Best Personal Loans in India
Personal loan rates in India range from 10.5% to 24% depending on credit score, income, and lender. Salaried employees with credit score above 750 get the best rates. Pre-approved offers from your salary bank usually beat fresh applications. Here is the honest comparison.
Side-by-side comparison
| Lender | Interest rate | Processing fee | Prepayment fee | Min income | Approval time |
|---|---|---|---|---|---|
| HDFC Bank Personal Loan | 10.50% - 24% p.a. | Up to 2.5% | Nil after 12 months | Rs 25,000/month | 24-72 hours |
| ICICI Bank Personal Loan | 10.65% - 22% p.a. | Up to 2.5% | 5% in first year, nil after | Rs 30,000/month | 3 days for non-salary customers |
| Axis Bank Personal Loan | 10.49% - 22% p.a. | Up to 2% | Nil after 36 months | Rs 25,000/month | 24 hours |
| SBI Xpress Credit | 11.05% - 14.30% p.a. | 1.5% | Nil | Rs 25,000/month (govt employees lower) | 3-7 days |
| Bajaj Finserv | 11% - 32% p.a. | Up to 4% | 4% if prepaid in first 6 months | Rs 22,000/month | 24-48 hours, instant for pre-approved |
| Tata Capital | 10.99% - 20% p.a. | Up to 3% | 4.5% in first year | Rs 25,000/month | 48 hours |
The verdict
Frequently asked questions
What is the minimum CIBIL score for personal loan?
Most major banks require CIBIL above 750 for best rates. Score 700-749 gets approved at higher rates (12-15%). Below 700, expect 18-24% rates from NBFCs. Some lenders (Bajaj Finserv) approve at 685+ with sufficient income.
Can I prepay my personal loan without charges?
Most banks charge 4-5% prepayment fee in the first year. SBI Xpress Credit and HDFC (after 12 months) allow zero-fee prepayment. Always negotiate this clause before signing — many bank executives can waive it for good profile customers.
Personal loan vs credit card cash advance - which is cheaper?
Personal loans are dramatically cheaper. Credit card cash advances charge 36-40% APR + 2.5-3.5% upfront fees. Personal loans at 11-15% are 2-3x cheaper. Always prefer personal loan over cash advance.
How much can I borrow as personal loan?
Most banks offer up to Rs 25 lakh personal loan. Maximum eligibility = ~10-12x your monthly net income for established salary, less for self-employed. Keep total EMI obligations under 50% of monthly income for approval.
Should I take personal loan or top-up home loan?
Top-up home loan is cheaper (8.5-10% vs 11-15% personal loan) but requires existing home loan and has longer processing. For amounts above Rs 5 lakh and existing home loan, top-up wins. For smaller amounts or speed, personal loan wins.