Getting a personal loan at a lower interest rate is the first thing on the wishlist of all borrowers. However, it is not that easy for many.
Personal loan interest rates depend on various factors including the loan amount, repayment tenure, borrower’s credit score, income and loan eligibility.
For instance, a 15 Lakh Personal Loan interest rate would be lower than that of Rs. 50 Lakhs personal loan. Interest rates for borrowers with a credit score of 800 or above would be lower than that for below 700.
Below is the list of the best 5 banks in India that offer 20 Lakh Personal Loan or higher amount personal loans at the lowest interest rates:
| Bank/NBFC | Loan Amount | Rate of Interest | Processing Fee | Maximum Tenure |
| HSBC | Rs. 1 Lakh to Rs. 50 Lakhs | 10.15% to 16% p.a. | Up to 2% of the loan amount | 60 months |
| SBI | Rs. 1 Lakh to Rs. 35 Lakhs | 10.30% to 15.30% | Nil till 31st January 2025 | 84 months |
| Axis Bank | Rs. 50,000 to Rs. 40 Lakhs | 10.55% to 21.80% p.a. | Up to 2% of the loan amount + GST | 84 months |
| ICICI Bank | Rs. 50,000 to Rs. 50 Lakhs | 10.85% to 16.65% p.a. | Up to 2% of the loan amount + applicable taxes | 72 months |
| HDFC Bank | Rs. 50,000 to Rs. 40 Lakhs | 10.85% to 24% p.a. | Up to Rs. 6,500 + GST | 60 months |
Following are the key features of personal loans mentioned above:
1. HSBC Personal Loan
- Loan amount: Rs. 1 Lakh to Rs. 50 Lakhs.
- Tenure: 6 to 60 months.
- Interest rate: 10.15% to 16% p.a.
- Processing fee: Up to 2% of the loan amount.
- Eligibility: Indian resident salaried individuals aged between 21 to 60 years and self-employed applicants aged between 21 to 65 years.
- Key highlights: Instant disbursal for salary account holders of HSBC, no collateral required, no documentation charges, and zero foreclosure charges for tenure up to 2 years.
2. SBI Personal Loan
- Loan amount: Rs. 1 Lakh to Rs. 35 Lakhs.
- Tenure: 6 to 84 months.
- Interest rate: 10.30% to 15.30% p.a.
- Processing fee: Nil till 31st March 2025.
- Eligibility: Salaried employees having a salary account with SBI/ other banks, earning a net monthly income of minimum Rs. 25,000, and an EMI/NMI ratio up to 60%.
- Key highlights: Interest charged on daily reducing balance method, pre-approved loan offers, low processing charges, minimal documentation, zero hidden costs, no security/ guarantor, and provision for a second loan.
3. Axis Bank Personal Loan
- Loan amount: Rs. 50,000 to Rs. 40 Lakhs.
- Tenure: 12 to 84 months.
- Interest rate: 10.55% to 21.80% p.a.
- Processing fee: Up to 2% of the sanctioned loan amount + GST.
- Eligibility: Salaried employees aged between 21 and 60 years, earning a monthly income of minimum Rs. 15,000 (for Axis Bank customers) and Rs. 25,000 (for non-Axis Bank customers).
- Key highlights: Easy online process, minimal documentation, competitive interest rates, instant approval, flexible repayment options, zero collateral required, and transparent terms.
4. ICICI Bank Personal Loan
- Loan amount: Rs. 50,000 to Rs. 50 Lakhs.
- Tenure: Up to 72 months.
- Interest rate: 10.85% to 16.65% p.a.
- Processing fee: Up to 2% of the approved loan amount + applicable taxes.
- Eligibility: Salaried employees aged between 20 and 58 years, earning a monthly income of minimum Rs. 30,000 and having at least 2 years of total work experience.
- Key highlights: Online loan application and disbursement with minimal documentation, nil foreclosure charges after 12 EMIs, zero collateral required, and no hidden charges.
5. HDFC Bank Personal Loan
- Loan amount: Rs. 50,000 to Rs. 40 Lakhs.
- Tenure: Up to 60 months.
- Interest rate: 10.85% to 24% p.a. (fixed rate).
- Processing fee: Up to Rs. 6,500 + GST.
- Eligibility: Public sector or private employees, aged between 21 and 60 years with a minimum 2 years of total work experience ( at least 1 year in the current organisation) and a monthly income of minimum Rs. 25,000.
- Key highlights: Hassle-free process, collateral-free financing, fixed affordable EMIs, and disbursal within a few seconds or just a few days after approval.
