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Best banks to take personal loans in June 2020! Check your eligibility right now!!

Updated: Nov 13, 2020

Always calculate suitable EMI

Personally I won’t tell to take personal loans because they are one of the bad debts.

Personal loans are very high-interest loans and bad for credit score.

This article includes the best banks to apply for a personal loan and designed to share important points to be considered.

Points discussed under each bank

1. Eligibility and Terms & Conditions

2. Interest Rate and Other Charges

3. Required documents

4. Apply Link

When you should get a personal loan

If you’re thinking to take a personal loan to buy something (unnecessary), please don’t do it!!

Financial planners will always advise you to stay away from personal loans unless you have reasons like;

1. Consolidating your debts

2. A family function like marriage

3. Refinancing student loan

4. Medical emergency

5. Financing purchases like electronic equipment, furniture etc.

You must have a stable income source and good credit score to get a personal loan with low interest rate.

Try to take loan for minimum tenure as possible to keep interest minimum.


1. State Bank of India (SBI) Personal Loan

2. ICICI Bank Personal Loan

3. HDFC Bank Personal Loan

4. Axis Bank Personal Loan

5. IndusInd Bank Personal Loan

6. Bank of India (BOI) Personal Loan

7. Yes Bank Personal Loan

8. Bank of Baroda Personal Loan

9. Kotak Mahindra Bank Personal Loan

10. Punjab National Bank Personal Loan

11. Bajaj Finserv Instant Personal Loan

Check used abbreviations at end of the article.

1. State Bank of India (SBI) Personal Loan


SBI is one of the top banks in India and disperse loans through different schemes. Three of them are SBI Xpress Credit, Pensioner’s Loan, and Pre-approved Loan through YONO.

1.1. SBI Xpress Credit Personal Loan

If you have Salary Account with SBI, you apply for SBI Xpress Credit personal loan with quick approval and instant disbursal.

You can take loan up to 20 lakhs with low interest rates & low processing charges.

They give provision for second loan and require no security or guarantor.

Eligibility and Terms & Conditions

1. You should have minimum monthly income Rs.15000/-

2. EMI/NMI Ratio less than 50%.

3. Minimum Term Loan Amount – Rs. 25,000

4. Maximum Term Loan Amount – Rs. 20 lakhs / 24 times NMI

5. Minimum Overdraft Loan Amount – 5 lakhs

6. Maximum Overdraft Loan Amount – Rs. 20 lakhs / 24 times NMI

7. Second Loan is eligible any time after disbursement of first loan, subject to the overall EMI/NMI ratio of 50%.

8. Second Loan is eligible only on regular EMI repayments of the first loan.

Check other Terms & Conditions

Interest rate & charges

1. Interest rate ranges from 11.00% to 16.00%

2. Processing fee: 1.50% of the Loan Amount (subject to minimum ₹1000/- & maximum ₹15000/-) plus applicable Tax.

Required documents

1. Physical application form or online through SBI portal

2. PAN Card

3. Bank account details


1.2. SBI Personal Loan for Pensioners

This scheme is for Central & State Government pensioners, Defense pensioners and family pensioners.

Defense pensioners include pensioners of Armed Forces, including Army, Navy and Air Force, Paramilitary Forces (CRPF, CISF, BSF, ITBP, etc.), Coast Guards, Rashtriya Rifles and Assam Rifles.

Eligibility and Terms& Conditions

1. The Central & State Government pensioners and family pensioner should be below 76 years of age. (No minimum age bar for defense pensioners but maximum age at the time of processing the loan should be less than 76 years)

2. Pension payment order is maintained with SBI.

3. Family pensioner to furnish an irrevocable undertaking not to amend his mandate to the Treasury during the tenure of the loan.

4. Family pensioners include authorized members of the family to receive pension after the death of the pensioner.

5. EMI/NMP ratio shall not exceed 33% in all the cases for Family Pensioners and shall not exceed 50% in all other type of Pensioners.

