Personal loans are an easy and flexible way to get extra cash when you need it, whether it's for paying off debt, handling medical bills, renovating your home, or even planning a holiday. What makes them better than credit cards or payday loans is their lower interest rates, which help keep your repayments affordable.
Thanks to more lenders offering competitive deals, you can now find a personal loan that suits your budget, especially if you have a good credit score. You get a lump sum upfront and repay it in simple monthly instalments, without the stress of high-interest charges. You can access several borrowing options through low interest personal loan apps.
With platforms like Moneycontrol offering fully digital loans up to Rs 50 lakhs from top lenders at rates starting from just 10.5% per annum, getting a low-interest personal loan has never been easier.
Top banks offering low-interest personal loans
ICICI BankICICI Bank is a major player in India’s lending sector and offers personal loans with interest rates starting at 10.85% per annum. They provide loans up to Rs 40 lakhs with flexible repayment terms ranging from 12 to 60 months.
ICICI Bank is known for its quick loan disbursal and minimal paperwork, making it a convenient option for borrowers in urgent need of funds. The processing fee can go up to 2% of the loan amount.
HDFC Bank
HDFC Bank also offers personal loans with interest rates beginning at 10.85% per annum. They offer loans up to Rs 40 lakhs, with a loan tenure ranging from 12 to 60 months. The processing fee for HDFC loans is typically around 2.5% of the loan amount.
Known for its strong customer service and reliability, HDFC Bank is one of the most trusted names when it comes to personal loans. Their flexible repayment options and fast approval process make them an attractive choice for borrowers looking for quick access to funds.
State Bank of India (SBI)
As India’s largest public-sector bank, SBI offers personal loans starting at an interest rate of 11.45% per annum. While this rate is slightly higher than those offered by private banks, SBI compensates with its extensive network of branches and lower processing fees.
Loan amounts from Rs 25,000 to Rs 20 lakhs are available, with repayment terms up to 60 months.
IDFC FIRST Bank
IDFC FIRST Bank is another strong player in the personal loan market, offering interest rates starting at 10.99% per annum. The bank provides loans of up to Rs 40 lakhs with repayment tenures ranging from 12 to 60 months.
Their processing fee can be as high as 2% of the loan amount, but IDFC FIRST Bank’s quick approval and disbursal make it a convenient option for many borrowers.
Axis Bank
Axis Bank is known for its low-interest personal loans starting at 11.25% per annum. They offer loans ranging from Rs 50,000 to Rs 40 lakhs, with flexible repayment terms of up to 60 months. The processing fee is generally up to 2% of the loan amount, which is on par with other leading lenders.
Banks vs Digital Lending Apps
You can explore digital loan offers from both banks and digital lending apps. Compared to banks, online lending platforms have made it convenient to secure a personal loan with a completely paperless process. Comparatively, digital loan apps have gained popularity for minimal documentation, quick approval and disbursements. While seeking a loan from a bank is considered a more secure way of borrowing, online platforms are known for several advantages like convenience, competitive interest rates, flexible repayment and enhanced customer service.
On Moneycontrol, you can explore personal loan offers from multiple lenders. Interest rates start as low as 10.5% per annum.
Some tips to secure the best interest rate on loans
- Maintain a good credit score: One of the most effective ways to secure a low-interest rate on your personal loan is by maintaining a good credit score. A higher credit score not only increases your chances of approval but also qualifies you for better loan terms, including lower interest rates.
- Go for a shorter loan tenure: Choosing a shorter repayment period can often result in a lower interest rate. While your monthly payments will be higher, you will pay less interest overall.
- Consider joint applications: If you have a co-applicant with a strong credit profile, you may qualify for a better interest rate. Many lenders offer joint personal loans, where the interest rate is determined based on the creditworthiness of both applicants.
Personal loans are now easier to access than ever, especially through platforms like Moneycontrol, which offers fully digital personal loan options up to Rs 50 lakhs from eight top lenders, with interest rates starting at just 10.5% per annum.
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