A personal loan is an unsecured loan provided by banks, credit unions, or online lenders, allowing borrowers to access a fixed sum of money without collateral. Disbursed as a lump sum, it is repaid in fixed monthly instalments over a term, typically one to seven years. The loan amount, interest rate, and terms depend on the borrower’s credit score, income, and financial history. As no assets are required as security, personal loans are accessible but may have higher interest rates due to the lender’s risk.
The purpose of a personal loan is to offer financial flexibility for diverse needs. Borrowers often use it to consolidate high-interest debt, such as credit card balances, into a single, lower-rate payment, simplifying finances and potentially reducing interest costs. Personal loans also fund major expenses like home improvements, medical bills, weddings, or education. They serve as a quick solution for emergencies, such as unexpected repairs or income disruptions, providing funds when savings fall short. This versatility makes personal loans ideal for both planned and unforeseen expenses.
The benefits include rapid access to funds, often within days, especially for those with good credit. Fixed interest rates ensure predictable payments, aiding budgeting. Debt consolidation through a personal loan can boost credit scores by lowering credit card balances and showing consistent repayments. As unsecured loans, they don’t risk assets like a home or car. Competitive rates for strong credit profiles make them cost-effective compared to credit cards. However, borrowers with lower credit scores may face higher rates, so responsible repayment is essential to avoid financial strain. By leveraging their flexibility and benefits, personal loans empower individuals to manage expenses and achieve financial goals effectively.
Why Personal Loans Are Popular in India
Personal loans are unsecured loans, meaning no collateral is required, making them accessible to salaried individuals, self-employed professionals, and even those with moderate credit scores. In 2025, the Indian personal loan market is booming, driven by:
- Digital Transformation: Online applications and instant approvals have simplified borrowing.
- Rising Demand: From education to travel, personal loans cater to diverse needs.
- Competitive Rates: Lenders offer rates as low as 9.60% p.a., making loans affordable.
- Flexible Tenures: Repayment periods range from 3 months to 7 years, suiting varied budgets.
With so many options, selecting the right lender can be overwhelming. Our curated list of the top 20 personal loan providers in India for 2025 is designed to help you compare interest rates, loan amounts, tenures, and eligibility criteria to find the perfect fit.
Top 20 Personal Loan Providers in India for 2025
1. HDFC Bank
- Interest Rate: 10.50%–24.00% p.a.
- Loan Amount: Up to ₹40 lakh
- Tenure: 3–72 months
- Why Choose: HDFC Bank is a leader in personal loans in India, offering instant disbursals (within seconds for pre-approved customers), minimal documentation, and a fully digital process. Its extensive branch network and 24/7 customer support make it a top choice.
2. State Bank of India (SBI)
- Interest Rate: 9.60%–14.50% p.a.
- Loan Amount: Up to ₹35 lakh
- Tenure: Up to 84 months
- Why Choose: SBI offers some of the lowest interest rates for personal loans in 2025, especially for government employees and pensioners. Products like Xpress Flexi and Pension Loans cater to diverse needs.
3. ICICI Bank
- Interest Rate: 10.80%–16.65% p.a.
- Loan Amount: Up to ₹50 lakh
- Tenure: 12–84 months
- Why Choose: Known for quick personal loan disbursals and no foreclosure charges after 12 EMIs, ICICI Bank is ideal for salaried and self-employed individuals. Pre-approved loans and overdraft facilities add flexibility.
4. Axis Bank
- Interest Rate: 10.49%–22.00% p.a.
- Loan Amount: Up to ₹40 lakh
- Tenure: 12–84 months
- Why Choose: Axis Bank provides fast personal loans with minimal paperwork and flexible EMI options. Its balance transfer facility helps reduce high-interest debt.
