Best Bank Personal Loan Interest Rates India in 2020

Updated: Jan  24, 2020

Personal loans become handy when it comes to financial urgency. But it comes with high-interest rates that you have to pay. Take it as a last resort if you can’t arrange money otherwise.

When should one take a personal loan

You can take a personal loan if you urgently in need of money but you don’t have any other resource of getting money like family or friends. You can avail it for any purpose unlike a home loan or education loan. There’s no restriction on the utilization of loan money.

A personal loan has high-interest charges. So you have to plan well on the repayment of the loan. You should try to take for the shortest period in which you can pay off easily.

Points to Consider before taking Personal Loan –

You should look at the points below while taking a personal loan.

  • Interest Rate
  • Processing Fees
  • Pre-Closure Charges
  • Late Payment Charges

You may also like to read – How to apply for a loan under MUDRA Yojana.

Personal Loan Eligibility

Eligibility of a personal loan application is checked over factors such as CIBIL score, applicant’s profession, income level, and a few more.

You can go through these factors affecting Personal Loan Eligibility-

#1. CIBIL Score
CIBIL score plays the most important role in the approval of a loan or a credit card.

CIBIL score reflects your creditworthiness which means how good you are in repaying the loan. A low credit score depicts more chances of defaulting loan payments.

On the other hand, a high score not only increases the chances of loan approval but you can also get low-interest rates.

If you have a lower score, you can read this step-by-step guide to improve your CIBIL score.  You can also read how to check your CIBIL score free.

#2. Profession
Banks easily approve loans of salaried employees assuming a regular cashflow will result in regular repayment of loan EMIs.

In the case of self- employed applicants, banks may go a little extra to verify all the aspects.

Another benefit for salaried individuals is that they get cheaper interest rates as compared to self-employed individuals.

For example, SBI personal loan rate ranges from 10.99% to 14.50% for salaried class and 16% to 18.99% for the self-employed class.

#3. Income Level
Income level indicates your financial status. Higher-income level means better financial status and better chances of repayment of the loan. Banks have certain criteria for that.

For example,

Allahabad bank gives a maximum of 12 times the loan amount if your salary is between Rs. 15,000 to Rs, 20,000, whereas you will get 24 times the loan amount if your salary is above Rs. 20,000.

#4. Employer’s Market Reputation
Employer reputation is also a significant factor that decides the eligibility of a candidate. If the borrower is working with a reputed company or a government department, there are higher chances of getting a loan instantly.

On the other hand, if you are working for an unrecognized company, banks will check various factors as well to make you eligible for the loan.

#5. Relationship with Bank
An important factor is how is your prior relationship with the bank. If you have a good relationship with the bank, you can easily get offers for instant loan approval. Banks also offer lower interest charges for old customers.

You may also like to read – Comaparison between Peer to Peer vs Bank loans.

Documents Required for Personal Loan

Identity Proof – PAN card, Aadhar Card, Passport, Voter ID.

Address Proof – Passport, Aadhar Card, Voter ID, Latest Telephone Bill, Latest Electricity Bill.

Bank Account Statement – Last 6 months bank statement.

Salary Income Proof – Latest salary slips, Form-16.

Business Proof – Income Tax Returns for the last 3 years, Rent receipts, Lease deed, Ownership document, Profit & Loss statement (last 3 years).

Passport size photographs.

Usually, the above-mentioned documents are sufficient for loan application.

Best Personal Loans Interest Rates Comparison 2020

Banks Interest Rates Loan Amount Processing Fee
Allahabad Bank 9.35% – 12.65% Minimum Loan Amount – Rs. 50,000.

The maximum loan amount, Rs. 7.50 lakh

1.22% of loan Amount.

Minimum Rs. 1,228

Andhra Bank 11.10% – 13.75% Salaried – Not less than 40% of the gross salary.

Non-salaried – 2 times the average annual income (as per last 3 ITRs)

As per bank norms
Axis Bank 12.00% – 24.00% Rs. 50,000 to Rs. 15,00,000 In the range of  1.50% 2.00% of the loan amount.
Bajaj Finserv 10.99% – 16.00% Upto Rs. 25,00,000 Up to 3% of the loan amount
Bank of Baroda 11.40% – 16.40% Up to Rs. 10,00,000 for people living in metros cities

Up toRs. 5,00,000 for people residing in semi-urban and rural areas

2% of the loan amount.

Minimum – Rs. 1,000.

