Personal loans are among the most popular financial products in India, offering quick access to funds without the need for collateral. However, finding the cheapest personal loan in India with low-interest rates can make a significant difference in the overall repayment amount. Here is a list of the top 10 banks and NBFCs offering low-interest personal loans in India, ideal for individuals looking to manage finances effectively.

1. State Bank of India (SBI)

SBI offers one of the most affordable personal loan options in India. With interest rates starting as low as 9.60%, SBI’s Xpress Credit Personal Loan provides accessible funds to salaried employees of central and state government institutions, as well as corporate employees. Loan amounts can range from ₹25,000 up to ₹20 lakhs, depending on eligibility.

• Interest Rate: 9.60% onwards

• Processing Fee: 1% of the loan amount plus taxes

2. HDFC Bank

HDFC Bank is well-known for its fast processing and flexible personal loan options, with interest rates starting at around 10.50%. Their loans are ideal for salaried and self-employed individuals looking for quick disbursement and low EMIs.

• Interest Rate: 10.50% onwards

• Processing Fee: Up to 2.50% of the loan amount

3. ICICI Bank

ICICI Bank offers personal loans at competitive rates starting from 10.75%, making it one of the best choices for low-interest personal loans in India. ICICI also offers flexible tenures and allows pre-approved loans for select customers.

• Interest Rate: 10.75% onwards

• Processing Fee: Up to 2.25% of the loan amount plus GST

4. My Mudra

My Mudra provides attractive personal loan offers for salaried and self-employed individuals. Their interest rates begin at 10.49%, which makes them a solid option for affordable loans in India. With quick approvals and flexible repayment options, My Mudra is a strong contender in this category.

• Interest Rate: 10.49% onwards

• Processing Fee: 1.5% to 2% of the loan amount

5. Bajaj Finserv

Bajaj Finserv is an NBFC that provides personal loans with interest rates starting at around 13%, which might be slightly higher than some banks but compensates with faster processing and greater flexibility. Known for their efficient customer service and a wide range of loan options, Bajaj Finserv is popular for its high loan limits.

• Interest Rate: 13% onwards

• Processing Fee: Up to 4% of the loan amount

6. IDFC First Bank

IDFC First Bank offers some of the cheapest personal loan options in India, with interest rates beginning from 10.49%. The bank provides loans with flexible tenures and customized repayment options, making it an attractive choice for borrowers.

• Interest Rate: 10.49% onwards

• Processing Fee: 2% to 3.5% of the loan amount

7. Kotak Mahindra Bank

Kotak Mahindra Bank’s personal loans start at competitive rates of 10.99%, targeting salaried individuals and business owners who need quick financing. The bank has a streamlined application process, and its low interest rates make it a popular choice.

• Interest Rate: 10.99% onwards

• Processing Fee: Up to 2.5% of the loan amount

8. Tata Capital

Tata Capital is a renowned NBFC offering personal loans with interest rates beginning at 10.99%, designed for both salaried and self-employed individuals. Tata Capital offers a user-friendly application process and flexible tenures.

• Interest Rate: 10.99% onwards

• Processing Fee: 2.75% of the loan amount

9. Punjab National Bank (PNB)

Punjab National Bank is among the top choices for low-interest personal loans in India, especially for government employees and pensioners. Their interest rates start from 10.90%, and they offer multiple repayment options, making them a reliable option for affordable loans.

• Interest Rate: 10.90% onwards

• Processing Fee: 1% of the loan amount

10. Fullerton India

Fullerton India provides personal loans at competitive rates, starting from around 11.99%. Known for their customer-centric approach, Fullerton offers quick approvals and high loan amounts, making it a popular choice among NBFCs.

• Interest Rate: 11.99% onwards

• Processing Fee: 2% to 6% of the loan amount

Choosing the Right Option

When looking for the cheapest personal loan in India, comparing the interest rates, processing fees, and loan tenure options from different banks and NBFCs is essential. Always calculate the effective cost of the loan, including the total interest and additional fees, to find the most affordable option.

Tips to Secure Low-Interest Personal Loans in India:

1. Maintain a High Credit Score: A score above 750 often qualifies you for lower interest rates.

2. Compare Different Lenders: Use online loan comparison tools to see side-by-side interest rates and charges.

3. Negotiate with Your Bank: Existing customers can often negotiate lower rates or processing fees.

4. Opt for a Shorter Tenure: Shorter loan tenures generally mean lower interest costs over time.

5. Use Pre-Approved Offers: Many banks offer pre-approved personal loans at lower rates for loyal customers.

By carefully evaluating these factors, borrowers can secure low interest personal loans in India that align with their financial goals, making it easier to manage repayments effectively.