Personal Loans and Business Loans and Professional Loans in India (2025):

Best Banks, NBFCs & Fintech Lenders, Eligibility Criteria, Rates, Tenure, Fees & Key T&Cs for Personal Loans, Business Loans and Professional Loans.

Compare Personal Loans, Professional Loans and Unsecured Business Loans in India.

Explore top Banks, NBFCs and Fintech lenders, eligibility criteria, interest rate ranges, tenure, fees, documentation, and key terms & conditions, plus how GrowMoreLoans.com helps you get the best-fit offer.

Personal Loan, Professional Loans & Unsecured Business Loans: What’s the Difference?.

In India’s retail and MSME credit market, three “unsecured” borrowing categories dominate most everyday funding needs:

Personal Loans – For individuals (usually for salaried and self-employed) for personal expenses; typically no end-use restriction, but lender may ask purpose for internal policy.
Professional Loans – For self-employed and salaried professionals (doctors, CAs, architects, lawyers, etc.) to expand practice, buy equipment, renovate clinic/office, manage working capital.
Unsecured Business Loans – For proprietorships / partnerships/ companies / MSMEs to fund working capital, inventory, expansion, marketing, short-term cashflow gaps etc without collateral security.

While these products can look similar on the surface (“quick, collateral-free”), lenders price and approve them differently based on income stability, cash flows, credit score, business vintage, turnover, profession profile, banking history and internal risk models.

Also Read: Virtual CFO Services in India: How IntellexCFO is Powering Growth for Businesses

How Lenders Decide Your Loan Offer.

Most banks / NBFCs / fintech lenders use a combination of:
Credit score & repayment history (CIBIL/Experian/CRIF, etc.)
Income & FOIR/EMI-to-income (your existing EMIs vs monthly income)
Employment / business stability (job continuity or business vintage)
Banking patterns (salary credits, GST/bank statements, inward receipts)
Documentation quality (ITR, financials, KYC, registrations)

End-use and sector risk (especially for MSMEs)
For example, HDFC Bank’s personal loan eligibility highlights age and employment continuity expectations.

Typical Features and “Real-World” Terms You Should Expect.

1) Interest Rate Types
HDFC Bank: Fixed rates are common in personal and professional loans.
Some business facilities may be benchmark-linked or risk-based depending on lender.
2) Tenure
Personal loans often run from 12 months to multiple years (many lenders go up to 7–8 years for select profiles).
Axis Bank states business loan tenure options in the 6–60 months range for its collateral-free business loan product.
ICICI Bank indicates business instalment loan rates and typical charges, with product terms depending on type/tenure.
3) Fees & Charges (Common)
Processing fee (flat or % of sanctioned amount + GST)
Insurance (optional/embedded depending on lender and channel)
Late payment/penal interest
Foreclosure / part-prepayment charges (often higher in the first 6–12 months; can vary by lender/product)
Example: ICICI Bank shows business finance charges such as processing fee up to a percentage and notes that final pricing depends on business/financial assessment.

Please Read: Business Loans in India: The Complete Guide for MSMEs & Startups | Fast Funding Solutions by IntellexCFO & GrowMoreLoans

Category Deep-Dive.

A) Personal Loans (Individuals).

Best For Medical/emergency expenses, travel, wedding, debt consolidation, home renovation, education add-ons, etc.
Common Eligibility (Typical Market Pattern)
Age band (commonly early 20s to 60; some allow higher at loan end)
Salaried: minimum work experience and stable income
Self-employed: minimum business vintage and ITR strength
HDFC Bank publishes personal loan eligibility pointers like age and employment continuity requirements.
SBI publishes a personal loan scheme interest-rate framework linked to MCLR plus spread (effective ROI range depends on spread).

Indicative Terms (Examples from major lenders)
HDFC Bank (Personal Loan) – publishes eligibility and rates/charges pages for reference.
SBI (Personal Loan schemes) – provides scheme-wise interest rate logic and special offers (time-bound offers can change).

Bajaj Finance (Personal Loan) – communicates starting rates and that pricing depends heavily on credit profile.

Practical note: Personal loan “starting from” rates are marketing entry points, your final rate depends on score, employer/business profile, existing liabilities and documentation.

B) Professional Loans (Doctors, CAs, Architects, Lawyers, etc.).

Why Professional Loans Often Get Better Consideration
Professionals typically show:
More stable long-term earning potential
Clear business use-cases (equipment, practice growth)
Stronger documentation trails (registrations, degree, clinic/firm proof)
Example Lender Terms (Published References)
HDFC Bank – Loan for Professionals
Publishes rack interest rate range and processing charges for professional loans.

Eligibility page highlights age boundaries for applicants.
Tata Capital – Business Loan for Professionals
States it supports professional categories (doctors, engineers, architects, lawyers, CAs, CS) and references eligibility factors like age/income/experience.

Bajaj Finance – Professional/Doctor Loans
Positions specialised offerings for doctors and professionals; publishes product pages and fee/rate notes.