Check other Terms & Conditions

Interest rate & charges

1. Interest rate ranges from 11.00% to 16.00%

2. For Family Pensioners, processing fee is 0.50% of the loan amount with a minimum of Rs 500 +GST and Maximum of Rs 2500 +GST

3. For Other Pensioners, processing fee is 1% of the loan amount with a minimum of Rs 1000 +GST and Maximum of Rs 10000 +GST.


1.3. SBI Pre-approved Personal Loan for YONO users

You can avail Pre-approved Personal loans instantly at your convenience on 24*7 basis through YONO app in just 4 clicks. No physical documents are required.

Presently, this loan is being offered to a category of customers who are pre-selected on certain parameters pre-defined by us.


Account with SBI and a YONO app

SMS “PAPL<space><last 4 digits of SBI Savings Bank Account No.>” to 567676 to check your eligibility

2. ICICI Bank Personal Loan


You can avail personal loan through quick and easy process. ICICI Bank provides attractive interest rate on personal loan and you can know your loan eligibility with simple steps.

Loan eligibility for ICICI Bank mostly depends on your existing relationship with ICICI Bank.

ICICI Bank provides repayment options of 12-60 months and disburse loan in 3 seconds.


If you’re salaried;

1. Age should be between 23 years - 58 years.

2. Minimum monthly income Rs.17,500 (Rs.25,000 for applicants residing in Mumbai & Delhi; Rs.20,000 for applicants residing in Chennai, Hyderabad, Bangalore, Pune & Kolkata)

3. At least 2 years completed in current job/profession

4. At least 1 year should be completed in current residence

If you’re self-employed

1. At least age 28 years (self-employed individuals) and 25 years (for doctors), and maximum age is 65 years.

2. Minimum turnover: Rs. 40 lakh for non-professionals; Rs. 15 lac for professionals; as per audited financials.

3. Minimum profit after tax deduction should be at least Rs. 2 lac for Proprietorship Firm/Self-employed Individuals and Rs. 1 lac for non-professionals as per audited financials.

4. In current business for at least 5 years and minimum 3 years for doctors.

5. At least 5 years should be completed in current business and minimum 3 years for doctors.

6. Minimum 1 year liability relationship with ICICI Bank (current or savings account) or Asset relationship (loan) either live or closed in the last 36 months; repayment track is required.

Interest rate & charges

1. Interest rates are 11.25% to 22.00% per annum

2. Loan Processing Charges / Origination Charges (Non-Refundable): Up to 2.25% of loan amount plus GST

3. Loan Cancellation Charges: Rs. 3000/- plus GST


3. HDFC Bank Personal Loan


With the introduction of "Step-up EMI", a first of its kind feature in the Personal Loan category, you can get a loan at an affordable EMI, starting at just Rs.1829/lakh* for the entire first 12 months.

It helps reduce the burden significantly during these challenging times and gives you the confidence to #LiveYourWay in the new normal

Get funds in 10 seconds if you are a pre-approved HDFC Bank customer. Other customers can get a loan in less than 4 hours.


1. Individual should have between 21 and 60 years of age.

2. HDFC Bank Salary account: Customer who earn a minimum of ₹ 25,000 net income per month.

3. Non-HDFC Bank Salary account Holder: Minimum of ₹ 50,000 net income per month.

4. Employees of select private limited companies, employees from public sector undertakings, including central, state and local bodies.

5. Individuals who have had a job for at least 2 years, with a minimum of 1 year with the current employer.

Interest rate & charges

1. Interest rate ranges from 10.75% to 22%.

2. Processing charges up to 2.50% of the loan amount subject to a minimum of ₹ 2,999/- & maximum of ₹ 25,000/- for salaried customers

Required documents

1. Identity proof (copy of passport/voter ID card/driving license/Aadhaar)

2. Address proof (copy of passport/voter ID card/driving license/Aadhaar)

3. Bank statement of previous 3 months (Passbook of previous 6 months)

4. Two latest salary slip/current dated salary certificate with the latest Form 16

5. Proof of End use


4. Axis Bank Personal Loan

Axis Bank Personal Loan

Axis Bank Personal Loans are instant and come with no foreclosure and part payment charges.

