- Want to grab the best personal loan deal? You need to compare the deals of banks
- A bank may not have ALL, but it should have maximum benefits - Read this post to find which bank has this
The demand for a personal loan is always high given that you can take it for multiple purposes – marriage, education, travel, medical emergency, etc. But you should not apply for a personal loan without any thought. Yes, the interest rate can be higher in a personal loan. The greater rate will keep the Equated Monthly Installment (EMI) higher and increase your overall interest obligations. But depending on the customer profiles, banks can ease the interest rate too. So, you can compare and choose the best interest rate deal.
You should also consider quick disbursal and flexibility before deciding the best bank for a personal loan. You may not get ALL in one bank! But the bank you choose should have maximum benefits for you.
In this post, we will highlight the Personal Loan USP of different banks. So, read, compare and choose the one for you.
Which Banks Offer the Best Interest Rate on a Personal Loan?
Inevitably, you should consider the interest rate first given that it dictates your repayment considerably. Banks set personal loan interest rates based on income, repayment potential and credit score of an applicant. We have found the rates of these banks the best in our introspection. Let’s check out!
This private banking leader steals the show by offering personal loans at an interest rate of as low as 10.75% per annum. Such lower rates are for people earning specific income and working in top firms. If you earn more than INR 50,000 and work in a top firm, HDFC Bank will offer an interest rate of 10.75% per annum. In case your income is more than INR 35,000 and upto INR 50,000, the rate will go up slightly to 11-11.10%. If you earn less than INR 35,000 but are working in a top-notch firm, the rate will then be 12.25-12.35%.
If you are working in Maharatna, Navratna and Miniratna companies (government-owned companies having large operational scales), HDFC Personal Loan Interest Rates will be 11.49-14.15%. Recently, HDFC Bank has been offering the lowest rate of 10.50% to customers applying for INR 15 lakh or more.
ICICI Bank is also one of the leaders in the personal loan segment with a massive customer base across the country. Like HDFC Bank, it also offers the lowest rate of 10.75% per annum to eligible candidates. People working in top corporates can get personal loans at 10.99-15.50% per annum. Whereas, the interest rate for government employees can be around 11.29-13.50% per annum.
This private sector bank may not be as popular as the previous two but has carved its own niche in the personal loan space. Can you imagine its lowest rate is lower than the previous two giants? Yes, it’s 10.45% per annum based on meeting certain conditions. Salaried working in a CAT A company with a monthly income of more than INR 75,000 can get 10.45% if they are applying for a personal loan of INR 7,50,000 or more. Salaried doctors can get a personal loan at 10.75% per annum.
Kotak Mahindra Bank
Kotak Mahindra Bank is also not behind when it comes to offering attractive interest rates. So, if you are working in a Super CAT A company and earning more than INR 50,000-75,000 monthly, the bank will offer the lowest interest rate of 10.75% per annum. This rate will apply to individuals taking a personal loan for a maximum of 3 years. If they apply for more than 3 years, the rate of interest will rise slightly to 10.85-10.99% per annum. The bank charges a maximum rate of 17.75% per annum.
Although it’s not a bank, Bajaj Finserv is a renowned lender in the personal loan segment. The rate offered by the noted non-banking finance company (NBFC) ranges from 10.99-16% per annum.
Which Bank Occupies the Top Spot When it Comes to Offering Impressive Personal Loan Amounts?
Although the personal loan eligibility depends greatly on the customer profile, lenders fix a limit on the maximum loan amount. Lenders offering maximum loans can meet the customer needs better than those offering less.
Amidst all, there is HDFC Bank that has redefined this concept by putting no cap. It all depends on your income, credit score and repayment potential. If you are earning high, have a good credit score and a strong repayment potential, the bank can offer you a massive loan amount.
Other lenders that offer impressive loan amounts include YES BANK (Upto INR 50 Lakh), Standard Chartered Bank (Upto INR 50 Lakh), ICICI Bank (Upto INR 40 Lakh), IDFC First Bank (Upto INR 40 Lakh).
Which Lender Charges the Least Processing Fee on a Personal Loan?
Processing fees are an amount debited from the loan amount you apply for. They can be a certain percentage of the loan amount or a flat amount as the lender deems fit. HDFC Bank charges a processing fee upto 2.50% of the loan amount plus Goods and Services Tax (GST). The minimum fee can be INR 1,999, depending on the profile of customers. Similarly, ICICI Bank charges a minimum and maximum fee of INR 1,999 and upto 2.25% of the loan amount, respectively. The bank will add 18% GST over it. Standard Chartered Bank Personal Loan processing fee is even lower at INR 1,000 plus GST.
Quick Approval & Disbursal
As many apply for a personal loan to meet instant needs, they will look for banks that offer quick approval and disbursal. The disbursal can happen as quickly as in 3-4 hours to as long as 3-4 days, based on your documentation. Check out the table below that shows the estimated approval and disbursal time of top lenders.
|Sanction & Disbursal Time
|As quickly as in 4 hours to a maximum of 3-4 working days
|As quickly as in 3 seconds to a maximum of 3-4 working days
|Instant approval and sanction, with the disbursement likey in a maximum of 24 hours post the approval
|SMFG India Credit
|Instant approval and sanction, with the disbursement to be made within 30 minutes of approval
|Online Application - Instant Approval
Offline Application - Approval in a Few Business Days
Disbursal - Within 72 Hours of the receipt of the application
|The loan gets disbursed within 4-7 working days from the receipt of the loan application
|Approval & Sanction within 5 days of applying. Disbursal within a few hours post the sanction