When you face a sudden paucity of cash and have no immediate inflow in sight, knocking on a bank’s door to seek personal loan seems like a natural thing to do for most of us.
When you decide to raise a personal loan, it is rational to compare the interest rates charged by most lenders before you zero in on the one that suits your needs.
Usually, most lenders charge a lower rate from borrowers with a high credit score and a high interest rate from the ones who have a low credit score.
Let us take a look at which banks charge which interest rates.
Top 5 banks charge the lowest interest rates:
HDFC Bank: HDFC Bank charges interest rate that ranges between 10.75 percent to 24 percent per annum on the loans it disburses. The processing fees for the loan is ₹4,999 plus GST. The loan tenure is between 3 to 72 months. The bank gives a loan up to ₹40 lakh
ICICI Bank: ICICI Bank charges anywhere between 10.65 to 16 percent per annum on loans. The loan processing charges of loan are up to 2.50 percent of loan amount plus applicable taxes.
| Bank | Lowest interest rate (%) |
| HDFC Bank | 10.75 |
| ICICI Bank | 10.65 |
| State Bank of India | 11.15 |
| Kotak Mahindra Bank | 10.99 |
| Punjab National Bank | 12.75 |
(Source: Banks’ websites, lowest rates are offered to borrowers with high credit score)
State Bank of India (SBI): SBI charges interest rate that starts from 11.15 percent. The state lender lends loans up to ₹20 lakh even to customers who don’t have a bank account with SBI.
Kotak Mahindra Bank: Kotak Mahindra Bank gives personal loans in the range of ₹50,000 to ₹40 lakh at an interest rate that starts at 10.99 per cent. The loan processing charges are up to 3 percent of loan amount plus applicable taxes.
PNB: Punjab National Bank (PNB) charges 12.75 to 16.25 percent based on the credit score from corporate employees. Lowest interest rate on personal loans disbursed to government employees is 11.75 percent. The lowest rate for defence personnel is 11.40 percent.
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Published: 06 Feb 2024, 04:53 PM IST