Personal loans are one of the easier forms of loans that can be availed without much documentation and within a shorter processing time. Moreover, personal loans are not bound by a particular purpose like other secured loans. Any other loan like a home loan or a vehicle loan can only be availed for that particular purpose and in addition, the asset purchased out of the loan needs to be hypothecated or pledged with the lender till the loan is cleared off.

Personal loans can be used for a varied number of purposes, such as meeting expenses for a holiday, a marriage, medical emergency, funding education or meeting a shortfall in other secured loans. Personal loans are no more restricted only to the form of a loan; they can also take the forms of a line of credit or a Pay Day Loan being offered by many of the fintech lenders.

Features of Personal Loans

  • The eligibility for the loan is decided by the income of the applicant and their credit score

  • The rate of interest generally is upwards of 10.5%

  • A processing fee as a percentage of loan availed is charged

  • Documents like Proof of Income, Address, and Identity with a photograph are generally required

  • Minimum income criteria is followed by the traditional lenders. However, fintech lenders do lend to individuals in the lower income group and the self-employed too

  • Foreclosure of the loan is not allowed for 1 year (or period as set by various lenders) and a penalty may also be charged.

  • Personal loans are approved at a fixed rate of interest only.

  • Tenures of personal loan can range between 12-60 months.

Additional Reading: Personal Loan Application Process

CreditMantri as your credit coach is glad to publish a list of 5 best lenders for personal loans in India (in no particular order of priority). However, we would also like convey that the best lender is often a function of the earlier banking relationship, individual credit score and other dynamics like income and other loans already being serviced.

The rates and terms of the loan mentioned is often under the best-case scenario, which may differ between person to person.

ICICI Bank Personal Loans

Features of the Loan

  • Super fast disbursal in as fast as 3 seconds for select customers upon completion of online verification and acceptance of final offer.

  • Minimal documentation and hassle-free application make loan approval and disbursement a breeze

  • Specialized packages available for Holiday Loans, Wedding Loans, Home Renovation, etc.

  • Top Up loans are also available

Eligibility Criteria

  • Eligibility for loans is decided by the bank on a case to case basis. You can check if you are eligible for a ICICI Bank Personal Loan here.

Rates of Interest

  • From 11.25% - 17.99%. However, interest rates depend on your personal loan eligibility, income, and other criteria.

Processing Fee

  • Up to 2.25% per annum of loan amount plus GST

Prepayment Charges

  • Prepayment of the loan is possible any time during loan tenure subject to payment of standard pre-closure charges of 5% + GST

  • The waiver, if any, of the prepayment charges, will be applicable provided:

  • The customer has paid 12 or more EMIs and

  • The pre-payment of the loan is done using customer’s own funds (Waiver on pre-payment charges is not applicable in cases of balance transfer) 

  • Facility of part pre-payment is not available

Loan Amount Allowed

You can avail of loans ranging from Rs 50,000/- to Rs 20,00,000/- depending on your eligibility, income and repayment capacity.

HDFC Bank Personal Loan

Features of the Loan

  • For pre-approved customers of the bank, quick and fast approval is possible within a matter of 10 seconds, subject to fulfillment of conditions. Other customers can get the loan approved under 4 hours

  • Online application is possible

  • You can also avail an insurance cover with the loan. For a nominal premium (as decided by the insurer) you can avail of Personal Accident cover of up to Rs. 8 lakhs, and Critical Illness cover of up to Rs. 1 lakh. The premium for these policies will be deducted from the loan amount during disbursal. Applicable taxes and surcharge/cess will be charged extra

  • Personal Loan balance transfer is also allowed from other lenders

Eligibility Criteria

  • Employees of private limited companies, employees from public sector undertakings, including central, state and local bodies are allowed to apply for HDFC Bank Personal Loan

  • Individuals between 21 and 60 years of age

  • Individuals who have had a job for at least 2 years, with a minimum of 1 year with the current employer

  • Those who earn a minimum of Rs. 15,000 net income per month (Rs. 20,000 in Mumbai, Delhi, Bengaluru, Chennai, Hyderabad, Pune, Kolkata, Ahmedabad, Cochin)

Rates of Interest

  • For Salaried employees – 11.25% to 21.50%

Processing Fee

Up to 2.50% of the loan amount subject to a minimum of Rs. 1,999/- & Maximum of Rs. 25000/-

Prepayment Charges

  • No pre-payment in part or full permitted until repayment of 12 EMIs
    Part Payment allowed up to 25% of Principal Outstanding. It is allowed only once in a financial year and twice during Loan tenure.

