Personal Loan 2023: Latest Interest Rates, Types, Benefits, Eligibility, FAQs

Personal loans are the financial products of commercial banks and NBFCs to cover your financial needs temporarily. This is a form of borrowed money which gives you an economic boost and lets you make large purchases, pay debts, use funds for emergencies and more.

The repayment of the personal loan is made in the form of EMIs or Estimated Monthly Instalments. With every EMI the portion of borrowed money and the applicable interest rate is charged by the lender. The repayment tenure depends on the borrowers repaying capacity, which the lender determines by accessing his or her credit score.

Personal Loan Latest Interest Rates Types Benefits

All About Personal Loans

Why Get a Personal Loan?

Here are the 6 most valid excuses for you to get a personal loan:

  • To Pay off your old debts.
  • A profitable alternative to payday loans.
  • To fulfil temporary liquidity needs.
  • To make large purchases and return EMIs.
  • In case of emergency.
  • To cover wedding expenses.

Personal Loan Latest Interest Rate 2023

Banks Personal Loan Interest Rate (Per Annum)
State Bank of India10.90%-15.40%
HDFC Bank11.00% onwards
Punjab National Bank10.15%-16.70%
ICICI Bank10.75% onwards
Bank of Baroda10.60%-17.95%
Union Bank of India11.15%-15.25%
Axis Bank10.49% onwards
Bank of India10.10%-14.60%
Indian Bank9.75%-14.75%
Kotak Mahindra Bank10.99% onwards
Central Bank of India10.70%-12.30%
IndusInd Bank10.49% onwards
IDBI Bank11.00%-15.50%
Yes Bank10.49% onwards
UCO Bank12.30%-12.70%
Federal Bank10.49%-17.99%
Bank of Maharashtra9.25%-15.05%
IDFC FIRST Bank10.49% onwards
Bajaj Finance11.00% onwards
RBL Bank17.50%-26.00%
Muthoot Finance14.00%-22.00%
Tata Capital10.99% onwards
Standard Chartered Bank11.49% onwards
Navi Finserv9.90%-45.00%
StashFin11.99% onwards
Fullerton India11.99% onwards
Faircent12.00% onwards
KreditBeeUp to 29.95%
MoneyTap36.00% onwards
Dhani Loans & Services (Formerly known as Indiabulls Consumer Finance Ltd.)13.99% onwards
Money View15.96% onwards
Home Credit24.00% onwards
CASHe27.00% onwards
HDB Financial ServicesUp to 36.00%

Benefits of Getting a Personal Loan

  • Personal loans are approved without collateral for the majority of people.
  • There are no restrictions on end-use.
  • Low-interest rate starting from 10.49% p.a for excellent CIBIL score or credit score browsers.
  • A personal loan can be availed for up to ₹40 lacks.
  • The repayment period can extend up to 60 months depending upon the type of case.
  • Instant disbursals with no to minimum documentation.

Types of Personal Loans

Instant Personal Loans

As the name sounds, these types of personal loans are disbursed within 3 to 4 steps of the online process. They require no minimal documentation.

Short-Term Personal Loan

These types of loans have a very short repayment tenure ranging from a few days up to 12 months.

Pre-Approved Personal Loans

Pre-approved personal loan offers are offered by the banks and NBFCs to existing customers with a good credit history, income, and relation with the institution.

Consumer Durable Loans

Consumer durable loans are offered by lenders to customers who want to purchase items like mobile, laptops, furniture, microwave, etc. The major role of this type of loan is to enable the customers to purchase expensive products and repay in small EMIs.

Personal Loan to Finance Education

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Students having the vision to pursue higher education in India or abroad can avail of this type of loan.

Who is Eligible for a Personal Loan?

  • An individual aged between 18-60.
  • A salaried person with a monthly salary of at least ₹15,000.
  • A self-employed individual with an annual income of ₹5 lacks.
  • A person with a credit score of 750 and above.
  • An employee with job stability in his resume.
  • A businessman of which the business should have at least 2 years of continuity.

Also read:

New Income Tax Slab 2023-24 For Senior Citizen Vs Old, Which Will Follow This Year?


What is the minimum credit score to get a personal loan benefit?

The minimum credit score limit set by the majority of lenders is 750. Some lenders do accept personal loan applications with a credit score below 750 but the internist rate is usually higher. However, many other lenders do not have such minimum limit criteria and assess every application personally.

What’s the minimum salary to get a personal loan?

The minimum salary limit set by the majority of lenders is ₹15,000 monthly. However, when you apply for a loan then this limit may vary from lender to lender.

Can students apply for personal loans?

Most students are not eligible to get a personal loan from lenders as they do not fall under the category of having a stable income. But with few exceptions like having a fixed income and a good credit score, you may get a personal loan.

Is it possible to avail of personal loans from two different banks at the same time?

Yes, you may avail of personal loans from two different banks at the same time, as per your credit score and income. But this strategy is not advised to anyone who wants to retain a good credit or CIBIL score.

Rishabh Sharma

Rishabh is an experienced content writer and editor, he is working for Viralbake to cover a diversified range of categories. His articles mainly focus on providing information, being a travel guide, educating others, and also making people aware of technology, after all, he is a technophile. When not writing he can be found gaming, watching movies, and travelling.

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