How to choose a bank, in order
1. Start with the bank that receives your salary. This matters more than anything else on this page. A bank that watches your income arrive every month does not have to infer it from documents — it can see it. That visibility is what pays for a lower rate, and it is why a pre-approved offer sitting in your own banking app is frequently better than anything you will be quoted elsewhere. Check it first, and treat it as the floor, not the answer.
2. Then check how each bank grades your employer. Every bank keeps an unpublished list of employers in tiers. Two banks can grade the same company differently, which is why identical applicants get quotes points apart. It is the single largest hidden variable in bank pricing.
3. Only then compare rates — and compare APR. The advertised rate is the floor of a wide band. What matters is the all-in cost including the processing fee. Our bank-wise rate page explains why comparing published rates across banks tells you very little.
4. Apply once. Applying to four banks to compare costs you four hard enquiries, which can pull your score down by around thirty points — often more than the rate difference you were shopping for.
Did you know?
Banks and NBFCs are not competing for the same borrower. A bank generally wants a score around 720 or above, a graded employer and clean banking, and prices accordingly. An NBFC will accept a weaker score, informal income and unusual employment, and charges two to six points more for doing so. Neither is better in the abstract — applying to a bank with a 660 score is usually a wasted hard enquiry, and going straight to an NBFC with a 780 score is usually money left on the table.
Bank guides
Detailed pages on individual banks, covering who each one actually lends to and what stops applications.
| Bank | Best suited to | Guide |
|---|---|---|
| State Bank of India | Government, PSU, defence and corporate staff with an SBI salary account | SBI personal loan |
| HDFC Bank | Existing customers, who get an instant document-free version outsiders do not | HDFC Bank personal loan |
| ICICI Bank | Existing customers, including some with no bureau history at all | ICICI Bank personal loan |
| Axis Bank | Existing customers — the income bar is roughly 40% lower than for outsiders | Axis Bank personal loan |
| Kotak Mahindra Bank | Higher earners, because the FOIR allowance widens as income rises | Kotak personal loan |
| IDFC FIRST Bank | Strong files wanting a fully digital, same-day decision | IDFC FIRST personal loan |
| Punjab National Bank | Pensioners — limits banded by age, and 20× pension for defence pensioners | PNB personal loan |
| Bank of Baroda | Pensioners paid via treasury or DPDO; but co-applicants are not allowed | Bank of Baroda personal loan |
| IndusInd Bank | Settled applicants — a year at your current address is expected if you rent | IndusInd Bank personal loan |
| YES Bank | Anyone needing a co-borrower — parents, spouse or earning children | YES Bank personal loan |
| Federal Bank | NRIs — one of very few banks writing an unsecured personal loan for them | Federal Bank personal loan |
One theme runs through every one of those rows, and it is the most useful thing on this page: each bank treats its own customers materially better than outsiders. Axis publishes it as two income bars, HDFC as an instant document-free product, ICICI by lending without a bureau file. The criteria every bank applies are set out on our eligibility page, and what your score is worth on the CIBIL score page.
Expert insight
Once you hold one written offer, take it back to the bank you would rather borrow from and ask them to match it. This works more often than people expect, because acquiring a new borrower costs a bank far more than the margin it gives up to win one. It is also the only rate reduction available that costs you nothing — no fee, no fresh paperwork, and no extra enquiry on your credit report.
Why banks refuse
- Score below the cut-off. Commonly 700 to 750. Below it the file does not proceed regardless of income.
- Under six months in the current job, or a recent run of job changes.
- Employer not on the bank's list — small firms and unregistered businesses are the usual casualties.
- No headroom. Existing EMIs and credit card balances already using the FOIR allowance. Our eligibility calculator shows this precisely.
- Income not fully banked, which affects cash-paid and partly-cash salaries.
Please note
Money Bharti is a loan marketplace, not a lender, and is not affiliated with or endorsed by any bank named on this site. Bands and criteria described here are indicative of how bank lending generally works, not any specific bank's policy, and change without notice. Confirm all terms with the lender before applying.
Questions this page gets asked
Which bank gives a personal loan most easily?
The one that already holds your salary account, in almost every case. It can see your income directly, which is why its pre-approved offers are often better than anything advertised.
Which bank has the lowest personal loan interest rate?
There is no single answer — each bank prices your file on your score and your employer's grade. The bank that is cheapest for one applicant is frequently not cheapest for another.
What CIBIL score do banks want?
Usually 700 to 750 as a minimum, with the best pricing reserved for 750 and above.
Should I apply to several banks to compare?
No. Each application is a hard enquiry, and several together can cost you around thirty points. Compare with soft enquiries, then apply once.
Bank or NBFC — which should I choose?
A bank if your score and employer are strong; an NBFC if they are not. See our NBFC guide.
Can I get a bank loan without a salary slip?
It is harder but possible where salary credits are visible in your bank statements. See loan without salary slip.
Do banks lend to self-employed applicants?
Yes, on ITR and banking history rather than payslips, usually with two to three years of filings. See our self-employed page.
Can I negotiate with a bank?
Yes, particularly with a competing written offer. The processing fee is even more negotiable than the rate.
Conclusion
Banks reward applicants they can already see. If your salary lands in a bank account, that bank is your starting point, and its pre-approved offer is the number every other quote should be measured against.
After that, the sequence matters more than the shopping: check how your employer is graded, compare on APR rather than headline rate, get a second quote through a soft enquiry, and then apply once. If your profile does not clear the bank bar, an NBFC is the realistic route rather than a second bank application.
Find which banks will take your profile before you apply
Money Bharti checks your details against 100+ RBI-registered banks and NBFCs with a soft enquiry — nothing recorded against your CIBIL score, and comparing is free.
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