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Lowest Personal Loan Interest Rates

Lowest Personal Loan Rates Comparison

Last Updated 25th Jul 2021

  • Currently, Kotak Bank and HDFC Bank offer the lowest personal loan interest rate of 10.25%.
  • The processing fee required to avail personal loan from Kotak Bank and HDFC Bank is Starting from Rs.999 and Upto 2.50% Min ₹ 999.
  • Lenders offer different interest rates on personal loans to different applicants.
Banks Interest Rate Processing Fees
Kotak Bank 10.25% Starting from Rs.999
HDFC Bank 10.25% Upto 2.50% Min ₹ 999
Axis Bank 10.49% Rs.4,999
IndusInd Bank 10.49% Min 0.75% to Max 1.75%
Federal Bank 10.49% 0.5%, Min Rs. 500
    Apply for Personal Loan @ 10.25%* Get upto ₹ 1,000* Cashback

    Lowest Personal Loan Interest Rate in India

    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 lowest interest personal loan, 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 loans to their customers as well. Although high value personal loans are advanced to you if you have a higher income to repay the loan amount of this size on time. The interest rates on such high value loans is slightly lower than the small size personal loan rates.

    Top 5 Banks Providing Personal Loans at Lowest Rates
    Bank Rate of Interest Maximum Loan Amount
    HDFC Bank 10.25% ₹ 75,00,000
    Kotak Bank 10.25% ₹ 50,00,000
    Standard Chartered Bank 11.50% ₹ 50,00,000
    IDFC First Bank 10.49% ₹ 40,00,000
    ICICI Bank 10.50% ₹ 30,00,000

    Lowest Interest Rate Personal Loan for Different Applicant

    Similar to all other loans, personal loan interest rate also differs across all lenders. However, the rate may also differ across the different loan borrowers, based on your occupation, gender or loan type. Thereby, there are different personal loan rates for salaried employees, self-employed, pensioners and women borrowers.

    Best Bank for Personal Loan with Low Interest for Salaried Employees

    Salaried individuals avail the privilege of getting personal loans at an affordable rate of interest. This is because salaried employees have a fixed source of income with job stability. On these grounds, some of the top lenders providing the best personal loans with low interest rates for salaried employees are listed as follows:

    Bank Rate of Interest Processing fee
    Corporation Bank 8.90% 1.5%, Min Rs. 500
    Andhra Bank 8.90% Case to Case
    Union Bank of India 8.90% 0.5%, Min Rs. 500
    PNB 8.95% 1.8% + Taxes
    Indian Bank 9.05% N.A

    Best Bank for Personal Loan with Low Interest for Self Employed

    Similar to salaried employees, self-employed professionals can also apply for a personal loan if they have a stable source of income. However, such individuals are required to provide accurate proofs of business existence and income certificates that can ensure the lender of your repayment capability. List of top lenders providing the lowest personal loan interest rates for self-employed are listed as follows:

    Bank Rate of Interest Processing fee
    ICICI Bank 10.50% Rs. 1999
    Yes Bank 10.50% Rs. 1499
    HDFC Bank 10.85% Rs. 499
    Bank of Baroda 11.05% Upto 2%, Min Rs. 1,000 and Max Rs. 10,000
    Corporation Bank 11.20% Upto 0.75%, Min Rs. 5,000

    Best Bank for Personal Loan with Low Interest for Self Pensioners

    Various personal loan lenders provide discounted rate of interest on personal loan for Pensioners in comparison to the general public. The discount on the personal loan rate could be even more when pensioners borrow the loan form the same bank wherein they hold the pension account. Some of these lenders providing lowest interest personal loan for pensioners are SBI and PNB, among others.

    Bank Rate of Interest Processing fee
    SBI 9.60% 1.00%
    PNB 8.95% 1.8% + Taxes

    Best Bank for Personal Loan with Low Interest for Women

    Various personal loan lenders offer lowest interest personal loan for women loan borrowers, in order to encourage financial independence amongst the female population of the country. Thus, this provides benefits to the salaried, self-employed and entrepreneurial women. A list of banks offering the lowest personal loan rate is listed as follows:

    Bank Rate of Interest Maximum Loan Amount
    ICICI Bank 10.50% ₹ 50,00,000
    Yes Bank 10.50% ₹ 50,00,000
    HDFC Bank 10.85% ₹ 70,00,000
    Bank of Baroda 11.05% ₹ 10,00,000
    Corporation Bank 11.20% ₹ 5,00,00,000

    How to Get the lowest Interest rates on Personal Loan?