You can get a Personal Loan from Rs. 50,000 upto Rs. 15,00,000 with minimal documentation and speedy approval from Axis Bank. Also, you can transfer your existing high interest Personal Loan to Axis Bank as well.

Repayment tenure can range from 12 to 60 months.


1. Individual should have minimum age of 21 years.

2. Maximum age of 60 years at the time of maturity of the Personal Loan

3. Salaried Employees of public and private limited companies, doctors, government sector employees including Public Sector Undertakings, Central and Local bodies.

4. Minimum net monthly income – Rs. 15,000

Interest rate and other charges

1. Interest rate ranges from 12.00% to 24.00%

2. Repayment instruction / Instrument return charges: Rs.500/- per instance of dishonor of cheque /SI/ECS/NACH debit instruction + GST as applicable

3. Swap charges (Cheque/Instrument): Rs.500/- per instance + GST as applicable

4. Penal Interest: @ 24% per annum i.e. 2% per month on the overdue installment.

Check remaining charges

Required document for Salaried Personal loans

1. Duly filled application form

2. KYC documents

3. Loan Agreement duly signed and Standing Instruction (SI) Request / ECS Forms


5. IndusInd Bank Personal Loan


Obtain a personal loan easily with simple documentation, quick processing and speedy disbursal.

Loan Amount will be range 50,000 to 15 Lacs. You can choose comfortable loan tenure between 1 to 5 years.

Enjoy the convenience of doorstep service, enticing personal loan interest rates, no stress of collaterals or guarantors and lots more!

IndusInd Bank also offers pre-approved loan to existing customers.


For salaried employees

1. Minimum age at the time of application should be 21 years.

2. Maximum age at personal loan maturity should be 60 years or retirement age whichever is earlier.

3. Minimum net monthly income should be Rs.25000

4. Should have completed minimum 2 years in employment and minimum 1 year in the current organisation.

5. Should have completed minimum 1 year of stay at the current residence, if rented.

For employed professional & individuals

1. Minimum age at the time of application should be 25 years

2. Maximum age at loan maturity should be 65 years

3. Minimum annual net income post tax should be Rs.4.8 lakh

4. Should have 5 years of post qualification experience

Interest rate and charges

1. Interest ranges from 11.00% to 32.00%

2. Processing Fee – 2.5% onwards

Required documents

1. Application form with photograph

2. Proof of Identity: Self-attested photocopy of Driving license/ Passport/ Voters ID/ Aadhaar Card/ PAN

3. KYC: Valid identity/Residence/Signature proof

4. Income proof: Form 16/ITR for last 3 years

5. Latest 3 months’ salary slip


6. Bank of India (BOI) Personal Loan


BOI simplified application form/procedures for the convenience of customers, and speedy approvals.

Interest rate and charges

1. Interest rate: 12.15% p.a. onwards

2. Processing charges: 2.00 % of loan amount Min. Rs. 500/- and Max. Rs.2000/- Pensioners / No Processing Charges for senior citizens (60 years & above)

Check this FILE to check all rates & processing charges

6.1. Covid 19 Personal Loan (CPL)

BOI provide loan for salaried: 3 times of last drawn gross salary; Max: Rs. 5.00 Lakhs.

And for existing housing loan/ Personal customers: 3 times of last drawn gross salary in case of salaried persons, max: Rs. 5.00 Lakhs

3 times of monthly income based on the latest ITR in case of self-employed borrowers; Max: Rs. 5.00 Lakhs.


Customers drawing salary through BOI (he/she should be drawing salary through our bank for more than one year)

All existing standard housing loan BOI customers

All existing standard personal loan BOI customers

Instruction for applying for loan

6.2. COVID 19 Pensioner Loan (COPL)

Loan amount: 10- times of last drawn pension subject to maximum of Rs.2.00 lakhs for Regular pensioner, Rs.0.75 lakhs for Family pensioner, and Rs.1.00 lakh for Pensioner getting pension through Treasury/DPDO.


