Looking for the cheapest personal loans in India? Compare the 10 best low-interest personal loan options for 2026, including interest rates, loan amounts, repayment tenures, eligibility, and key features to find the right loan for your financial needs while saving on borrowing costs.
Finding the cheapest personal loans in India can help you save thousands of rupees in interest over the loan tenure. Whether you need funds for a medical emergency, home renovation, wedding, education, travel, or debt consolidation, choosing a loan with the lowest interest rate can significantly reduce your monthly EMI and total repayment amount.
Today, banks and NBFCs offer instant digital personal loans with competitive interest rates, flexible repayment periods, and minimal documentation. However, not every lender provides the same loan terms. Interest rates, processing fees, eligibility criteria, and repayment options vary from one lender to another.
In this guide, we’ve compared the 10 best cheap personal loans in India based on interest rates, loan amount, tenure, processing fees, and overall value. You’ll also learn how to qualify for the cheapest personal loan interest rate, compare lenders effectively, and avoid hidden charges before applying.
Whether you’re looking for best cheap personal loans, cheapest personal loan deals, or the cheapest APR personal loans, this guide will help you make an informed borrowing decision.
Affiliate Disclosure: This article may contain affiliate links. If you apply through these links, we may earn a commission at no additional cost to you.
Top 10 Cheapest Personal Loans in India (2026)
| Lender | Interest Rate (p.a.) | Loan Amount | Repayment Tenure | Best For |
|---|---|---|---|---|
| HDFC Bank | 9.99% onwards | ₹25,000 to ₹50 lakh* | Up to 6 years | Quick digital approval & high loan amount |
| ICICI Bank | 10.80% onwards | Up to ₹50 lakh | Up to 6 years | Instant online approval |
| Axis Bank | 9.99% onwards | ₹50,000 to ₹50 lakh | Up to 7 years | Low-interest personal loans |
| Kotak Mahindra Bank | 10.99% onwards | Up to ₹35 lakh | Up to 6 years | Fast digital loan process |
| IDFC FIRST Bank | 9.99% onwards | Up to ₹15 lakh | Up to 5 years | Zero foreclosure charges |
| Tata Capital | 10.99% onwards | ₹75,000 to ₹35 lakh | Up to 6 years | Quick approval & minimal documentation |
| Bajaj Finance | 10.00% onwards | ₹40,000 to ₹55 lakh | Up to 9 years | High loan amount & long tenure |
| IndusInd Bank | 10.49% onwards | ₹30,000 to ₹50 lakh | Up to 7 years | Fully digital application |
| YES BANK | 10.85% onwards | ₹1 lakh to ₹50 lakh | Up to 6 years | High-value unsecured loans |
| Aditya Birla Capital | 10.99% onwards | ₹50,000 to ₹50 lakh | Up to 7 years | Digital loan application |
Note: Interest rates, loan amounts, processing fees, and repayment tenures are based on the latest information available on the official websites of the respective banks and NBFCs. Actual loan offers depend on factors such as your credit score, income, employment profile, repayment capacity, and the lender’s internal credit assessment. Please verify the latest terms and conditions on the official lender’s website before applying.
1. HDFC Bank Personal Loan
Interest Rate: 9.99% p.a. onwards (up to 24.00% p.a.)
Processing Fee: Up to ₹6,500 + GST
Loan Amount: ₹25,000 to ₹50 lakh (up to ₹75 lakh for eligible customers)
Repayment Tenure: Up to 72 months (6 years)
Key Features:
- Interest rates from 9.99% p.a.
- 100% digital application
- Instant disbursal for eligible customers
- No collateral required
- Balance transfer facility available
Best For: Salaried professionals with a stable income and a good credit score.
2. ICICI Bank Personal Loan
Interest Rate: 10.80% p.a. onwards (up to 16.65% p.a.)
Processing Fee: Up to 2% of the loan amount + applicable GST.
Loan Amount: Up to ₹50 lakh (subject to eligibility).
Repayment Tenure: Up to 6 years (72 months).
Key Features:
- Interest rates starting from 10.80% p.a.
- Loan amount up to ₹50 lakh
- Instant approval and quick digital disbursal for eligible customers
- 100% online application process
- No collateral required
- Personal Loan Balance Transfer facility available
Best For: Salaried professionals and existing ICICI Bank customers looking for instant digital approval, higher loan amounts, and flexible repayment options.
3. Axis Bank Personal Loan
Interest Rate: 9.99% p.a. onwards (up to 22.00% p.a.) based on eligibility and borrower profile.
Processing Fee: Up to 2% of the loan amount + applicable GST.
Loan Amount: ₹50,000 to ₹50 lakh.
Repayment Tenure: 12 to 84 months (up to 7 years).
