Choosing the right bank for your personal loan isn’t just about getting quick funds—it’s about securing the lowest interest rates, avoiding hidden fees, and ensuring a smooth borrowing experience.
At Infinity Finance, we specialize in comparing India's top banks and NBFCs to help you find the best bank for personal loan in India, aligned with your unique financial profile.
What You’ll Learn in This Guide:
- What a personal loan is and when to opt for it
- How to compare interest rates and features
- Top banks for personal loans in 2025
- How to boost your eligibility and apply smartly
1. Personal Loans
1.1 What Is a Personal Loan?
A personal loan is an unsecured credit provided by banks or NBFCs based on your income, credit score, and repayment history. It can be used for various purposes such as:
- Marriage
- Medical emergencies
- Travel
- Home renovations
- Education
1.2 When & Why to Opt for One
Choose a personal loan when you need fast funds, want better interest than credit cards, or need flexible EMIs with minimal paperwork.
1.3 Benefits Over Other Credit Options
- No collateral required
- Lower rates than credit cards
- Fixed interest & EMI structure
- Quick disbursal (24–72 hours)
- Flexible repayment terms
2. Key Factors to Compare Before Applying
2.1 Interest Rates & Total Cost
In 2025, personal loan interest rates vary from 9.50% to 24%. Always compare the effective annual rate (APR) to assess real cost.
2.2 Processing Fees & Hidden Charges
- Processing: 0.5% to 3%
- Prepayment/Foreclosure charges
- Late payment penalties
2.3 Loan Amount & Tenure
Loan ranges from ₹50,000 to ₹40 lakh with 12–84 month tenure. Choose what matches your repayment capability.
2.4 CIBIL Score Requirement
A CIBIL score of 700+ is recommended. Lenders may still approve lower scores with higher rates.
2.5 Prepayment & Foreclosure Rules
Select banks with minimal or zero foreclosure penalties to repay early and save interest.
2.6 Customer Service & Speed
Look for fast processing, digital applications, and reliable customer care.
Use Our EMI Calculator3. Top 5 Banks for Personal Loans in India (2025)
| Bank | Interest Rate | Processing Fee | Loan Amount | Disbursal Time | Highlights |
|---|---|---|---|---|---|
| HDFC Bank | 10.50% – 21.00% | Up to 2.5% | Up to ₹40 lakh | 1–2 days | Best digital process |
| SBI | 10.40% – 14.20% | Up to 1.5% | Up to ₹20 lakh | 2–5 days | Great for govt employees |
| ICICI Bank | 10.75% – 17.50% | Up to 2.25% | Up to ₹35 lakh | 1–3 days | Pre-approved offers |
| Axis Bank | 10.99% – 21.00% | Up to 2% | Up to ₹25 lakh | 2–3 days | Smooth online application |
| Bajaj Finserv | 11.00% – 24.00% | Up to 3% | Up to ₹25 lakh | Same day | Fastest via app |
4. How to Improve Your Loan Eligibility
- Boost Your CIBIL Score: Pay EMIs and bills on time, avoid multiple loan queries
- Lower Existing Debts: Maintain debt-to-income ratio below 40%
- Add a Co-applicant: Use combined income for better chances
- Apply at Right Time: End-of-month, festive seasons offer relaxed criteria
5. Personal Loan Application Process
5.1 Online vs Offline
- Online: Quick, paperless, self-service
- Offline: Ideal for guided applications via branch
5.2 Required Documents
- PAN Card
- Aadhaar or other ID
- Salary slips (3 months) or ITR (self-employed)
- Bank statements (6 months)
5.3 Filling the Application
Ensure correct personal, employment, and financial info to avoid rejection.
5.4 After Submission
Track loan status via bank’s portal or app. Follow up with your Infinity Finance advisor for assistance.
6. Frequently Asked Questions
Which bank is best for personal loan without salary slip?
Bajaj Finserv and Axis Bank accept alternative income proofs.
How long does approval take?
Most loans are approved within 1–5 working days.
Can I prepay a personal loan?
Yes, check prepayment terms. Many banks offer zero charges after 12 EMIs.
Minimum CIBIL score required?
700+ is ideal; some banks accept 650+ with higher rates.
How to calculate EMI?
Use our free EMI Calculator.
7. Conclusion & Next Steps
Finding the best bank for personal loan in India in 2025 is about more than just rates—it’s about trust, service, and smart choices. Let Infinity Finance help you compare, choose, and apply effortlessly.
Compare & Apply for Personal Loan