1. Who can apply: Regular Pensioners, Family Pensioners and Retired Employees of our Bank drawing pension from our Bank (Other than Dismissed staff)

2. Pensioners/Family pensioners who are drawing pension through Treasury/Defense Pension disbursing office (DPDO) directly credit to their SB A/cs with our Branches


6.3. BOI Star Personal Loan

BOI offers loans for marriage expenses, medical expenses, educational expenses, purchase of consumer durables etc.

The maximum quantum of advance is Rs.10.00 lakhs, depending upon the income, with a very attractive interest rate and easy repayment plan.

Max. Loan: Upto 10.00 Lac

Minimum size of loan: - At Metro and Urban Centres: Rs.10, 000/-

At Rural and Semi Urban centres: No minimum size of loan.

Minimum size of loan: - At Metro and Urban Centres: Rs.10, 000/-

At Rural and Semi-Urban centres: No minimum size of loan.


Salaried employees, Professionals, and individuals with high net worth, regular pensioners or family pensioners drawing regular monthly pension through Branch, Staff members, retired employees (other than dismissed/compulsorily retired) of our Bank.


6.4. Star Mitra Personal Loan

BOI offers this loan to help Physically Challenged persons to function independently.

A maximum of 1lac of loan can be availed (No minimum stipulation) or 10 times of net salary for salaried persons and 50% of net annual income as per latest Income Tax Return for Self-employed/Professionals.


1. All Physically Challenged Individuals – both salaried and self-employed.

2. All Physically Challenged Minors through their Parents/Legal Guardians. (No advances to middle-men and NGOs).

3. Net take home income should not be less than 40% after availing this loan. (In case of Minors, the income of the Parents/Legal Guardians would be the deciding criteria for eligibility).

Other Terms & Conditions

1. Doctor’s Certificate to be obtained regarding the extent of handicap and the need for the equipment.

2. Quotation/Invoice in respect of the equipment to be purchased.

3. Stamped receipt to be submitted after purchase of the equipment.

4. All other terms & conditions including documentation of star personal loan scheme will apply


7. Yes Bank Personal Loan


YES BANK offers customers Personal Loan for Rs. 1 Lakh to Rs. 40 Lakh at attractive interest rates for tenure ranging from 12-60 months.

There are several features and benefits of personal loan offered by YES BANK, due to which they continue to be a top choice of customers:

No need for collateral, flexibility in repayment options, 1-minute in-principle approval, quick disbursal of loan funds, lucrative interest rates, easy to apply for personal loan online, speedy approval, transfer existing Loan


Eligibility Criteria for Salaried

1. Applicant Age: 21 - 60 years

2. Minimum Eligible Income: Rs. 18,000 per month

3. Maximum Eligible Loan: 15 times of monthly income

4. Maximum Loan Amount Eligibility: Rs. 20 Lakh

For Self Employed Professionals

1. Applicant Age: 25 - 65 years

2. Minimum Eligible Income: Rs. 12 Lakh gross annual receipts

3. Maximum Eligible Loan: No limit

4. Maximum Loan Amount Eligibility: Rs. 50 Lakh

Interest rate and other charges

Interest rate ranges from 10.99% to 20.00%

Processing fee payable to Yes Bank is upto Rs. 2,000.

Required documents

1. Application Form

2. Identity Proof: Passport, Driving License, Aadhar Card, Voter ID

3. Address Proof: A valid form of ID proof with the permanent address (should be at least a year old)

4. Income Proof: Bank statement from the last three months


8. Bank of Baroda Personal Loan


Most salaried persons, self-employed and professionals can apply for personal loans.

With attractive interest rates, minimal documentation, and speedy processing, Bank of Baroda offers among the best personal loans today.

Loan amount: Rs. 1 lakh to Rs. 10 lakh for Metro and Urban Centres & Rs.50,000 to Rs.5 lakh for Semi Urban & rural areas) for tenure 48 to 60 months.

