Top Bank Personal Loan Lowest Interest Rates in India
21st Dec 2024
5 min
On this Page:Top 5 Banks with Lowest Personal Loan Interest Rates
Here are some banks that offer personal loans with the lowest interest rates.
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Bank of Maharashtra
IndusInd Bank
IndusInd Bank offers loan amounts ranging from ₹30,000 to ₹50 lakhs. In addition to a high loan amount, the bank has the lowest rate of just 10.49%. With a tenure flexible as 60 months, you can easily pay off the borrowed amount.
HDFC Bank
With a loan limit of ₹40 Lakhs and flexible repayment tenure from 12 to 60 months, HDFC Bank's personal loan provides financial flexibility. Its rate of interest starts from 10.85% p.a. and goes up to 24.00% p.a. (fixed rate).
ICICI Bank
The starting interest rate for a personal loan at ICICI Bank is 10.85% per annum. And it goes up to 16.25% per annum based on your creditworthiness. The bank has set easy eligibility criteria for its personal loan. It includes a minimum age of 23 years, a stable job and a minimum salary of ₹30,000. With this you can apply for an ICICI personal loan.
Bank of India (BOI)
Bank of India has flexible personal loan offers. Its maximum loan limit is up to ₹25 lakhs, and a repayment tenure of up to 84 months. Their competitive interest rates start at just 10.85% p.a., ensuring affordability. Special benefits of BOI personal loan include:
- 0.50% interest concession for women beneficiaries
- Zero processing charges for differently-abled customers
- Quick loan approvals
- No hidden charges
- No prepayment penalties
Factors Affecting Personal Loan Interest Rates
Type of Loan: Loans can be secured or unsecured, and this affects the interest rates. Personal loans are unsecured in nature, which means you will be charged a higher rate than secured loans.Credit Score A higher credit score shows banks that you are less risky, which can lead to better interest rates. Your track record with loan/credit card repayments matters while determining your loan rates. A clean record with no default makes you a trustworthy borrower.Loan Amount and Tenure Your personal loan interest rate can change depending on how much you borrow and how long it takes to pay it back. Smaller loans are generally considered less risky, so lenders offer a lower interest rate. And with a shorter repayment term, you pay more each month, but the total interest you pay decreases. Lenders may offer a lower interest rate as they perceive less risk.Income StabilityA regular income shows that you will be less likely to default on loans.Tips for Choosing a Personal Loan with Low Interest Rate
Shop Around for the Best Rates: Don’t settle for the first offer you get. Compare interest rates from multiple banks to get the best deal on your personal loan.Understand the Repayment Terms: Check the loan tenure, type of interest rate applied to your loan and prepayment penalties. This will help you prepare for the loan repayment.Watch Out for Hidden Costs: Scrutinize processing fees, late payment charges, or other hidden costs that could inflate your loan expenses.Check Eligibility Requirements: Review the lender’s criteria, including income and credit score, to ensure smooth approval.Prioritize Transparency: Choose a lender that clearly outlines terms and avoids misleading fine print.Leverage Special Offers: Look for discounts or benefits, like lower rates for women or pre-approved loans for existing customers.Research the Lender’s Credibility: Choose lenders known for their reliability, quick processing, and excellent customer support.Conclusion
Now you know which bank offers the lowest interest rate on personal loans, all you have to do is compare their offers. Once you choose a lender, check your eligibility for their personal loan. The next step is to find the loan amount you are eligible to borrow, and if it meets your financial requirements or not. If it does, proceed with the loan application, and negotiate for a lower rate if you have good repayment capacity and a high credit score. After that, your low interest rate personal loan will be disbursed to your account and you can pay it back to the lender in equated monthly installments.
