Are you struggling with paying medical bills or in need of money to renovate home or saving money for your next summer trip? You don’t have to suffer or wait longer anymore. Take a secured personal loan but beware, as you may end up repaying more in case you don’t know which bank offer personal loan at low interest rates.
Thus, it is necessary to compare different banks and understand what they offer to the borrowers. It will give you a clean and clear idea about several factors that affect interest rate and your odds of getting a loan.
For example, processing fees, pre-closure charges, discounts (if any) and other charges such as swap charge, EMI bounce charge, stamp duty and more. Read on to get complete information about personal loans and which bank offers low interest rates on this type of loan.
What Is A Personal Loan?
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As the name suggests, a loan that is not meant for a specific purpose but can be used for any small event like a holiday trip or big occasion like wedding is a form of personal loan. However, it is different from other types of loan as it can be taken on collateral or without it.
In other words, personal loan can either be secure or unsecure. You must understand these two in details as they can greatly affect the repayment.
Secured loan– This is to assure lenders that they will get their money back and if not then they can keep collateral. Any physical asset can be kept as a security for getting the loan.
Unsecured loan– It is just opposite of secured loan where borrowers don’t keep any asset or belongings as a security. But banks prefer them risky thus the interest rates on such personal loan are very high.
Also Read: How To Apply For Personal Loan & Get Quick Approval
Which Bank Has Lowest Interest Rates On Personal Loan?
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Comparison is the key when applying for a personal loan. You can do it manually by having a conversation with the bank or searching their official website for the offer. The task is time consuming but it will save you from the aftermath and we are here to save your time.
Check the table below to know which bank gives personal loan at low interest rate.
| S.no | Name Of Lenders | Interest Rate | Processing Fees |
| 1. | Bank of Maharashtra | 9.45% | Upto 1 % |
| 2. | IDBI Bank | 9.50% | Upto 1 % |
| 3. | State Bank of India | 9.60%- 11.10 % | Upto 1.50% |
| 4. | HDFC | 10.25% onwards | Upto 2.50% |
| 5. | Central Bank of India | 9.85%-10.05% | Rs 500+ GST |
| 6. | Indusland Bank | 11% | 2.5% onwards |
| 7. | Axis Bank | 12% | Upto 3.5% |
| 8. | Tata Capital | 10.99% | Upto 2.75% |
| 9. | Bank of Baroda | 10.50% | Upto 2% |
| 10. | Karur Vysya Bank | 9.40% onwards | 0.30% onwards |
[Note : For further details about loan amount and offer, contact bank]
Will I Get A Personal Loan?
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Simply applying for a loan won’t ensure that you will get the fund immediately in your account. You will require to submit a few documents for loan approval. Also, bank will check some of your details like, what is your income, CIBIL rating and credit score.
If your credit history is poor or income is low, odds of getting loan increases. If you are a defaulter then also chances are low that bank will provide you loan instantly. There are other criteria as well that affect the possibility of further processing of your application.
Personal Loan Eligibility:
- You must be above 21 or below 68 years of age
- Your employment must fall under any of these categories- salaried professional, self-employed, student, business owner, homemaker, or retired individuals
- If you are a businessman then you must be at least 2-5 years in the field
- Your monthly net income must not be below Rs 5000
- If you have taken any other loan then your credit score must not be less than 750
If everything falls under these eligibility criteria, then you are eligible to get a loan instantly. However, a few banks take more time to disburse the loan amount. So, if you need funds in an emergency, then taking a personal loan would cost you more as banks may charge high-interest rates.
Also Read: Best Car Loan Interest Rates 2022: Full Comparison, Eligibility Criteria, Processing Fee, Etc
How Much Personal Loan Can I Get?
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This completely depends upon your income and the bank you choose. Usually, the amount is 10 to 27 times of your income but you can get a maximum loan up to Rs 75 lakh. However, it comes with a disadvantage that is higher the loan amount, the longer will be repayment duration.
You can cut this time by choosing floating over fixed interest rate which means your EMI will be flexible. It also saves you from prepayment charge that is applicable at the time of paying the full loan amount.
Keep these factors in mind and evaluate bank offers thoroughly so that you don’t have to pay higher EMI or live in debt for years.