Best Personal Loan Companies In India

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The easiest way to raise money to meet various personal needs is to get a personal loan. Perhaps more importantly, you do not need to provide collateral to get this loan and there is almost no limit on using the borrowed money. But borrowing money also means paying interest, processing fees, documentation costs, and the like. This way, being able to compare the best personal loan offers available will help you make an informed decision. Read on to learn how to compare different loan offers to choose the most suitable personal loan offer for you.

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How to choose the best personal loan?

To choose the best personal loan offer, you first need to identify the features with which you can compare the available offers. The following are key features that can help you identify the best personal loan offers available:

  • Low-interest rate: The interest rate determines the amount you will have to pay in addition to the main principle of the loan during the repayment period. The best personal loan deals usually have the lowest interest rates as they will cost you less to borrow.

  • Interest method to reduce the balance: not only the interest rate quantum but also the method of calculating interest affects the cost of the loan. Personal loan interest is calculated using one of two methods: the flat or diminishing balance method. Usually, your interest payment is lower when you use the interest calculation method to reduce your balance if both fixed-rate and lower-rate offers have the same interest rate. Therefore, the best personal loan deals usually use the balance to reduce the calculation.

  • A low processing fee: the processing fees normally charged for the loan will be canceled; therefore, the lower they are the better for the lender. Therefore, the best personal loan offers have low processing fees (ideally the Nile), including administration or documentation costs associated with your loan application.

  • Part prepayment and partial fulfillment: the perfect personal loan offer will allow you to pay off the loan amount before the maturity is established, in part (partial prepayment) or in full (execution) at the minimum additional cost. The partial and full prepayment of the loan allows you to save substantially on the interest component of the loan and the partial advance/action (ideally nowhere) means more money in your pocket.

  • Simple documentation and quick distribution: Personal loans favor lenders because of the simple documentation and quick payment. To save time by choosing to offer a personal loan that gives you the shortest time and easiest documentation.

  • Flexible payment season: Most personal loan offers have a period of permanent repayment, generally between 12 and 60 months. EMI allows you to pay at your convenience if you have the least impact on your monthly budget. In some cases, you can also earn extra flexibility in the form of ticket payments, which is desirable for applicants with seasonal cash flow.

The best personal loan checklist above is designed to help you compare the loan offers available, and in a real-world scenario you rarely, if ever, get an offer that states with all the boxes. So the reality is that you should settle for the non-ideal personal loan option. However, even though the selected loan offer meets most of the above criteria, you will decide and choose the best personal loan offer available to you.

Types of personal loans

The main personal loans for final use are:

  • Marriage loan: This loan can be used to cover costs associated with marriage, such as booking, hospitality, accommodation, etc.
  • Home Renovation Loan: This is the best option if you want to refurbish your home furniture or incur some maintenance costs.
  • Medical loan: Personal loans also help you deal with the costs associated with a medical emergency.
  • Travel loan: The loan allows you to travel around the world with friends and family. 
  • Debt Consolidation Loan: This is a special type of personal loan, where you can pay off many small loans and pay the EMI Company for better debt management.
  • Permanent Consumer Loan: Often called a purchase loan, it can be used to pay for white goods and electronics, such as washing machines, mobile phones, laptops, etc.
  • Immediate personal loan: Also known as a previously approved personal loan, immediate personal loans are offered to existing bank customers and negative bank lenders. They are minimal in terms of documentation and fast distribution.
  • Personal Loan Collection: Refers to a second personal loan existing to meet the request for additional funds.

Important personal loan calculators

Some of the most important personal loan calculators are:

EMI personal loan calculator

This personal loan calculator will help you calculate your monthly payment based on the following parameters:

  • Total loan,
  • Interest rates 
  • Loan ownership.

Must Read : Best Car Loan Bank In India

Personal loan eligibility criteria

Below are the criteria selected by Indian banks and NBFCs for obtaining a personal loan. The best personal loan deals can usually be said to be those with the broadest criteria.

