rates* Lowest EMI per lakh for max tenure
HDFC Bank
4.2/5
214 votes
11.29% - 20.00% Rs. 2,189 for 60 months Explore More
SBI
3.4/5
4 votes
12.50% - 16.60% Rs. 2,658 for 48 months Explore More
ICICI Bank
4.1/5
22 votes
11.59% - 22.00% Rs. 2,204 for 60 months Explore More
Axis Bank
4.1/5
37 votes
11.25% - 24.00% Rs. 2,187 for 60 months Explore More
Bajaj Finserv
3.5/5
30 votes
11.99% - 15.50% Rs. 2,224 for 60 months Explore More
Standard Chartered Bank
3.9/5
8 votes
11.49% - 20.00% Rs. 2,199 for 60 months Explore More
IDFC Bank
4.5/5
11 votes
11.99% - 19.50% Rs. 2,224 for 60 months Explore More
Fullerton India
2.7/5
4 votes
16.00% - 34.00% Rs. 2,834 for 48 months Explore More
Kotak Bank
3.3/5
11 votes
11.50% - 24.00% Rs. 2,199 for 60 months Explore More
Citibank
4.3/5
47 votes
11.49% - 18.00% Rs. 2,199 for 60 months Explore More
IndusInd Bank
4/5
32 votes
11.49% - 19.00% Rs. 2,199 for 60 months Explore More
Bank of Maharashtra
0/5
0 votes
15.10% - 15.10% Rs. 3,471 for 36 months Explore More
Canara Bank
0/5
0 votes
13.65% - 13.65% Rs. 2,715 for 48 months Explore More
Dena Bank
0/5
0 votes
13.00% - 14.00% Rs. 3,369 for 36 months Explore More
Union Bank of India
3.3/5
1 votes
14.40% - 14.40% Rs. 2,348 for 60 months Explore More
Vijaya Bank
0/5
0 votes
12.70% - 13.70% Rs. 2,260 for 60 months Explore More
Yes Bank
0/5
0 votes
11.99% - 20.00% Rs. 2,224 for 60 months Explore More
RBL Bank
0/5
0 votes
11.99% - 20.00% Rs. 2,224 for 60 months Explore More
Tata Capital
4.5/5
1 votes
13.00% - 18.00% Rs. 2,007 for 72 months Explore More
Andhra Bank
0/5
0 votes
13.05% - 14.30% Rs. 2,278 for 60 months Explore More
Allahabad Bank
0/5
0 votes
13.10% - 13.10% Rs. 2,280 for 60 months Explore More
Corporation Bank
0/5
0 votes
12.75% - 13.75% Rs. 3,357 for 36 months Explore More
IDBI Bank
0/5
0 votes
13.20% - 13.75% Rs. 2,286 for 60 months Explore More
Indian Bank
0/5
0 votes
14.50% - 17.00% Rs. 3,442 for 36 months Explore More
Indian Overseas Bank
0/5
0 votes
12.70% - 15.25% Rs. 2,260 for 60 months Explore More
PNB
0/5
0 votes
12.25% - 15.25% Rs. 2,237 for 60 months Explore More
Karur Vysya Bank
0/5
0 votes
13.90% - 16.40% Rs. 3,413 for 36 months Explore More
Syndicate Bank
0/5
0 votes
14.20% - 14.20% Rs. 2,337 for 60 months Explore More
Federal Bank
0/5
0 votes
13.32% - 15.12% Rs. 2,699 for 48 months Explore More
Bank of Baroda
0/5
0 votes
11.60% - 16.60% Rs. 3,302 for 36 months Explore More

Personal Loan Eligibility Check

You may be eligible from one or more banks in India if you meet the following eligibility conditions:
Eligibility Criteria for Personal Loan
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
  • Personal loans to self employed professionals and businessmen are classified as Business Loan
Minimum Work Experience
  • 3 years of total work experience
  • Tenure from 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

Lowest EMI for Personal Loan

Personal Loan EMI is the amount that you pay every month to the bank or financial institution in order to repay your loan. EMI is composed of both principal amount and interest component. Interest component on your EMI is higher in early months and reduced 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 – If you apply for a high loan amount, then your EMI will be high
  • Interest rate – Higher interest rate on your loan leads to high amount of EMI
  • Loan tenure – EMI on personal loan reduces in case of high loan tenure

Comparison of Personal Loan Interest Rates in India

  • Personal Loan processing fees – Most banks charges minimum processing fees of Rs. 999 to upto 2%. To get lowest fee, personal loan comparison, offers and cashback applying online through MyLoanCare.
  • Insurance premium - Since these are unsecured loans, it is advisable 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.
  • Personal Loan prepayment and foreclosure – Nobody wants to keep paying interest on a loan when you have surplus money available to repay it. When you want to repay your loan partially before time, it 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 in such situations and these can range from nil to eve upto 5%. So, check carefully if the low interest rate personal loan you are getting comes with high prepayment or foreclosure charges. Note that some loans cannot be repaid before time.

