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Personal Loan

Best Personal Loan in 2022

Last Updated 22nd May 2022

  • A personal loan is an unsecured loan that banks offer without any collateral or security, based on an assessment of your income, employer and credit score.
  • There are no end-use restrictions these loans and can thus be used for any purpose be it a medical emergency, wedding, education.
Interest Rate starts at 10.25% Check Best Offers
Processing Fee Upto 3% of the loan amount
Loan Tenure Upto 5 years
Lowest EMI Per Lakh ₹ 2,275 for 5 years
Prepayment Charges Nil to upto 5% of the outstanding balance
  • Get an instant personal loan online from top lenders such as HDFC Bank, Tata Capital, ICICI Bank, IDFC First Bank, Axis Bank
Apply for Personal Loan @ 10.25%* Get upto ₹ 1,000* Voucher

Compare Best Personal Loan in India

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Bank Interest Rates Lowest EMI Per Lakh
SBI Personal Loan
Compare
9.60% ₹ 1,832
HDFC Bank Personal Loan
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10.25% ₹ 2,137
ICICI Bank Personal Loan
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10.25% ₹ 2,137
Bajaj Finserv Personal Loan
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12.99% ₹ 2,275
IDFC First Bank Personal Loan
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10.49% ₹ 2,149
Axis Bank
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10.49% ₹ 2,149
Tata Capital
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10.49% ₹ 1,877
Fullerton India
Compare
11.99% ₹ 2,633
IndusInd Bank
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10.49% ₹ 2,149
Kotak Bank
Compare
10.45% ₹ 2,558

What is a Personal Loan?

A personal loan is an unsecured loan that you can take from a bank or NBFC for any personal use including medical emergency, paying off old debts, travel, home improvement, education fees or wedding. Being an unsecured loan means you are not required to pledge any collateral or security with the bank. The loan repayment is done in the form of EMIs over a fixed tenure. You can avail loan online through the bank's website, app-based lenders, by applying on MyLoanCare or by visiting the nearest branch of the bank.

Features and Benefits of Personal Loan

Given are the features and benefits of a personal loan:-

Unsecured Loan

Personal loan does not require any collateral or security such as a house, car or jewellery. Loan approval is based on your creditworthiness and employment profile which is reflected by your credit score.

Flexible End-use

The loan amount can be used for various purposes like meeting expenses of a medical emergency, travel, house renovation, debt consolidation, etc. There is no end-use monitoring by banks.

Flexible Tenure

You can choose the tenure as per your requirement. The tenure ranges between 2 months to 60 months.

Minimal Documentation

You are only required to submit minimal documents including documents for identity proof, address proof and income proof.

Quick Disbursal

You can have a loan amount credited to your account within 48 hours to 72 hours. If it’s a pre-approved offer then the loan can get sanctioned within a few hours.

Types of Personal Loan

You can avail personal loans for multiple purposes without any restrictions on end-usage. Best personal loans available for specific uses are as follows:-

  • Wedding Loan: Many lenders offer personal loans for weddings which helps you make your or your child’s wedding a memorable event. The funds can be used for organising destination weddings as well as buying jewellery.
  • Travel Loan: Travel loan is also known as a holiday loan that you can take to meet all the expenses related to vacation and pay the amount later. The added benefit of this loan is that it comes with travel insurance.
  • Home Renovation Loan: A home renovation loan, also called a home improvement loan, helps you take care of costs like repairing costs, buying new material, labourer’s charges, etc. Unlike a home loan, you do not need to mortgage your house to get a personal loan for home renovation.
  • Pension Loan: These are the loans for retired people to help them meet medical or daily expenses. The eligibility criteria such as age, work experience, salary credits etc do not apply for a pension loan. However, a pensioner has to submit pension proof to avail of this loan.
  • Personal Loan for Education: Education Loan has existed for decades and has helped many people fulfill their dream. However, this loan only covers tuition fees, hostel fees and all the other expenses related to education. If you study abroad or do not take the hostel facility, then the living cost will not be covered under an education loan. A personal loan for education can be a better option to cover all these expenses as it can be availed for any purpose and interest rates are also lower than an education loan.
  • Consumer Durable Loan: Banks offer consumer durable loans to people who want to buy white goods or any electric device. Also, sometimes such loans are covered by insurance.

