Best Personal Loans in India 2025
In today’s fast-paced world, financial emergencies can arise at any time—whether it’s for medical expenses, home renovation, debt consolidation, or a dream vacation. A personal loan is one of the most convenient ways to get quick funds without collateral.
Lowest Interest Rates & Instant Approval
But with so many banks and NBFCs (Non-Banking Financial Companies) offering personal loans at varying interest rates, how do you choose the best one? This guide will cover:
✅ Top 10 personal loan providers in India (2024)
✅ Lowest interest rates & eligibility criteria
✅ How to get instant approval
✅ Documents required & EMI calculator
✅ Tips to avoid loan rejection
By the end, you’ll know exactly where to get the cheapest personal loan with the fastest disbursal.
1. What is a Personal Loan?
A personal loan is an unsecured loan (no collateral needed) that can be used for any purpose—weddings, travel, medical bills, or debt repayment. Banks and NBFCs offer these loans based on your credit score, income, and repayment capacity.
Key Features:
- Loan Amount: ₹10,000 to ₹50 lakhs
- Interest Rate: 9% to 24% p.a.
- Tenure: 1 to 7 years
- Disbursal Time: 24 hours to 7 days
2. Top 10 Personal Loan Providers in India (2024)
Here are the best banks & NBFCs for personal loans based on interest rates, approval speed, and customer reviews:
| Lender | Interest Rate (p.a.) | Loan Amount | Processing Fee |
|---|---|---|---|
| HDFC Bank | 10.50% – 21% | Up to ₹40 lakh | Up to 2.5% |
| ICICI Bank | 10.75% – 19% | Up to ₹50 lakh | Up to 2.25% |
| Axis Bank | 10.49% – 22% | Up to ₹40 lakh | Up to 2% |
| SBI Personal Loan | 11% – 15% | Up to ₹20 lakh | 1% (min. ₹1,000) |
| Bajaj Finserv | 11% – 35% | Up to ₹50 lakh | Up to 3.99% |
| Kotak Mahindra | 10.99% – 24% | Up to ₹30 lakh | Up to 2.5% |
| IDFC First Bank | 10.49% – 36% | Up to ₹1 crore | Up to 3.5% |
| Tata Capital | 10.99% – 22% | Up to ₹35 lakh | Up to 2.75% |
| MoneyTap | 13% – 24% | Up to ₹5 lakh | 2% – 3% |
| EarlySalary | 12% – 24% | Up to ₹5 lakh | 1% – 3% |
Note: Interest rates vary based on credit score, income, and lender policies.
3. How to Get the Lowest Interest Rate?
Personal loan interest rates depend on:
✔ Credit Score (CIBIL Score) – 750+ gets the best rates
✔ Monthly Income – Higher salary = Lower risk for lenders
✔ Employer Reputation – MNC/govt. employees get better deals
✔ Existing Relationship – Existing bank customers get discounts
Tips to Reduce Interest Rate:
- Improve CIBIL score (pay credit card bills on time)
- Compare lenders before applying (use Paisabazaar, BankBazaar)
- Negotiate with banks if you have a good repayment history
4. Personal Loan Eligibility Criteria
Each lender has different requirements, but the general eligibility is:
✅ Age: 21-60 years
✅ Minimum Salary: ₹15,000 – ₹25,000/month (varies by city)
✅ Employment Type: Salaried or Self-Employed
✅ CIBIL Score: 650+ (750+ for best rates)
Documents Required:
- PAN Card & Aadhaar Card
- Salary Slips (last 3 months)
- Bank Statements (6 months)
- Proof of Employment (if required)
5. How to Apply for a Personal Loan Online?
Getting a personal loan is now 100% digital. Follow these steps:
- Check Eligibility – Use tools like Paisabazaar or Cred
- Compare Interest Rates – Choose the best lender
- Fill Online Application – Submit KYC & income docs
- Get Approval – Some lenders give instant approval
- Loan Disbursal – Amount credited in 24-72 hours
Pro Tip: Pre-approved loans (from HDFC, ICICI, Axis) have faster processing.
6. Personal Loan EMI Calculator
Use this formula to calculate EMI:
EMI = [P x R x (1+R)^N] / [(1+R)^N-1]
Where:
- P = Loan Amount
- R = Monthly Interest Rate (Annual Rate/12)
- N = Loan Tenure (in months)
Example:
- Loan Amount: ₹5 lakh
- Interest Rate: 12% p.a.
- Tenure: 5 years (60 months)
- EMI = ₹11,122
Use online EMI calculators (BankBazaar, Groww) for accuracy.
7. How to Avoid Personal Loan Rejection?
Common reasons for rejection:
❌ Low CIBIL Score (<650)
❌ High Existing Debt (FOIR >50%)
❌ Unstable Job History
❌ Multiple Loan Applications
How to Improve Approval Chances?
✔ Check free CIBIL report before applying
✔ Clear old debts to reduce credit utilization
✔ Avoid multiple applications (hard inquiries hurt score)
8. Instant Personal Loan Apps (No Documents)
If you need urgent cash, try these apps:
📱 KreditBee – Up to ₹4 lakh (24 hrs disbursal)
📱 MoneyTap – Line of credit up to ₹5 lakh
📱 CASHe – Salary-based loans (no CIBIL check)
📱 EarlySalary – Instant salary advance
Warning: These apps charge higher interest (18%-30%) than banks.
9. FAQs on Personal Loans
Q1. Which bank gives the cheapest personal loan?
SBI & IDFC First Bank offer the lowest interest rates (from 10.49%) for high CIBIL scorers.
Q2. Can I get a personal loan without a salary slip?
Yes, some NBFCs (Bajaj Finserv, Tata Capital) offer loans based on bank statements.
Q3. Does checking interest rates affect CIBIL score?
No, soft inquiries (pre-approved offers) don’t hurt your score.
Q4. How to get a ₹10 lakh personal loan?
You need a minimum salary of ₹50,000/month and a CIBIL score of 750+.
10. Conclusion – Which is the Best Personal Loan?
If you want the lowest interest rate, go for SBI, HDFC, or IDFC First Bank. For instant approval, try Bajaj Finserv or MoneyTap.
Final Tips:
🔹 Compare 3-4 lenders before applying
🔹 Avoid prepayment penalties (check T&C)
🔹 Never default on EMIs (harms credit score)
Need help choosing? Drop your salary & credit score in the comments for a personalized recommendation!
