Seeking the top personal loan apps in India? This guide offers a deep dive into the most effective options available!

Updated on: 18 Jul 2024, 4:47 pm

Introduction

In today's fast-paced environment, financial emergencies can occur unexpectedly, prompting the need for immediate funds. Conventional banks often entail extensive paperwork and delayed processes, unsuitable for urgent needs. This is where instant personal loan apps prove essential, offering speedy and convenient access to finances with minimal documentation. Here, we've compiled a list of the 25 best personal loan apps in India to help you navigate financial exigencies effectively.

Our Top Picks

• Best Overall: Aditya Birla Capital
  Famous for providing online personal loans from 1 to 50 lakh rupees at appealing interest rates (13-28%), Aditya Birla Capital also offers flexible repayment terms of 1-7 years, making it the top overall choice for personal loans.
• Best Fast-Processing: PaySense
  Known for its swift processing of personal loans with minimal documentation, PaySense doesn't demand a credit history, making it reachable for a wide array of applicants.
• Best Bank: IndusInd Bank
  IndusInd Bank delivers instant personal loans at competitive rates with flexible repayment options. Its seamless application procedure and hassle-free experience make it a top banking choice.
• Fastest Processing Time: Tata Capital
  Tata Capital excels with its rapid approval and disbursal process—perfect for urgent funding needs. It significantly cuts down wait times in comparison to traditional lenders.

List of 25 Best Personal Loan Apps

• Aditya Birla Personal Finance
  Interest Rate: 13-28% p.a.
  Loan Amount: Rs. 1-50 Lakhs
  Repayment Tenure: 1-7 years
  Approval & Disbursal: 1-2 days
• PaySense
  Interest Rate: 16.8-27.6% p.a.
  Loan Amount: Rs. 5,000 to 5 Lakhs
  Tenure: 3-60 months
  Approval & Disbursal: 1-2 days
• IndusInd Bank
  Interest Rate: 11-30% p.a.
  Loan Amount: Rs. 30,000 to 5 Lakhs
  Tenure: 12-60 months
  Approval & Disbursal: 1-2 days
• Tata Capital
  Interest Rate: 11-28% p.a.
  Loan Amount: Rs. 40,000 to 35 Lakhs
  Tenure: 6-84 months
  Approval & Disbursal: 1-2 days
• Moneyview
  Interest Rate: 16-22% p.a.
  Loan Amount: Rs. 5,000 to 5 Lakhs
  Tenure: 3-60 months
  Approval & Disbursal: 1-2 days
• Bajaj Finserv
  Interest Rate: 11-35% p.a.
  Loan Amount: Rs. 1-40 Lakhs
  Tenure: 6-96 months
  Approval & Disbursal: 1-2 days
• KreditBee
  Interest Rate: 15-30% p.a.
  Loan Amount: Rs. 10,000 to 4 Lakhs
  Tenure: 3-24 months
  Approval & Disbursal: 1-2 days
• mPokket
  Interest Rate: 17.5-30% p.a.
  Loan Amount: Rs. 500 to 30,000
  Tenure: 3 months
  Approval & Disbursal: 1-2 days
• Fibe
  Interest Rate: 19-36% p.a.
  Loan Amount: Rs. 5,000 to 5 Lakhs
  Tenure: 3-24 months
  Approval & Disbursal: 1-2 days
• Home Credit
  Interest Rate: 24-34% p.a.
  Loan Amount: Rs. 10,000 to 5 Lakhs
  Tenure: 6-48 months
  Approval & Disbursal: Within 1 day
• Lazypay
  Interest Rate: 18-34% p.a.
  Loan Amount: Rs. 3,000 to 5 Lakhs
  Tenure: 3-24 months
  Approval & Disbursal: Within 1 day
• Buddy Loan
  Interest Rate: Starting at 12% p.a.
  Loan Amount: Rs. 10,000 to 15 Lakhs
  Tenure: 12 months to 5 years
  Approval & Disbursal: 1-2 days
• LoanFront
  Interest Rate: 12-36% p.a.
  Loan Amount: Rs. 1,500 to 2 Lakhs
  Tenure: 62-160 days
  Approval & Disbursal: 15 minutes
• SmartCoin
  Interest Rate: 20-36% p.a.
  Loan Amount: Rs. 1,000 to 2 Lakhs
  Tenure: 91-120 days
  Approval & Disbursal: 1-2 days
• Finnable
  Interest Rate: Starting at 16% p.a.
  Loan Amount: Rs. 50,000 to 10 Lakhs
  Tenure: 6-60 months
  Approval & Disbursal: 6 hours
• Nira
  Interest Rate: 24-36% p.a.
  Loan Amount: Rs. 5,000 to 1 Lakh
  Tenure: 3-24 months
  Approval & Disbursal: 24 hours
• RapidRupee
  Interest Rate: 12-36% p.a.
  Loan Amount: Rs. 1,000 to 60,000
  Tenure: 3-12 months
  Approval & Disbursal: 30 minutes
• Truebalance
  Interest Rate: 60-154.8% p.a.
  Loan Amount: Rs. 1,000 to 1 Lakh
  Tenure: 62 days to 6 months
  Approval & Disbursal: Within 1 day
• Mobicred
  Interest Rate: 12-30% p.a.
  Loan Amount: Rs. 8,000 to 1 Lakh
  Tenure: 90-365 days
  Approval & Disbursal: 24 hours
• MoneyTap
  Interest Rate: 13-18% p.a.
  Loan Amount: Rs. 3,000 to 5 Lakhs
  Tenure: 2-36 months
  Approval & Disbursal: Few minutes
• Kissht
  Interest Rate: 14-28% p.a.
  Loan Amount: Rs. 10,000 to 1 Lakh
  Tenure: 3-24 months
  Approval & Disbursal: 10-15 minutes
• IndiaLends
  Interest Rate: 10.25-25% p.a.
  Loan Amount: Rs. 10,000 to 50 Lakhs
  Tenure: 6-60 months
  Approval & Disbursal: 1-2 days
• Navi
  Interest Rate: 9.9-45% p.a.
  Loan Amount: Rs. 10,000 to 20 Lakhs
  Tenure: 3-72 months
  Approval & Disbursal: 1 hour
• Zype
  Interest Rate: 9.5-34% p.a.
  Loan Amount: Rs. 10,000 to 5 Lakhs
  Tenure: 12-72 months
  Approval & Disbursal: Within minutes
• Pocketly
  Interest Rate: 24-36% p.a.
  Loan Amount: Rs. 500 to 50,000
  Tenure: 1-4 months
  Approval & Disbursal: Few minutes