How to Apply for a Best Personal Loan Online?

To apply for an online best personal loan, either you can visit the official website of the lender or perform the following steps:-

  • Step 1 : If you need a thorough personal loan comparison before deciding on the bank, visit MyLoanCare.in.
  • Step 2 : Click on the Personal Loan tab.
  • Step 3 : Fill in the required information like name, age, loan amount required etc on the form given on the right side.
  • Step 4 : Click on ‘Get Quote'.
  • Step 5 : Fill the OTP and click ‘Submit’.
  • Step 6 : At this step, you will be requested to provide a few more details to get customised offers. Fill in the details and click ‘Submit’.
  • Step 7 : Compare your eligible offers and select the one that meets your requirements.
  • Step 8 : Get assistance from our loan advisors or choose to complete the online journey to get instant loan approval and disbursal.

Top Personal Loan Schemes

These are the best personal loan schemes offered by bank for different professions and purposes:-

  • Loan for Government Employees : The loan is offered only to the people who work in the centre or state government and PSU’s. The rates for central govt, state government, PSUs and defense employees may vary in banks. HDFC Bank, ICICI Bank offer the lowest rate on personal loan for govt employees.
  • Loan for Self Employed : This scheme is exclusively designed for self employed professionals like CA, CS, Architects, Doctors, Engineers for personal use or to expand their profession etc. The lowest rate on personal loan for the self employed is 13.00% and is offered by Axis Finance.
  • Loan for Bank Employees : Banks offer special rates on personal loans for bank employees. The discount in rate may vary from 0.05% to 0.25% which is an added benefit for bank employees.
  • Loan for Pensioners : If you are a pensioner and you need funds to meet a medical emergency, wedding of your children, renovate your house then this loan is for you. Here is a list of banks which provide this scheme:-
    Bank of Baroda 8.65% - 16.00%
    PNB 8.95% - 14.85%
  • Loan for Doctors : Also, called Physician personal loan comes with no end usage restriction. You can avail Doctor Loan of up to ₹ 50 Lakh for 5 years tenure if you are a medical practitioner. The lowest interest rate on a doctor loan is 10.50% .
  • Loan for Home Improvement : This loan is availed if you want finance for renovation or expansion of home. Remember the loan amount can only be used for home improvement and the rate charged on this loan is similar to regular personal loan.
  • Loan for Education : To fulfill your education dreams or your child’s dream, financial institutes offer personal loans for education. The loan amount can be used to pay tuition fees, hostel fees, air tickets and all other expenses related to education.
  • Balance Transfer : A Personal Loan balance transfer is a process where you can transfer your total outstanding loan from one bank to another. You can opt for a lender who offers the loan at a lower interest rate, this way the overall burden can be decreased. Personal loan transfer rates start at 10.25%. Bank that offers the lowest rate on balance transfer is HDFC Bank.
  • Top Up Loan : A Top up loan is a financing option in which you get extra loan amount over and above your existing loan. You can avail top up loans only if you have a good repayment history. The interest charged on top up loan is similar to the rate at which you avail a personal loan.

Documents Required for Personal Loan

You need to be ready with the following list of documents to be submitted at the time of personal loan application:-

  • Identity proof- PAN Card, Aadhaar Card, Voter ID, Passport
  • Address proof- Passport, Driving License, Election ID card, Utility bills
  • Income proof- Salary Slip, Bank Account Statement, Form 16
  • Self-employed professionals are also required to submit last year's ITR and Bank Account Statement.