Key Features:
- Interest rates starting from 9.99% p.a.
- Loan amount up to ₹50 lakh
- 100% digital application process
- Quick approval and fast disbursal for eligible customers
- No collateral or security required
- Flexible EMI repayment options
Best For: Borrowers looking for cheap interest rate personal loans with simple eligibility.
4. Kotak Mahindra Bank Personal Loan
Interest Rate: 10.99% p.a. onwards (fixed rate).
Processing Fee: Up to 5% of the final loan amount + applicable GST.
Loan Amount: Up to ₹35 lakh (subject to eligibility).
Repayment Tenure: Up to 6 years (72 months).
Key Features:
- Interest rates starting from 10.99% p.a.
- Loan amount up to ₹35 lakh
- 100% digital application process
- No collateral or security required
- Quick approval and fast loan disbursal for eligible customers
- Flexible EMI repayment options
- Personal Loan Balance Transfer facility available
Best For: Borrowers looking for fast approval and a seamless digital loan process.
5. IDFC FIRST Bank Personal Loan
Interest Rate: 9.99% p.a. onwards (reducing balance basis).
Processing Fee: 0% to 3.5% of the loan amount (inclusive of GST). Processing fee of 0% is available on select loan amounts.
Loan Amount: Up to ₹15 lakh (subject to eligibility).
Repayment Tenure: 9 to 60 months (up to 5 years).
Key Features:
- Interest rates starting from 9.99% p.a.
- Loan amount up to ₹15 lakh
- 100% digital application with no paperwork
- Instant disbursal in as little as 10 minutes for eligible customers
- Zero foreclosure charges
- Flexible repayment tenure from 9–60 months
Best For: Salaried individuals looking for low-interest personal loans, instant digital approval, and zero foreclosure charges.
6. Tata Capital Personal Loan
Interest Rate: 10.99% p.a. onwards (up to 29.99% p.a., subject to eligibility).
Processing Fee: Up to 5% of the loan amount + GST.
Loan Amount: ₹75,000 to ₹35 lakh.
Repayment Tenure: 12 to 72 months (up to 6 years).
Key Features:
- Interest rates starting from 10.99% p.a.
- Loan amount up to ₹35 lakh
- 100% digital application process
- Minimal documentation
- Quick approval and fast disbursal for eligible customers
- No collateral or security required
- Flexible EMI repayment options
- Zero foreclosure charges on eligible floating-rate loans to individuals
Best For: Salaried and self-employed individuals needing quick access to funds.
7. Bajaj Finance Personal Loan
Interest Rate: 10.00% p.a. onwards (up to 30.00% p.a.) for eligible borrowers.
Processing Fee: Up to 3.93% of the loan amount (inclusive of applicable taxes).
Loan Amount: ₹40,000 to ₹55 lakh, subject to eligibility.
Repayment Tenure: 12 to 108 months (up to 9 years).
Key Features:
- Interest rates starting from 10.00% p.a.
- Loan amount up to ₹55 lakh
- Repayment tenure up to 9 years
- 100% online application with quick approval
- No collateral or security required
- Flexi Loan facility available for eligible customers
- Fast disbursal after approval
Best For: Salaried individuals looking for high loan amounts, flexible repayment options, and quick digital loan approval.
8. IndusInd Bank Personal Loan
Interest Rate: 10.49% p.a. onwards (fixed rate, subject to eligibility).
Processing Fee: Up to 3.5% of the loan amount + applicable taxes.
Loan Amount: ₹30,000 to ₹50 lakh (Online instant personal loans are available up to ₹5 lakh).
Repayment Tenure: 12 to 84 months (Online instant personal loans: 12–48 months).
Key Features:
- Interest rates starting from 10.49% p.a.
- Loan amount up to ₹50 lakh
- 100% digital application with minimal paperwork
- Instant approval and quick disbursal for eligible customers
- No collateral or security required
- Fixed interest rate with flexible EMI options
Best For: Salaried individuals seeking a fully digital personal loan with quick approval, flexible repayment options, and competitive interest rates.
9. Yes Bank Personal Loan
Interest Rate: 10.85% p.a. onwards (up to 21.00% p.a.), subject to eligibility.
Processing Fee: Up to 2.5% of the loan amount + applicable taxes.
Loan Amount: Up to ₹50 lakh, subject to eligibility.
Repayment Tenure: 12 to 72 months (up to 6 years).
Key Features:
- Interest rates starting from 10.85% p.a.
- Loan amount up to ₹50 lakh
- Quick approval and disbursal for eligible customers
- 100% digital application process
- No collateral or security required
- Flexible EMI repayment and part-payment facility available
Best For: Salaried individuals and existing YES BANK customers looking for a high-value unsecured personal loan with quick approval and flexible repayment options.