5. Bajaj Finserv
- Interest Rate: 11.00% p.a. onwards
- Loan Amount: Up to ₹35 lakh
- Tenure: Up to 84 months
- Why Choose: Bajaj Finserv’s flexi personal loans allow borrowers to withdraw funds multiple times within a sanctioned limit, making it ideal for dynamic financial needs.
6. Kotak Mahindra Bank
- Interest Rate: 11.00% p.a. onwards
- Loan Amount: Up to ₹40 lakh
- Tenure: 12–60 months
- Why Choose: Kotak offers competitive rates and a hassle-free online application process, perfect for urgent needs like weddings or medical expenses.
7. Tata Capital
- Interest Rate: 10.99% p.a. onwards
- Loan Amount: Up to ₹35 lakh
- Tenure: Up to 72 months
- Why Choose: Tata Capital is known for quick loan approvals and special schemes for government and defense personnel, with minimal documentation.
8. Canara Bank
- Interest Rate: 11.30% p.a. onwards
- Loan Amount: Up to ₹10 lakh
- Tenure: Up to 84 months
- Why Choose: A public sector bank offering affordable personal loans with no prepayment penalties. Variants like Canara Budget Prime are tailored for government employees.
9. KreditBee
- Interest Rate: 10.00%–30.00% p.a.
- Loan Amount: ₹3,000–₹5 lakh
- Tenure: 3–24 months
- Why Choose: This app-based lender provides instant personal loans online with minimal documentation, ideal for young professionals and small funding needs.
10. Moneyview
- Interest Rate: 10.00% p.a. onwards
- Loan Amount: ₹5,000–₹10 lakh
- Tenure: Up to 60 months
- Why Choose: Moneyview’s unique credit assessment model supports borrowers with low/no credit scores, offering quick loans with transparent terms.
11. Punjab National Bank (PNB)
- Interest Rate: 12.40%–17.45% p.a.
- Loan Amount: Up to ₹20 lakh
- Tenure: Up to 60 months
- Why Choose: PNB offers loans up to 24 times monthly salary, making it a reliable choice for salaried individuals seeking personal loans with low interest.
12. Bank of Baroda
- Interest Rate: 9.85% p.a. onwards
- Loan Amount: Up to ₹20 lakh
- Tenure: Up to 84 months
- Why Choose: A public sector bank with competitive rates and flexible repayment options, ideal for those seeking affordable loans.
13. Indian Overseas Bank
- Interest Rate: 10.85%–13.00% p.a.
- Loan Amount: Up to ₹15 lakh
- Tenure: Up to 84 months
- Why Choose: Offers specialized loans like IOB Passion for consumer durables and HNI VIP for high-net-worth individuals.
14. IndusInd Bank
- Interest Rate: 10.49% p.a. onwards
- Loan Amount: Up to ₹25 lakh
- Tenure: Up to 60 months
- Why Choose: Provides instant loan approvals and competitive rates for retail banking customers, with a focus on quick processing.
15. Federal Bank
- Interest Rate: 11.00% p.a. onwards
- Loan Amount: Up to ₹25 lakh
- Tenure: Up to 60 months
- Why Choose: Known for personalized guidance and competitive rates, Federal Bank builds long-term customer relationships.
16. Standard Chartered Bank
- Interest Rate: 11.49% p.a. onwards
- Loan Amount: Up to ₹50 lakh
- Tenure: Up to 60 months
- Why Choose: Offers low processing fees (up to 2.25%) and quick approvals, catering to both salaried and self-employed borrowers.
17. Bank of Maharashtra
- Interest Rate: 10.00% p.a. onwards
- Loan Amount: Up to ₹20 lakh
- Tenure: Up to 60 months
- Why Choose: A digitally driven public sector bank with low rates, though non-government employees may need a guarantor.
18. Navi
- Interest Rate: 9.99% p.a. onwards
- Loan Amount: Up to ₹20 lakh
- Tenure: Up to 72 months
- Why Choose: A fully digital lender with no processing fees and instant approvals, ideal for quick funding needs.