Personal Loan EMI Calculator

Personal Loan EMI Calculator is an online tool that helps you to calculate the EMI by entering details about the loan amount, interest rate and tenure. Advanced EMI calculators also build an amortization schedule which gives you a break up of every EMI into interest as well as loan repayment. EMI calculators are preferable over manual calculation due to their instant and accurate results and an ability to do multiple calculations in one go.

Personal Loan Eligibility Criteria

While the essential eligibility criteria to avail of a personal loan vary for every financial institution, below listed are standard eligibility parameters required by banks and NBFCs to avail a loan.

  • Age : The minimum and maximum age to avail personal loan is 18 to 65 years. However, many banks require a minimum age of 21 years.
  • Loan Amount : You can get a Loan of upto ₹ 75 Lakh, subject to your eligibility calculated based on your net take-home salary. Some banks usually limit the maximum eligibility to 10 – 27 times of net monthly income.
  • Employment : Salaried persons working in government, private, or MNC companies can avail of a loan by submitting relevant proofs such as ITR and salary slips.
  • Work Experience : The minimum work experience may vary in banks. However, banks prefer individuals with job stability with at least 3 years of total experience and 6-12 months of current work experience.
  • Credit Score : Lenders may only approve your loan at low-interest rates if you have a 650 or more credit score.

How to Get Instant Approval on Personal Loan?

To get instant approval on a personal loan, you need to fulfil the following conditions:-

  • A good relationship with your existing bank is maintained by paying off dues and instalment on time. If you are a savings account holder, ensure that you maintain the minimum required balance per month. This way, the lender develops trust in you and grants you an instant loan based on your financial credibility.
  • Make credit card payments on time and maintain a good balance between no use and excessive usage of your credit card.
  • A good credit score is key to getting a loan quickly. Maintain a good credit score above 650 and get the loan amount sanctioned in the account within no time.
  • If you are working with top corporations and getting timely salary credits, you stand a better chance of getting a loan.

5 Most Important Things to Consider before taking a Personal Loan

Keep these points in mind before taking a personal loan:

  • Interest Rate : Interest rates are one of the crucial factors to consider. Typically the best personal loan offer has the lowest interest rates. As per the current rates, HDFC Bank, ICICI Bank provide the lowest personal loan rates of 10.25%.
  • Processing Fees : The financial institutions also charge processing fees on the disbursed loan amount along with the interest rates. Thus, personal loan at Nil or nominal processing fees on your loan is a feasible option.
  • Part-payment & Foreclosure Charges : Having a loan is indeed a burden on your pockets, and you want to repay as soon as possible. If you have ample funds and want to close your loan tenure before the due date, you must be able to do it at nil or nominal charges.The lower the foreclosure and prepayment charges, the better it is.
  • Flexible Repayment Tenure : Banks provide flexible tenure on personal loans ranging from 12 to 60 months. In some cases, you may also get additional flexibility on your loan, such as repaying the loan through a bullet repayment scheme.
  • Quick Disbursal : Borrower prefers a personal loan due to simple documentation and quick disbursal. In case of emergency, you can avail instant personal loan with minimum documentation.

What to do after Closing a Personal Loan?

When you decide to close a personal loan look at these crucial things:-

  • Pre-closure charges : When you decide to close the loan account, check the pre-closure charges which the bank or NBFC levies. The prepayment charges range upto 5% of the outstanding balance. However, some banks offer Nil charges on prepayment under special schemes.
  • Obtaining NOC : No Objection Certificate is proof that shows that you have cleared all the dues and there is no outstanding balance which you need to pay.
  • Obtain all your original documents : When you avail of a loan, you submit your important documents, so make sure that you take all your documents while closing the account.
  • Ensure updation of your CIBIL Score : Once the loan is repaid in full, the bank must update your loan repayment action in the CIBIL database. However, when banks take time to do so, you need to keep a check on your report, and if it is not done, you should ask your lender.
Illustration on Personal Loan
Maximum Annual Percentage Rate (APR) 10.83% to 36.58%
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: ₹ 1,00,000
  • Time period: 3 Months to 72 Months
  • Personal Loan Interest Rate: 10.25% to 36.00%
  • Processing Fee payable to: Upto ₹ 3,500
  • Fee payable to MyLoanCare: NIL
  • Total Monthly Cost – From ₹ 1,865 for 72 Months ₹ 1,00,000 loan at 10.25% (lowest rate, longest time period) to ₹ 35,353 for 3 Months ₹ 1,00,000 loan at 36.00% (highest rate, shortest time period). This is inclusive of principal repayment.
  • Annual Percentage Rate (APR) of charge including all applicable fees: 10.83% to 36.58%
  • Total cost payable over loan tenure: ₹ 1,05,213 for 3 Months loan to ₹ 1,37,796 for 72 Months loan

