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Choosing the right bank for a personal loan can significantly impact your financial health. With interest rates varying across different banks, it is essential to compare options to find the best deal. Below is a list of banks offering personal loans with low-interest rates in 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 interest rates mentioned above are as of August 5th and are subject to change. It is advised to check with the respective bank for the latest rates before applying for a loan.)
CHECKPOINTS TO CONSIDER BEFORE CHOOSING A PERSONAL LOAN
When selecting a personal loan, there are several critical factors to consider to ensure you make an informed decision:
1. Documentation
To apply for a personal loan, you will need to submit various documents, including:
- Income statements
- Bank statements
- Income Tax Returns (ITR)
Proper documentation is crucial as it affects the approval process and the terms of your loan.
2. Interest Rates
Interest rates on personal loans are generally higher compared to secured loans. They range from 10% to 22% and are determined based on the applicant’s credit profile. It’s vital to compare the interest rates offered by different banks to find the most affordable option.
3. Loan Tenure
The repayment period for personal loans usually ranges between 1 to 5 years. Longer tenures may result in lower monthly payments but can increase the total interest paid over the loan’s duration.
4. Loan Amount
The amount you can borrow depends on your credit history and income profile. Banks assess your repayment capacity before sanctioning the loan amount. It’s important to borrow within your means to avoid financial strain.
5. Funds Disbursement
Once approved, the loan amount is disbursed as a lump sum directly into your bank account. This provides immediate access to funds, which can be useful for urgent financial needs.
6. Additional Charges
Banks may levy various fees, such as:
- Processing Fees: Charged at the time of loan application.
- Late Fees: Imposed if you miss an EMI payment.
Understanding these charges can help you calculate the total cost of the loan and avoid unexpected expenses.
CONCLUSION
Choosing the right personal loan involves more than just looking at interest rates. By considering factors such as documentation, loan tenure, loan amount, disbursement process, and additional charges, you can make a well-informed decision. The banks listed above offer competitive interest rates on personal loans in 2024, making them a good starting point for your loan search.
Also Read – SECURING PERSONAL LOAN IN INDIA