Rs. 1 lakh to Rs. 10 lakh for Metro and Urban Centres & Rs.50,000 to Rs.5 lakh for Semi Urban & rural areas) for tenure 48 to 60 months.

8.1. Bank of Baroda Personal Loan


Eligibility Criteria Salaried

1. Applicant Age: 21 - 60 years

2. Minimum Eligible Income: Rs. 20,000 per month

3. Maximum Eligible Loan: 15 times of monthly income

4. Maximum Loan Amount Eligibility: Rs. 5 Lakh

Self Employed Professionals

1. Applicant Age: 21 - 65 years

2. Minimum Eligible Income: Rs. 5 Lakh gross annual receipts

3. Maximum Eligible Loan: Nil

4. Maximum Loan Amount Eligibility: Rs. 10 Lakh

Interest rate and charges

1. Starts from 10.50% for Existing Customers having account Relationship with our Bank for minimum 6 months. And for users fir less than 6 months interest starts from 12.50%.

2. Processing fee: 2% of Loan amount (Minimum: Rs.1000/- & Maximum: Rs.10,000/-)

Required documents

1. Completely filled loan application

2. Bank statement for the last six months and updated passbook.

3. Proof of residence includes; Valid passport/ Voter id card/ Driving license/ Utility bill

4. Registered rent agreement

5. Proof of identity: PAN card/ Valid Indian passport/ Voters ID card/ Driving license

6. Employee ID card issued by relevant authorities like the Govt or Defence or reputed corporate

7. Identity document or certificate of practice with photograph issued by professional bodies like ICAI, ICWA, ICFAI

For salaried individuals

1. Last 3 months' salary slips

2. Form 16 or Income Tax Returns

If the applicant is a self-employed individual

1. Balance sheet and profit and loss account, computation of income for last 2 years.

2. Income Tax Returns – last 2 years for Applicants, 26 AS, Traces

3. Business proof : Gomasta License, Registration Certificate, Service Tax Registration, among others

4. IT Assessment / Clearance Certificate, Income Tax Challans / TDS Certificate (Form 16A) / Form 26 AS for income declared in ITR.


8.2. Baroda Personal Loan COVID 19

Customer can avail facility for any purpose including temporary liquidity mismatch due to COVID-19 except speculation purpose.

Loan amount: minimum: Rs.25,000/- to Maximum:Rs.5.00 Lakhs*


1. Home Loan (all variants) with minimum -6- months relationship.

2. Loan against Property with minimum -6- months relationship.

3. Auto Loan with minimum -12- months relationship.

With minimum 6 months relationship where:

Loan is fully disbursed and moratorium period completed.

Minimum three installments paid

Account should not be in SMA-1 or 2 category as on 29.02.2020

Interest rate and charges

BRLLR + SP+ 2.75% per annum with monthly rest (ROI is irrespective of Bureau score) (

Processing Charges: Rs. 500/- plus applicable GST


9. Kotak Mahindra Bank Personal Loan


Why apply at KMB?

For the ease of browsing and applying for a personal loan online, the ease of submitting the required personal loan documents, attractive interest rate and flexible repayment options, minimal paperwork and fast service.

The ease of availing a loan up to Rs.20 Lakh without any collateral and very easily approachable and thorough customer service.


1. Any Indian resident who is an active employee of an MNC, Public or Private limited company

2. Individual between 21- 58 years of age is eligible for availing a personal loan at Kotak Mahindra.

3. A net salary of Rs.20,000/- per month

4. A person who has a minimum educational qualification of being a graduate.

5. An active resident of a city for at least 1 year

6. A minimum work experience of at least 1 year


Interest rate and charges

Kotak Mahindra offers rate of fixed rate of interest ranging between 10.75%-24% p.a.

Loan Processing Charges: upto 2.5% of the loan amount+ GST and other applicable statutory levies.

Check the remaining charges here.

