Many times we suddenly need money. Then a personal loan seems to be the easiest option. Banks give this loan without any security. However, the most important thing in this is the interest rates and processing fees. Here we are telling you about the interest rates and processing fees of 10 banks.
People often take personal loans for their minor needs. This is a loan that does not require any kind of collateral or security. This loan is given to a person on his credit. It requires minimum documents. This loan can be used for any financial need. Like any other loan, a personal loan has to be repaid as per the agreed terms.
Personal loans are repaid in monthly installments (EMIs). Through auto debit mandate, the monthly installment can be instructed to be directly debited. If there is an alternative bank account, this can be done through NACH mandate. Generally, EMI can be made for a few months or a few years.
Charges may apply for foreclosure
Some banks allow you to prepay or foreclose your personal loan after payment of at least one EMI. However, charges (and taxes) are applicable for foreclosure of a personal loan. Banks take many things into consideration while calculating interest rates on personal loans. It generally depends on the credit history of the person taking the loan. The better the credit history, the more chances there are to get loans at attractive rates. Here we are telling you about the interest rates on personal loans of 10 banks. This will help you make comparisons before taking a personal loan.
Personal Loan Rates and Charges (March 2024)
| Name of lender | Rate of interest | EMI(Rs)Loan amount – 5 lakhsTenure – 5 years | EMI(Rs)Loan amount – 1 lakhTenure – 5 years | processing fee(% of loan amount) |
|---|---|---|---|---|
| HDFC Bank | Starting from 10.50% | Starting from Rs 10,747 | 2,149 | up to Rs 4,999 |
| Tata Capital | Starting from 10.99% | 10,869 | 2,174 | up to 5.5% |
| state Bank of India | 11.15%-15.30% | 10,909-11,974 | 2,182-2,395 | Zero |
| ICICI Bank | Starting from 10.80% | 10,821 | 2,164 | up to 2.50% |
| Bank of Baroda | 11.05%-18.75% | 10,884-12,902 | 2,177-2,580 | Up to 2% (minimum Rs 1,000 and maximum Rs 10,000) |
| Axis Bank | Starting from 10.49% | 10,744 | 2,149 | up to 2 |
| Kotak Mahindra Bank | Starting from 10.99% | 10,869 | 2,174 | up to 3 |
| Canara Bank | 10.95-16.40 | 10,859-12,266 | 2,172-2,453 | 0.50% (maximum 2,500) |
| Punjab National Bank | 10.40-17.95 | 10,772-12,683 | 2,144-2,537 | up to 1% |
| HSBC Bank | 9.99-16.00 | 10,621-12,159 | 2,124-2,432 | up to 2 |
EMI is an important part of the loan. This is the intermittent installment amount that you pay to repay your loan. There are three factors that decide your EMI. These include loan amount, interest rate and loan tenure.
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