  • Regular source of income: You should have a fixed income, such as a monthly salary, a pension, or the right to a personal loan for business income.
  • Age: For most personal loan providers, the minimum age of the applicant must be 21 years.
  • Good Credit Score: Refers to a 3-digit summary of your credit report and is a direct reflection of your payment history. The score ranges from 300 to 900 and as the score increases, so does the chance of getting a personal loan.
  • Employer Reputation: Working with a reputable private employer or central or state government improves your chances of getting a personal loan, as it implies job stability.
  • Work experience/business duration: Most banks and BNFCs offer personal loans to people with at least one year’s experience, whether employed or at least 2 years’ experience, if self-employed.

Benefits of a personal loan

The following are advantages that make a personal loan one of the best options for applying for personal loans:

  • End-use flexibility: You can use a personal loan for almost any purpose, such as weddings, home renovations, medical emergencies, and more.
  • Guarantee free / no guarantee: in general, do not require collateral or security for a personal loan, car loans, or unlike home loans.
  • Minimum documentation: As there is no collateral between the personal loan, minimum documentation is required. You will need to provide proof of identity, residence, and income in most cases.
  • Quick repayment: The amount of the personal loan is usually given and approved in a few days.
  • Permanent repayment flexibility: Generally, you can repay the loan for up to 5 years, depending on your convenience.

Top 10 Best Personal Loan Companies In India

The companies that avail the borrowers with a personal loan in India. These companies avail their customers with their services in the best way. Their schemes are good enough to trust them blindly. These are top-rated companies. These companies have good customer reviews and ratings. These things are good enough to apply for a personal loan from these. Each bank detail is here. You can read it carefully if anyone of giving companies suits you well, you can get in touch with it.

#1.Union Bank

Union Bank of India is one of the largest banks in India which is government-owned. This Bank was found in 1919. Its headquarter is in Mumbai, India. This bank offers the best schemes for personal loans in India.

Latest Interest Rate:

The latest interest rate of Union Bank for a personal loan is 8.90%.

Personal loan interest calculator formula:

Union Bank of India’s personal loan EMI can be calculated with the help of the following formula.

  •  P*r* (1+r)^n/([(1+r)^n]-1)

⇒In the above formula, 

P – Represents the Loan amount, which ranges from 50,000 to 5 lacs.

R – Represents the Rate of interest per month, and the current rate is 11.00%.

N – Represents loan tenure in the month, for this bank n is 60 months.

Features:

  • For the personal loan, salaried people and also the self-employees are eligible.
  • The minimum age of the borrower must be 21 years and a maximum of 58 years.
  • Loan tenure is a maximum of 5 years.
  • This bank offers the Lowest Emi which is Rs.2,174/- per lac.

Personal loan EMI Calculator for the different loan tenures for 11.00% interest rate:

Amount of loanLoan tenure2 yearsLoan Tenure3 yearsLoan Tenure5 year
        1 lac Rs. 4,661/-Rs. 3,274/-Rs. 2,174/-
        3 lacRs. 13.982/-Rs. 9,822/-Rs. 6,523/-
        5 lacRs. 23,304/-Rs. 16,369/-Rs. 10,871/-
      10 lacRs. 46,608/-Rs. 32,739/-Rs. 21, 742/-

Benefits:

  • They offer the lowest EMI.
  • They provide special schemes for the borrowers which are government employees in reputed companies.
  • They offer the maximum loan amount with a lower interest rate.
  • Their processing is quick.
  • The documents they required from the borrower are simple and basic.

#2.Punjab National Bank

Punjab National Bank is a government bank founded in 1894.  This bank is the second-largest government-owned bank in India on the basis of business and network. It has 1300+ branches. Its headquarter is in New Delhi, India. 

This bank also provides affordable loans for personal loans in India.

Latest Interest Rate: The latest interest rate of this bank is 11.80%.

Personal loan interest calculator formula:

Punjab National Bank’s personal loan EMI can be calculated with the help of the following formula.