Required documents

Salaried Applicant:

1. Proof of Identity like Passport/ PAN Card, Aadhar card, Voter's ID, Driving License

2. Proof of Residence like Utility Bill, Passport or Leave and License Agreement

3. Bank Statement for the last 3 months with income details

4. Salary slip for the last 3 months

5. 2-3 Passport Size photographs

To apply, visit the nearest branch

10. Punjab National Bank Personal Loan


PNB currently offering personal loans through its multiple schemes.

10.1. PNB Sahyog COVID 19: Personal Loan Scheme For Public

To provide financial assistance to existing customers affected because of the COVID19 pandemic, to meet their emergent consumption or medical needs.

The Scheme will be applicable up to 30.06.2020.

Maximum loan amount – Rs.3 Lakhs for tenure of maximum 36 months.

Note: In case of existing personal loan borrowers the permissible limit shall be within overall limit of personal loan to public scheme i.e. maximum Rs.10 lakhs.


1. All Salaried Confirmed/permanent employees of Central/State Govt./PSUs and all reputed* companies/Institutions including Schools, Colleges, Universities, autonomous bodies, Hospitals/ Nursing Homes, who are either drawing their salary through accounts maintained with our branches i.e. PNB (erstwhile OBC and UBI).

2. Rs 15,000 in Metro/ Urban Centres and Rs. 10,000 in Semi Urban/ Rural Centre

Interest rate and charges

1. Rate Of Interest: RLLR + 2.00%

2. Processing & Documentation Charges: NIL


10.2. PNB Aabhar Rin COVID 19 - Personal Loan Scheme for Pensioners

The Scheme will be applicable up to 30.06.2020.

Loan Amount: Maximum of Rs.2 Lakh or three times of the average of last 6 months pension credited in the account whichever is lower.

Loan tenure: Maximum 36 months if already having a pension loan and maximum 60 months for new applicant)


All types of pensioners drawing pension through our branches.

Minimum Net Take Home Pension: Upto Rs.30,000 (maximum Permissible Deduction- 50%), above Rs. 30,000 (maximum Permissible Deduction- 60%)

Interest rate and charges

3. Rate Of Interest: RLLR + 2.00%

4. Processing & Documentation Charges: NIL


11. Bajaj Finserv Instant Personal Loan


Fulfill your diverse financing needs with an instant personal loan online.

Bajaj Finserv brings personal loans up to Rs.25 lakh, which can be availed by meeting minimum eligibility criteria and simple documentation requirement.


1. Age - Between 23 and 55 years

2. Employment status - Salaried individual employed with a public sector company, a private company or an MNC

3. CIBIL score - 750 and above

4. Residential status - Residing Indian citizen

5. Minimum income - Depending on the city you reside in, the lowest of which starts from Rs.25,000.

Interest rate and charges

1. Rate of Interest: 12.99% onwards

2. Processing fees: Up to 4.13% of the loan amount (plus applicable taxes)

Required documents

1. Proof of identity: PAN card, Aadhaar card, Voter ID card, Passport or any other government-issued photo identity proof

2. Proof of address: Aadhaar card, Voter ID card, Passport, Ration card, utility bills or any other government-issued proof of address

3. Income proof: Salary slips for the last 2 months and bank account statements for three previous months


Used abbreviations

EMI/NMI ratio

EMI/NMI is a ratio which shows the EMI (equated monthly instalment) payout as a percentage of a person's post-tax net monthly income (NMI) and is usually multiplied by 100 to approximately arrive at a person's home loan eligibility. Higher the NMI, higher is the loan eligibility.


Marginal cost of funds-based lending rate (MCLR) is an internal reference rate for banks fixed by the Reserve Bank of India (RBI).


The lending interest rate linked to repo rate is known as Repo Rate Linked Lending Rate (RLLR). RLLR is made up of RBI's repo rate plus spread or margin. RLLR = Repo rate + Margin charged by the bank. The Central Bank reviews the repo rate in every two months.

Know more about RLLR & RLLR

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