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The amount of interest paid on a personal loan provided by a certain bank can be integral to the financial health of a person. Since interest rates differ between banks, finding the best loan is only possible by comparing. Below are some of the low-interest-charge banks that provide personal loans up to 2024.
| SR. NO. | BANK | INTEREST RATE |
| 1 | HDFC Bank | 10.50% p.a. onwards |
| 2 | ICICI Bank | 10.80% p.a. onwards |
| 3 | IndusInd Bank | 10.49% p.a. onwards |
| 4 | Kotak Mahindra Bank | 10.99% p.a. onwards |
| 5 | IDFC Bank | 10.99% p.a. onwards |
| 6 | Punjab National Bank | 10.40% p.a. onwards |
| 7 | Yes Bank | 10.99% p.a. onwards |
( * The rates listed are effective August 5th, and may change. It would be prudent therefore to check directly with a lender to confirm the current rate before submitting an application.)
CHECKPOINTS TO CONSIDER BEFORE SELECTING A PERSONAL LOAN
When you choose a personal loan, there are quite a few important things to consider to make sure you’re making the right choices:
1. Documentation
To apply for a personal loan, you will be required to produce assorted documents, amongst which are:
- Income statements
- Bank statements
- Income Tax Returns (ITR)
Proper documentation is important because that determines whether your application will go through, or not and, what will be the terms of the loan.
2. Interest Rates
Normally, the interest rate for a personal loan is higher than that of a secured loan. This can be between 10% and 22% based on the credit profile of the individual. In order to get the cheapest alternative, it is necessary to compare the interest rates for the different options available in terms of personal loans with various banks.
3. Loan Tenure
Usually, the payment period for personal loans falls between 1 and 5 years. This simply means that if your period is high, your monthly payment will be low, but at the end of the term, you will pay more in interest.
4. Loan Amount
The loan amount varies according to your credit history and income profile. The bank first checks your paying ability before lending you a certain loan amount. It is always necessary to borrow just enough that you can repay them without stress.
5. Funds Disbursement
This refers to how the funds are disbursed after loan sanction. Once you start repaying the loan, you will also be charged interest on the amount that has been paid.
Once it gets approved, the loan amount is credited to your bank account. Thus, you get money in the bank account in just a few days, which can be of quite great help in meeting essential expenses.
6. Additional Charges
Banks levy additional fees for certain things, such as:
- Processing Fees: Charged at the time of loan application.
- Late Fees: In case you miss an EMI payment.
This information will help you understand how much you will be paying towards the loan and prevent surprises.
CONCLUSION
Among the parameters, comparison of the interest rate alone is not sufficient to choose the best personal loan. Other factors, like documentation requirements, tenure of the loan, loan amount, procedure followed for disbursal, and any additional charges, should be considered while reducing your loan options to the best one. Have a look at the above list of banks offering competitive interest rates for personal loans in 2024 to get a good starting point for your loan search.
Also Read – SECURING PERSONAL LOAN IN INDIA