A personal loan is usually an unsecured credit medium, which can come in handy to fulfill your minor financial needs. This can include requirements for wedding funds to home renovation or any other medical needs. In these short term loans, the applicant is not allowed to place any asset or collateral against the loan. A personal loan can act like a lifesaver and save you from an unforeseen financial distress. Pretty much anyone with a solid creditworthiness and a decent credit score can apply for Personal Loans in India. Getting such loans is pretty easy and can really help make your life easy. So, we have listed 5 best banks you should consider while applying for a personal loan based on their salient minimum.
Top 5 Banks for Personal Loans in India
SBI – State Bank of India
- SBI is known for offering multiple types of loan from SBI Xpress Credit, Loan to Pensioners, Saral Personal Loan and Festival Personal loan.
- An applicant can apply for almost 25 times the amount of his monthly income for a personal loan in SBI. SBI implies an interest rate of 12.45 % – 14.95 %. The wide range of SBI branches makes it a suitable loan option.
- SBI is well reputed and known brand in the country which holds a solid goodwill in the market. Any salaried or employed applicant, with a 2 years’ experience in a paid job, is eligible to apply for a loan in SBI. It is a state bank which makes it one of the most popular banks in the country.
- ICICI Bank offers three type of personal loans which include holiday loans, wedding loans, and home renovation loans. They are known for charging an interest rate on a daily reducing balance pattern, which can get to a minimum limit of 11.29%.
- The simple repayment options and easy documentation, procedure held by ICICI bank makes it a suitable choice.
- They offer loans for both self-employed and salaried applicant, but the application and verification procedure is different for both these categories.
- HDFC offers really highly competitive interest rates, which start at just 10.99%.
- Majority of self-employed and salaried applicants fall in the eligibility criteria to apply for a personal loan here. They are known for sanctioning loan swiftly, with minimal documentation.
- Recently the bank has been promoting its pre-approved 10-second offer of paperless loaning.
- The bank offers a special deal on the interest rate for its account holders.
- The transparent and quick processing procedure of HDFC has made it one of the most popular banks for applying for the personal loan in the country.
- Axis Bank is known for their short TAT (Turnaround Time) scheme, which includes the bank conveying a decision within 30 days period, from the date on which the loan application was submitted.
- The banks only offer loan to self-employed and salaried individuals who have a regular flow of monthly income.
- Their loan interest rates usually start at 11.49%, which is quite reasonable compared to other competing brands in the country.
- Axis Bank also has a policy of Axis eDGE Loyalty Reward, in which they offer points to the applicants based on the amount they have loaned. These points can be used and redeemed while shopping online or offline.
Punjab National Bank
- Punjab National Bank aka PNB offers personal loan under two categories – Personal Loan for Pensioners and Personal loan for Public.
- Their interest rate starts at a reasonable ratio of just 11.90% on their personal loans. This percentage is amongst the most competitive interest rate in the market.
- The bank also considers the total income of the applicant’s spouse, while calculating and analyzing the repayment capacity while sanctioning the loan.
- Punjab National Bank is gracious while lending money; their personal loan amount can range between Rs 25000 to 40 lakh depending on the credit score and monthly income of the applicant. You can apply almost 20 times the amount of your monthly salary as a loan here.
- They offer some of the best deals for defense personnel’s, self-employed professionals and state or central government employees.
These are some of the most popular financing institutes in the country, who are preferred for their swift and instant loan procedure. We recommend you select any of these banks if you are planning on applying for a personal loan. Prefer going for the bank in which you already have a bank account. We have listed all the factors from the percentage of their interest rates to the eligibility criteria, which help you choose the best choice.