Current Charges and Interest Rates on Personal Loan
A personal loan is one of the financial instruments you can get to cover your numerous financial needs. You can easily apply for a personal loan, online or offline, from a bank that provides the best personal loan offers to its clients. However, before you apply for a personal loan, you should compare the personal loan interest rates provided by the various institutions, which range from 7.90% per annum to 49% per annum.
Current Charges and Interest Rates
| Lending Institution | Interest Rate (p.a.) |
| Citibank | 9.99% p.a. – 16.49% p.a. |
| Central Bank of India | 9.85% and above |
| State Bank of India | 9.60% p.a. – 15.65% p.a. |
| HSBC Bank | 9.50% p.a. – 15.25% p.a. |
| Bank of Maharashtra | 9.45% p.a. – 12.80% p.a. |
| Karur Vysya Bank | 9.40% p.a. – 19.00% p.a. |
| Indian Overseas Bank | 9.30% p.a. – 10.80% p.a. |
| IDBI Bank | 8.15% p.a. – 10.90% p.a. |
| Punjab National Bank | 7.90% p.a. onwards |
| IIFL | 24% p.a. onwards |
| Home Credit Cash Loan | 19% p.a. – 49% p.a. |
| TurboLoan Powered by Chola | 15% – 21% (fixed) p.a. |
| Aditya Birla Capital | 14% p.a. -26% p.a. |
| RBL Bank | 14% p.a. – 23% p.a. |
| Axis Bank | 12% p.a.- 21% p.a. |
| Karnataka Bank | 12% p.a. – 17% p.a. |
| City Union Bank | 12.75% p.a. |
| Fullerton India | 11.99% p.a. – 36% p.a. |
| Ujjivan Small Finance Bank | 11.49% p.a. – 16.49% p.a. |
| Yes Bank | 10.99% p.a. – 16.99% p.a. |
| Tata Capital | 10.99% onwards |
| J&K Bank | 10.80% p.a. |
| South Indian Bank | 10.60% p.a. – 18.10% p.a. |
| Bank of Baroda | 10.50% p.a. – 12.50% p.a. |
| HDFC Bank | 10.5% p.a. – 21.00% p.a. |
| IDFC First Bank | 10.49% p.a. onwards |
| IndusInd Bank | 10.49% p.a. – 31.50% p.a. |
| Federal Bank | 10.49% p.a. – 17.99% p.a. |
| Bank of India | 10.35% p.a. – 12.35% p.a. |
| Kotak Mahindra Bank | 10.25% and above |
How Can I Get The Lowest Bank Personal Loan Interest Rate?
Here are some suggestions to assist you to obtain the lowest bank personal loan interest rate when applying for a personal loan:
Increase your credit score
If your credit score is high, you are creditworthy. The lowest bank personal loan interest rates are offered to applicants with good credit by banks and other financial organizations. You should therefore verify your credit rating before applying for a personal loan. If your credit score is below 750, you should seek ways to improve it. You have a greater chance of getting a personal loan from a bank with a low interest rate if your credit score is over 750.
Prevent Missing Repayments
If you fail to pay a loan or credit card bill, your credit score may suffer. Lenders often take into account your payback history when determining personal loan interest rates. If you have previously made payments of credit card or EMI regularly, you will likely be awarded a reduced bank personal loan interest rate.
Be on the lookout for promotions
Banks and other financial organizations that offer personal loans frequently offer attractive interest rates for a limited time during the holiday seasons. You may be eligible for a loan with a lower bank personal loan interest rate while this deal is ongoing.
Examine the bank’s personal loan interest rates
It is crucial to check the interest rates that various banks and NBFCs charge for personal loans before applying for one from a certain bank. As a result, you will be able to get a personal loan from a bank with a fair interest rate.
Negotiate with the lender
If you have an excellent working relationship with the loan provider or are an existing customer of the bank, you can work out a deal for the lowest interest rate. It is advised to send the loan provider a formal, written request while doing this.
Factors That Can Affect The Personal Loan Rates
Income
When setting the interest rate for a loan, lenders consider the applicant’s income. High-earning people may have a reduced interest rate since they are considered a smaller risk to the bank. Conversely, those with lesser yearly salaries might be required to pay a higher interest rate.
Employer Information
The bank or financial institution is more likely to give you a cheaper interest rate if you work for a reputable company.
Employment Type
Loan providers may offer various interest rates to applicants depending on whether they are salaried employees or independent contractors.
Age
The borrower’s age may affect the interest rate that the loan provider quotes. A greater interest rate might be applied to people who are closer to retirement age.
Relationship with the loan provider
Current bank/financial institution clients who have a good relationship with the loan provider may be given a cheaper interest rate when applying for a personal loan. However, the bank reserves the right to decide whether to give a favourable interest rate to all current customers.
Conclusion
The interest rates on personal loans range from 7.90% per annum to 49% per annum. The interest rate on your loan is determined by the amount you have borrowed, your credit score, and the length of time you have to repay it. The interest rate on your loan may be reduced if you keep a solid credit score and work well with the bank.
Personal loans from top lenders are frequently offered, starting at 10.49% p.a. To specified market sectors, certain public sector banks may offer personal loans with lower interest rates. It should be noted that the interest rate for a personal loan will depend on several factors, including the borrower’s employment history, monthly income, credit history, etc. Choose the most suitable loan offer after comparing the personal loan interest rates offered by as many institutions as feasible. For more information, check out Piramal Finance.