Everything You Need to Know About Current Personal Loan Interest Rates
There are different sources for easy personal loans. These include banks or private lenders such as friends, lending platforms, and online markets lenders. The loan fund can be used for any purpose like paying off old debts, home renovation, or covering personal costs like a wedding.
A personal loan is repaid in EMIs, much like a car loan or a mortgage. And, the loan term is usually 24 to 60 months or even longer. Most personal loans are unsecured, which means that they are not backed by any asset like property, car, or any other type of security.
The approval and funding times of these loans are faster than those of an equity line of credit. This enables you to borrow the money as you need it rather than all at once. These factors make it an excellent choice if you need money immediately. Continue reading to find out how to get an easy personal loan with the lowest price.
Best Way to Get an Easy Personal Loan with the Lowest Interest Rates
Here are some tips and tricks that will help you get an easy personal loan at the lowest possible interest rates.
- Boost Your Credit Rating
Your credit score shows how credit-worthy you are. High credit score applicants receive the best deals on their debts in terms of the interest rate charged, loan fees, etc. So, before asking for a loan, you should always monitor your credit score.
- Prevent Skipping Repayments
Your credit score may suffer if you don’t make a loan or credit card payment on time. Before deciding the interest rate for a loan, lenders typically consider your history of timely repayments. A lower interest rate will likely be offered to those who have a history of making timely EMI and credit card payments.
- Employer
Many lenders base the rates on the employer account of the loan seeker. Salaried people pay lower rates than self-employed people because the income is more predictable. State and PSU workers receive lower rates than salaried people because of their higher job safety. The next group of users for loans is those who work for MNCs and other reputable firms. These groups are thought to have a higher chance of surviving recessions than other listed firms.
- Keep an Eye Out for Offers
During festivals, banks and other lenders typically provide special borrowing costs. Make the best of this opportunity. While such a promotion is active, you might be given an easy personal loan with a lower interest rate.
- Compare Interest Rates for Personal Loans
Try comparing the borrowing costs charged by different NBFCs and banks before requesting a personal loan from a specific bank. This will help you get an easy personal loan at a reasonable interest rate.
- Talk to a Lender About The Loan
If you are an existing client/customer of the bank or have a positive relationship with the lender, you can bargain to get an easy personal loan with the lowest rate. It is advised to send the loan provider a formal, written request when doing this.
Factors Influencing Personal Loan Rates
Banks and NBFCs have developed guidelines for easy personal loans. They base their interest rate offers on those guidelines. The following factors influence personal loan rates:
- Loan Amount
The most vital factor banks consider is the borrowers’ required loan amount. The loan value given to you is set by your income and the sector in which you work.
- The Period
The duration of the line of credit directly affects the interest rate. The tried-to-offer rates would then reduce as the tenure lengthened.
- Borrower’s Earnings
The loan interest is dictated by your income. If you have a great salary and a steady income stream, the lender will be assured that you can make timely loan payments. You will benefit from lower rates and an easy personal loan if you make this impression.
- Potential for Repayment
The capacity of the person to repay the loan is key in predicting interest rates. Lenders believe that you will repay the loan on time if you have no other debt obligations.
- Rating of Credit
Your credit score influences how you much can finance and the rate of interest. As a result, if you possess a credit score of least 750 and no defaults, interest rates can be much lower.
Interest Rates of Banks on Personal Loans as of October 2022
| Bank | Rates | Repayment Tenure |
| Bank of India | 9.75% – 14.75% | 3 – 5 years |
| Bank of Baroda | 10.2% – 17.55% | 48 – 84 months |
| Canara Bank | 13.15% – 15.2% | Up – 84 months |
| Bank of Maharashtra | 10.20% – 14.7% | Up – 84 months |
| Punjab & Sind Bank | 10.55% – 12.15% | Up – 72 months |
| Central Bank of India | 11.75 – 11.95% | Up – 84 months |
| Punjab National Bank | 10.8% – 15.85% | Up – 72 months |
| UCO Bank | 11.95% – 12.2% | 60 – 84 months |
| State Bank of India | 10.3% – 13.6% | 6 – 72 months |
| Axis Bank | 12% – 21% | 36 months and above |
| Federal Bank | 10.49% – 17.99% | Up – 48 months |
| Bandhan Bank | 10.25% – 18% | 12 – 60 months |
| HDFC Bank | 11% – 21% | 12 – 60 months |
| IDBI Bank | 12.65% | 12 – 60 months |
| ICICI Bank | 10.75% -19% | 12 – 72 months |
| IDFC First Bank | 10.75% onwards | Up to 60 months |
| Kotak Mahindra Bank | 10.99% onwards | Up to 60 months |
| Karur Vysya Bank | 9.6% – 12.6% | Up to 60 months |
| Yes Bank | 10% – 24% | Up to 60 months |
The current personal loan interest rate and data are latest as of October 15, 2022.
Conclusion
A personal loan is among the best money products you can get. You can get an easy personal loan to meet your various financial needs. You can apply for an easy personal loan online or offline from one of the many banks in India.
The secret to a good easy personal loan application is to select the lender with the lowest interest rates. Besides, the rate of interest will affect the amount of money you plan to take from the lender and vice versa. You must compare prices to find the best deal.
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