Top 10 Banks Offering Lower Interest Rates On Personal Loan

This festive period, where banks and consumer products companies look to lure consumers with low-interest rates, cashback and discounts, it’s pouring deals on loans and credit cards. By using no-cost EMIs and other schemes on sale, it is difficult to avoid the desire to purchase the items on sale, even though you can not afford them. Apart from these, many citizens facing a cash shortage triggered by COVID-19-induced economic upheaval may also be inclined to take personal loans to fulfil their essential needs. Nevertheless, personal loans for making big-ticket investments or for your liquidity requirements are considered useless. In such situations, unsecured lending such as personal loans can be the last hope. Even if you have completely exhausted all your alternatives and have no selection but to take out a personal loan, make sure you perform a detailed interest rate review and any terms and conditions on offer for the loan. In spite of delivering cheaper interest rates, public sector banks have an advantage over their private-sector counterparts. Eight out of the top ten banks offering the lowest personal loan interest rates are state-owned banks. On a Rs 5-lakh personal loan with a term of five years, these banks offer interest in the range of 8.90-10.25 per cent per year. At an interest rate of 8.9 per cent, Union Bank provides the cheapest personal loan, followed very closely by Punjab National Bank with 8.95 per cent. The relevant monthly instalments are Rs 10,355 and Rs 10,367, respectively. An interest rate of 9.6 per cent is levied by the State Bank of India banking genius. The two banks on the chart in the private sector, HDFC Bank and Kotak Mahindra Bank, impose 10.75 per cent interest as well.     

Banks	ROI per annum
Union Bank	8.90%
Punjab National Bank	8.95%
Central Bank of India	8.95%
Indian Bank	9.05%
State Bank of India	9.60%
Bank of Maharashtra	9.70%
UCO Bank	10.05%
Bank of Baroda	10.25%
HDFC Bank	10.75%
Kotak Bank	10.75%

Conclusion

For data compilation, the interest rates on personal loans for all mentioned public and private sector banks (BSE) are taken into account; banks for which data is not available on their website are not taken into consideration. Data is collected as of 22 October 2020 from the respective bank’s website (processing and other fees are considered to be zero for EMI calculation); interest charges listed in the table are predictive and can differ based on the terms and conditions of the banks. 

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