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Personal Loan

Best Bank for Personal Loan: How 8 Banks and NBFCs Compare

No bank is best for everyone. Axis, HDFC, ICICI and IDFC First start at 9.99%; SBI tops out at 15%, the lowest ceiling (17 Sep 2026).

AI

Written by Ananya Iyer

Updated on 17 September 2026·6 min read

On this page8 sections
Credsir Personal Loan guide cover with a percent icon

No single bank is the best for every personal loan. The right lender depends on your credit score, salary, employer and how long you need to repay. Among the eight banks and NBFCs we track, Axis Bank, HDFC Bank, ICICI Bank and IDFC First Bank advertise the lowest starting rate of 9.99% a year, while SBI’s rates stop at 15.00%, the lowest ceiling in the group (17 September 2026).

Key facts

Item Position on 17 September 2026
Lowest advertised starting rate 9.99% (Axis, HDFC, ICICI, IDFC First)
Lowest maximum rate 15.00% (SBI), then 16.50% (ICICI Bank)
Highest maximum rate 33.00% (Tata Capital), 30.50% (Bajaj Finserv)
Longest tenure offered 9 years (Bajaj Finserv); 7 years at SBI and Axis
Lowest capped processing fee SBI: up to 1.50%, maximum ₹15,000, plus GST
RBI repo rate 5.25%; next policy meeting 5–7 October 2026
Credit bureau reporting As on the 9th, 16th, 23rd and last day of each month, from 1 July 2026

Banks and NBFCs for personal loans compared

The table lists the eight lenders credsir tracks, in alphabetical order. It is a comparison, not a ranking: the cheapest lender for one borrower can be the most expensive for another.

Lender Type Interest rate Processing fee Max tenure
Axis Bank Private bank 9.99% to 22.00% Up to 2% + GST 7 years
Bajaj Finserv NBFC 10.00% to 30.50% Up to 4.13% (incl. taxes) 9 years
HDFC Bank Private bank 9.99% to 24.00% Up to ₹6,500 + GST 6 years
ICICI Bank Private bank 9.99% to 16.50% Up to 2% + taxes 6 years
IDFC First Bank Private bank 9.99% to 25.00% 0% to 3.5% (incl. GST) 5 years
Kotak Mahindra Bank Private bank 10.99% to 24.00% Up to 5% + taxes 6 years
State Bank of India Public sector bank 10.00% to 15.00% Up to 1.50% (min ₹1,000, max ₹15,000) + GST 7 years
Tata Capital NBFC 10.99% to 33.00% Up to 5% + GST 6 years

Updated 17 Sep 2026 · Lender rate pages, checked individually. Rates change without notice. Our personal loan interest rates page tracks these lenders, and lowest interest rate personal loans sorts them by starting rate.

Bank or NBFC: which suits you

Banks and NBFCs are both regulated by the RBI, but they price risk differently. The spread between each lender’s lowest and highest rate tells you how wide a range of borrowers it serves.

ItemDetails
Strong score, salaried at a large employerthe four private banks at 9.99% and SBI at 10.00% start lowest. Few applicants get the starting rate, so compare the offer you actually receive.
Average profilea low ceiling protects you. SBI cannot go above 15.00% and ICICI Bank above 16.50%, against 24.00% or more elsewhere.
Thin or weaker credit historyNBFCs such as Bajaj Finserv and Tata Capital lend to a wider range of profiles and price that risk in, with ceilings of 30.50% and 33.00%.
Need a long repayment periodBajaj Finserv offers up to 9 years; SBI and Axis Bank up to 7. A longer tenure lowers the EMI but raises total interest.
Existing customerstart with pre-approved offers in your own bank’s app, since the bank already has your salary and account data.

Eligibility at major banks

Bank Age Minimum monthly income (salaried)
SBI 21 to 60 years ₹20,000 (government/defence), ₹25,000 (corporate)
HDFC Bank 21 to 60 years ₹25,000; 2 years’ experience, 1 year with current employer
ICICI Bank 20 to 58 years ₹30,000; 2 years’ work experience
Kotak Mahindra Bank 21 to 60 years ₹25,000 with a Kotak salary account, ₹30,000 for others
Axis Bank Not stated on the page used ₹15,000 for Axis customers, ₹25,000 for others

SBI also caps the loan so that all your EMIs stay within 65% of net monthly income. The RBI does not prescribe a minimum credit score; each lender sets its own. See the credit score needed for a personal loan.

What the rate gap costs

EMI and total interest on ₹5,00,000 repaid over 5 years:

Rate Where it applies EMI Total interest
9.99% Lowest starting rate ₹10,621 ₹1,37,264
15.00% SBI maximum ₹11,895 ₹2,13,698
22.00% Axis Bank maximum ₹13,809 ₹3,28,567
30.50% Bajaj Finserv maximum ₹16,331 ₹4,79,836

Fees add to this. A 5% fee on ₹5 lakh is ₹25,000 plus GST, while SBI’s fee on the same loan cannot exceed ₹7,500 plus GST. Run your own numbers in the EMI calculator.

How to choose a lender

  1. Check your credit report and fix any errors first.
  2. Note your net monthly income, existing EMIs and the tenure you can afford.
  3. Shortlist two or three lenders from the table whose eligibility you meet.
  4. Ask each for a Key Facts Statement. It must show the annual percentage rate (APR), all fees and the repayment schedule.
  5. Compare APRs, not headline rates, because the APR includes the processing fee.
  6. Read the foreclosure clause. The RBI’s ban on prepayment charges covers floating-rate loans, and most personal loans are at a fixed rate.
  7. Apply to one lender at a time. Several hard enquiries in a short span can lower your score.

If you apply through an app, check that it names the bank or NBFC lending to you. Our guide to loan apps for salaried employees covers the RBI’s digital lending rules. If a lender does not resolve a complaint within 30 days, you can approach the RBI Ombudsman under the Integrated Ombudsman Scheme, 2026, within 90 days.

Frequently asked questions

Which is the best bank for a personal loan?

It depends on your profile. Axis, HDFC, ICICI and IDFC First start lowest at 9.99%; SBI starts at 10.00% and has the lowest maximum rate, 15.00%.

What are the top 10 personal loan banks in India?

We track eight major lenders rather than ranking ten: Axis, HDFC, ICICI, IDFC First, Kotak, SBI, Bajaj Finserv and Tata Capital. Their rates run from 9.99% to 33.00%.

Is a bank better than an NBFC for a personal loan?

Banks in our set have lower maximum rates. NBFCs lend to a wider range of credit profiles and may offer longer tenures, such as 9 years at Bajaj Finserv.

Which bank gives personal loans at the lowest processing fee?

HDFC Bank caps its fee at ₹6,500 plus GST, and SBI at 1.50% with a ₹15,000 maximum. IDFC First’s fee starts at 0%.

Which bank is best for a personal loan for government employees?

SBI sets a lower minimum income for government and defence employees, ₹20,000 a month against ₹25,000 for corporate staff. Compare its offer with your salary-account bank.

What credit score do banks need for a personal loan?

The RBI sets no minimum. Each lender uses its own cut-off, and the lowest rates go to applicants with high scores and clean repayment records.

Sources

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