A personal loan is often the most optimum borrowing option if there is an urgent liquidity requirement. It is an ideal choice during an emergency as it requires no pledging of securities, the loan disbursal process is quick and efficient and the interest rates are competitive.
Personal loans can also be an excellent tool to meet high funding requirements as the maximum loan quantum offered could be as high as Rs 25 lakh or even more. Personal loans are also available in multiple tenure options up to 5 years. Some banks also offer tenure of up to 7 years.
However, borrowers with a steady income and a stellar credit score only are eligible for the best personal loan interest rates. Borrowers with credit scores over 750-800 are offered lower interest rates than the ones with lower credit scores, according to BankBazaar.
Do note, maximum loan quantum and the interest rate will be decided by the lender based on factors like the borrower’s age, income, credit score, loan amount requirement, type of occupation, job stability, etc. The documentation requirements could be slightly different for salaried and self-employed loan applicants.
It’s always better to compare the best rates according to your eligibility and gather the required documents before signing up for a loan. Also, do read the fine print of your shortlisted loan product and check the associated charges like processing fee and part-prepayment and pre-closure and penalties to get complete clarity.
Borrowers should also check for any pre-approved personal loan offers from their banks as those can involve zero to minimal documentation and quick loan disbursal. Most importantly, the borrower should assess the affordability of their personal loan EMIs before signing up for the loan.
Here are the 10 lowest offers that are currently being extended by some of the leading banks in the country, if you’re looking for a personal loan. Only the lowest advertised interest rate for each of the banks considered are mentioned in the table below:
10 Banks that are offering Lowest Interest Rates for Personal loans:
|Bank Name||Lowest Advertised Personal Loan Interest Rate (p.a.)|
|Punjab National Bank||8.95%|
|Punjab & Sind Bank||9.50%|
|Bank of Maharashtra||9.55%|
|State Bank of India||9.60%|
|Bank of Baroda||10.00%|