    In order to get the lowest interest rates on personal loans, ensure keeping the below-mentioned things in mind:

    • Do proper research of personal loan lenders and make a comparison on various grounds such as interest rates and terms and conditions.
    • Ensure that you are aware of the eligibility and documentation requirements in advance so that you do not end up paying up extra interest for shortcomings in any of these.
    • Maintain a good credit score, so that the lender is ensured of your repayment capability and does not charge a higher rate.
    • Try applying for a personal loan with your regular bank, wherein you maintain your salary or savings account. This will help you grab a lower rate based on your existing relationship with the bank as a previous customer.
    • Ensure maintaining a low credit utilization ratio.
    • Lastly, ensure that you do not apply for a personal loan with multiple lenders so that you do not seem credit hungry.

    Banks with Minimum Monthly Income Requirement

    In order to provide credit facilities to more and more people, many banks and financial institutions have very low minimum monthly requirements 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 12.40% ₹ 15,000
    Fullerton India 11.99% ₹ 17,000
    Yes Bank 10.70% ₹ 18,000
    IDFC First Bank 10.49% ₹ 20,000

    Muthoot offers personal loan starting from 14.00% ,at the lowest income requirement of ₹ 10,000. 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 Canara Bank, Fullerton India, Yes Bank, IDFC First Bank as per the latest update as on 25 Jul 2021.

    Cheapest Personal Loan Interest Rates on Balance Transfer

    Balance transfer of personal loan allows existing personal loan borrowers to switch from one lender to another who offer 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 and personal loan balance transfer lowest interest rate are listed below:

    Bank Interest Rates Processing Fee
    Kotak Bank 10.25% Starting from Rs.999
    HDFC Bank 10.25% Upto 2.50% Min ₹ 999
    Axis Bank 10.49% Rs.4,999
    IndusInd Bank 10.49% Min 0.75% to Max 1.75%
    Tata Capital 10.49% Upto 2.50% of Loan Amount

    Any applicant who is planning to transfer their personal loan can consider opting for personal loan transfer with Kotak Bank, HDFC Bank as it offers lowest rates on personal loan balance transfer starting at 10.25%. Some of the best banks for personal loan balance transfer are Axis Bank, IndusInd Bank, Tata Capital.

    Top NBFCs Offering Lowest Interest on Personal Loan

    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 instant personal loan with lowest interest rate:

    Bank Interest Rates Maximum Loan Amount
    Tata Capital 10.49% ₹ 25,00,000
    Fullerton India 11.99% ₹ 25,00,000
    Bajaj Finserv 12.99% ₹ 25,00,000
    Axis Finance 13.00% ₹ 25,00,000
    IIFL 24.00% ₹ 25,00,000

    Check Current Personal Loan Interest Rates of All Banks


    What is a good interest rate on a personal loan?

    Personal loan interest rates are usually higher than other loans since the loan is unsecured in nature. The lowest personal loan interest rate in india is 10.25%.

    Which bank is best for lowest personal loan interest rates?

    As per the current rates, Kotak Bank and HDFC Bank are offering the lowest interest rate on personal loan starting at 10.25% is one of the best bank for personal loans with low interest. The bank charges a processing fee of Starting from Rs.999 and Upto 2.50% Min ₹ 999 on personal loans.

    Which bank provides a personal loan with lowest income?

    Muthoot is the best bank to take a personal loan with minimum monthly income of ₹ 10,000 Also, the processing fees for Muthoot is 2.5-3.5%.

    Which bank is best for personal loan?

    HDFC Bank is the best banks for personal loan as they are highly customer focussed and offer easy process, requires minimal documentation and quick turn around on personal loan. The bank has a customer rating of 4/5. Further, on the basis of interest rates, Kotak Bank and HDFC Bank offers the best personal loan rate of 10.25%.

    What is SBI personal loan interest rate?

    Currently, SBI personal loan interest rate begins from 9.60% per annum. You can avail SBI personal loan if you are in an age range between 21 years - 58 years. The SBI’s lowest emi personal loan for ₹ 50,000 will be ₹ 8,568 for a tenure of 6 months.

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