19. PaySense
- Interest Rate: 10.00%–36.00% p.a.
- Loan Amount: Up to ₹5 lakh
- Tenure: 3–60 months
- Why Choose: An app-based lender accepting self-employed individuals, offering quick personal loans with minimal documentation.
20. CASHe
- Interest Rate: 10.00%–30.00% p.a.
- Loan Amount: Up to ₹4 lakh
- Tenure: 3–18 months
- Why Choose: Targets young professionals with a unique credit model, providing instant loans online with fast approvals.
How to Choose the Best Personal Loan Provider
Selecting the right lender requires careful consideration of several factors. Here’s a guide to help you make an informed choice:
- Compare Interest Rates
Interest rates range from 9.60% (SBI, Bank of Baroda) to 36.00% (PaySense, KreditBee). A credit score above 750 often secures lower rates. Use online loan comparison tools to find the best personal loan interest rates.
- Evaluate Loan Amount and Tenure
Banks like ICICI and HDFC offer up to ₹50 lakh with tenures up to 84 months, ideal for large expenses. NBFCs like KreditBee and CASHe focus on smaller loans (₹3,000–₹5 lakh) with shorter tenures.
- Check Processing Fees and Charges
Processing fees typically range from 0.5%–2.25% of the loan amount. Lenders like Navi waive fees, while others like Standard Chartered charge up to 2.25%. Verify prepayment/foreclosure charges, as many lenders (e.g., ICICI, Canara) waive them after 12 EMIs.
- Assess Eligibility Criteria
Common requirements include:
- Age: 21–60 years
- Income: ₹15,000–₹40,000/month (varies by lender)
- Employment: Stable job or business (minimum 6 months–2 years)
- Credit Score: Preferably 750+ for better rates
- Documentation
Standard documents include:
- Identity Proof: Aadhaar, PAN
- Address Proof: Utility bills, rental agreement
- Income Proof: Salary slips, ITR, or bank statements
Digital lenders like Navi and Moneyview require minimal paperwork, often processing applications with just Aadhaar and PAN.
- Speed of Disbursal
For urgent needs, opt for lenders like HDFC, ICICI, or KreditBee, which offer instant loan approvals and disbursals within hours.
- Customer Support and Digital Experience
Banks like HDFC and Axis provide robust online platforms, while NBFCs like Bajaj Finserv and Navi offer app-based solutions for a seamless experience.
Comparison of the Top Five Personal Loans
Below is a comparison of the top five personal loan providers in India for 2025: HDFC Bank, State Bank of India (SBI), ICICI Bank, Axis Bank, and Bajaj Finserv. The table includes key parameters such as interest rates, loan amounts, tenures, eligibility, documentation, processing fees, and unique features to help you make an informed decision. Data is sourced from the latest available information on lender websites and financial comparison platforms.