EMI = [P*R* (1+R)^N/([(1+R)^N]-1)

⇒In the above formula, 

P – Represents the Loan amount, which is Rs.50,00/- to 15 lacs

R – Represents the Rate of interest per month. And the current rate of interest is 8.95%

N– Represents loan tenure in the month, which is a maximum of 5 years.

Features:

  • Their processing fee is 1.8%.
  • They do not allow prepayment charges.
  • Both the self employees and the salaried person are eligible for the personal loan.
  • Loan tenure is from 1 year to 5 years.

Benefits:

  • They provide special schemes for the borrowers which are government employees in reputed companies.
  • They offer the maximum loan amount with a lower interest rate.
  • Their processing is quick and within no time your loan will be approved.

#3.State Bank of India

State Bank of India is a multinational company of India. SBI Bank was founded in 1955. It provides public sector banking and also financial services.  The main headquarter of SBI is in Mumbai, Maharashtra. This bank provides services worldwide. It has a total of 22,141 branches and 58,555 ATMs that are running.

SBI Bank is one of the best and at the top for a personal loan in India.

Latest Interest Rate: The latest interest rate of this bank is 9.60%

Personal Loan EMI Calculator At Different Tenures:

Loan AmountLoan TenureLoan TenureLoan Tenure
1 lacRs. 4,596/-Rs. 3,208/-Rs.1,832 /-
3 lacRs.13,788 /-Rs. 9,624/-Rs. 5,497/-
5 lacRs.22,980 /-Rs.16,040 /-Rs. 9,162/-
10 lacRs. 45,961/-Rs. 32,080/-Rs. 18,325/-

Personal loan interest calculator formula:

State Bank of India’s personal loan EMI can be calculated with the help of the following formula.

EMI = [P*R* (1+R)^N/([(1+R)^N]-1)

In the above formula, 

P Represents the Loan amount, which is Rs.50,00/- to 15 lacs

R represents the Rate of interest per month. And the current rate of interest is 9.60%

N represents loan tenure in the month, which is a maximum of 6 years.

Features:

  • They offer the lowest EMI which is Rs. 1,832.
  • The age of the borrower must be minimum of 21 years and a maximum of 58 years.
  • Loan tenure is from 6 months to 6 years.
  • The loan amount starts from a minimum of Rs. 50,000/- and ends at a maximum of 15 lacs.

Benefits:

  • They provide special schemes for the borrowers which are government employees in reputed companies.
  • They offer the maximum loan amount with a lower interest rate.
  • Their processing is quick.
  • The documents they required from the borrower are simple and basic.

#4.Bank of Baroda

Bank of Baroda is a government Bank founded in 1908. This bank is a financial services company. It is the third-largest government bank in India. Its headquarters are in Vadodara and Gujrat in India. Bank of Baroda owns the unique features and services for the borrowers.

Latest Interest Rate: The interest rate of this bank is 10.50%.

Personal Loan EMI Calculator At Different Loan Tenures:

Loan amountLoan tenure2 yearsLoan Tenure3 yearsLoan tenure5 years
1 LacRs.4,638 /-Rs.3,250 /-Rs.2,149 /-
3 LacRs. 13,913/-Rs.9,751 /-Rs.6,448 /-
5 LacRs.23,188 /-Rs. 16,251/-Rs.10,747 /-
10 LacRs.46,376 /-Rs.32,502 /-Rs.21,494 /-

Personal loan interest calculator formula:

Bank of Baroda’s personal loan EMI can be calculated with the help of the following formula.

EMI = [P*R* (1+R)^N/([(1+R)^N]-1)

⇒In the above formula, 

P represents the Loan amount, which is Rs. 50,00/- to 5 lacs

R represents the Rate of interest per month. And the current rate of interest is 10.50%

N represents loan tenure in the month, which is a maximum of 5 years.

  • Features:
  • Their loan tenure is from 1 year to 5 years.
  • This bank allows prepayments after one month.
  • Their processing fee is Rs. 200/-
  • They do not allow prepayments.
  • Both the salaried and self employees are eligible for the personal loan.

