Personal Loans: Banks with Lowest Interest Rates
Before going into the details, first let’s understand what a personal loan is? A personal loan is a short/medium term loan which meets your financial needs. The most common financial need is restructuring debts, medical emergencies, down payments, etc. Personal loans can practically meet all types of expenses.
The main reason to choose a personal loan is that it is an unsecured loan which is more expensive than a credit/debit card. But still people prefer it because of the minimal amount of documentation which is required and it is completely hassle free. The private bank have seen a huge amount of potential in this segment and hence they mainly extend these benefits to the salaried and self-employed individuals.
As discussed earlier, personal loan feature the highest interest rates among the other debt instruments like credit cards. Currently, personal loans are available in India for an interest rates of 11.99% onwards. The exact interest rates varies from person to person depending upon the credit history, loan amount and tenure.
Who are the eligible people for personal loans? Every salaried citizen of India whether he is a working professional or self-employed, is eligible for personal loans. Following are a few parameters which the banks takes into considerations:
- Should be employed in an organization or have a business of his own.
- Should have lender stipulated monthly repaying capacity or minimum salary.
- Must qualify the applicant age bracket defined by the lending institution.
- Must have a suitable credit history
- Duly signed and filled application form
- Passport size photograph
- Identity and Signature proof i.e Passport, PAN Card, Driving License, etc
- Address Proof
- Age Proof
- Income proof i.e salary slip of last 3 months, Form 16, last 6 month’s banks statement(for self-employed)
Below is the matrix given for the banks with the lowest personal Loan Interests:
|Name of Bank||Rate of Interest|
|Union bank of India||12.00% – 14.70%|
|Bank of India||13.20% – 15.20%|
|IDBI bank||13.00% – 14.00%|
|ICICI Bank||12.99% – 20.00%|
|Bank of Baroda||14.40%|
|Central Bank of India||13.45%|
|Punjab National Bank||13.00% – 16.00%|