- May 23, 2020
- Posted by: Ganeshcbani
- Category: Blog
Taking out a personal loan can seem like a daunting task, but which bank has the lowest interest rate on personal loans? With so many banks and credit unions offering Personal Loans, it can be difficult to figure out which one is right for you. In this article, we will take a look at some of the key factors that you need to consider when choosing a bank or credit union for your personal loan.
How do you assist the best price for personal Loans?
Many of us only decide on the basis of the interest rate and end up choosing a less convenient option. Well, interest rates are very important, but they are not the only thing to take into account. You should also look for lenders that are able to lend you more based on revenue and the repayment capacity, apart from lower rates. You will only increase your comfort if you quickly get the loan by paying a lower processing fee.
Compare Lowest Interest Rate on Personal Loan
|Banks||Interest Rate*||Loan Amount|
|Allahabad Bank||10.65% onwards||50,000-20 lakhs|
|Andhra Bank||RLLR + 3.00% to RLLR + 5.65%||As per applicant’s profile|
|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|
|CASHe||30% to 36%||9,000 – 3 lakh|
|Central Bank||11.25% onwards||Up to 10 lakhs|
|Early Salary||24% to 30%||8,000 – 2 lakh|
|Federal Bank||11.49% onwards||Up to 25 lakhs|
|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|
|HSBC Bank||10.50-17.84%||Up to 30 lakhs|
|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|
|Indiabulls||As per loan agreement||Rs. 1000 to Rs. 15 lakh|
|Indian Bank||10.35% onwards||As per applicant’s profile|
|Indian Overseas Bank||10.50% onwards||Up to Rs. 15 lakh|
|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|
What is the difference between fixed and variable interest rates?
Depending on the loan and the borrower you can choose between fixed rate (which stays the same over the life of the loan) or variable (which can increase or decrease depending on market changes).
The variable-rate loan interest always begins low, but can rise over time. The terms of the loan agreement dictate the number of times the lender will increase the interest rate, and certain loans restrict the maximum rate to a certain proportion. By contrast, the fixed rate loan payments and interest charges remain the same.
Basis your decision on whether you want a fixed rate security or a variable rate savings possibility.
Is it worth a personal loan?
If you need a large amount of money in advance and the security of a regular monthly payment, a personal loan might be a good choice. Personal loans typically have stronger APRs than credit cards or credit lines, and most personal loans retain the fixed rate over the life of the loan.
Before you commit to a personal loan, though, make sure that you carefully weight the APR, so that a monthly loan payment suits your budget. Some loans have 10 years’ repayment periods, and some companies charge a fee if you decide to pay your loan in advance. It is also necessary to take out just as much as you need in connection with your project or expenses; borrowing extra will raise your monthly payments and your overall interest rate.
If you are uncertain about a loan, consider using a personal credit machine to see how much interest you pay in addition to your loan costs.
What is a good personal loan interest rate?
A “healthy” personal loan interest rate depends on your credit score. You will usually aim for an average rate below the APR — 10.3% to 12.5% for outstanding loans, 13.5% to 15.5% for decent loans, 17.80% to 19.9% for mediocre loans and 28.5% to 32% for poor loans.
The quoted rate depends on many factors, including your credit interest, your credit background and your annual profits. Many lenders require you to pre-qualify, so you can see whether you are qualified for a loan without a hard pull. A test with some companies will help you decide which APR is the best for you.