Benefits:

  • They provide special schemes for the borrowers which are government employees in reputed companies.
  • They offer the maximum loan amount with a lower interest rate.
  • Their processing is quick.
  • The documents they required from the borrower are simple and basic.

#5.HDFC Bank

The Housing Development Finance Corporation (HDFC) was founded in 1994. HDFC Bank is one of the largest private sectors of India bank by assets. Its main headquarter is in Mumbai, Maharashtra. It provides financial services.

HDFC bank is also the best and at the top for a personal loan.

Latest Interest Rate: The interest rate of this bank is 10.50%.

Personal Loan EMI Calculator at Different Tenures:

Loan amountLoan tenure2 yearsLoan tenure3 yearsLoan tenure5 years
1 lacRs.4,638 /-Rs. 3,250/-Rs.2,149 /-
3 lacRs.13,913 /-Rs.9,751 /-Rs. 6,448/-
5 lacRs.23,188 /-Rs. 16,251/-Rs.10,747 /-
10 lacRs.46,376 /-Rs. 32,502/-Rs.21,494 /-

Personal loan interest calculator formula:

HDFC Bank’s personal loan EMI can be calculated with the help of the following formula.

EMI = [P*R* (1+R)^N/([(1+R)^N]-1)

⇒In the above formula, 

P represents the Loan amount, which is Rs. 50,00/- to 75 lacs

R represents the Rate of interest per month. And the current rate of interest is 10.50%

N represents loan tenure in the month, which is a maximum of 5 years.

Features:

  • This bank offers the lowest EMI which is Rs..2,149/- per lac.
  • Both salaried and the self employees are eligible for the personal loan.
  • Their processing fee is Rs.1,999/-.
  • They allow 2% to 4% part payment charges.

Benefits:

  • They provide special schemes for the borrowers which are government employees in reputed companies.
  • They offer the maximum loan amount with a lower interest rate.
  • Their processing is quick.
  • The documents they required from the borrower are simple and basic.

#6. Kotak Mahindra Bank:

This is an Indian private sector bank founded in 2003. Its main headquarter is in Mumbai. This is the 3rd largest private sector bank by market capitalization, this bank offers the best schemes for a personal loan in India.

Latest Interest Rate: The latest interest rate of this bank is 10.25%.

Personal loan interest calculator formula:

Kotak Mahindra Bank’s personal loan EMI can be calculated with the help of the following formula.

EMI = [P*R* (1+R)^N/([(1+R)^N]-1)

⇒In the above formula, 

P represents the Loan amount.

R represents the Rate of interest per month.

N represents loan tenure in the month.

Features:

  • Their processing fee is Rs.1,999/- 
  • The loan tenure of this bank is from one year to 4 years.
  • This bank does not allow prepayments for personal loans.
  • The loan amount this bank offers is from 1 lac to 15 lacs.

Benefits:

  • They provide special schemes for the borrowers which are government employees in reputed companies.
  • They offer the maximum loan amount with a lower interest rate.
  • Their processing is quick.
  • The documents they required from the borrower are simple and basic.

#7. ICICI Bank

ICICI Bank is a private financial institution in India. ICICI Bank was founded in 1994. It provides its services worldwide. The registered office of this bank is in Vadodara and Gujrat. And its corporate office is in Mumbai, Maharashtra. The total branches o this bank are 5,275 and the 15,589 ATMs are running.

ICICI Bank also provides the best personal loan in India, and also a top-rated bank for its services.

Latest Interest Rate: Their latest interest rate is 10.75%.

Personal loan interest calculator formula:

ICICI Bank’s personal loan EMI can be calculated with the help of the following formula.

EMI = [P*R* (1+R)^N/([(1+R)^N]-1)

⇒In the above formula, 

P represents the Loan amount.

R represents the Rate of interest per month.

N represents loan tenure in the month.

  • Features:
  • They offer the lowest EMI which is Rs. 2,162/- per lac.
  • The loan amount is a minimum of Rs. 50,000/- and a maximum of 30 lacs.
  • Loan tenure is from one year to 5 years.
  • They do not allow the part payments charges.
  • Their prepayments are 5%.
  • Their processing fees are 2.25% of the loan amount.

