Get The Detailed Information About Current Personal Loan Interest Rates
Personal loans can be used to cover a range of costs, including home improvements, child care, emergency medical care, a family wedding, and travel. Personal loans don’t require collateral and have easy repayment terms. However, each bank has its requirements that must be met to be eligible for a personal loan. Repayment capability and CIBIL score are the two key factors that determine eligibility for personal loans.
Personal loans have some of the highest interest rates. Therefore, it would be wise to borrow from a lender with relatively lower rates and shorter terms (The higher the tenure, the higher the interest outgo). Banks also give customers with outstanding credit scores the lowest interest rates.
For instance, the interest on personal loans from IDBI Bank range from 8.15% to 14%; they have a term of 12–60 months and are available for amounts between Rs 25,000 and Rs 5 lakh. Rates for personal loans from the State Bank of India (SBI) range from 9.6% to 15.65%; terms range from 6 to 72 months, and loan amounts range from Rs 25,000 to Rs 20 lakh.
Personal Loan: Unsecured Loan
A personal loan, in some cases, is also taken as an unsecured loan because no collateral is required. Because there are no restrictions on how personal loans can be used, they are very common.
Because a personal loan offers an advance without security, a personal loan application often involves checking the borrower’s need for money, their eligibility for the loan, and their capacity to pay the loan back on time.
As a result, to be considered for a personal loan, applicants must normally be employed individuals who can produce proof of their identity and work.
Personal loan processing fees
Based on the loan amount, a processing fee for personal loans is determined. If they apply for a loan for INR 1 lakh, for example, and the processing cost is 2.5%, the processing fee will be INR 2500 + GST.
The rate of interest on a personal loan, processing fees, and pre-closure costs are calculated
When one applies for personal loans, one will need to pay a processing charge. Other fees would be determined by the service requests they make regarding the loan. The pre-closure fee is assessed on the loan balance that is still owing as of the foreclosure date. On the other side, the processing charge is based on the loan amount they are approved for.
Banks Provide Interest Rates and Lending Amounts for Personal Loans
The Economic Times Intelligence Group (ETIG) is the source of all the information provided below as of May 19, 2022.
- AU Small Finance Bank offers personal loans in the amount of up to 7.5 lakhs with a tenure of up to 60 months. The rate of interest ranging is from 12%-22%.
- Axis Bank offers personal loans of up to 15 lakhs with a tenure of up to 60 months. The rate of interest is ranging from 12%-21%.
- Bank Of India offers personal loans of up to 10 lakhs with a tenure of up to 36 – 60 months. The rate of interest is ranging from 10.75%- 12.75%.
- Canara Bank offers personal loans of up to 20 lakhs with a tenure of up to 60 months. The rate of interest is ranging from 12.40% – 13.90%.
- Central Bank Of India offers personal loans up to 10 lakhs with a tenure of up to 48 Months. The rate of interest is ranging from 9.85% – 10.05%.
- HDFC Bank offers personal loans of up to 15 lakhs with a tenure of up to 12 – 60 Months. The rate of interest is ranging from 10.50% – 21.00%.
- Indian Overseas Bank offers personal loans of up to 5 lakhs with a tenure of up to 60 months. The rate of interest is ranging from 10.00% – 11.00%.
- ICICI Bank offers personal loans of up to 20 lakhs with a tenure of up to 60 months. The rate of interest is ranging from 10.25% – 19.00%.
- Karur Vysya Bank offers personal loans up to 10 lakhs with a tenure of up to 12 – 60 Months. The rate of interest is ranging from 9.40% – 19.00%.
- Punjab National Bank offers personal loans of up to 10 lakhs with a tenure of up to 60 months.
Credit Card Personal Loan
A credit card personal loan is a kind of loan provided against a credit card. It is a speedy and practical way to borrow money, which may be particularly useful in times of financial crisis. Although processing fees and other fees are also applicable, the interest rate on a loan against a credit card is typically higher than that on a personal loan.
One type of loan offered on the basis of their credit card is a personal loan. It is a quick and efficient method of borrowing money, which could be especially helpful during economic downturns. The interest rate on a credit card personal loan is often higher than the interest rate on personal loans, even though processing fees and other expenses may also be relevant.
Conclusion
Thus, when one tries to avail of a credit card personal loan or a simple personal loan, one must ensure that they have maintained a good CIBIL score and be aware of the processing fees, pre-closure costs etc. so that they can make an informed decision. Lastly, to figure out which bank’s personal loan interest rate is best suited to their needs, they can consult Piramal Finance, where their experts will guide them throughout their journey of availing of a personal loan.