10. Aditya Birla Capital Personal Loan
Interest Rate: 10.99% p.a. onwards (subject to eligibility).
Processing Fee: Up to 3% of the loan amount + applicable GST.
Loan Amount: ₹50,000 to ₹50 lakh, subject to eligibility.
Repayment Tenure: 12 to 84 months (up to 7 years).
Key Features:
- Interest rates starting from 10.99% p.a.
- Loan amount up to ₹50 lakh
- Repayment tenure up to 84 months
- 100% digital application process
- Quick approval and fast disbursal for eligible customers
- No collateral or security required
- Minimal documentation with flexible EMI options
Best For: Borrowers looking for quick digital loan approval with flexible repayment.
How We Selected the Cheapest Personal Loans
We evaluated lenders based on several important factors to identify the cheapest personal loans available in India. Personal loan interest rates and lending practices are regulated under the guidelines issued by the Reserve Bank of India (RBI). However, the final interest rate, loan eligibility, and approval depend on the lender’s internal credit assessment and the applicant’s financial profile.
1. Interest Rate
The cheapest personal loan interest rate was the most important factor. Even a difference of 1–2% can reduce your total repayment by thousands of rupees.
2. Processing Charges
Some lenders advertise cheap personal loans but charge high processing fees. We considered both interest rates and upfront charges.
3. Loan Amount
We preferred lenders offering flexible borrowing options ranging from ₹50,000 to ₹55 lakh to suit different financial needs.
4. Loan Tenure
Longer repayment periods help reduce monthly EMIs, making repayment more manageable.
5. Digital Loan Process
Banks with instant approval, online KYC, and quick disbursal were given preference.
6. Customer Experience
We also considered service quality, transparency, and ease of application.
Also read: Low Interest Personal Loans in India (2026): Top 5 Banks & NBFCs Compared
How to Choose Cheapest Personal Loan in India
Finding the cheapest personal loan in India is not just about selecting the lender with the lowest advertised interest rate. You should compare several factors to ensure you’re getting the best overall deal.
1. Compare Interest Rates
The first thing to check is the cheapest personal loan interest rate offered by different banks and NBFCs.
Even a small difference in interest rates can significantly affect your total repayment over the loan tenure.
Example:
- Loan Amount: ₹5 lakh
- Tenure: 5 years
| Interest Rate | Approximate Total Interest |
|---|---|
| 10.50% | Lower |
| 13.00% | Significantly Higher |
Always compare rates from multiple lenders before applying.
2. Check the Processing Fee
Many borrowers only compare interest rates and overlook processing fees.
Some lenders offer cheap personal loans but charge a processing fee of up to 3–5% of the loan amount.
Before applying, compare:
- Processing fee
- Documentation charges
- GST
- Prepayment charges
- Foreclosure charges
- Bounce charges
- Late payment penalties
The loan with the lowest total borrowing cost is often the better choice.
3. Compare APR Instead of Only Interest Rate
Many people search for cheapest APR personal loans because the Annual Percentage Rate (APR) reflects the overall borrowing cost.
APR includes:
- Interest rate
- Processing fee
- Other mandatory charges
Comparing APR gives you a clearer picture than comparing interest rates alone.
4. Choose the Right Loan Tenure
A longer tenure reduces your monthly EMI but increases the total interest paid.
A shorter tenure results in:
- Higher EMI
- Lower total interest cost
Choose a tenure that balances affordability and total repayment.
5. Borrow Only What You Need
Just because you’re eligible for a larger loan doesn’t mean you should borrow the maximum amount.
Borrowing only the required amount helps:
- Reduce interest costs
- Lower EMIs
- Improve financial stability
Also read: 10 Best Banks for Personal Loan with Low Interest Rates in India
To know, How can i Get the Lowest Personal Loan Interest Rate
If you’re searching for best cheap personal loans, these tips can help improve your chances of securing a lower rate.
Improve Your Credit Score
A CIBIL score above 750 usually helps you qualify for better interest rates.
Before applying, you can Check Your CIBIL Score to understand your creditworthiness and improve your chances of getting a lower interest rate.
To improve your score:
- Pay EMIs on time.
- Pay credit card bills before the due date.
- Avoid frequent loan applications.
- Keep your credit utilization low.
- Check your credit report for errors.
Maintain a Stable Income
Lenders prefer applicants with:
- Stable employment
- Regular monthly income
- Good repayment history
Changing jobs frequently may affect eligibility.
Apply With Your Existing Bank
Existing customers may receive:
- Lower interest rates
- Pre-approved loan offers
- Faster approvals
- Minimal documentation
Keep Your Debt-to-Income Ratio Low
If a large portion of your salary already goes toward EMIs, lenders may charge higher interest rates.
