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Lowest Personal Loan Interest Rates

Banks with Lowest Personal Loan Rates

Last Updated 31st Oct 2020

Currently, PNB offers the lowest personal loan interest rate of 8.95% and hence, is one of the best banks for personal loan. The processing fee required to avail personal loan from PNB is 1.8% + Taxes.

Banks Interest Rate Processing Fees
PNB 8.95% 1.8% + Taxes
SBI 9.60% 1.00%
Yes Bank 10.45% Starting from Rs.9999
Axis Bank 10.49% Upto 1.75%
Kotak Bank 10.50% Starting from Rs.999
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    Best Banks for Personal Loan

    India has more than 50 Banks and NBFCs offering personal loan which makes choosing the best bank to take the loan a difficult process. The key criteria to choose a personal loan are the current interest rate, minimum monthly income required, loan tenure, processing fees, product features as well as level of customer service. Personal loan is not just about small amounts and fund requirements. Some banks offer high value personal loan to their customers as well. Although high value personal loan is advanced to individuals with higher income as they have the capability to repay the loan amount of this size on time. The interest rates on such high value loan is slightly lower than the small size personal loan rates. Some of the banks that offer high value personal loan are:

    Bank Rate of Interest Maximum Loan Amount
    HDFC Bank 10.50% ₹ 75,00,000
    Standard Chartered Bank 11.50% ₹ 50,00,000
    IDFC First Bank 12.00% ₹ 40,00,000
    ICICI Bank 10.75% ₹ 30,00,000
    Citibank 10.90% ₹ 30,00,000

    Banks with Minimum Monthly Income Requirement

    In order to provide credit facility to more and more people many banks and financial institutions have very low minimum monthly requirement so that more people can avail credit and take advantage of its benefits. Some of the popular personal loan schemes by leading personal loan providers are listed below:

    Bank Interest Rates Minimum Monthly Income
    Muthoot 14.00% ₹ 10,000
    Canara Bank 13.00% ₹ 15,000
    Fullerton India 11.99% ₹ 17,000
    Yes Bank 10.45% ₹ 18,000
    Karur Vysya Bank 12.00% ₹ 20,000

    Muthoot offers personal loan starting from 14.00%. Thus, even younger people who have just started their career or people in low income group can avail personal loan and build their credit history along with meeting their requirements. Other than Muthoot, other top lenders with low monthly income requirements are Muthoot, Canara Bank, Fullerton India, Yes Bank, Karur Vysya Bank as per the latest update as on 31 Oct 2020.

    Banks with Minimum Total Work Experience Required for Personal Loan

    Work experience is one of the important criteria for banks to advance personal loan. More experience suggests stability and security of income and assures the bank that the borrower is reliable. Banks attach a great importance to the job stability of the borrower, especially in case of unsecured loans like personal loan. Thus, lenders who have lower work experience requirement serves a entry door for the young workforce to avail personal loan in order to build their credit history and meet the requirement of funds. As on Oct 2020, HDB Financial, Fullerton India, HDFC Bank, IDFC First Bank, Axis Bank are providing personal loan to individuals with less than 18 months of total work experience.

    Bank Total work experience (min) Rate of Interest
    HDB Financial 6 Months 13.99%
    Axis Bank 12 Months 10.49%
    IDFC First Bank 12 Months 12.00%
    Fullerton India 12 Months 11.99%
    HDFC Bank 12 Months 10.50%

    Latest Personal Loan Schemes for Balance Transfer

    Balance transfer of personal loan allows existing personal loan borrowers to switch from one lender to another who offers a lower interest rate. A personal loan balance transfer is a popular scheme as it is a smart way to lower the loan repayment EMIs. Various lender offers the balance transfer facility as listed below:

    Bank Interest Rates Processing Fee
    Yes Bank 10.45% Starting from Rs.9999
    Axis Bank 10.49% Upto 1.75%
    Kotak Bank 10.50% Starting from Rs.999
    HDFC Bank 10.50% Upto 2.50% Min Rs. 1,999
    ICICI Bank 10.75% Upto 2.25% of Loan Amount

    Any applicant who is planning to transfer their personal loan can consider opting for personal loan transfer with SBI as it offers lowest rates on personal loan balance transfer starting at 9.60%. Some of the best banks for personal loan balance transfer are Yes Bank, Axis Bank, Kotak Bank, HDFC Bank, ICICI Bank.

    Non-Bank Personal Loan Schemes

    Most of the Non-Banking Financial Companies (NBFCs) offer personal loans like banks to meet urgent fund requirements. The process to apply for personal loan from an NBFC is instant, paperless and easy. Some of the NBFCs that offer low rates on personal loan are:

    Bank Interest Rates Maximum Loan Amount
    Tata Capital 11.25% ₹ 25,00,000
    Fullerton India 11.99% ₹ 25,00,000
    IIFL 12.99% ₹ 25,00,000
    Bajaj Finserv 12.99% ₹ 25,00,000
    Axis Finance 13.00% ₹ 25,00,000


    Which bank is best for lowest personal loan interest rates?

    As per the current rates, PNB is offering the lowest interest rate on personal loan starting at 8.95% and is one of the best banks for personal loan.

    Which bank personal loan with lowest income?

    Muthoot is the best bank to take a personal loan with minimum monthly income of ₹ 10,000.

    Which bank is best for personal loan?

    PNB, SBI, Yes Bank are considered as the best banks for personal loan as they are highly customer focussed and offer easy process and quick turn around on personal loan.

    What is the minimum work experience required for personal loan?

    The minimum work experience required to get a personal loan is 6 months.

    *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. Read More