Personal loans are an easy way to gain access to funds to enable you to go about your everyday life. Loan amounts offered differ from one lender to another, with smaller amounts being available for shorter terms and larger ones for longer terms.
In India, individuals and businesses across all sectors, large and small, rely on personal loans for day-to-day financial management.
Personal loans are unsecured and the amount you can borrow depends on your creditworthiness. Banks, financial institutions, and several online loan apps have made it easier to borrow varying amounts in a short period of time.
In the litany of loan lenders available, these 5 loan lending companies stand as the best and most popular. Take a look!
Top 5 Personal Loan Lending Companies in 2023
Lenders such as banks, credit unions, and NBFCs offer personal loans with affordable interest rates to make the financial journey of applicants easier. Here are all the features and benefits of the 5 best personal loans in India, in no particular order.
1. HDFC Personal Loan
| Loan Amount | Rs. 50,000 – Rs. 40,00,000 |
| Interest Rate(p.a) | 10.50% to 21% |
| Tenure | 12 months – 60 months |
| Age Group | 21 – 60 years |
| Minimum Income | Rs. 25,000/month |
| Processing Fee | Up to Rs 4999 + Other Statutory Charges |
Note: To qualify for an HDFC personal loan, individuals must be employed for a minimum of 2 years or held the job under the current employer for at least a year
Documents Required For HDFC Personal Loan
To proceed with the application process, you need to submit the following documents
- Identity proof/address proof
- Bank statement for the past 3 months
- Two most recent salary slips/salary certificates, along with the latest Form 16
2. ICICI Personal Loan
| Loan Amount | Rs. 50,000 – Rs. 50,00,000 |
| Interest Rate(p.a) | 10.50% to 19% |
| Tenure | 12 months – 72 months |
| Age Group | 23 – 58 years |
| Minimum Income | Rs. 30,000/month |
| Processing Fee | Up to 2.50% of the loan + applicable taxes |
Note: To qualify for an ICICI personal loan, individuals must be employed for a minimum of 2 years or should have held the job under the current employer for at least a year. The minimum salary requirement also differs based on the profile of the individual.
Documents Required For ICICI Personal Loan
For Salaried Individuals:
- Proof of Identity
- Proof of Residence
- Latest 3 months Bank Statement of salary
- Salary slips for the last 3 months
- 2 Passport size photographs.
For Self-Employed:
- KYC Documents i.e, Proof of Identity, Address proof, and DOB proof
- Proof of Residence
- Income proof (last two years’ audited financials)
- Latest 6 Months Bank Statement
- Office address proof
- Proof of residence or office ownership
- Proof of continuity of business.
3. Kotak Personal Loan
| Loan Amount | Rs. 50,000 – Rs. 40,00,000 |
| Interest Rate(p.a) | 10.99% onwards |
| Tenure | 12 – 60 months |
| Age Group | 21 – 60 years |
| Minimum Income | Corp Employee: Rs. 25,000
Non-Corp employee: Rs. 30,000 Kotak Mahindra Bank employee: Rs. 20,000 |
| Processing Fee | 3% of loan amount + taxes |
Note: To qualify for a Kotak personal loan, individuals must be employed for a minimum of 1 year.
Documents Required For Kotak Personal Loan
To avail a personal loan up to Rs. 5 lakhs, you need to submit the following documents:
- PAN Card
- Aadhaar Card
- Last 3 months’ bank statements of salary account
Here is the list of all documents you would have to submit to avail personal loan of up to Rs.40 lakhs:
- Identity proof: PAN Card, Passport, Aadhaar card, Voter’s ID Card or driving license
- Proof of residence: Passport, Aadhaar card, Driving license
- Your last 3 months’ bank statement containing details of your income
- For salaried employees, Salary slip of the last 3 months
- 2-3 passport sized photographs
4. Bajaj Finserv Personal Loan
| Loan Amount | Rs. 1,00,000 – Rs. 35,00,000 |
| Interest Rate(p.a) | 11% onwards |
| Tenure | 12 – 84 months |
| Age Group | 21 – 67 years |
| Minimum Income | Rs. 30,000/month |
| Processing Fee | Up to 3.93% of the loan |
Note: The minimum salary requirements vary depending on the city you live in.
Documents Required For Bajaj Finserv Personal Loan
Bajaj Finserv requires the following documents to process your loan application. They are
- KYC documents: Aadhaar/PAN/Voter ID/ Passport
- Employee ID Card
- Last 3 months’ salary slips
- Bank Statement of previous 3 months
5. IndusInd Bank Personal Loan
| Loan Amount | Rs. 30,000 – Rs. 50,00,000 |
| Interest Rate(p.a) | 10.25% to 26% |
| Tenure | 12 – 72 months |
| Age Group | 21 – 60 years for salaried employees
25 – 65 years for self-employed applicants |
| Minimum Income | Rs. 25,000/month, or
Rs. 4.8L p.a (after tax) for self-employed |
| Processing Fee | Up to 3% of the loan amount |
Note: To avail IndusInd bank personal loan, salaried applicants must have completed 2 years of employment with a minimum of 1 full year at their current company.
Documents Required For IndusInd Bank Personal Loan
For Salaried Applicants:
- Proof of Identity: Driving license/Passport/Voters ID/Aadhaar/PAN
- KYC documents: Valid identity proof, proof of residence, and signature proof
- Income proof: Form 16/ITR for last 3 years and the last 3 months salary slip
- Last 3 months’ Salary Credit Bank Statement.
For self-employed applicants:
- Proof of Identity
- KYC
- Income proof
- Last 6 months Practice Current Account and latest 3 months’ Primary Savings Bank Statement
Final Thoughts
The debt market in India has expanded significantly over the years and there are several top players vying to capture a big chunk of the market by providing borrowers personal loans with attractive interest rates.
As lenders’ market grows, borrowers must become more aware of the services they offer to make an informed decision. It is best to understand all the factors involved, from borrowing and repayment structures to processing fees and pre-closure charges, before choosing a personal loan.
