Personal Loan: If you want to take a personal loan without a guarantee for sudden expenses, then many government and private banks in India are offering this facility on affordable interest rates and easy installments. However, which customer will get a loan on how much interest depends on your credit history, job stability and monthly income.
Cheapest Loan – Bank of Maharashtra
The Bank of Maharashtra is currently offering the most attractive offer on personal loans. The interest rate here starts at 9.50%. If you take a loan of Rs 5 lakh for a period of 5 years, then your monthly installment (EMI) will be around Rs 10,501.
SBI – reliable option
The country’s largest bank, State Bank of India (SBI) is giving personal loans at an interest rate from 10.30%. Here the EMI seated about Rs 10,697 on a loan of Rs 5 lakh. However, the processing fees can be up to 1.5% of the loan amount, ie at least Rs 1,000 and a maximum of Rs 15,000.
Private sector large bank HDFC and ICICI are also offering personal loans.
HDFC Bank: Interest rate starts from 10.90%, EMI about Rs 10,846, processing fee maximum Rs 6,500.
ICICI Bank: Interest rate starts from 10.85%, EMI is about Rs 10,834, maximum 2% of processing fee loan amount.
Kotak Mahindra and Axis Bank
Kotak Mahindra Bank: Interest rate 10.99%, EMI Rs 10,869, but processing fees can be the highest i.e. up to 5%.
Axis Bank: EMI starts from Rs 10,934 at an interest rate of 11.25%. Processing fees up to 2%.
Other banks and NBFC
Tata Capital: Interest rate 11.60%, EMI Rs 11,021, processing fees up to 4%.
Bank of India: Interest rate 11.99%, processing fees only 1%.
Government banks like Punjab & Sindh Bank, Canara Bank, UCO Bank and Central Bank of India are also giving loans at competitive rates. For example, the interest rate at Punjab and Sindh Bank starts at 10.35% and EMI is about Rs 10,710. The processing fees of these banks ranges from 0.50% to 1%.
What to compare before taking a loan?
It is very important to compare the interest rate, EMI and processing fees before taking a personal loan. Even the difference in small interest rate can save a large amount for a long time. Also, a good credit score (750 or more) can give you a loan at a low interest rate.
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