  • For prepayment, following penalty is charged depending on the period elapsed after the loan is availed

  • 13-24 Months - 4% of Principal Outstanding

  • 25-36 Months - 3% of Principal Outstanding

  • >36 Months - 2% of Principal Outstanding

Loan Amount Allowed

Loan up to Rs 40 lakh is allowed. 

Tata Capital Personal Loan

Features of the Loan

  • No collateral required

  • Easy Repayment Option - An individual has the option to repay the loan to their convenience. One can choose from a host of options like flexi EMI plans, ECS, Post-dated cheques, online payment, and other modes.

  • Instant online approval available

  • Loan is also allowed as an Overdraft which means that interest is charged only on the utilized amount. 

Eligibility Criteria

  • A salaried person aged between 22-58 years

  • Employed in an organization in the private or public sector with two years of work experience

  • Experience of 6 months in the current job

  • A minimum salary of Rs 15,000 per month 

Rates of Interest

From 11.25% onwards. However, interest rates depend on your personal loan eligibility, income, and other criteria.

Processing Fee

Will depend on the loan amount

Prepayment Charges

Prepayment of the Personal loan is possible after six months. A fee of 2% (of the amount paid) + GST is applicable beyond 25% of the principal outstanding.

Loan Amount Allowed

Rs 75,000 to Rs 25,00,000

Bajaj Finserv Personal Loan

Features of the loan

  • An option of availing Flexi Personal Loan which allows you a lot of flexibility with your personal loan. You can withdraw only the amount needed for your use from your loan account and pay interest only on that amount.  

  • You can also Withdraw and part-prepay funds through the online customer portal, Experia. 


If you are a salaried professional aged between 25 and 58 years living in India, you can easily qualify for a loan. As long as you match the personal loan eligibility criteria and minimum net salary specified based on your city of residence, you can avail a loan with ease and best personal loan interest rates.

Rates of Interest

  • From 12.99% onwards

  • For Flexi Personal Loans - Choose to pay only interest as EMI, which reduces EMI amount by up to 45 %. Interest charged on a daily basis, as per amount utilized at the end of the day. 

Processing Fee

2.25-3% of the loan amount

Prepayment Charges

On Flexi Personal Loan prepayment, charges of 0.25% on reduced assigned limit + applicable taxes are applicable. For normal personal loans, a period of 1 month should have elapsed after disbursal of the loan and 4% of the outstanding loan amount + applicable taxes are charged.

  • Loan Amount Allowed

You can avail of loans up to Rs 25 lakhs depending on your eligibility, income and repayment capacity.

CASHe Instant Short-term Loan

Features of the Loan

  • They offer Flexible end-use short-term loans

  • CASHe Short-Term Loans are unsecured. This means that you do not need to provide any collateral as security for the loan amount

  • The entire loan application and approval is on the mobile app of CASHe

  • The loan can be applied by individuals with low credit score and even self-employed individuals

  • Minimal paperwork and documentation are required

Eligibility Criteria

  • Must be a salaried or self-employed individual

  • The individual should be within the age of 21 years to 60 years

  • The tenure for which the loan is borrowed also plays a part in deciding the eligibility. Check here for more details

Rates of Interest

The rate of interest charged is also a function of the tenure of the loan

  • 1.5%pm for loan term of 15 days (CASHe15)

  • 3.0% p.m for loan term of 30 days (CASHe30)

  • 2.5% p.m for loan term of 90 days (CASHe90)

Processing Fee

The processing fee charged depends on the loan amount and the tenure of the loan. For more information on the fee, please check here for details.

Loan Amount Allowed

CASHe offers loan amounts starting at just Rs.10,000 up to Rs.2 lakh for short-term loans.

Additional Reading: The CreditMantri guide to personal loans