Which Bank is Best for Personal Loan?

For some personal reasons I was in need of a loan. I asked a friend which is the best bank for personal loan in India. He told me that there are multiple banks in India and following that he provided me with a list. The list had the personal interest rates of some of the best banks in India. You can check the list below.

What are the Best Bank to Take Personal Loan in India?

After this he also told me about some factors to look at for choosing the best bank to take personal loan. 

• Interest Rates

  : He said that the first thing I should look for is a bank that offers low interest rates. According to him, even a low percentage difference can add to the loan cost overtime. 

• No Collateral

  : He told me that personal loans are unsecured and I should choose a bank that doesn't ask me to put any collateral for the loan. 

• Minimum Documentation

  : The best personal loans are those that you can get with minimum documentation. 

• Processing Cost

  : He asked me to choose a bank that charges a low processing fees. 

And that is all that he told me about the best bank for personal loan in India.

I’ve recently availed a personal loan to finance my sister’s marriage from HDFC Bank. I considered HDFC as the best bank. Before availing a personal loan, I researched on the factors that makes a bank the best bank for personal loan in India. I can share the factors with you all.

How to Determine Which is the Best Bank to Take Personal Loan in India?

• When taking out a personal loan, the interest rate was my first priority. The Personal Loans with the lowest interest rates are the best, in my opinion.

• Low processing fees to reduce my loan burden 

• The easiest personal loans to obtain might be the ones with lowest documentation. For instance, submitting numerous documents and filling out numerous forms is the last thing I wanted to do when in a rush to acquire money.

• I was determined to take the personal loan from a bank that would provide me with the fund that I require. It makes no sense to go to a bank with a 10 lakh maximum loan amount if you require a 20 lakh loan.

After researching several banks, I opted for HDFC bank because of its;

• Low interest rate of 10.75%. I compared 2 other banks, that is ICICI, and DBS whose interest rates are 10.80%, and 10.99% respectively. So in comparison to these 2, I found the ROI offered by HDFC as the lowest. 

• Processing fee of up to 4999 + GST

• I was also not required to provide any documents as it was a pre approved loan. However, for the non pre approved loan, you will be required to submit only a few documents like;  Last 3 Months Bank statements, 2 Latest Salary Slip and KYC

• The loan amount was also perfect for me. Up to Rs. 40 Lakh is available for personal loans. However, depending on the loan requirements, and subject to eligibility requirements, one can obtain up to Rs. 75 Lakh.

It is because of these reasons I chose HDFC Bank to avail a personal loan.

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A personal loan is a loan that one can borrow for their personal needs or for a variety of purposes. It does not require collateral or security and gets disbursed with minimal documentation. I might not be able to tell which bank is best for personal loan but I can share a list of reliable banks you can opt for.

Which bank is best for personal loan in India?

Some of the most reliable banks from which you can avail of a personal loan are:

1. State Bank of India Personal Loan

2. ICICI Bank Personal Loan

3. HDFC Bank Personal Loan

4. Kotak Mahindra Personal Loan

5. Axis Bank Personal Loan

6. Citibank Personal Loan

7. Bajaj Finserv Personal Loan

8. Bank of Baroda Personal Loan

9. Standard Chartered Personal Loan

10. Tata Capital Personal Loan

So you can choose which private bank is best for home loan as per your requirements there. Do note some important aspects of personal loans from the banks, like

• Their interest rate

• Fees and Charges 

• What documents will be required

• Credit score

• Repayment options 

• Tenure and others

I hope this information will help you get some knowledge about personal home loans.

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