Parameter | HDFC Bank | State Bank of India (SBI) | ICICI Bank | Axis Bank | Bajaj Finserv |
Interest Rate (p.a.) | 10.50%–24.00% | 9.60%–14.50% | 10.80%–16.65% | 10.49%–22.00% | 11.00% onwards |
Loan Amount | Up to ₹40 lakh | Up to ₹35 lakh | Up to ₹50 lakh | Up to ₹40 lakh | Up to ₹35 lakh |
Tenure | 3–72 months | Up to 84 months | 12–84 months | 12–84 months | Up to 84 months |
Processing Fees | Up to 2.50% of loan amount (min ₹1,999, max ₹25,000) | Up to 1.50% of loan amount (min ₹1,000, max ₹15,000) | Up to 2.25% of loan amount | 1%–2% of loan amount | Up to 2% of loan amount |
Eligibility Criteria | – Age: 21–60 years – Min income: ₹25,000/month (salaried) – Credit score: 750+ – Min 2 years employment, 1 year with current employer | – Age: 21–58 years – Min income: ₹15,000/month – Credit score: 750+ – Stable employment (govt employees preferred) | – Age: 21–58 years – Min income: ₹30,000/month (salaried) – Credit score: 750+ – Min 2 years employment | – Age: 21–60 years – Min income: ₹15,000/month – Credit score: 750+ – Min 1 year employment | – Age: 21–60 years – Min income: ₹25,000/month (salaried) – Credit score: 720+ – Min 1 year employment |
Documentation | – Identity: Aadhaar, PAN – Address: Utility bill, rental agreement – Income: 3 months salary slips, 6 months bank statements, ITR | – Identity: Aadhaar, PAN – Address: Utility bill, voter ID – Income: Salary slips, Form 16, ITR – Employment proof | – Identity: Aadhaar, PAN – Address: Utility bill, passport – Income: 3 months salary slips, bank statements, ITR | – Identity: Aadhaar, PAN – Address: Utility bill, rental agreement – Income: Salary slips, bank statements, ITR | – Identity: Aadhaar, PAN – Address: Utility bill – Income: 3 months salary slips, bank statements |
Prepayment/Foreclosure Charges | 2%–4% of outstanding amount (nil after 36 months) | Nil after 6 months | Nil after 12 EMIs | 2%–5% (varies by tenure, nil after 12 months for some) | Nil for flexi loans, up to 4% for term loans |
Disbursal Time | Within seconds (pre-approved); 4–10 hours (others) | 2–7 working days | Within hours (pre-approved); 1–2 days (others) | Within hours (pre-approved); 1–2 days (others) | Within 24–48 hours |
Unique Features | – Instant disbursal for pre-approved customers – Fully digital process – Balance transfer option | – Lowest rates for govt employees – Xpress Flexi and Pension Loan variants – Wide branch network | – Overdraft facility – Pre-approved loans – High loan amounts up to ₹50 lakh | – Balance transfer facility – Flexible EMI options – Minimal paperwork | – Flexi loan option (borrow multiple times within limit) – Transparent terms – Fast online process |
Customer Support | 24/7 support, online portal, extensive branch network | Branch-focused, online support, slower response time | Robust online platform, 24/7 support, branch access | Strong online and branch support | App-based support, quick response, limited physical presence |
Best For | Salaried individuals seeking quick, large loans with digital convenience | Government employees, pensioners, and those seeking low rates | High loan amounts, pre-approved offers, and flexible tenures | Salaried individuals needing fast processing and balance transfers | Borrowers needing flexibility and quick disbursals |
Drawbacks | Higher rates for lower credit scores | Slower disbursal compared to private banks | Slightly higher rates than SBI | Higher rates for non-pre-approved customers | Limited physical presence, higher rates for some |
Tips for Applying for a Personal Loan
- Check Your Credit Score: A score above 750 improves approval chances and secures lower rates. Use platforms like CIBIL to monitor your score.
- Use EMI Calculators: Plan repayments using online EMI calculators to avoid financial strain.
- Compare Lenders: Platforms like Paisabazaar, BankBazaar, or IndiaLends provide side-by-side comparisons of personal loan offers.
- Look for Pre-Approved Offers: Existing customers of banks like SBI, ICICI, or HDFC may get instant disbursals.
- Avoid Multiple Applications: Applying to multiple lenders simultaneously can lower your credit score.
- Read Terms Carefully: Check for hidden fees, variable interest rates, or prepayment penalties.
Borrow Smart
The personal loan landscape in India for 2025 is more competitive than ever, with banks and NBFCs offering innovative products to meet diverse needs. Whether you’re consolidating debt, funding a vacation, or covering unexpected expenses, the top 20 personal loan providers listed above provide options for every borrower. From low interest personal loans by SBI and Bank of Baroda to instant online loans by KreditBee and Navi, there’s a lender for every financial goal.
Disclaimer: Interest rates, loan amounts, and terms are subject to change. Always verify details with the lender before applying.
