Personal Loan Offers: Whenever there is an unexpected need for funds, most people tend to take any type of loan from a bank, be it business, car, home, education, etc. What if you need money for miscellaneous expenses that do not fall under these categories, like hosting a wedding reception or an emergency trip abroad?
Of course, for such urgent cash needs, you can also take out a personal loan from a bank. Personal loans are usually unsecured, but banks that also offer secured personal loan options charge relatively low interest rates. For example, Karur Vysya Bank charges 11 percent annual interest for secured loans and 13-14 percent for unsecured personal loans.
In practice, banks usually charge a higher interest rate for personal loans, but the interest rate charged depends on several factors such as the applicant's credit score, relationship with the bank, employer category (multinational/government/defence etc.).
Here we list the lowest interest rates published by major banks on their official websites.
Minimum interest rates for personal loans from banks:
ICICI Bank: The second-largest private lender charges annual interest rates of 10.65 percent to 16 percent on personal loans, with fees of up to 2.50 percent plus tax.
HDFC Bank: HDFC Bank, the largest private sector bank, charges interest rates ranging from 10.5 to 24 percent and a processing fee of Rs 4,999.
SBI: State Bank of India (SBI) charges corporate applicants 12.30-14.30 per cent interest per annum, while employees at CLSE and government organisations 11.30-13.80 per cent interest per annum. Defence employees are offered personal loans at concessional interest rates of 11.15-12.65 per cent per annum.
Bank of Baroda: Personal loans are provided to private sector employees (associated with the bank) at interest rates ranging from 13.15% to 16.75% per annum, while government employees are offered loans at concessional interest rates ranging from 12.40% to 16.75% per annum.
Meanwhile, private sector employees not affiliated with banks will be given loans at annual interest rates ranging from 15.15% to 18.75%.
Punjab National Bank: PNB charges interest rates ranging from 13.75 to 17.25 percent per annum depending on the borrower's credit score. At the same time, concessional interest rates of 12.75 to 15.25 percent are offered to government employees.
Kotak Mahindra Bank: This private lender charges a minimum annual interest rate of 10.99 percent on personal loans, although the loan processing fee can go up to 3 percent of the total loan amount plus taxes.
Axis Bank: Axis Bank charges interest rates ranging from 10.65 percent to 22 percent per annum on personal loans.
Bank Minimum Interest Rates for Personal Loans (%)ICICI Bank 10.65HDFC Bank 10.5State Bank of India 12.30Bank of Baroda 13.15Punjab National Bank 13.75Kotak Mahindra Bank 10.99Axis Bank 10.65IndusInd Bank 10.49Kalulu Vaishya Bank 13Yes Bank 10.49
(These are the minimum interest rates charged by banks. Source: Bank websites)
IndusInd Bank: IndusInd Bank charges personal loans starting at 10.49 percent annual interest, except for processing fees of up to 3 percent. Loan amounts range from ₹30,000 to ₹50 lakh.
Karur Vsya Bank: The interest rate on secured loans is 11% per annum and on unsecured personal loans is 13% per annum. These interest rates came into effect from December 31, 2023.
Yes Bank: Yes Bank charges interest rates starting from 10.49 percent per annum. The tenor is up to 72 months and borrowers can also make partial repayments. Loans can be up to Rs 50 lakh.
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