Personal loans are a great way to fulfill your short and long-term goals. As there is no limitation on what you can use the funds from a personal loan for, you can use it for vacations, medical bills, education, etc.
There are many personal loan companies in the market today, and choosing among them might be an ordeal. If you are in a similar position or want to take a loan, you are in luck, as this article will enumerate a list of companies to avoid or opt for while searching for the perfect loan with a lucrative interest rate.
However, before getting into the list, we must first be aware of what a personal loan is and what it entails.
A personal loan is a form of installment credit provided to the borrower. However, unlike a credit card, a personal loan delivers a one-time cash/online payment to the borrowers, who then pay back the amount along with interest in regular, monthly installments over the loan's lifetime, which is known as its term or tenure.
The interest rate on the loan amount is set according to the risk undertaken by the moneylender. This is the reason a good credit score is essential when opting for personal loans, as a good credit score inherently denotes low risk and therefore, low interest rates.
Let's now look at the top 15 personal loan companies in India -
| Personal Loan Provider | Interest Rate (p.a.) | Loan Amount |
|---|---|---|
|
State Bank of India |
11.35% - 14.50% |
Up to Rs.35 Lakh |
|
HDFC Bank |
10.75% - 24.00% |
Up to Rs.40 Lakh |
|
Moneyview |
10.00% onwards |
Up to Rs.10 Lakh |
|
IDBI Bank |
11.00% to 15.50% |
Rs.25,000 - Rs.5 Lakh |
|
Axis Bank |
11.25% - 22.00% |
Rs. 50,000 - Rs. 40 Lakh |
|
Indian Overseas Bank |
10.85% - 13.00% |
Up to Rs. 15 Lakh |
|
ICICI Bank |
10.85% - 16.25% |
Up to Rs. 50 Lakh |
|
HSBC Bank |
9.90% - 15.00% |
Rs. 75,000 - Rs. 30 Lakh |
|
Andhra Bank |
13.35% - 15.45% |
Up to Rs. 15 Lakh |
|
UCO Bank |
13.50% onwards |
Up to Rs. 20 Lakh |
|
Punjab National Bank |
12.40% - 17.45% |
Up to Rs. 20 Lakh |
|
Canara Bank |
Up to 17.00% |
Up to Rs. 30 Lakh |
|
TurboLoan by Cholamandalam |
From 14.00% |
Up to Rs. 2.5 Lakh |
|
Finance Buddha |
10.50% - 18.00% |
Up to Rs. 75 Lakh |
|
Mahindra Finance |
From 10.99% |
Up to Rs. 15 Lakh |
SBI personal loans offer some of the best interest rates in the entire country. SBI offers various personal loan products like Xpress Flexi Loans, Pension Loans, Quick Personal Loans, Xpress Elite, etc.
The maximum loan amount you can get varies from Rs.25 Lakh to Rs.35 Lakh based on the product you choose and your eligibility. The interest rates range from 11.35% - 14.50% and the tenure can be up to 6 years.
One of the leading options, incredibly affordable interest rates and relaxed payment schedules are characteristic of HDFC personal loans.
The interest rate offered is between 10.75% - 24.00% p.a. The loan amount can be up to Rs.40 Lakh with a repayment tenure ranging from 3 - 72 months.
Moneyview offers instant personal loans at lucrative interest rates. The rate of interest starts from 10% p.a. However, the processing fee is nominal, and minimal documentation is required. The loan amount ranges from Rs.5,000 to Rs.10 Lakh, with a maximum repayment tenure of 5 years.
IDBI Bank personal loans boast attractive interest rates and offer you solutions to many personal and even professional expenses. The processing fee is meager, as low as 1.00% of the loan amount subject to a minimum of Rs.2,500/- plus applicable taxes.
The interest rate offered ranges from 11.00% to 15.50% p.a. The loan amount ranges from Rs.25,000 to Rs.5 Lakh. The tenure of the loan is 12 - 60 months.
The Axis Bank personal loans offered by Axis Bank have the unique characteristic of no hassle paperwork and easy approval. The loans are easily accessible, and the repayment schedule is also equally relaxed.
The rate of interest offered ranges from 11.25% to 22.00% p.a. The loan amount ranges from Rs.50,000 to Rs.40 Lakh. The tenure ranges from 12 to 84 months.