Benefits:

  • They provide special schemes for the borrowers which are government employees in reputed companies.
  • They offer the maximum loan amount with a lower interest rate.
  • Their processing is quick.
  • The documents they required from the borrower are simple and basic.

#8. Canara Bank

Canara Bank is one of the largest government-owned banks found in 1906. Its headquarters are in Bangalore and Karnataka, India, this bank also offers the best schemes for a personal loan in India.

Latest Interest Rate: The latest interest rate of the Canara Bank is 9.40%.

Personal Loan Calculator at different tenures:

Loan amountLoan tenure2 yearsLoan tenure3 yearsLoan tenure4 years
1 lacRs. 4,754/-Rs.3,369/-Rs. 2,683/-
3 lacRs. 14,263/-Rs.10,108/-Rs. 8,048/-
5  lacRs. 23,771/-Rs.16,847/-Rs. 13,414/-
10  lacRs. 47,542/-Rs.33,694/-Rs.26,828/-

Personal loan interest calculator formula:

Canara Bank’s personal loan EMI can be calculated with the help of the following formula.

EMI = [P*R* (1+R)^N/([(1+R)^N]-1)

⇒In the above formula, 

P represents the Loan amount.

R represents the Rate of interest per month.

N represents loan tenure in the month.

Features:

  • Canara bank loan tenure is a minimum of one year and a maximum of 4 years.
  • The bank allows the prepayments after one month.
  • Their processing fee is 0.5%

Benefits:

  • They offer the maximum loan amount with a lower interest rate.
  • Their processing is quick.
  • The documents they required from the borrower are simple and basic.

#9. Bank of India

This bank is an Indian government Bank found in 1906. Its headquarter is in Mumbai, India. This bank has the latest capital ratio of 13.10%.

This Bank also provides the best schemes for a personal loan in India.

Latest Interest Rate: The latest interest rate of this bank is 8.65%.

Personal loan interest calculator formula:

Bank of India’s personal loan EMI can be calculated with the help of the following formula.

EMI = [P*R* (1+R)^N/([(1+R)^N]-1)

⇒In the above formula, 

P represents the Loan amount.

R represents the Rate of interest per month.

N represents loan tenure in the month.

Features:

  • The age of the borrower must be from 21 years minimum of 60 years maximum.
  • The amount of loan this bank offers is a minimum of Rs.50,000/- and a maximum of Rs.75 lacs.
  • The loan tenure of this bank is from 1 month to 72 months.
  • They offer the lowest EMI, which is Rs.2,275/- per lac.

Benefits:

  • They provide special schemes for the borrowers which are government employees in reputed companies.
  • They offer the maximum loan amount with a lower interest rate.
  • Their processing is quick.
  • The documents they required from the borrower are simple and basic.

#10. Axis Bank

Axis Bank is an Indian private bank founded in 1993. Its main headquarter is in Mumbai, Maharashtra.  It has above 4800 total branches, Axis bank provides reasonable offers for a personal loan.

Latest Interest Rate: the interest rate of this bank starts from 10.40%.

Features:

  • They offer the lowest EMI per lakh of Rs.2,144/- 
  • Both salaried and the self employees are eligible for the personal loan from Axis bank.
  • The minimum age of the borrower must be 21 years and the maximum of 60 years applying for the personal loan.
  • The loan amount starts from Rs. 50,00/- to 25 lacs.
  • Loan tenure is from 12 months to 60 months.
  • Their EMI and prepayments are low.

Benefits:

  • They provide special schemes for the borrowers which are government employees in reputed companies.
  • They offer the maximum loan amount with a lower interest rate.
  • Their processing is quick.
  • The documents they required from the borrower are simple and basic.

Conclusion:

The above-mentioned banks are the top-rated banks in India for personal loan. If you are in search of a good bank for a personal loan then you can contact any one of the above just by clicking on their websites given with each bank.