FAQs

How long does it take for personal loan approval?

Personal loan approval takes somewhere between 48 hours and 72 hours. However, if you have a pre-approved offer, you can get an instant loan within a few hours.

Which bank is best for personal loan?

HDFC Bank, ICICI Bank offer the lowest interest rate starting at 10.25% and can be considered the best bank for a personal loan. In addition, based on customer service, HDFC Bank offers the highest-rated customer service in the market with 4.5/5.

What is the best way to get a quick approval?

The best way to get a quick loan approval is to maintain a good relationship with a lender, and if you already have a savings account with that bank, it is a plus. Also, having a good credit score helps in quick loan approval.

What is the minimum income required to get a personal loan?

The minimum monthly income required to get a personal loan for salaried employees is ₹ 20,000. However, the income criteria may vary for metro and tier locations. You can avail loan without income proof from your existing bank where you maintain your salary account.

How does the personal loan work?

A personal loan is an unsecured loan under which you are not required to submit any collateral or security and have a hassle-free verification process. As soon as the documents are verified the loan is disbursed into your bank. The loan is then to be repaid in fixed installments over a fixed tenure.

Which bank gives the cheapest personal loan?

HDFC Bank, ICICI Bank, Kotak Bank offer the lowest personal loan rates starting at 10.25%.

What is the maximum amount of personal loan I can get?

You can get a loan for a maximum of ₹ 75,00,000 from HDFC Bank. However, the maximum loan amount varies for lenders and customers because it depends on your eligibility.

What is the CIBIL score for a personal loan?

CIBIL score ranges from 300 to 900 and a score of 650 and above is considered a good score. Higher the credit score, the higher the chances to get the loan application approved. Personal loan for a low cibil score can be availed at a higher interest rate.

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

Yes, you need to have at least one active 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. Opting for a loan from the same bank as your savings or current account can help you get a good deal at affordable terms and conditions.

Can I apply for a personal loan jointly with my spouse?

Yes, you can apply jointly with a co-applicant (either be your spouse or your parents). Joint personal loans help you to increase your eligibility, and you can also avail of a higher amount of loan as your co-applicants 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 on a personal loan?

Usually, personal loans are given at a fixed interest rate, and hence banks do not change these rates after sanction. However, suppose you have opted for a floating interest rate. In that case, you can get the cheapest loan depending upon market trends because the interest rate will be reset at regular intervals by the bank in response to fluctuations in market interest rates.

How much personal loan can I get if my salary is ₹ 40,000 ?

Usually, banks and financial institutions offer 10-27 times of the loan amount of your monthly take-home salary. While making the final offer, they consider your debt to income ratio as well.

How MyLoanCare helps government employees to get personal loans easily?

MyLoanCare helps government employees get personal loans without any hassle. As it is easy to verify the credentials of government employees. If the borrower fits the criteria of a certain bank, then MyLoanCare offers the most suitable rates and offers available in the market suiting borrowers’ requirements.

Can I get a personal loan without a salary slip?

Yes, you can get a personal loan without a salary slip, if you hold a bank account or salary account in the same bank as it contains all your ITR records.

What is the maximum tenure for a personal loan?

