- July 19, 2020
- Posted by: Ganeshcbani
- Category: Blog
Everyone has different financial needs, which is why it’s important to shop around when getting a personal loan. In this article, we’ll take a look at five different places where you can get a loan and explain why each one might be the best for you.
Best Place to get a Personal Loan
Personal loans are unsecured loans available to both employees and self-employed professionals in order to meet their overall, urgent and immediate personal or private expenses. Unsecured loans are loans that can be quickly used without any security. The interest rate on personal loans is higher than on guaranteed loans.
Where to get the lowest personal loan interest rate?
According to the existing levels, Citibank, Bank of Baroda provides the lowest 10.5%. Depending on the company you work with, the amount of the loan you apply for and your payment capacity, you can get the best personal loan. The higher the amount of the loan, the lower the interest rate.
If you are looking for an instant personal loan in 1-2 days, HDFC Bank, Tata Capital, RBL Bank, Citibank, ICICI Bank will be the best personal loan banks. The interest rates of these banks range from 10.5% to 17.99%. Some loan companies offer online loan. You can get immediate personal credit approval from these banks at online and verify eligibility without sending paper documents. Post-authorisation, you might be liable for immediate disbursement with no documents if you are an current bank account holder or current HDFC Bank, Tata Capital, RBL Bank, Citibank, ICICI Bank client. In some situations, you can upload or physically send certain documents to a bank loan officer who will meet you before the loan payment.
Compare all banks’ personal loan interest rates
You should make a thorough comparison of interest rates and charges on personal loans of all banks before choosing the best bank for personal loans.
| Lenders | Interest Rate* | Loan Amount |
| Allahabad Bank | 10.65% onwards | 50,000-20 lakhs |
| Axis Bank | 12-24% | 50,000-15 lakhs |
| Bajaj Finserv | 12.99% onwards | Up to 25 lakhs |
| Bank of Baroda | 11.40-16.40% | 50,000-10 lakhs |
| Bank of India | 10.50% onwards | Up to 10 lakh |
| Bank of Maharashtra | 10.85-11.85% | Up to 10 lakh |
| Citibank | 10.50-18.99% | 50,000-30 lakhs |
| Early Salary | 24% to 30% | 8,000 – 2 lakh |
| Fullerton India | 12-36% | Up to 25 lakhs |
| HDFC Bank | 10.75-21.30% | 50,000-40 lakhs |
| Home Credit | 24% to 49% | 25000 – 2.40 lakh |
| ICICI Bank | 11.25% onwards | 50,000-20 lakhs |
| IDBI Bank | 12% – 14% | 25,000-10 lakhs |
| IDFC First | 11.50% onwards | 1 lakh-25 lakhs |
| IndusInd Bank | 10.75% onwards | 50,000-15 lakhs |
| Kotak Mahindra Bank | 10.99-24% | 50,000-15 lakhs |
| Kreditbee | 12.24% onwards | 1000 – 2 lakh |
| Moneytap | 1.25% p.m. onwards | Rs. 3000 to Rs. 5 lakh |
| Moneyview | 1.33% p.m. onwards | Rs. 10,000 to Rs. 5 lakh |
| Muthoot Finance | 14.50% onwards | 50,000-10 lakhs |
| Punjab National Bank | RLLR+2.15 to RLLR+6.70% | 50,000-10 lakhs |
| RBL Bank | 12-23% | 1 lakh-20 lakhs |
| Standard Chartered Bank | 10.99% onwards | 1 lakh-30 lakhs |
| StashFin | 11.99% to 59.99% | 500 – 5 lakh |
| SBI | 10.50% onwards | Up to 20 lakhs |
| TATA Capital | 10.99% onwards | 75,000-25 lakhs |
| UCO Bank | 10.95% onwards | Up to 10 lakhs |
| Union Bank of India | 10.10% onwards | Up to 10 lakhs |
| Yes Bank | 10.99% onwards | 1 lakh-40 lakh |
Interest rates for personal loans
Banks frequently implement enticing schemes with low interest rates, particularly for people working with large reputable enterprises. Interest rate varies according to the client categorization in internal banking categories that may differ from bank to bank. Therefore, always look for the most competitive rates for personal credit offers from multiple banks
Personal loan transaction fees
Most banks charge + /- 999 to 2% of the loan, whichever is higher. Since these loans are short term loans, higher processing costs will lead to substantially high loan costs. It is therefore necessary to compare the All Inclusive Tariffs (AIR) to compare and list the top offer for personal finance lending. Get a comprehensive overview of interest rates , fees and competitive cash back deals.
Insurance premium
Because these loans are not insured, the banks require the borrower to pay for an insurance policy. The premium varies from bank to bank, depending on the scope of risk according to specific policies. Check the letter of loan liability carefully to see the coverage and cost. You will also want to compare various insurance plans so you can select a policy that provides you with adequate coverage at the lowest premium.
Personal loan prepayment and default
Nobody wants to continue paying interest on a loan if you can repay it with surplus capital. Often you may want to refund your loan for part of the pre-paid payment period. If you decide to pay the total amount of the loan in advance, it is called foreclosure. Banks typically charge prepaid or foreclosure charges on personal loans from zero to 5%. Therefore, check carefully whether your low interest rate personal loan comes with high advance payment or forfeiture. Other banks may not require you to prepay your credit within a few months and the same must be taken into account when taking a loan.
