It’s not surprising that almost everyone has taken out a loan these days. Many people work primarily to manage their loans’ Equated Monthly Installments (EMIs).
Banks now offer loans over the phone, boasting that the application process can be completed in minutes and is paperless.
However, it’s important for individuals interested in taking a loan to verify essential details, such as which bank offers the loan, the associated interest rates, and the processing fees.
This will ensure you are well-informed and confident in choosing a loan from the bank that appears to provide the best terms.
There is a significant difference between the interest rates charged by banks and those offered by non-banking financial institutions. Additionally, the EMI amount is determined based on the tenure of the loan.
Here is an overview of the interest rates for personal loans from various banks:
State Bank of India (SBI): SBI, the largest loan lender, offers personal loans at an interest rate of 12.60% to 14.60%. If you have a salary account with SBI, you can get loans at a reduced rate of 11.45% to 11.95%.
HDFC Bank: HDFC, the largest lender in the private sector, charges interest rates ranging from 10.85% to 24% on personal loans. The processing fee is ₹6,500, with additional GST applicable.
ICICI Bank: This bank offers personal loans at interest rates between 10.85% and 16.25%.
Federal Bank: The interest rates for personal loans at Federal Bank range from 11.49% to 14.49%.
Kotak Mahindra Bank: Kotak Mahindra Bank charges between 10.99% and 16.99% for personal loans.
Punjab National Bank (PNB): At PNB, the interest rates for personal loans range from 12.50% to 14.50%.
Axis Bank: Axis Bank offers personal loans at interest rates ranging from 10.49% to 22.50%.
It’s crucial to compare these options carefully before deciding on a personal loan. This responsible and proactive approach to managing your finances can help you find the best loan.