Documents Required for Personal Loan

Various lenders might demand different documentation, but typically include:

• Identity Proof: Voter ID, Passport, Driving License, Aadhaar Card, PAN Card.
• Address Proof: Utility bills, Rental Agreement, Bank Statement.
• Income Proof: Salary slip, Tax Return, Business Documents.
• Credit score or Report.
• Employment Proof.
• Bank Statement for the past 3 months.

Eligibility Criteria

To qualify for a personal loan via these apps, generally, you must:

• Be an Indian citizen.
• Aged 18 to 65.
• Have a minimum monthly income of INR 15,000.
• Have a permanent residential address in India.
• Be employed or self-employed with a regular income.
• Possess a minimum credit score of 650.

How to Apply for a Loan on an App

1. Download the App: Get the personal loan app from the Play Store or App Store.
2. Create an Account: Submit basic details like name, phone number, and email for account creation.
3. Input Details: Enter relevant employment, income, and credit history information.
4. Apply for Loan: Select your loan amount and repayment duration; submit the application.
5. Review Process: Your application is reviewed by the lender.
6. Disbursal: Upon approval, the loan amount is deposited into your bank account within 24-48 hours or a few days, based on the lender.

Criteria to Consider When Choosing a Personal Loan App

• Interest Rates: Lower rates mean reduced total interest payment.
• Repayment Period: Decide if a shorter or longer period suits your needs better.
• Fees: Inspect for any application, processing, late payment, and foreclosure fees.
• Loan Amounts: Ensure the app provides the loan amounts required by you.
• Lender Reputation: Choose a lender with reliability and trustworthiness.
• Customer Support: Efficient support is crucial for resolving loan-related issues.

Consequences of Missing a Repayment

• Late Payment Fee: A fee charged for delays, varies by lender.
• Credit Score Impact: Missed payments can harm your credit score.
• Legal Action: Ongoing missed payments may involve legal proceedings.
• Collateral Repossession: Pledged collateral may be repossessed by the lender.

Tips and Warnings

• Compare Lenders: Assess varied lenders before deciding.
• Read Terms Carefully: Fully understand terms before applying.
• Prepare Documents: Have required documents ready prior to applying.
• Avoid First App: Compare several apps rather than picking the first seen.
• Clear Purpose: Determine the amount needed, purpose, and repayment strategy.
• Maintain Credit Score: Essential for apps requiring a good credit rating.
• Watch for High Rates: Be cautious of apps with steep interest rates.
• Understand Terms: Grasp all terms, including hidden costs.
• Avoid Predatory Lending: Be wary of apps with predatory practices.
• Credit Score Effect: Remember, loans affect your credit rating.

Expert’s Opinion

Personal loan applications offer an easy, swift way to secure funds. However, diligent research on lenders, interest rates, terms, and conditions is crucial. Be a responsible borrower and ensure timely repayment to boost your credit score.

Conclusion

This comprehensive guide is intended to aid in selecting the ideal personal loan app. Understanding terms, eligibility, and potential pitfalls will facilitate informed decision-making and ensure a seamless borrowing process.

*[RBI]: Reserve Bank of India