A personal loan is intended for immediate requirements, such as purchasing a gadget, paying for a vacation or to address a number of short-term and long-term needs. It's worth noting that banks offer reduced loan rates to those with good credit, and personal loan interest rates vary from one bank to the next.
There are several banks in India that provide the best personal loans to its consumers, and you can apply for one online or offline. However, you should compare the interest rates given by several institutions before taking out a personal loan. Here is the list of current personal loan interest rates offered by banks
| Name of Banks | Interest Rate (p.a.) | Processing Fee |
| HDFC Bank | 10.5% p.a. - 21.00% p.a. | Up to 2.50% |
| TurboLoan Powered by Chola | 15% - 21% (fixed) p.a. | 3.00% |
| Yes Bank | 10.99% p.a. onwards - 16.99% p.a. | At the discretion of the bank Up to 2.50% |
| Citibank | 9.99% p.a. - 16.49% p.a. | Up to 3% |
| Kotak Mahindra Bank | 10.25% and above | Up to 2.5% |
| Axis Bank | 12% p.a.- 21% p.a. | At the discretion of the bank |
| IndusInd Bank | 10.49% p.a. - 31.50% p.a. | 3% onwards |
| HSBC Bank | 9.50% p.a. - 15.25% p.a. | Up to 1% |
| IDFC First Bank | 10.49% p.a. onwards | Up to 3.5% |
| Tata Capital | 10.99% onwards | Up to 2.75% |
| Home Credit Cash Loan | 19% p.a. - 49% p.a. | 0%-5% |
| Ujjivan Small Finance Bank | 11.49% p.a. - 16.49% p.a. | At the discretion of the bank |
| Aditya Birla Capital | 14% p.a. -26% p.a. | Up to 2% |
| State Bank of India | 9.60% p.a. - 15.65% p.a. | Up to 1.50% |
| Karnataka Bank | 12% p.a. - 17% p.a. | Maximum of Rs.8,500 |
| Bank of Baroda | 10.50% p.a. - 12.50% p.a. | Up to 2% |
| Federal Bank | 10.49% p.a. - 17.99% p.a. | Up to 3% |
| IIFL | 24% p.a. onwards | 2% onwards |
| Bank of India | 10.35% p.a. - 12.35% p.a. | Up to 2% |
| Fullerton India | 11.99% p.a. - 36% p.a. | Up to 6% |
| IDBI Bank | 8.15% p.a. - 10.90% p.a. | Contact the bank |
| Karur Vysya Bank | 9.40% p.a. - 19.00% p.a. | 0.30% onwards |
| South Indian Bank | 10.60% p.a. - 18.10% p.a. | Up to 2% |
| Indian Overseas Bank | 9.30% p.a. - 10.80% p.a. | Up to 0.50% |
| RBL Bank | 14% p.a. - 23% p.a. | Up to 3.5% |
| Punjab National Bank | 7.90% p.a. onwards | Up to 1.00% |
| Bank of Maharashtra | 9.45% p.a. - 12.80% p.a. | Up to 1% |
| Central Bank of India | 9.85% and above | Up to 1% |
| City Union Bank | 12.75% p.a. | 1.00% subject to a minimum of Rs.250 |
| J&K Bank | 10.80% p.a. | Up to Rs.500 |
NOTE - Additional GST will be charged on the applicable processing fee.
Before approving a personal loan, lenders typically assess a number of variables, including the loan amount you've requested, your repayment capacity, and sometimes even the firm you work for. Here are a few things that might affect your rate of interest.
- It's possible that, despite the lender offering you a cheaper interest rate, you'll wind up paying more interest at the conclusion of the loan term. This is because the process of calculating the total interest payable varies between lenders, so you should be familiar with it.
- Try checking an online financial site to compare and choose among numerous lenders based on your loan eligibility and requirements.
- Strengthen your credit score by paying off your debts and obligations over time. A credit score of 750 or higher increases your chances of getting a better personal loan arrangement. Maintaining a healthy credit mix of both secured and unsecured loans, monitoring your credit report often, avoiding direct loan and credit card applications to lenders, and maintaining a credit utilisation ratio of less than 30% are just a few strategies to do this.
- Every month, try to pay off your credit card account in full and pay off your debts. You should also make timely payments on any other loans you have. This helps you obtain a better deal on future loans since if you have a strong EMI payback history, you will have a greater chance of negotiating lower interest rates with the lender.
Another option to acquire a low interest rate is to put up collateral. Your rate is decided by your level of risk. Collateral minimises your risk greatly because it acts as a guarantee against non-payment. Keep in mind, though, that if you don't pay back the loan on time, the lender may seize your assets.
Apart from these, you might be able to receive a cheaper interest rate than what the lender advertises through negotiations. However, before you apply for a personal loan, make sure you are eligible for one. Each bank had its own set of rules and requirements which should be checked thoroughly .
