These banks offer the lowest personal loan rates
These banks offer the lowest personal loan interest rates Photo credit: iStock Images
New Delhi: Personal loans are a focal point for many people who are in dire need of cash. A personal loan is a type of unsecured loan that you can get from a bank or financial institution if you need cash to meet your financial needs. Personal loan applicants are required to submit documents such as pay slips, ITR forms, and other loan approval documents.
It takes about 2-7 days for personal loan disbursements if the application is accepted. Some lenders can approve the loan amount faster with pre-approved loans. The personal loan application process is easy to complete and you will receive quick approval of your application. All you need to do is meet the personal loan eligibility criteria listed 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. There are lenders in India who offer up to Rs 50 lakh depending on income, credit history and creditworthiness. If you can get money to pay off the loan before your term is up, you can do so easily. This is known as prepayment. Each upfront payment you make reduces the principal amount outstanding on your loan, and therefore also the interest cost.
Personal Loan Interest Rates:
While it is easy to take out and repay a personal loan, many people avoid taking out a loan because the interest rate on such loans is extremely high. For personal loans, the interest rate is usually between 10-24% per year and is usually based on factors such as creditworthiness profile, payment history, job profile of the applicant, employer profile, etc.
Banks that offer the lowest personal loan rates of Rs 5 lakh for 5 years:
|Union Bank of India||8.90%|
|Central Bank of India||8.90%|
|Punjab National Bank||8.95%|
|Bank of Maharashtra||9.45%|
Remember that your monthly income is a crucial factor in applying for an online personal loan, whether you are a self-employed person or an employee. Your creditworthiness is also important when it comes to the interest on your online personal loan.
In addition, the reputation of your employer is also important when deciding on the terms of the online personal loan. In addition to your general creditworthiness, lenders also look at your previous repayment history and decide on the loan interest rate.