Home Finance Top 15 Banks That Offer Personal Loan Lowest Interest Rates in India

Top 15 Banks That Offer Personal Loan Lowest Interest Rates in India

Top 15 Banks That Offer Personal Loan Lowest Interest Rates in India

A personal loan is an unsecured and a multipurpose loan. You do not have to provide security to the lending institution. The funds can be used for any financial requirement, be it planned or unplanned expenses. Many use the loan for marriage, event, travel, educational fees, medical emergency, vehicle or home repair, etc.  This loan is offered usually to salaried individuals and in some cases to self-employed professionals such as Chartered Accountants, doctors, lawyers, consultants, and others.

The minimum monthly income for a salaried applicant must be Rs. 25,000. But the income criteria differ from a bank to another. Also, the applicant must be at least 23 years of age to apply for a online personal loan in India. The borrowing amount is between Rs. 1 lakh and Rs. 1 crore with interest rate starting at 10.99%.

Importance of Knowing the Personal Loan Interest Rate and Processing Fee

The interest rate on a personal loan is one of the most important factors to consider. It is one of the factors that majorly impacts the total cost of the loan. For instance, a loan with 13% rate of interest will be more expensive than one on 12% rate. Interest payout increases if the loan is on a longer tenure against that on a shorter tenure. Also, higher the loan amount, the interest payout will also climb.

There are other charges as well apart from a rate of interest, which decide the total cost of the loan, namely the processing fee. This is the origination fee charged by the lending institution for efforts involved in processing of the loan. Processing fee starts from 0.50% to 3% of the entire loan amount.

  • To get the best rate of interest, you must have a good credit score 750+ and repayment capacity, meet the income criteria, and other eligibility criteria set by the bank or NBFC you are applying with.
  • Another factor that impacts personal loan interest rates is the purpose of the loan. There are a few schemes for agriculturists and women, which apply a lower rate of interest, than the standard one.
  • The loan amount, tenure, and relationship with the financial institution are some of the factors apart from those mentioned above, which influence the final rate of interest applicable.

So, it is evident that lower the rate of interest and processing fee, more affordable will be the total cost of the loan. It is important to check for these charges and rates before applying for a Instant personal loan, as it will help compare and apply for the right offer as per your financial suitability. With help of this information, you can also calculate the equated monthly installment (EMI) amount that you have to pay towards repayment of the loan.

15 Banks Charging the Lowest Interest Rates and Processing Fees on Personal Loans

Below-mentioned calculations are keeping in mind Rs. 1 lakh as the borrowed amount for tenure 5 years.

  • Allahabad Bank

The interest rate is between 8.40% and 12.90%. Processing fee (excluding taxes) is 1.06% of the principal borrowed, with a minimum fee of Rs. 1,068. Lowest EMI is between Rs. 2,047 and Rs. 2,270.

  • IDBI Bank

The rate of interest is between 10% and 12.75%. Processing fee is up to 1% of the amount borrowed + GST. Lowest EMI is between Rs. 2,125 and Rs. 2,263.

  • Dhanlaxmi Bank

Lowest rate is 10.40% onward. Processing fee is up to 2.5% of the loan amount + GST, and a minimum fee applicable is 1,250. Lowest EMI is Rs. 2,144. 

  • Union Bank of India

The starting interest rate is between 10.50% and 14.50%. Processing fee is up to 0.50% of the loan amount + GST. Minimum fee is Rs. 500. Lowest EMI is between Rs. 2,149 and Rs. 2,353.

  • Indian Bank

The lowest offer for interest rate is between 10.65% and 11.25%. Processing fee is up to 0.51% of the loan amount, minimum fee being Rs. 512. Lowest EMI is between Rs. 2,157 and Rs. 2,187.

  • Oriental Bank of Commerce

Here, the starting rate of interest is between 10.80% and 12.30%. Processing fee is up to 1% of the borrowed amount + GST. Lowest EMI is between Rs. 2,164 and Rs. 2,240.

  • Canara Bank

The beginning interest rate is 10.80% to 13.95%. Up to 0.5% of the loan amount is the processing fee, and the minimum fee is Rs. 1,000. The lowest EMI is between Rs. 2,164 and Rs. 2, 324.

  • YES Bank

The interest rate is 10.99% to 17.50%. The lowest EMI is between Rs. 2,174 and Rs. 2,512. The minimum processing fee is Rs. 999 with fee up to 2.5% of the loan amount.

  • Central Bank of India

The lowest rate of interest is between 11.05% and 11.80%. Processing fee is up to Rs. 500 + GST. Lowest EMI is between Rs. 2,177 and Rs. 2, 214.

  • UCO Bank

The starting interest rate is between 11.25% and 11. 50%. Processing fee is up to 1% of the borrowed amount, minimum fee being Rs. 750. Lowest EMI is between Rs. 2,187 and Rs. 2,199.

  • Indian Overseas Bank

The interest rate is between 11.25% and 13.50%. Processing fee is up to 0.40% to 0.75% of the borrowed amount. Lowest EMI is between Rs. 2,187 and Rs. 2,301.

  • ICICI Bank

The starting interest rate is between 11.25% and 22.00%. Processing fee is up to 2.25% of the principal borrowed + GST. Lowest EMI is between Rs. 2,187 and Rs. 2,762.

  • IndusInd Bank

The beginning rate of interest is between 11.25% and 30.50%. Processing fee is up to 2.5% of the loan amount + GST, minimum fee being Rs. 1,000. Lowest EMI is between Rs. 2,187 and Rs. 3,266.

  • Bank of Baroda

Lowest rate is 11.45% up to 16.45%. Processing fee is up to 2% of the loan amount, minimum fee being Rs. 1,000. Lowest EMI is between Rs. 2,197 and Rs. 2,456.

  • Bank of Maharashtra

The starting rate of interest is between 11.50% and 12.50%. Processing fee is up to 1% of the borrowed amount, minimum fee being Rs. 1,000. Lowest EMI is between Rs. 2,199 and Rs. 2,250.

To Conclude

Interest rates and processing fees are subject to change as per guidelines of the bank. So, look for the latest interest rate and fee offers by the financial institutions before you apply for the loan. The above-mentioned rates and charges are as per that verified on 29 August, 2019.

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