Most of the banks offer personal loans for a maximum period of upto 5 years. However, the maximum tenure for some banks is 7 years.

Can we transfer personal loans from NBFC to the bank?

Yes, you can transfer your NBFC personal loans from NBFC to a bank, if you fit into the criteria of the bank. Usually, banks are the primary lenders in the finance chain, hence, can offer favourable balance transfer deals.

How to get a personal loan from a bank?

You can get a loan from the bank by applying through their website or visiting the nearest bank branch. To get an instant personal loan, apply online and save time. Visit the website of the lender, fill in personal and occupational details, check eligibility, get a call and submit documents. Based on your eligibility and documents verification, the loan will be approved and disbursed to your account.

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Personal Loan Reviews 4.5/5  by 3361 customers
MyLoanCare Service
4.6/5.0
Banks Service
4.4/5.0
Deepika, Madikeri
Reviewed on 18th May 2022
5 / 5 stars
ICICI Bank Personal Loan Availed in May 2022

Excellent service. You can get a loan within a week.Read more...

Srikanth, Hyderabad
Reviewed on 18th May 2022
5 / 5 stars
Standard Chartered Bank Personal Loan Availed in May 2022

One of the swiftest and the best turnaround time. My customer relationship executive Chinmoy Jana imRead more...

Narender, Shimla
Reviewed on 17th May 2022
5 / 5 stars
HDFC Bank Personal Loan Availed in May 2022

Amazing 👏. It was a wonderful experience with MyLoanCare and HDFC Bank.Read more...

Harikrishnan, Chennai
Reviewed on 12th May 2022
5 / 5 stars
Standard Chartered Bank Personal Loan Availed in May 2022

Great job by Arjun. End-to-end coordination in processing the loan and disbursement. Kudos to MyLoanRead more...

Harikrishnan, Chennai
Reviewed on 12th May 2022
5 / 5 stars
HDFC Bank Personal Loan Availed in May 2022

Excellent work by Arjun to support the loan process. Definitely would recommend it to friends and faRead more...

Shaikh, Nagpur
Reviewed on 12th May 2022
5 / 5 stars
HDFC Bank Personal Loan Availed in May 2022

MyLoanCare service is very good and fast.Read more...

Vennapusa, Hyderabad
Reviewed on 12th May 2022
5 / 5 stars
HDFC Bank Personal Loan Availed in May 2022

The experience was too good. Process was super fast . I will recommend this website.Read more...

Vinoth, Chennai
Reviewed on 11th May 2022
5 / 5 stars
Early Salary Personal Loan Availed in May 2022

Good process. An easy and convenient method to get a loan. I was delighted to receive the loan easiRead more...

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Personal Loan News - May 2022
  • 2022-05-13 : Punjab National Bank Increases Personal Loan Rates
    The bank has increased the rates by 40 basis points, and after the revision, the bank offers personal loans starting from 8.85% to 14.85%.
  • 2022-05-13 : South Indian Bank Posts all-time High Net Profit in Q4
    The Bank has posted an all-time high net profit of ₹272 crores for Q4 in FY 22 against ₹6.79 crores during the corresponding period of the previous year.
  • 2022-05-13 : Ujjivan Small Finance Bank Profit Falls by 7% for Q4
    The bank has reported a 7 percent fall in its net profit to Rs 126.5 crore. Earlier, the bank had posted a net profit of Rs 136 crore in the same quarter of the preceding fiscal year 2020-21.
  • 2022-05-12 : Indian Bank Revises Personal Loan Rates
    Indian Bank has increased the rates on personal loans, and as a result, the bank offers the lowest rates starting at 8.90% to upto 9.40%.
  • 2022-05-10 : Canara Bank Hikes Personal Loan Interest Rates
    The bank has increased the lowest personal loan rates from 12.40% to 12.80%.
*Terms and conditions apply. Credit at sole discretion of lender, which is subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and collected from public sources. Read More
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