MaximumRs. 10,000, 

Bank of India 11.70% – 13.70% Up to Rs. 10,00,000 for people living in metros cities

Up toRs. 5,00,000 for people residing in semi-urban and rural areas

2% of the loan amount
Bank of Maharashtra 10.85% – 11.85% Up to Rs. 10,00,000 for people living in metros cities

Up toRs. 5,00,000 for people residing in semi-urban and rural areas

1% of the loan Minimum – Rs. 1,000
Canara Bank 12.55% – 14.60% Max. Rs.3,00,000 0.50% of the loan amount, subject 

Minimum – Rs. 1,000.

MaximumRs. 5,000. 

Central Bank of India 10.25% – 12.20% Maximum of Rs. 10,00,000.  Rs. 500 
Citibank 10.50% – 20.00% Upto Rs. 30,00,000 Upto 3% of the loan amount
Corporation Bank 10.75% – 12.25% Upto Rs. 3,50,000 1.50% of the loan amount.

Minimum – Rs. 500

Dena Bank 11.40% – 16.40% Up to Rs. 10,00,000 for people living in metros cities

Up to Rs. 5,00,000 for people residing in semi-urban and rural areas

2% of the loan amount.

Minimum – Rs. 1,000.

MaximumRs. 10,000.

DCB Bank 13.00% – 25.00% Upto Rs. 5 lakhs 2% of the loan amount
Federal Bank 11.49% Onwards Upto Rs. 10 lakhs 0.50% of the loan amount
HDFC Bank 10.75% – 21.45% No maximum limit.  Min. – NIL

Max – 2.50% of the loan amount.

HSBC Bank 10.50% – 17.84% Upto Rs. 30 lakhs Upto 1% of the loan amount
ICICI Bank 10.99% – 18.49% Upto Rs. 40 lakhs Min. Rs. 1,000

Maximum- 2.25% of the loan amount.

IDBI Bank 9.65% – 14.00% Upto Rs. 10 lakhs As per bank norms
IndusInd Bank 10.99% – 16.00% Upto Rs. 15 lakhs Min. – 1%

Max – 3% of the loan amount.

J & K Bank 11.90% – 13.90% Upto 3 years gross salary NIL
Karnataka Bank 12.00% – 17.00% UptoRs. 5 lakhs 0.50% of the loan amount
Karur Vysya Bank 12.00% – 19.00% Upto Rs. 10 lakhs 1% of the loan amount
Kotak Mahindra Bank 10.99% – 20.99% Upto Rs. 20 lakhs Min – 0.99%

Max – 2.50% of the loan amount.

Oriental Bank of Commerce 10.55% – 11.20% Upto 15 times the gross salary. 0.50% of the loan amount.

Min. – Rs. 500.

Punjab & Sind Bank 10.95% – 13.70% Maximum –  Rs. 3 lakh. 1% of the loan amount.
RBL 17.50% – 24.00% Upto Rs. 20 lakh In the range of, 2% to 2.50% of the loan amount.
Punjab National Bank 9.95% – 13.50% 20 times the monthly salary.

Max. – Rs. 4 lakhs.

1.80% of the loan amount.
SBI 11.45% – 14.90% Upto Rs. 20 lakh 1% of the loan amount.
Standard Chartered Bank 11.50% – 18.00% Upto Rs. 30 lakh 1% of the loan amount.
Syndicate Bank 10.20% – 13.40% Salaried – Max. Rs. 4-5 lakh

Self-employed – Upto Rs. 5 lakh

0.50% of the loan amount.

Min. – Rs. 500 

Tata Capital 10.99% – 18.00% Upto Rs. 25 lakh Min. Rs. 1,000.

Max. – 2.50% of the loan amount.

UCO Bank 9.45% – 11.35% Maximum of Rs. 10 lakhs 1% of the loan amount.

Min. Rs. 750.

United Bank of India 13.95% – 14.20% Max. – Rs. 2 lakh 1% of the loan amount.
Vijaya Bank 11.40% – 16.40% Up to Rs. 10,00,000 for people living in metros cities

Up toRs. 5,00,000 for people residing in semi-urban and rural areas

2% of the loan amount.

Min. – Rs. 1,000 

Max. – Rs. 10,000.

Yes Bank Starting at 10.99% Upto Rs. 40 lakhs Upto 2.50% of the loan amount.

Min. – Rs. 1,000.

Conclusion

Now you have gone through everything related to personal loan and you have also compared the interest charges of various banks in India. Since a personal loan is mostly required to fulfill an urgent financial need, I would recommend you to either go with the bank you have old relations or go with any finance company like Bajaj finserv or Tata capital that will provide you quick loan with the faster documentation process.

Comments (5)

  1. kavita ravindar desai Mar 21, 2019
  2. Akanksha Mishra Nov 15, 2018
  3. keval Jul 25, 2017
  4. keval Jul 25, 2017
  5. Rupesh Sharma May 23, 2017

Leave a Comment!