The need for availing of a personal loan can vary from person to person, but this type of loan is only applied when you need a financial boost. An individual can apply for personal credit either with a banking or non-banking institution, that too without offering any security or collateral if he or she is creditworthy. Creditworthiness matters because this type of loan is called an Unsecured loan, and the chances of your approval from the lender depend upon your credit score rating and the income that you generate monthly.
Here The 5 Banks Offerings Lowest Personal Loan Interest Rate:
| Banks or Lenders | Personal Loan Amount | Tenure | Interest Rates |
| IDBI Bank | =25000 and <=5 Lacs | 12 – 60 Months | 9.90% – 15.50% |
| Karur Vysya Bank | Upto 10 Lacs | 12 – 60 Months | 9.85% – 12.85% |
| Punjab National Bank | Up to 10 Lacs | Up to 60 months | 9.80% – 16.35% |
| Bank Of India | Up to 20 Lacs | Up to 84 months | 9.75% – 14.25% |
| Bank Of Maharashtra | Up to 20 Lacs | Up to 84 months | =8.90% |
Most Frequently Asked Questions About Personal Loan
What Will Be The EMI Failure Charges?
EMI or Equated Monthly Instalments is the amount you pay to return a loan that you have availed every month. These installments are the combination of a portion of your principal amount and interest fees of the lender and remain the same for the whole repayment period.
If EMIs are paid on time, your credit score will boom, and your creditworthiness will be elevated, next, you can get a higher loan amount approval easily and that too at a low-interest rate. But if you fail or refuse to repay the EMIs then the lender has the right to take action after a few warnings.
“A penalty of Rs 500/-+Applicable tax will be charged for every EMI dishonor. The rate may vary from time to time. In the event of bouncing of S.I./cheque/ECS, legal action under section 138 of the Negotiable Instrument Act, 1881 will be initiated,” As per the SBI website.
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What Are Factors That Banks Use To Offer You A Interest Rate On Personal Loan?
Three major factors based on which banks decide or calculate a loan interest rate to offer you are:
- CIBIL Score- which describes your creditworthiness.
- Repayment History- displays your credit repayment capacity.
- Principal amount- the amount for which you are applying for a loan and agree to pay it back.
