 "personal loan")
Personal loans offer a versatile financial solution that can cater to your needs, from consolidating high-interest debt to financing home improvements or even covering unexpected expenses. With generally lower interest rates compared to credit cards, they present an attractive option for many.
Lowest personal loan interest rates
PaisaBazaar has compiled a list of the most popular personal loan plans in India for 2024:
1. HDFC Bank Personal Loan: 10.50% p.a. onwards
For HDFC Bank, the interest rate starts from 10.50% per annum. For a loan amount of Rs 5 lakh over a tenure of 5 years, the EMI starts from Rs 10,747, and for Rs 1 lakh, it starts from Rs 2,149. The processing fee can go up to Rs 4,999.
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2. Tata Capital: 10.99% p.a. onwards
Tata Capital's interest rates begin at 10.99% per annum. The EMI for a Rs 5 lakh loan for 5 years starts from Rs 10,869, and for Rs 1 lakh, it starts from Rs 2,174. The processing fee can reach up to 5.5% of the loan amount.
3. State Bank of India: 11.15-15.30% p.a. onwards
State Bank of India offers interest rates ranging from 11.15% to 15.30% per annum. The EMI for a Rs 5 lakh loan ranges from Rs 10,909 to Rs 11,974, and for Rs 1 lakh, it ranges from Rs 2,182 to Rs 2,395. The processing fee varies between 1.5%, with a minimum of Rs 1,000 and a maximum of Rs 15,000.
4. ICICI Bank Personal Loan: 10.65% p.a. onwards
ICICI Bank's interest rates start from 10.65% per annum. For a loan amount of Rs 5 lakh over 5 years, the EMI starts from Rs 10,784, and for Rs 1 lakh, it starts from Rs 2,157. The processing fee can go up to 2.50% of the loan amount.
5. Bank of Baroda: 11.05-18.75% p.a. onwards
Bank of Baroda's interest rates vary between 11.05% and 18.75% per annum. The EMI for a Rs 5 lakh loan ranges from Rs 10,884 to Rs 12,902, and for Rs 1 lakh, from Rs 2,177 to Rs 2,580. The processing fee goes up to 2%, with a minimum of Rs 1,000 and a maximum of Rs 10,000.
6. Axis Bank: 10.49% p.a. onwards
Axis Bank offers interest rates starting from 10.49% per annum. The EMI for a Rs 5 lakh loan over 5 years starts from Rs 10,744, and for Rs 1 lakh, it starts from Rs 2,149. The processing fee can reach up to 2% of the loan amount.
7. Kotak Mahindra Bank: 10.99% p.a. onwards
Kotak Mahindra Bank's interest rates begin at 10.99% per annum. The EMI for a Rs 5 lakh loan for 5 years starts from Rs 10,869, and for Rs 1 lakh, it starts from Rs 2,174. The processing fee can go up to 3% of the loan amount.
8. Bank of India: 10.75-14.75% p.a. onwards
Bank of India offers interest rates ranging from 10.75% to 14.75% per annum. The EMI for a Rs 5 lakh loan ranges from Rs 10,809 to Rs 11,829, and for Rs 1 lakh, from Rs 2,162 to Rs 2,366. The processing fee goes up to 1%, with a maximum of Rs 5,000.
9. Canara Bank: 10.95-16.40% p.a. onwards
Canara Bank's interest rates vary between 10.95% and 16.40% per annum. The EMI for a Rs 5 lakh loan ranges from Rs 10,859 to Rs 12,266, and for Rs 1 lakh, from Rs 2,172 to Rs 2,453. The processing fee is 0.50%, with a maximum of Rs 2,500.
10. Punjab National Bank: 10.40-17.95% p.a. onward
Punjab National Bank offers interest rates ranging from 10.40% to 17.95% per annum. The EMI for a Rs 5 lakh loan ranges from Rs 10,772 to Rs 12,683, and for Rs 1 lakh, from Rs 2,144 to Rs 2,537. The processing fee goes up to 1% of the loan amount.
Factors that determine the interest rate on a personal loan
Banks usually charge a higher rate of interest on personal loans but the rate they charge hinges on several factors such as borrower's age, credit history, monthly income, the lender's risk, and the borrower's overall financial situation, category of employer (MNC/ govt/ defence, etc), among others. The higher your credit score, the greater the possibility that you will qualify for a reduced interest rate. HDFC Bank offers personal loans with interest rates beginning at 10.50% (as of March 13, 2024), which is the lowest.
