Banks evaluate a range of characteristics before approving each personal loan application because personal loans are unsecured loans that are simple to apply for and acquire. These are multifunctional personal loans that can be used for weddings, higher education, vacations, medical emergencies, debt repayment, and home renovations, among other things. For most people, whether they’ve already applied for a personal loan or are considering it, the personal loan interest rate is the first and most important item to consider. When you compare the numerous personal loan interest rates given by different lenders, you’ll notice that they all use different factors to establish their rates.
The Best Ways to Get a Low-Interest Personal Loan
The following are the most important elements to consider while looking for a low-interest personal loan:
- Develop a credit score of at least 750 and keep it up to date.
- Look for offers from banks, NBFCs, Small Finance Banks (SFBs), and Micro Finance Institutions that have been pre-approved (MFIs)
- Inquire with any banks or NBFCs with which you currently have deposit or loan accounts.
- Keep an eye out for any interest rate reductions that lenders may offer during the holidays or during the holiday season.
- On the internet financial marketplaces, you may check and compare personal loan offers from a variety of lenders. Applying for a personal loans in a hurry without comparing options is a bad idea.
Interest rates for personal loans from various banks.
- The personal loans interest rate of the State Bank of India varies from 9.60 percent to 15.65 percent. There is also a processing fee of 1.50 percent of the loan amount.
- The interest rate of ICICI Bank ranges from 10.5 percent to 19 percent. A processing fee of up to 2.50 percent of the loan amount + GST.
- HDFC Bank’s interest rates vary from 10.5 percent to 21.00 percent. For salaried clients, a processing fee of up to 2.50 percent of the loan amount and up to 25,000/- for others is included.
- Yes Bank has interest rates ranging from 10% to 2 %. A processing fee of up to 2.50 percent is also charged.
- Kotak Mahindra Bank’s interest rate starts at 10% p.a., plus GST and other applicable statutory taxes. A processing fee of up to 2.5 percent of the loan amount is also charged.
- The yearly interest rate at IDFC First Bank ranges from 10.49% to 20% for salaried customers and from 19% to 23% for self-employed customers.
- Bajaj Finserv offers interest rate that starts at 13%. There is also a processing fee of up to 4% of the loan amount plus relevant taxes.
- Standard Chartered Bank’s personal loans interest rate starts from 10.25 percent to 21.00 percent. A processing fee of up to 2.25 percent of the loan amount is also charged.
- In Fullerton India, the interest rate starts at 11.99 percent. A processing fee ranging from 0% to 6% of the loan amount is charged.
In conclusion
Personal loan eligibility is determined by a combination of personal and financial variables. If you are fully qualified for a personal loan, you may be able to acquire the finest personal loan interest rate. Your credit score, debt-to-income ratio, income, job and work status, and current relationship with your lender are all factors that determine your personal loans eligibility. Work on these factors to increase your opportunity of obtaining a personal loan. If you think you are lacking in any these factors, you should postpone your plans of obtaining a personal loan. This is because there may be a probability of your personal loans application being rejected.
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