GUIDESPERSONAL LOANS
Which Bank Is Best for a Personal Loan in India
5 MIN • 
LAST EDITED BY DIVYA BISWAL ON JANUARY 9, 2026.
LAST EDITED BY DIVYA BISWAL ON JANUARY 9, 2026.
GUIDES LAST EDITED BY DIVYA BISWAL ON JANUARY 9, 2026.
Most people who search “which bank is best for a personal loan in India” aren’t actually hunting for a winner. What they are really asking is which lender will approve their loan quickly and at a reasonable cost?
They want a loan that gets approved and disbursed before the reason they needed the money turns into a bigger problem. Interest rate matters, yes. But so do speed, predictability, and the amount of time the process consumes from your life.
Here’s the uncomfortable truth: there is no single best bank for a personal loan.
There are only banks that work well for specific kinds of borrowers. Some banks are well-suited for salaried professionals with stable incomes. Others suit borrowers who already have an existing relationship with the bank. In certain situations where speed matters more than interest rates, many borrowers opt for instant, digital personal loan options.
Once you accept all this, choosing the best personal loan offer becomes far easier.
Before naming banks, it’s worth identifying certain factors that determine the ideal loan offer:
Banks optimize for different combinations of these. The mistake most borrowers make is chasing the lowest interest rate without first determining whether they’ll actually qualify or how long it will take to receive approval.
Below is a comparison of leading top banks that offer personal loans in India, based on accessibility, flexibility, and overall loan features.
HDFC Bank is widely preferred by salaried individuals due to its strong digital infrastructure and smooth loan application process.
Key features:
Loan amount: Up to ₹40 lakhs (eligibility-based)
Loan tenure: Up to 60 months
Processing fee: Applicable
Best for: Salaried borrowers with stable income and good credit history
Federal Bank offers personal loans with simple documentation and flexible repayment options, making it suitable for a wide range of borrowers.
Key features:
Loan amount: Eligibility-based
Loan tenure: Up to 48–60 months
Processing fee: Applicable
Best for: Borrowers looking for reliability and flexible terms
Axis Bank personal loans are renowned for their streamlined loan application process and relatively fast approvals for eligible applicants.
Key features:
Loan amount: Varies based on borrower profile
Loan tenure: Up to 60 months
Processing fee: Applicable
Best for: Borrowers who need faster access to funds
ICICI Bank is a popular choice among high-income individuals who need larger loan amounts for personal expenses.
Key features:
Loan amount: Up to ₹40 lakhs
Loan tenure: Up to 60 months
Processing fee: Applicable
Best for: High-income salaried borrowers
SBI personal loans are suitable for customers who already have a relationship with the bank and prefer familiar processes.
Key features:
Loan amount: Depends on borrower profile
Loan tenure: Up to 72 months
Processing fee: Lower for select customers
Best for: Existing SBI customers
Kotak Mahindra Bank focuses on ease of application and predictable repayment schedules.
Key features:
Loan amount: Eligibility-based
Loan tenure: Up to 60 months
Processing fee: Applicable
Best for: Borrowers who prefer a simple loan process
Bank | Maximum Loan Amount | Maximum Tenure | Processing Fee |
| HDFC Bank | Up to ₹40 lakhs | 60 months | Applicable |
| Federal Bank | Eligibility-based | 60 months | Applicable |
| Axis Bank | Eligibility-based | 60 months | Applicable |
| ICICI Bank | Up to ₹40 lakhs | 60 months | Applicable |
| SBI | Eligibility-based | 72 months | Lower for selected users |
| Kotak Mahindra Bank | Eligibility-based | 60 months | Applicable |
Heading out on a quest for the best personal loans with low interest rates isn’t practical. In practice, the lowest interest rate is almost always conditional, reserved for borrowers with strong credit history, stable income, and low existing obligations.
For everyone else, approval certainty and EMI comfort often matter more than shaving off a fraction of a percent.
Traditional banks continue to dominate the personal lending market. But, they’re no longer the default choice!
When documentation feels heavy or branch-visit timelines stretch, borrowers increasingly turn to instant personal loan platforms. The appeal is simple: fewer steps, faster decisions, and no branch visits.
Platforms like Fi Money position themselves in this space. The loan application process is entirely conducted through the app. Eligibility checks are quick, loan offers are provided by eight or more regulated lender partners, terms are transparent, and flexible repayment options are clearly outlined upfront.
This doesn’t automatically make instant loans “better”! But for borrowers who value time, simplicity, and predictability, they can be a practical alternative to bank offers.
You can explore eligibility and terms here:
https://fi.money/features/instant-loans
A personal loan is less about finding the perfect lender and more about avoiding the wrong one for your situation. Prioritise clarity over hype, approvals over promises, and repayment comfort over headline rates. The rest tends to follow.
The best bank for a personal loan depends on factors such as your income, credit history, repayment capacity, and the urgency of your financial need. Different banks offer varying loan amounts, tenure options, and processing timelines.
Banks usually offer their best terms to borrowers with strong credit profiles. However, interest rates vary based on eligibility, income stability, and existing financial obligations. It’s important to compare overall loan features, not just pricing.
Bank personal loans are suitable for borrowers who prefer traditional lending processes. However, instant personal loan options are increasingly popular because they offer faster approvals, digital applications, and quicker disbursal.
An instant personal loan is a digitally processed loan where eligibility checks, application, and approval happen online, often with minimal documentation and faster turnaround times.
Yes. Many borrowers now apply for personal loans online. Platforms like Fi Money enable users to complete the entire loan application digitally through the Fi app, eliminating the need for branch visits.
Fi Money is ideal for borrowers who:
Yes. Your credit history plays a major role in determining eligibility, loan amount, and repayment terms, whether you apply through a bank or a digital platform.
Using a personal loan EMI calculator helps estimate monthly repayments and choose a comfortable loan tenure before submitting a loan application.
Yes. Personal loans are generally flexible and can be used for various purposes, including medical expenses, travel, education, weddings, or consolidating existing liabilities, such as credit card balances.
