Personal loans in India are a go-to financial solution for managing sudden expenses like medical bills, weddings, travel, or home renovation. Choosing the right lender is crucial to ensure competitive interest rates, flexible tenures, and minimal processing charges. This article reviews the best banks for personal loans in India in 2025, comparing interest rates, features, eligibility, and benefits to help you make an informed decision.
Top 10 Banks Offering Personal Loans in India (2025)
Here’s a quick comparison of the leading personal loan providers:
| Bank Name | Interest Rate (p.a.) | Loan Amount | Tenure | Processing Fee |
|---|---|---|---|---|
| HDFC Bank | 10.75% – 21.00% | ₹50,000 – ₹40 L | 12 – 60 months | Up to 2.5% |
| ICICI Bank | 10.50% – 16.00% | ₹50,000 – ₹25 L | 12 – 72 months | Up to 2.5% |
| SBI | 11.15% onwards | ₹25,000 – ₹20 L | Up to 72 months | Up to 1.5% |
| Axis Bank | 10.49% – 21.00% | ₹50,000 – ₹40 L | 12 – 60 months | Up to 2% |
| Kotak Mahindra Bank | 10.99% onwards | ₹50,000 – ₹25 L | 12 – 60 months | Up to 2.5% |
| IDFC FIRST Bank | 10.50% onwards | ₹20,000 – ₹40 L | Up to 60 months | Up to 2% |
| Bajaj Finserv | 11.00% onwards | ₹20,000 – ₹40 L | 12 – 84 months | Up to 4% |
| IndusInd Bank | 11.00% – 20.00% | ₹50,000 – ₹15 L | 12 – 60 months | Up to 2.5% |
| Federal Bank | 11.49% onwards | ₹50,000 – ₹25 L | Up to 60 months | Up to 1% |
| Tata Capital | 10.99% onwards | ₹75,000 – ₹35 L | 12 – 72 months | Up to 2.75% |
Note: Interest rates and charges may vary depending on credit profile, employer, and repayment history.
1. HDFC Bank Personal Loan
✅ Why Choose HDFC Bank?
- Instant loan disbursal in 10 seconds (existing customers)
- Special offers for salaried professionals
- Minimal documentation and no hidden charges
Eligibility:
- Salaried individuals earning ₹25,000+ per month
- Minimum age: 21 years
- Job stability of at least 2 years
2. ICICI Bank Personal Loan
✅ Why Choose ICICI Bank?
- Quick approval and flexible repayment options
- Online application and tracking
- Part prepayment allowed after 6 EMIs
Eligibility:
- Minimum salary: ₹30,000/month (metro cities)
- CIBIL score: 750+ preferred
3. State Bank of India (SBI) Xpress Credit Loan
✅ Why Choose SBI?
- Lower processing fee (starting from ₹1,000)
- No hidden charges
- Best for government and PSU employees
Eligibility:
- Salaried employees with salary account in SBI
- Age: 21–58 years
4. Axis Bank Personal Loan
✅ Why Choose Axis Bank?
- Wide loan range with competitive rates
- Foreclosure allowed after 12 months
- Discounts for premium customers
Eligibility:
- Salaried professionals
- CIBIL score above 700
- Minimum monthly income ₹25,000
5. Kotak Mahindra Bank Personal Loan
✅ Why Choose Kotak?
- 100% online paperless approval
- Same-day disbursal for pre-approved customers
- Affordable interest rate for salaried employees
Eligibility:
- Age 21 to 60 years
- ₹25,000+ monthly income
6. IDFC FIRST Bank Personal Loan
✅ Why Choose IDFC FIRST?
- Low interest rates and no hidden charges
- Flexible repayment with step-up EMI option
- Instant pre-approved loan availability
Eligibility:
- Salaried/self-employed
- Age 23 – 60 years
7. Bajaj Finserv Personal Loan
✅ Why Choose Bajaj Finserv?
- High loan eligibility up to ₹40 lakh
- Pre-approved offers and fast disbursal
- Flexible EMI plans
Eligibility:
- CIBIL score above 720
- ₹30,000+ monthly income
8. IndusInd Bank Personal Loan
✅ Why Choose IndusInd?
- Minimal documentation
- Special schemes for professionals
- Loans starting from ₹50,000
Eligibility:
- Salaried or self-employed
- Good repayment track record
9. Federal Bank Personal Loan
✅ Why Choose Federal Bank?
- Quick digital approval
- Low processing fee
- Trusted private sector bank
Eligibility:
- Resident Indian
- Salaried or self-employed with regular income
10. Tata Capital Personal Loan
✅ Why Choose Tata Capital?
- Loan amount up to ₹35 lakh
- Overdraft facility available
- Zero charges for part-prepayment
Eligibility:
- Age: 22–58 years
- Income: ₹20,000+ per month
Key Factors to Compare When Choosing a Bank
| Criteria | What to Look For |
|---|---|
| Interest Rate | Prefer banks offering 10.5%–13.5% |
| Processing Fee | Lower fee = lower upfront costs |
| Prepayment/Foreclosure | Charges and lock-in period |
| Disbursal Speed | Instant or within 48 hours is ideal |
| Credit Score Required | Prefer lenders accepting 700+ scores |
| Customer Support | Quality of service and complaint resolution |
Tips to Get the Best Personal Loan
- Improve Your Credit Score
Maintain a CIBIL score above 750 for better rates. - Compare Across Banks
Use loan comparison platforms like BankBazaar, Paisabazaar, or Cred. - Go for Pre-approved Offers
Banks often offer lower rates and faster disbursal to existing customers. - Avoid Multiple Applications
Too many loan inquiries can hurt your credit score. - Check the Fine Print
Understand foreclosure fees, hidden charges, and EMI bounce penalties.
Personal Loan EMI Example
Let’s take an example of a ₹5,00,000 personal loan at 11.5% interest for 5 years:
| Parameter | Value |
|---|---|
| Loan Amount | ₹5,00,000 |
| Interest Rate | 11.5% p.a. |
| Tenure | 60 months |
| EMI | ₹10,996 |
| Total Interest | ₹1,59,768 |
| Total Payment | ₹6,59,768 |
Frequently Asked Questions (FAQs)
1. Which bank gives personal loan with lowest interest rate in India?
Banks like ICICI, IDFC FIRST, and Kotak Mahindra often offer the lowest rates starting from 10.5% p.a., especially to high-credit-score borrowers.
2. How fast can I get a personal loan?
Some banks like HDFC and Axis provide instant disbursal to pre-approved customers. Others usually take 1–3 working days.
3. Do I need collateral for personal loans?
No, personal loans are unsecured loans, meaning no collateral is required.
4. Can I prepay or foreclose my personal loan early?
Yes, most banks allow this. However, some may charge a 1%–4% foreclosure fee. Check with your lender.
5. How much personal loan can I get on ₹30,000 salary?
You can generally get up to ₹3–5 lakhs, depending on your credit profile and existing debts.
Final Thoughts
Choosing the best bank for a personal loan in India involves more than just looking at interest rates. Consider prepayment options, processing time, fees, and customer service. Always compare multiple offers and read the loan agreement carefully before proceeding.
If you have a good credit score and a steady income, you’re in a strong position to negotiate for better terms.