Simply put, it is an unsecured loan taken by individuals from Banks or NBFCs to meet their personal needs. It is provided on the basis of key criteria such as Income level, Credit Score, Employment History, Repayment Capacity, etc. Unlike a Home or Car Loan, a personal loan is not secured against any assets. The Personal Loan Interest rates is the most important factor which the customers consider before selecting any banks for availing the personal loan
As it is unsecured and the borrower does not put up collateral like Goods or Property to avail it, the lender in case of default, cannot auction anything you own. Therefore, their interest rate on personal loan are always higher than those on Home, Car or Gold Loans when sanctioning them. On our platform, you can compare the personal loans of various banks and NBFCs and get the cheapest loan deal on personal loans.
We have various banks in India which provide personal loans for employees or self-employed. Personal loan interest rates are different for different banks as per their policy and customers. The Banks generally have lower personal loan interest rates as compared to NBFCs and Private finance. The criteria for personal loans of Banks is a little tougher compared to NBFCs. The easiest way to get a personal loan from banks is to first compare with all the banks as per their terms and conditions.
The comparison of personal loan interest rates is an important factor before selecting any bank for a personal loan. Loans4dreams.com is a platform which helps our customers to compare all types of personal loan interest rates at one place for better decisions and understanding
Following is the table to compare personal loans interest rates from various banks in India
Bank | Interest Rate (p.a.) | Processing Fee |
| 10.5% p.a. - 21.00% p.a. | Up to 2.50% |
| 15% - 21% (fixed) p.a. | 3.00% |
10.99% p.a. onwards - 16.99% p.a. | At the discretion of the bank Up to 2.50% | |
| 9.99% p.a. - 16.49% p.a. | Up to 3% |
10.25% and above | Up to 2.5% | |
12% p.a.- 21% p.a. | At the discretion of the bank | |
10.49% p.a. - 31.50% p.a. | 3% onwards | |
9.50% p.a. - 15.25% p.a. | Up to 1% | |
10.49% p.a. onwards | Up to 3.5% | |
| 10.99% onwards | Up to 2.75% |
19% p.a. - 49% p.a. | 0%-5% | |
| 11.49% p.a. - 16.49% p.a. | At the discretion of the bank |
| 14% p.a. -26% p.a. | Up to 2% |
| 9.60% p.a. - 15.65% p.a. | Up to 1.50% |
| 12% p.a. - 17% p.a. | Maximum of Rs.8,500 |
10.50% p.a. - 12.50% p.a. | Up to 2% | |
| 10.49% p.a. - 17.99% p.a. | Up to 3% |
| 24% p.a. onwards | 2% onwards |
| 10.35% p.a. - 12.35% p.a. | Up to 2% |
| 11.99% p.a. - 36% p.a. | Up to 6% |
| 8.15% p.a. - 10.90% p.a. | Contact the bank |
| 9.40% p.a. - 19.00% p.a. | 0.30% onwards |
| 10.60% p.a. - 18.10% p.a. | Up to 2% |
| 9.30% p.a. - 10.80% p.a. | Up to 0.50% |
| 14% p.a. - 23% p.a. | Up to 3.5% |
| 7.90% p.a. onwards | Up to 1.00% |
| 9.45% p.a. - 12.80% p.a. | Up to 1% |
| 9.85% and above | Up to 1% |
| 12.75% p.a. | 1.00% subject to a minimum of Rs.250 |
| 10.80% p.a. | Up to Rs.500 |
Banks offering the lowest personal loan interest rate
BANKS | Personal Loan Amount | Tenure | RoI (%) |
IDBI Bank | >=25000 and <=5 Lacs | 12 - 60 Months | 8.90% - 14.00% |
Punjab National Bank | Upto 10 Lacs | Upto 60 months | 9.35% - 15.35% |
Indian Bank | >=50000 and <=5 Lacs | 12 - 36 Months | 9.40% - 9.90% |
Karur Vysya Bank | Upto 10 Lacs | 12 - 60 Months | 9.40% - 19.00% |
State Bank Of India | >=25000 and <=20 Lacs | 06 - 72 Months | 9.80% - 12.80% |
Benefits of Personal Loan
Multipurpose use
Being multipurpose in nature, it is a most desirable option in terms of financial products. As compared to other types of loans, it can be used for various purposes like renovating your home, marriage-related expenses, a family vacation, meeting unexpected medical expenses or any other emergencies.
Minimum & Simple Documentation
To avail personal loan, you have to give very less documents, unlike home loans. Therefore, it takes less time to get a personal loan.
Quick Approval
Since less documentation is required, they get instant approval from source bank. Personal loans are the quickest & easiest to get approval as compared to other loans.
Unsecured Loan (Collateral Free)
The online personal loan is an unsecured loan which means that the borrower does not have to provide any collateral to the lenders. You don’t have to explain to the bank where you want to use the personal loan amount.
Personal Loan Eligibility
Every Bank or NBFC providing personal loan have different eligibility requirement and needs. Still there are some common criteria for all the Banks & NBFCs. Before applying it is advisable to check eligibility on Eligibility Calculator.
1. Age
2. Minimum Net Income (Monthly)
3. Credit Score
4. Employment Type
5. Company Type
6. Work Experience
Documents – Personal Loan
- Pan card
- Residence Proof- Aadhar, Passport, Driving License, Voter ID, Utility Bills & Rent Agreement
- Identity and Age Proof
- Bank Statement (Latest 6 Months)
- Salary Slips (Latest 3 months)
- Completely filled personal loan form & Passport Size Color Photo
- Form 16 or ITR of last 2 years.