Documentation : You’ll Usually Need
KYC: PAN, Aadhaar, address proof
Professional proof: degree/registration (e.g., MCI/State Medical Council, ICAI, Bar Council, COA, etc.)
Banking: 6–12 months statements
Income: ITRs, GST (if applicable), financials (if requested)
Practice proof: clinic/office ownership/rent agreement, utility bills, etc.

C) Unsecured Business Loans (MSME/SME).

Best For Working capital, inventory cycles, vendor payments, expansion, online/offline marketing, equipment (non-hypothecation cases), seasonal cash flow.
What Lenders Usually Check:
Business vintage (often 2–3+ years preferred for many products)
Turnover / bank credits
GST filings (where applicable)
Profitability + banking hygiene
Bureau score of promoters
Example Lender Terms (Published References)
Axis Bank – Business Loan (Collateral-free)
Explicitly states collateral-free nature and tenure range 6–60 months and mentions loan amounts up to a stated cap on the product page.

HDFC Bank – Business Loan
Publishes business loan interest-rate range and charges.
ICICI Bank – Business Instalment Loan
Publishes interest rate range and processing fees and that collateral is not required for this product type.
Lendingkart – MSME Business Loans (Fintech/NBFC-led digital lender).

Also Read: SIDBI – Powering India’s MSME Growth: Funding, Schemes & Business Support

List of Major Players in India (Banks, NBFCs, Fintech) + What They Typically Offer.

Below is a practical, decision-useful list of prominent lenders in these segments. Availability, pricing and eligibility can vary by city, profile, vintage and internal policy.
1) Banks (Personal / Professional / Unsecured Business Loans)
Commonly considered banks in these categories include:
HDFC Bank (Personal Loans, Business Loans, Loans for Professionals) .
State Bank of India (SBI) (Personal Loan schemes; employer- and scheme-based variants)
ICICI Bank (Personal Loans; Business Instalment Loans & related business finance products)
Axis Bank (Collateral-free Business Loans)
Typical Bank Criteria (generalised)
Cleaner credit history, stronger documentation, and stable banking patterns
Often competitive pricing for strong profiles
Slightly tighter policy filters than many NBFCs for thinner credit files
2) NBFCs (Retail + MSME Unsecured)
NBFCs can be more flexible on profiles, ticket sizes, and turnaround times. RBI defines NBFC categories and also recognises NBFC-P2P platforms under its framework.

Well-known NBFC-driven brands in these segments include:
Bajaj Finance (Personal, Professional/Doctor loans; risk-based pricing)
Tata Capital (Business loans, professional finance).

Typical NBFC Criteria:
Often accepts wider customer profiles than banks
Pricing can be higher for moderate/low scores, thin-file or volatile cashflows
Flexible structures (e.g., hybrid/flexi variants depending on lender/product)

3) Fintech / Digital MSME Lenders.

(Often NBFC-led or partnered)
Digital lenders focus on speed, data-driven underwriting and shorter-tenure working capital.
Examples:
Lendingkart (MSME business loans; publishes indicative pricing/tenure/collateral stance).

Typical Fintech Criteria:
Strong preference for digital cashflow visibility (bank statements, GST, online sales)
Tenures often shorter (1–3 years common in many digital MSME products)
Faster approvals but can carry higher APR for riskier profiles.

Key Terms & Conditions You Must Read :
Regardless of lender, pay close attention to:
APR / Effective cost of borrowing (interest + fees + insurance if any)
Processing fee & GST (percentage/flat; deducted upfront or billed).

How GrowMoreLoans.com Helps You:

Win Better Outcomes
GrowMoreLoans.com, a division of Intellex Strategic Consulting Pvt Ltd, works as a DSA (Direct Selling Agent) / loan advisory and facilitation partner in the personal, professional, and unsecured business loan segment.

What a strong DSA can practically improve for you.

Right product fit: Personal vs Professional vs Business loan, mapped to your profile and end-use.

Offer comparison: Shortlisting lenders aligned to your credit score, income, vintage, and documentation readiness

Eligibility pre-check: Reducing unnecessary bureau hits by filtering before applying.

Documentation packaging: Helping present the case clearly (banking summaries, ITR/GST alignment, vintage proof).

Faster coordination: Follow-ups, status tracking, and closing documentation loops.

What GrowMoreLoans.com can support.

Salaried personal loans:
Professional loans (doctors, CAs, architects, lawyers, etc.)
Collateral-free MSME business loans
Balance transfer / top-up evaluation.

Important transparency note: Final approvals, rates, and terms are always determined by the lender’s credit policy and underwriting. A DSA facilitates the process; it doesn’t override lender decisions.

Quick Borrower Checklist:

For Personal Loans
Latest salary slips / income proof
6 months bank statement
PAN + Aadhaar + address proof
List of existing loans & EMIs

For Professional Loans
KYC + bank statement
Professional registration/degree proof
ITRs and/or financials
Clinic/office proof (rent agreement/ownership/utility)

For Unsecured Business Loans
KYC of proprietor/partners/directors
12 months bank statements (often preferred)
GST returns (if applicable)
ITR + financials (as requested)
Business proof: Udyam, Shop & Establishment, incorporation docs, etc.