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A personal loan is a type of unsecured credit that meets the personal needs of an individual. In this structure, a bank lends money on the creditworthiness of the borrower and no collateral is required for the borrowed money.
The first thing to check here is the loan amount and date required.
A key requirement from a borrower’s perspective is to check processing fees and pre-closing fees. Processing fees may vary from bank to bank.
Likewise, while few lenders charge any fees on the partial or full prepayment, many of them charge a substantial fee on foreclosure.
Here is a list of top banks offering different interest rates and processing fees on personal loans (compiled by Bankbazaar):
| Bank | Interest rate (pa) | Processing fee |
| National Bank of India | 9.60% pa – 15.65% pa | Up to 1.50% |
| ICICI Bank | 10.5% pa – 19% pa | Up to 2.25% |
| HDFC Bank | 10.5% pa – 21.00% pa | Up to 2.50% |
| Yes Bank | 13.99% pa – 16.99% pa | Up to 2.50% |
| Citibank | 9.99% pa – 16.49% pa | Up to 3% |
| Kotak Mahindra Bank | 10.25% and more | Up to 2.5% |
| Axis Bank | 12% pa – 21% pa | At the discretion of the bank |
| Baroda Bank | 10.50% pa – 12.50% pa | Up to 2% |
| HSBC Bank | 9.75% pa – 15.00% pa | Up to 1% |
| IDFC Premier Bank | 12% pa – 26% pa | Up to 3.5% |
| Capital of Tata | 10.99% from | Up to 2.75% |
| Bank of Karnataka | 12% pa – 17% pa | Maximum of Rs.8,500 |
| Mortgage loan Cash loan | 19% pa – 49% pa | 0% -5% |
| Small Ujjivan Financial Bank | 11.49% per year – 16.49% per year | At the discretion of the bank |
| Federal Bank | 10.49% pa – 17.99% pa | Up to 3% |
| IndusInd Bank | 11.00% pa – 31.50% pa | 2.5% from |
| IIFL | 24% pa from | 2% from |
| Bank of India | 10.75% pa – 12.75% pa | Up to 2% |
| Aditya Birla Capital | 14% pa -26% pa | Up to 2% |
| Fullerton India | 11.99% per year – 36% per year | Up to 6% |
| IDBI Bank | 8.30% per year – 11.05% per year | Contact the bank |
| Karur Vysia Bank | 9.40% pa – 19.00% pa | from 0.30% |
| Bank of South India | 10.25% pa – 14.15% pa | Up to 2% |
| Indian Overseas Bank | 9.30% per year – 10.80% per year | Up to 0.50% |
| RBL Bank | 14% pa – 23% pa | Up to 3.5% |
| National Bank of Punjab | 8.95% pa – 14.50% pa | Up to 1.80% |
| Bank of Maharashtra | 9.55% per year – 12.90% per year | Up to 1% |
| Central Bank of India | 9.85% and over | Rs.500 |
| City Union Bank | 11.25% per year | 1.25% |
| Dhanalaxmi Bank | 11.90% pa – 15.7% pa | Up to 2.5% |
| J&K Bank | 11.80% pa and more | Up to Rs.500 |
The maximum loan amount that one can borrow depends on the risk appetite and internal policies of the lenders. While banks can offer up to Rs 1-40 lakh, the fintech company cannot go beyond Rs 1-5 lakh, according to experts.
Banks generally offer fixed interest rates as well as floating interest rates. In a fixed rate scenario, borrowers pay the same interest rate throughout the loan repayment period.
On the other hand, the floating or variable interest rate is tied to the marginal cost of lending rate or MCLR, thus causing the interest rate to fluctuate as the MCLR changes, according to Bankbazaar.
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