Do’s and Don’ts while taking Personal Loan

To get best and lowest personal loan interest rates 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
  • Compare offers based on loan amount – Some banks offer low interest rate personal loans at high 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
  • Discount for tenures – Banks may offer lower rates on personal loan for certain tenure
  • Your salary bank may not offer the cheapest personal loan – Various banks keep offering attractive schemes to acquire premium customers. Hence, salary bank may not be the best option

Checklist 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
Maximum Annual Percentage Rate (APR) 11.65% 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: 11.25% to 22%
  • Processing Fee payable to: Upto Rs. 2,000
  • Fee payable to MyLoanCare: NIL
  • Total Monthly Cost – From Rs. 2,187 for a months Rs. 100,000 loan at 11.25% (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: 11.65% to 22.4%
  • Total cost payable over loan tenure: Rs. 14,313 for 12 months loan to Rs. 33,204 for 60 months loan

Frequently Asked Questions on Personal Loan

Why do I need personal loan?

Personal loans are 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 personal loan interest rates of all banks online at MyLoanCare and apply for personal loan.

What is the minimum and maximum tenure of personal loan?

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

What are the charges for personal loan?

Apart from rate of interest, there are two types of charges being charged by the banks.
  • Personal loan processing fee: This is charged when you apply for the loan. The processing fee charged on personal loan is 2 – 3% of the loan amount and could be reduced if you can bargain.
  • Personal loan preclosure fee: This is charged when you close your loan before the completion of loan tenure. Prepayment penalty charged upto 5% of the loan amount.

Is CIBIL Score for personal loan important?

Personal loan CIBIL score is very important. Good CIBIL score indicates good repayment record and hence banks can offer you higher loan amount at low rate of interest. Bad CIBIL Score will result in either loan at higher interest rate or rejecting the loan application.

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 for personal loan 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. Interest on pl 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.

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 personal loan to those borrowers about whom they are sure that he/her can repay the loan. You need to know few things if you don’t want your application to get rejected:
  • Job stability for personal loan is important. You need to be stable in your current job as too many job changes can impact negative at the time of loan approval
  • You should not be having many loans running at one time. Banks can reject your application if you are already paying too many EMI’s at same time.
  • Don’t give you landline number for tele-verification if you know that nobody else is there at home when you are at work. A typing mistake in apartment number can also put negative impact on lenders.
Banks or lenders keep on adding these small things and reject your loan application.

What should I do if my personal loan application gets rejected by bank?

Some possible reasons why your application gets rejected are already running multiple loans and hence a bank may be in doubt about your repayment ability of a new loan.
  • 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.
  • One more thing you can do is balance transfer of your existing loans so that the rate of interest on loans can come down and additional loan can be availed.

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 News - Feb 2017
22nd Feb 17 Government launches BharatQR code to encourage cashless payments
With a view of encouraging customers to go cashless, Government of India in association with National Payment Corporation of India has launched another digital payment channel BharatQR code. Customers can make payments without swiping their credit and debit card by scanning the QR code that will be generated by merchant. With QR code, government intends to replace card swiping terminals. To support the initiative, NPCI has partnered with 14 banks including RBI and ICICI Bank.
21st Feb 17 Bandhan Bank to retain its focus on retail loans
Bandhan Bank is planning to retain its focus on the retail loan segment. Currently, 91 percent of its lending portfolio is in micro loans. Leading official of the bank has hinted that the bank is planning to target the financially excluded customer segments in rural areas. With a focus on rural sector, the bank expects to grow its loan portfolio to Rs. 22,000 crore by March 2017.
21st Feb 17 Home Credit India plans to tap customers through online channels
Home Credit India, a leading NBFC in India is planning to offer financial services through online channels to Indian customers who are increasingly shifting towards online purchasing. The company expects a three- fold growth in its loan portfolio in the year 2017 as compared to Rs. 1,570 crore during 2016.
17th Feb 17 Citibank India launches instant chat service for its users
Citibank India has launched an instant chat service for its customers using net banking. The chat platform will enable its users to connect with bank executives through internet to resolve their queries related to cards, domestic and non domestic accounts, loans etc.
16th Feb 17 Yes Bank boosts debit card portfolio via contactless cards
Yes Bank has launched contactless debit cards to boost its debit card portfolio in lieu of its commitment to supporting the vision of Indian government of a cashless economy. Contactless debit cards will use radio frequency identification (RFID), Near Field Communication (NFC) and Samsung pay (MST) to enable the customers to make payments simply by waving their card over a reader at the point of sale.
*My Finance Care Advisors Pvt. Ltd., or https://www.myloancare.in is a bank neutral multi bank platform that helps borrowers and bank customers compare loans and deposits of all banks in India at one place. Information carried at this website is based on perusal of public sources and should not be construed as an offer or solicitation or invitation to borrow or lend. The Company does not assure as to the correctness of information carried at the website. Lenders/ banks/ other parties may contact us at info@myloancare.in to provide corrections or updates. We may act as and/ or be associated with channel partners of banks and other sellers of financial products.