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These Banks Offer The Lowest Interest Rates On Personal Loans Photo credit: iStock images
New Delhi: Personal loans are a must for many people who are in dire need of money. A personal loan is a type of unsecured loan that you can borrow from a bank or financial institution if you need funds to pay for your financial needs. Personal loan applicants are required to submit documents such as payslips, RTI form, and other loan approval documents.
It takes around 2-7 days for personal loan disbursement if the application is accepted. Some lenders can approve the loan amount faster in case of pre-approved loans. The personal loan application process is easy to complete and you can get quick approval on your application. You just need to meet the personal loan eligibility criteria mentioned on the lender’s website and submit your basic documents.
Personal loan amount:
The maximum amount of a personal loan depends on your monthly income. In India there are lenders who offer up to Rs 50 lakh depending on income, credit history and credit rating. If you get the money to pay off the loan before the term ends, you can easily do it. This is called a prepayment. Each prepayment you make will reduce the principal outstanding component of your loan, thereby lowering interest charges.
Personal loan interest rate:
While it is easy to borrow and repay a personal loan, many people avoid getting one because the interest rate on these loans is extremely high. For personal loans, the interest rate is usually between 10-24% per annum and is usually determined based on factors such as credit profile, payment history, professional profile of the applicant, profile of the applicant. employer, etc.
Banks offering the lowest interest rates on personal loans of Rs 5 Lakh for 5 years of tenure:
| Bank | Interest rate |
| Union Bank of India | 8.90% |
| Central Bank of India | 8.90% |
| National Bank of Punjab | 8.95% |
| Indian Bank | 9.05% |
| Bank of Maharashtra | 9.45% |
(Source: BankBazaar)
Remember that whether you are self-employed or employed, your monthly income is an essential factor when applying for a personal loan online. Your credit score is also important when it comes to the interest charged on your online personal loans.
In addition, the reputation of your employer is also important in deciding the terms of the personal loan online. Besides your overall credit score, lenders also review your repayment history and decide on the loan interest rate.
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