Best personal loan banks in India
The "best" personal loan bank is really the one whose rate, fee, and part-payment rules match your specific profile. Below is a ranked shortlist of the five banks that come up most often as the shortest path to a good deal for salaried Indian borrowers.
By Aditi Menon·Editor-in-Chief·reviewed by editor
Last updated: 15 June 2025
How we rank
We look at four things: (1) starting rate for salaried applicants with 750+ credit score, (2) processing fee cap, (3) part-payment flexibility, and (4) speed to disbursal. We do not accept payment from banks to alter rankings.
Ranked shortlist
| Rank | Bank | Starting rate | Processing fee | Standout |
|---|---|---|---|---|
| 1 | HDFC Bank | 10.75% p.a. | Up to 2.5% (₹25k cap) | 10-second insta-loan, part-payment allowed |
| 2 | SBI (Xpress Credit) | 11.15% p.a. | 1.5% (₹15k cap) | Nil foreclosure on floating; govt-employee discounts |
| 3 | ICICI Bank | 10.85% p.a. | Up to 2.5% (₹25k cap) | Loan up to ₹50 lakh; digital iMobile flow |
| 4 | Axis Bank | 10.99% p.a. | Up to 2% (₹10k cap) | Aggressive rates for premium salary segments |
| 5 | Kotak Mahindra | 10.99% p.a. | Up to 3% | Fast digital journey; competitive on ₹10-25 lakh band |
Who each bank suits best
- HDFC — you value part-payment flexibility and instant disbursal
- SBI — you are a government/PSU employee or want zero foreclosure fee
- ICICI — you need a large loan (up to ₹50 lakh)
- Axis — you are premium-salaried at an empanelled corporate
- Kotak — you want a fully digital, paperless experience
What we do not rank on
We do not rank on advertised rewards, cashback promotions, or joining offers. Those change every quarter and are not a durable reason to pick one bank over another for a multi-year loan.