Personal Loan in India 2026: Interest Rates, Eligibility, EMI & Best Banks
Personal Loan is one of the most popular unsecured loans in India. It can be used for medical emergencies, weddings, education, travel, home renovation, or debt consolidation without providing any collateral.
What is a Personal Loan?
A personal loan is an unsecured loan offered by banks and NBFCs where the borrower is not required to pledge any asset. Approval is based on income, credit score, and repayment capacity.
Key Features of Personal Loan
- No collateral required
- Quick approval & fast disbursal
- Fixed EMI throughout tenure
- Flexible repayment options
- Can be used for any personal purpose
Personal Loan Interest Rates in India (2026)
| Lender Type | Interest Rate (Approx.) |
|---|---|
| Public Sector Banks | 10.50% – 14% |
| Private Banks | 11% – 20% |
| NBFCs | 13% – 28% |
| Instant Loan Apps | 18% – 36% |
Best Banks for Personal Loan in India
- State Bank of India (SBI)
- HDFC Bank
- ICICI Bank
- Axis Bank
- Bajaj Finserv
Eligibility Criteria for Personal Loan
- Age: 21 to 60 years
- Citizenship: Indian
- Employment: Salaried / Self-employed
- Minimum Monthly Income: ₹15,000+
- CIBIL Score: 650+ preferred
Documents Required for Personal Loan
For Salaried Applicants
- Aadhaar Card / PAN Card
- Last 3 months salary slips
- 6 months bank statement
- Address proof
For Self-Employed Applicants
- PAN & Aadhaar Card
- ITR (last 2–3 years)
- Business proof
- Bank statement
Personal Loan EMI Calculation (Example)
Loan Amount: ₹5,00,000
Interest Rate: 12%
Tenure: 5 Years
Monthly EMI ≈ ₹11,122
Advantages of Personal Loan
- Fast approval
- No collateral risk
- Improves credit score if paid on time
- Useful during emergencies
Disadvantages of Personal Loan
- Higher interest than secured loans
- Penalty on missed EMIs
- May impact credit score if defaulted
Personal Loan vs Credit Card
| Feature | Personal Loan | Credit Card |
|---|---|---|
| Interest Rate | Lower | Very High |
| Repayment | Fixed EMI | Revolving |
| Loan Amount | High | Limited |
Tips to Get Personal Loan at Low Interest
- Maintain CIBIL score above 750
- Choose shorter loan tenure
- Apply with your salary account bank
- Avoid multiple loan enquiries
Is Personal Loan Good or Bad?
A personal loan is good if used responsibly for genuine needs like medical emergencies or education. Misuse for luxury spending can lead to debt problems.
Future of Personal Loans in India
With digital banking and fintech growth, personal loans in India are becoming faster, paperless, and app-based. Demand is expected to increase significantly in coming years.
Final Words
Personal loans offer financial flexibility but must be borrowed wisely. Always compare lenders, read terms carefully, and repay EMIs on time to stay financially healthy.
0 Comments