Top 10 Banks & NBFCs for Low-Interest Personal Loans in India

Personal loans are a popular financing option for individuals looking to meet urgent financial needs such as medical emergencies, education, travel, or debt consolidation. Choosing the right lender offering the cheapest personal loan in India is critical to minimize your financial burden. Here's a list of the top 10 banks and NBFCs (Non-Banking Financial Companies) that provide low-interest personal loans in India along with their key features and benefits.

1. State Bank of India (SBI)

SBI is one of the largest and most trusted banks in India, offering personal loans at competitive interest rates starting from as low as 10.10% per annum. The loan tenure can range up to 6 years, making it a flexible choice for borrowers.

Key Features:

• Minimal processing fees

• Quick disbursal process

• Special offers for salaried employees and pensioners

2. HDFC Bank

HDFC Bank provides personal loans with interest rates starting at 10.25% per annum. Known for its hassle-free online application process, HDFC Bank ensures quick approval and disbursement within 24 hours.

Key Features:

• No need for collateral or guarantors

• Pre-approved offers for existing customers

• Flexible repayment options

3. ICICI Bank

ICICI Bank offers personal loans at interest rates starting from 10.50% per annum. With its robust digital platform, customers can apply online and get approval in a few minutes.

Key Features:

• Loan amounts up to ₹40 lakh

• Instant approval for pre-qualified customers

• No hidden charges

4. My Mudra

My Mudra provides low-interest personal loans with rates starting at 10.49% per annum. The bank’s loan offering caters to salaried professionals, self-employed individuals, and business owners.

Key Features:

• Simple documentation

• Flexible repayment tenures up to 5 years

• Option to pre-close loans without hefty penalties

5. Kotak Mahindra Bank

Kotak Mahindra Bank offers personal loans with interest rates beginning at 10.99% per annum. Known for its transparent terms and fast processing, Kotak is a preferred choice among many borrowers.

Key Features:

• Digital application process

• High loan approval rates

• No collateral required

6. Bajaj Finserv

Bajaj Finserv, a leading NBFC, is known for its attractive personal loan options with interest rates starting from 11.00% per annum. The NBFC offers a seamless borrowing experience through its advanced digital platform.

Key Features:

• Loan disbursal in just 24 hours

• Loan amounts up to ₹40 lakh

• Flexible tenures ranging up to 60 months

7. Tata Capital

Tata Capital provides affordable personal loans with interest rates starting at 10.99% per annum. The NBFC is known for its customer-centric approach and personalized loan solutions.

Key Features:

• Online loan tracking

• Minimal documentation

• No hidden fees

8. IDFC FIRST Bank

IDFC FIRST Bank offers personal loans with interest rates starting from 10.49% per annum. The bank is recognized for its innovative financial products and customer-friendly policies.

Key Features:

• Quick online approval

• No prepayment charges after six months

• Loan amounts up to ₹40 lakh

9. Fullerton India

Fullerton India provides personal loans tailored to the needs of salaried and self-employed individuals. Interest rates start from 11.99% per annum.

Key Features:

• Easy online application process

• Loan amounts up to ₹25 lakh

• Flexible repayment options

10. PNB Housing Finance

PNB Housing Finance offers low-interest personal loans starting at 11.50% per annum. It is ideal for borrowers seeking a reliable NBFC for their financing needs.

Key Features:

• Flexible loan tenures

• High loan approval rates

• Transparent terms and conditions

Tips to Secure the Cheapest Personal Loan in India

1. Maintain a Good Credit Score: A credit score above 750 improves your chances of getting a low-interest personal loan.

2. Compare Offers: Use online loan comparison platforms to find the best lender offering the lowest rates.

3. Negotiate with the Lender: Existing customers with a strong repayment history can negotiate for better terms.

4. Choose the Right Loan Tenure: Opt for a shorter tenure to save on overall interest costs.

Finding the right lender offering low interest personal loans in India can significantly impact your financial health. Ensure you research thoroughly, compare multiple options, and understand the terms and conditions before making a decision. By choosing one of the above banks or NBFCs, you can secure a loan that meets your financial needs without straining your budget.