When faced with a sudden financial shortfall, many people turn to personal loans to meet their immediate needs. While personal loans typically come with higher interest rates, they provide a quick and convenient solution to obtain the necessary funds.
Obtaining a personal loan is particularly straightforward for salaried employees. The required documents usually include the past three months’ salary slips, bank statements, and identification proof such as a driving licence or Aadhaar card.
Before settling on a specific lender, it is wise to compare the interest rates offered by different institutions to find the best option for your needs. In general, lenders tend to charge lower interest rates for borrowers with high credit scores, while those with lower scores may face higher rates.
Here we list out the current interest rates charged by top banks as they reveal on their official websites.
|
Bank name |
Current interest rate on personal loan |
|
HDFC Bank |
10.75% to 24% |
|
ICICI Bank |
10.65% to 16.00% |
|
SBI |
11.15% to 11.90% |
|
Kotak Mahindra |
10.99% |
|
Axis Bank |
10.65% to 22% |
|
IndusInd Bank |
10.25% to 26% |
|
Bank of Baroda |
11.40% to 18.75% |
|
Punjab National Bank |
11.40% to 12.75% |
|
Union Bank of India |
11.35% to 15.45% |
|
IDBI Bank |
10.50% to 13.25% |
(Source: Banks’ websites)
How to get the lowest interest rate on a personal loan?
To get the lowest interest rate on a personal loan, it is important to have a high credit score. Applicants with a credit score over 750 are more likely to be offered low interest rates. It is also important to avoid missing loan or credit card payments, as your repayment history is taken into account by loan providers.
Keeping an eye out for special offers during festive occasions can also help in getting a lower interest rate. Comparing interest rates offered by different banks and financial institutions is essential to find the best rate. Additionally, negotiating with the lender, especially if you have a good relationship or are an existing customer, can help in obtaining the lowest interest rate on a personal loan.
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Published: 09 Feb 2024, 10:39 AM IST