What is a personal loan?
A personal loan is a bank loan for personal purposes without offering any collateral. The advantage of a personal loan is that it requires minimal documentation and can be obtained quickly.
What are the applicable rates and fees?
According to Kotak Mahindra Bank’s website, “The bank or financial institution you borrow money from will usually charge you a processing fee that you must pay when you apply for the loan. The institution will also charge you for closing the loan in advance. You can negotiate with the lender, depending on your relationship with him or her.”
What is the interest rate you are charged on your loan?
The interest rate on personal loans is based on your salary or income level and depends on the bank you choose, your payment history with the bank, the loan policies you select, and other factors.
These are the top banks that offer the lowest rate on personal loans
| Name of lender | Interest rate (annual percentage) |
EMI (Rupees) Loan Amount: 5 lakh Term of office: 5 years |
EMI (Rupees) Loan Amount: 1 lakh Term of office: 5 years |
Processing fee (% of loan amount) |
|
| 1 | HDFC Bank | 10.75 onwards | 10,809 onwards | 2,162 onwards | Up to Rs 4,999 |
| 2 | Tata Capital | 10.99 and up | 10,869 and above | 2,174 onwards | Up to 5.5% |
| 3 | State Bank of India | 11.45-14.85 | 10.984-11.856 | 2.197-2.371 | 1.50% (minimum Rs 1,000 and maximum Rs 15,000) |
| 4 | ICICI Bank | 10.85 onwards | 10,834 onwards | 2,167 and above | Up to 2% |
| 5 | Bank of Baroda | 11.15-18.75 | 10.909-12.902 | 2.182-2.580 | Up to 2% (minimum Rs 1,000 and maximum Rs 10,000) |
| 6 | Axis Bank | 11.25 onwards | 10,934 onwards | 2,187 onwards | Up to 2% |
| 7 | Kotak Mahindra Bank | 10.99 and up | 10,869 and above | 2,174 onwards | Up to 3% |
| 8 | Bank of India | 10.85-16.10 | 10.834-12.186 | 2.167-2.437 | 0.50%-1% (minimum Rs. 250 and maximum Rs. 10,000) |
| 9 | Canara Bank | 10.95-16.40 | 10.859-12.266 | 2.172-2.453 | 0.50% (maximum Rs 2,500) |
| 10 | Punjab National Bank | 10,40-17,95 | 10.772-12.683 | 2.144-2.537 | Up to 1% |
| 11 | HSBC Bank | 9.99-16.00 | 10.621-12.159 | 2.124-2.432 | Up to 2% |
| 12 | Federal Bank | 11.49 onwards | 10,994 onwards | 2,199 and up | Up to 3% |
| 13 | Union Bank of India | 11.35-15.45 | 10.959-12.013 | 2.192-2.403 | Up to 1% (maximum Rs 7,500) |
| 14 | Bajaj Finserv | 11.00 onwards | 10,871 onwards | 2,174 onwards | Up to 3.93% |
| 15 | Punjab and Sind Bank | 10.75-13.50 | 10.809-11.505 | 2.162-2.301 | 0.50%-1% |
| 16 | Bank of South India | 12.85-20.60 | 11.338-13.414 | 2.268-2.683 | Up to 2% |
| 17 | UCO Bank | 12.45-12.85 | 11.236-11.338 | 2.247-2.268 | Up to 1% (minimum Rs 750) |
| 18 | First IDFC Bank | 10.99 and up | 10,869 and above | 2,174 onwards | Up to 2% |
| 19 | Bank of Maharashtra | 10.00-12.80 | 10.624-11.325 | 2.125-2.265 | 1% (Rs. 1,000-10,000) |
| 20 | Bank of Karnataka | 13.43 | 11,487 | 2.297 | Up to 2% of the loan amount (minimum Rs 2500 and maximum Rs 8500) |
| 21 | Industrial Bank | 10.49 onwards | 10,744 onwards | 2,149 and above | 1.5% -3.5% |
| Rates and fees effective September 4, 2024 | |||||
| Source: Paisabazaar.com | |||||
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