The Indian Overseas Bank offers loans to those who have a stable source of income. These loans are meant for PSU employees, and employees of the government, reputed private firms, and other companies.
The rate of interest offered starts from 10.85% p.a. and goes up to 13.00% p.a. You can get loans up to 20,15, or 10 times your salary or Rs.15 Lakh, whichever is lower as per your category and eligibility. The maximum tenure of the loan is 84 months.
ICICI Bank offers personal loans of up to 7 years’ repayment choices. The loans offered are all aimed at the average Indian consumer.
The interest rate ranges from 10.85% to 16.25% p.a. The loan amount goes up to Rs.50 Lakh. The ICICI Bank charges no foreclosure charges after 12 months’ loan EMIs have been paid.
HSBC Bank offers MyTerms Credit which entails 4 simple repayment options along with competitive interest rates. There also are special relationship discounts with existing customers.
The interest rate ranges from 9.90% p.a. to 15.00% p.a. The loan amount ranges from Rs.75,000 to Rs.30 Lakh. The loan tenure ranges from 6 months to 5 years.
Andhra Bank (now merged with Corporation Bank to form Union Bank of India) has its headquarters in Hyderabad, Telangana, and offers complete coverage of all personal expenses.
The interest rate offered ranges from 13.35% to 15.45% p.a. The maximum loan amount is Rs.15 Lakh. The maximum tenure of the loan is 5 years.
UCO Bank offers a personal loan scheme that has been customized to take care of various expenses and other personal obligations. One can repay the loan in 48 EMI installments.
The interest rate for the loan starts at 13.50% p.a., and the maximum amount is up to Rs.20 Lakh. The maximum tenure of the loan is 80 months or 7 years.
Punjab National Bank offers a personal loan at a reasonable interest rate to help you meet your immediate financial expenses. You can get loans of up to 24 times your gross monthly salary with a maximum of Rs.20 Lakh depending upon your repaying capacity.
PNB offers interest rates of 12.40% to 17.45% p.a.and the maximum repayment tenure ranges from 5 years.
Canara Bank offers a personal budget loan as well as a teacher's personal loan. The teacher's loan is perfect for customers who are new to the teaching field and are in need of an urgent personal loan.
The interest rate is up to 17.00% p.a based on multiple factors. The maximum loan amount is 25 months’ gross salary or Rs.30 Lakh. The repayment tenure is up to 84 months.
Turboloan is a personal loan provided by Cholamandalam or Chola, which offers an entirely digital and paperless method to avail of a personal loan. The interest rates are manageable, and the features of same-day disbursement and instant e-approval are eye-catching.
The interest rates start at 14.00% p.a. onwards, and the maximum loan amount is Rs.2.5 Lakh, with the tenure being up to 60 months.
Finance Buddha is one of the fastest-growing personal loan companies with relatively quick processing of loans and free loan advice. However, they have yet to make a noteworthy mark in the mainstream market as they are still relatively new.
They offer competitive interest rates ranging from 10.50% - 18.00 % p.a. for up to 5 years. The maximum amount of money provided is Rs.75 Lakh.
Mahindra Finance is counted among the top NBFCs (Non-Banking Financial Companies).
Their interest rates on personal loans start from 10.99% p.a. The maximum loan amount is up to Rs.15 Lakh, and the maximum loan tenure ranges from 24 months to 60 months.
You can go through the list of top loan companies in India and choose the one that is best for you. When comparing loan companies, the interest offered by them plays a major role.
The importance of interest rates is only truly understood by those burdened by heavy interest rates meted out by the banks. The rates of interest, which differ by only 1 or 2 percent, might signify an enormous difference of lakhs of rupees to be paid extra over the original sum.
However, consider other factors as well like ease of paying EMIs, flexible repayment tenures, and penalties for missed payments. In case you need funds immediately, you can consider digital lending apps like Moneyview which approve and disburse loan amounts within 24 hours in most cases.
Before selecting a bank, NBFC, or online lender, consider factors like interest rates, processing fees, prepayment charges, and eligibility criteria. You can also see how long they take to approve loans and what documents they require.
Yes, you can easily apply for a personal loan online from online lenders. But nowadays, all banks and NBFCs also have an online presence.
Interest rates vary, but they typically range from about 10% to 24% per annum, depending on the lender and your credit profile.
Yes, most online lenders and NBFCs approve and disburse loans almost instantly if your documents are in order.
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