Try to keep your monthly debt obligations manageable before applying.
Compare Multiple Loan Offers
Never accept the first offer.
Compare at least 4–5 lenders before making a decision.
Look at:
- Interest rate
- Processing fee
- APR
- Repayment flexibility
- Customer service
- Digital application process
Hidden Charges to Check Before Applying
Many borrowers focus only on the advertised interest rate and miss additional charges.
Before accepting any loan, review the lender’s schedule of charges carefully.
Processing Fee
Usually 0.5%–3% of the loan amount.
Prepayment Charges
Some lenders charge a fee if you repay the loan before the tenure ends.
Foreclosure Charges
Applicable if you close the loan account early.
Late Payment Penalty
Charged when an EMI is missed or delayed.
EMI Bounce Charges
Applicable if your bank account lacks sufficient funds.
GST
GST is applicable on processing fees and certain other service charges.
Common Mistakes to Avoid
Avoid these mistakes when choosing the cheapest loans in India.
Applying to Too Many Lenders
Multiple hard inquiries within a short period can affect your credit score.
Ignoring the Fine Print
Read all terms and conditions before signing the loan agreement.
Borrowing More Than Required
Larger loans increase your repayment burden and total interest cost.
Choosing Only the Lowest EMI
A lower EMI often means a longer tenure and higher total interest.
Ignoring Customer Reviews
Poor customer service can make loan management difficult.
Who Should Apply for a Cheap Personal Loan?
A cheap interest rate personal loan can be suitable for:
- Salaried employees
- Government employees
- Self-employed professionals
- Business owners
- First-time borrowers with a good credit score
- Individuals consolidating high-interest debt
- People financing medical expenses, education, weddings, travel, or home renovation
However, borrow only if you have a clear repayment plan.
Conclusion
Choosing the cheapest personal loans in India is about more than finding the lowest advertised interest rate. You should compare interest rates, APR, processing fees, repayment tenure, loan amount, customer service, and overall borrowing costs before making a decision.
If you have a strong credit score, stable income, and a good repayment history, you are more likely to qualify for best cheap personal loans with attractive interest rates. Always compare multiple lenders, read the loan terms carefully, and avoid borrowing more than you need.
A little research today can help you save thousands of rupees in interest over the life of your loan.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Loan interest rates, fees, eligibility, and terms may change over time. Please verify the latest details on the respective lender’s official website before applying. Some links in this article may be affiliate links, which means we may earn a commission at no extra cost to you.
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Frequently Asked Questions (FAQs)
1. Which bank offers cheapest personal loan in India?
The cheapest personal loan depends on your credit score, income, employer profile, and loan amount. Banks and NBFCs such as HDFC Bank, ICICI Bank, Axis Bank, Bajaj Finance, and IDFC FIRST Bank often offer competitive interest rates to eligible borrowers.
2. What is the lowest personal loan interest rate in India?
Personal loan interest rates generally start from around 10%–11% per annum for eligible borrowers. The final rate offered depends on your credit profile and the lender’s policies.
3. What credit score is needed to get the lowest interest rate?
A CIBIL score of 750 or above is generally recommended to improve your chances of getting the cheapest personal loan interest rate.
4. Can I get a personal loan without collateral?
Yes. Most personal loans in India are unsecured loans, which means you do not need to provide any collateral or security.
5. Which is better: a bank or an NBFC for a personal loan?
Banks usually offer lower interest rates to eligible borrowers, while NBFCs may provide faster approvals and more flexible eligibility criteria. Compare both before applying.
6. Can I prepay my personal loan?
Yes, many lenders allow part-prepayment or foreclosure after a specified period. However, some may charge prepayment or foreclosure fees, so check the loan terms carefully.
7. How long does personal loan approval take?
Many banks and NBFCs offer instant approval for eligible customers. In most cases, loan approval and disbursal can take a few hours to 2–3 working days, depending on document verification and the lender’s process.
8. Is there any hidden charges in personal loan?
Besides the interest rate, lenders may charge processing fees, GST, late payment penalties, EMI bounce charges, and foreclosure fees. Always review the loan agreement before signing.
9. Can self-employed individuals apply for a cheap personal loan?
Yes. Many banks and NBFCs offer personal loans to self-employed professionals and business owners, provided they meet the lender’s income, business stability, and credit score requirements.
10. How can I improve my chances of getting the cheapest personal loan?
Maintain a high credit score, keep your debt-to-income ratio low, apply with a stable income, compare multiple lenders, and borrow only the amount you need.
About Author
Written by Sujeet Kumar, founder of SujeetFinanceHub, where readers learn about personal finance, credit cards, investing, insurance, loans, and government schemes in simple and easy-to-understand language.