Personal loans are becoming an increasingly popular way to achieve financial goals. And, because there are no restrictions on the end use, personal loans can be used for a variety of purposes, including personal and business expenses. 

As a business owner, you may occasionally find yourself in need of immediate financial assistance. In such circumstances, a personal loan can be a practical solution, offering quick access to funds without requiring collateral. This fund can help you seize opportunities or overcome short-term financial hurdles, making it a valuable tool for your business growth. 

In 2024, several financial institutions offer personal loans. If you need a personal loan to grow your business, you have come to the right place. In this blog, we will learn about top personal loan providers and what factors to consider when selecting the best loan providers for you. 

Key Factors to Consider When Choosing a Loan Provider 

Choosing an ideal personal loan lender is so important for your business’s financial health. Here are some important considerations to keep in mind to make a sound decision: 

Eligibility Criteria

Eligibility criteria differ slightly among lenders. For example, some lenders lend to self-employed individuals who are 21 years old, whereas others require their borrowers to be 22 years old. Make sure you understand the eligibility requirements set by the lender. Selecting a lender whose eligibility criteria align with your profile will make your chances of getting your loan approved faster. 

Interest Rate 

The interest rate is one of the most important factors when choosing the perfect lender because it determines the actual cost of your loan. Even the slight difference in the rate can impact the amount you pay over the loan tenure. Thus, the go-to option is the one with a lower interest rate with better loan terms. Comparing rates across providers, helps you identify the most cost-efficient option. 

Fees and Transparency

When it comes to taking out a loan for your business, it is critical to understand not only the interest rate but also the other fees that may apply. Lenders charge processing fees, late payment penalties, pre-closure fees, and other charges that can increase the total cost of the personal loan. You must opt for a lender that maintains transparency. Transparency ensures that you are aware of all the costs associated with the loan, allowing you to make the informed decision that fits your wallet. Choosing a lender with a transparent fee structure can help you avoid unexpected costs during the loan term. 

Ease Of Application 

Online applications and minimal documentation can save a lot of time and effort. A simplified online interface not only improves the user experience, but it also speeds up the loan process, allowing you to address your business needs immediately. Choosing a lender with a user-friendly and efficient online platform increases the overall convenience of the borrowing process.

Top 10 Personal Loan Providers in India in 2024

In 2024, many financial institutions are making personal loans more accessible and flexible for small business owners. Here is the list of top personal loan providers in India in 2024: 

HDFC Bank 

HDFC personal loans are known for their low interest rates and flexible payment plans, making them one of the best options. The interest rate offered ranges between 10.75% and 24.00% per annum. The maximum personal loan amount is Rs. 40 lakh, and the repayment period is between 3 and 72 months.

State Bank Of India 

SBI personal loans offer some of the most competitive interest rates in the country. SBI offers a wide range of personal loan products, including Xpress Flexi Loans, Pension Loans, Quick Personal Loans, and Xpress Elite. 

Depending on the product you select and your eligibility, the maximum loan amount you can receive is between Rs. 25 lakh and Rs. 35 lakh. The interest rates range from 11.35% to 14.50% per annum, with terms of up to 6 years.

IDBI Bank 

IDBI Bank personal loans have competitive interest rates and can help you cover a variety of personal and professional expenses. The interest rate offered ranges between 11.00% and 15.50% per annum. The loan amount ranges between Rs.25,000 and Rs.5 Lakh. The duration of the loan is between 12 and 60 months. The processing fee is nominal, as low as 1.00% of the loan amount.

Punjab National Bank 

Punjab National Bank provides a personal loan with a reasonable interest rate to help you meet your immediate business financial needs. You can obtain a personal loan of up to Rs.20 Lakh. PNB offers interest rates with a maximum repayment period of 5 years, ranging from 12.40% to 17.45% annually.

ICICI Bank 

ICICI Bank provides personal loans with repayment periods of up to 7 years. The interest rates range from 10.85% to 16.25% per annum. A maximum loan amount of Rs. 50 lakh is possible. After 12 months of loan EMIs have been paid, ICICI Bank does not charge any foreclosure charges. 

Axis Bank 

The distinctive feature of Axis Bank’s loans is their simple approval process and minimal paperwork. The loans are easily accessible, and the terms of repayment are also quite flexible. The interest rate offered ranges between 11.25% and 22.00% per annum. A loan of between Rs. 50,000 and Rs. 40 lakh is available. Tenure ranges from 12 to 84 months.

Money view 

Moneyview provides instant personal loans at competitive interest rates. Interest rates begin at 10% annually. The processing fee, however, is minimal, and only minimal documentation is required. The loan has a maximum repayment period of 5 years and a range of Rs. 5,000 to Rs. 10 lakh.

HSBC Bank 

HSBC Bank offers MyTerms Credit, which has 4 simple repayment options and competitive interest rates. Interest rates vary from 9.90% to 15.00% annually. Existing customers, however, may be eligible for special relationship discounts. The loan amounts range from Rs. 75,000 to Rs. 30 lakh. The loan term varies from 6 months to 5 years.

Mahindra Finance 

Mahindra Finance is among India’s top NBFCs. The interest rates on personal loans begin at 10.99% per year. The maximum loan amount is Rs.15 lakh, with a loan tenure ranging from 24 to 60 months.

Cholamandalam 

Cholamandalam, also known as Chola, provides a completely digital and paperless personal loan application process. The interest rates are manageable, and the benefits of same-day disbursement and instant e-approval are appealing. Interest rates begin at 14.00% per year, with a maximum loan amount of Rs. 2.5 lakh and a maximum loan term of 60 months. 

Conclusion 

Personal loans can be an extremely useful and powerful tool for small business owners in India, providing flexibility, quick access to funds, and no restrictions on usage. However, choosing the right lender is the key to ensuring that your loan aligns with your financial needs and your business goals. When selecting a lender, you should consider several factors, including eligibility criteria, interest rates, fees, transparency, and ease of application. This will help you make sound decisions that will support your business’s growth.  

The interest rate can play a major role in the overall cost of your loan. If you go through the above list of the top 10 personal loan providers, you will notice that there is only a 1-2% interest rate difference amongst most of the lenders. This may appear to be a minor difference, but it can result in thousands or lakhs of rupees being paid in addition to the total amount. 

If you are looking for a hassle-free way to find the right lender that matches your profile and your business needs, Kreditbazar is your go-to partner. With its extensive network of NBFC partners and expert financial consultation and services, Kreditbazar makes it easy to find the perfect personal loan tailored to your business needs – all through an easy online process. 

Start your journey with Kreditbazar and empower your business to thrive today!