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Lowest Personal Loan Interest Rates

Lowest Personal Loan Rates Comparison

Last Updated 16th Apr 2021

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%
Kotak Bank 10.25% Starting from Rs.1999
Axis Bank 10.40% Upto 1.75%,Min Rs.4,999
IndusInd Bank 10.49% Min 0.75% to Max 1.75%
    Apply for Personal Loan @ 10.25%* Get upto ₹ 1,000* Cashback

    Lowest Interest Rates Personal Loan 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 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 10.49% ₹ 40,00,000
    ICICI Bank 10.75% ₹ 30,00,000
    Tata Capital 11.25% ₹ 25,00,000

    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 their occupation, gender or loan type. Thereby, there are different personal loan rates for salaried employees, self-employed, pensioners and women borrowers. A detailed information about these rates is listed as follows:

    Top Banks offers Cheapest Personal Loan Rates for Salaried Employees

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

    Bank Rate of Interest Processing fee Maximum Loan Amount
    PNB 8.95% 1.8% + Taxes ₹ 15,00,000
    SBI 9.60% 1.00% ₹ 15,00,000
    Kotak Bank 10.25% Starting from Rs.1999 ₹ 15,00,000
    Axis Bank 10.40% Upto 1.75%,Min Rs.4,999 ₹ 25,00,000
    IndusInd Bank 10.49% Min 0.75% to Max 1.75% ₹ 25,00,000

    Top Banks offers Lowest Personal Loan Rates 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 the borrower’s 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
    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
    SBI 11.20% In the range of 2% to 3%
    ICICI Bank 11.50% Starting from 0.99%, Up to 1.75%
    HDFC Bank 11.90% Starting from 0.99%, Max 2.25%

    Top Banks offers Cheapest PL Interest Rates for 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 discounted rates 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

    Top Banks offers Lowest Personal Loan Interest Rates for Womens

    Various personal loan lenders offer discounted personal loan rates for women loan borrowers, in order to encourage financial independence amongst the female population of the country. Thus, this benefits 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
    Bank of Baroda 11.05% ₹ 10,00,000
    Corporation Bank 11.20% ₹ 5,00,00,000
    SBI 11.20% ₹ 15,00,000
    ICICI Bank 11.50% ₹ 40,00,000
    HDFC Bank 11.90% ₹ 50,00,000

    How to Get 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 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 10.50% ₹ 18,000
    Corporation Bank 12.95% ₹ 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, Corporation Bank as per the latest update as on 16 Apr 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 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
    Kotak Bank 10.25% Starting from Rs.1999
    Axis Bank 10.40% Upto 1.75%,Min Rs.4,999
    IndusInd Bank 10.49% Min 0.75% to Max 1.75%
    IDFC First Bank 10.49% Upto 2.00%
    Yes Bank 10.50% Upto 2.50%

    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 Kotak Bank, Axis Bank, IndusInd Bank, IDFC First Bank, Yes Bank.

    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 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

    Check Current Personal Loan Interest Rates of All Banks

    FAQs

    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. In general, personal loan interest rate begins from 8.95%.

    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, Kotak 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.

    How to Get lowest Interest rates on Personal Loan?

    In order to get the lowest personal loan rate, it is important that you do proper research and comparison of personal loan rates across all lenders. Making proper research can help you choose a lender that offers the cheapest rate. Apart from that, you can opt for a personal loan with your regular bank to avail a low personal loan rate.

    Which type of loan is the cheapest?

    The cheapest type of personal loan is the lowest interest rate personal loan. This is because the lowest personal loan interest rate involves a low-interest rate, thereby the EMI component contains a lower interest payout. Thus the monthly repayment burden is lowered.

    What is SBI personal loan interest rate?

    Currently, SBI personal loan interest rate begins from 9.60%.


    *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
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