5 Best Personal Loan Interest Rate in Loan Market
Are you cash-strapped and looking for a loan at low-interest rate?
Do you think that personal loan will be expensive for you?
If yes, we are about to change your mind with this article. Due to misleading information on personal loan, many people avoid applying for a personal loan. Because of that, they feel the pinch and continue with their desireless life. Not only it harms them psychologically but also it also makes them go bust in no time. To debunk the ongoing propaganda about personal loan and make it easier to avail, we have come up with this article “5 Best Personal Loan Interest Rate in Loan Market”.
Read more to know about the best personal loan interest rate and how you can avail it without any hassle.
What is Personal Loan? Why One Should Consider a Personal Loan?
Personal loan is an unsecured loan which can be availed by salaried or self-employed individuals. Many banks and NBFCs lend personal loan to people to meet various financial needs. One can avail personal loan for various reasons. They are –
- To plan a wedding
- To travel
- To bear the expenses that arrive due to medical emergencies
- To provide quality education to child
- To get rid of credit card debts
Compared to credit cards and flex loans, average personal loan interest rate usually stays low. That’s the sole reason due to which one should avail a personal loan in time of need.
What is good personal loan interest rate?
As interest rate is the main factor that decides the EMI on the sanctioned loan amount, it is important to choose an interest rate that is good and doesn’t impact the repayment tenure heavily. For that, one can go through interest rate of various banks and also checks the credit score of his/her own.
These are the factors on which a bank or NBFC charges interest rate
- Applicant’s monthly income – When an applicant applies for a personal loan, financial institutions keep an eye on the monthly income of the applicant. Generally, a high monthly income means the repayment capacity of the applicant is high too. As it lowers the risk factor on applicant’s portfolio, financial institutions charge less interest rate on personal loan amount.
- Applicant’s age – It is not as important factor as others but it plays a vital role in deciding the personal loan interest rate. Banks and NBFCs lend personal loan at high-interest rate if a person is about to get retired.
- Employment’s Nature – Banks decide personal loan interest rate on the basis of the nature of employment of the applicant.
- Credit score – Those who have good credit score gets personal loan at a low-interest rate.
- Applicant’s company status – If the applicant is working for reputed company and his/her company has some sort of tie-up with the bank, the bank will lend personal loan at comparatively low-interest rate.
5 of the Best Personal Loan Interest Rates
These are the best personal loan interest rates available in the market.
|S.no.||Banks||Rate of Interest||Processing Fee|
|1.||Citibank Personal Loan||10.50% onwards||Up to 0.5%|
|2.||Kotak Mahindra Bank Personal Loan||10.50% onwards||Up to 2.5%|
|3.||HDFC Bank Personal Loan||10.75% onwards||Up to 2.50% Min Rs. 1,999|
|4.||Standard Chartered Bank Personal Loan||10.99% onwards||1.00%|
|5.||Yes Bank Personal Loan||10.99% onwards||Starting at 0.99%, Up to 2%|
Let’s discuss these top personal loans in detail
- Citibank Personal Loan
Known for its remarkable banking and financial services, Citibank is one of the top flag-bearers when it comes to personal loan. Citibank Personal Loan interest rate starts at just 10.50% per annum.
Highlights of Citibank Personal Loan
- Personal Loan up to Rs. 30 Lacs
- Affordable EMI option
- Minimal processing fee
- Extended loan tenure
Eligibility Criteria for Citibank Personal Loan
- Applicant’s age must be between 21 and 60 years.
- He/she should be Indian in nationality.
- Those who are salaried or self-employed are eligible for this personal loan.
- He/she should have an experience of 1 year in his current organisation.
- Good credit score is required. Applicant having a credit score of 750 or above will be preferred for Citibank personal loan.
- Kotak Mahindra Bank Personal Loan
Kotak Mahindra Bank is a comparatively newer bank but it has gained popularity among loan borrowers due to its attractive interest rate and impressive customer support. The bank charges an interest rate of 10.50% onwards on personal loan.
Highlights of Kotak Mahindra Bank Personal Loan
- Loan for big and small expenses
- Impeccable customer support
- Minimal documentation
- Collateral-free personal loan
Eligibility Criteria for Kotak Mahindra Bank Personal Loan
- Applicant must have a minimum salary of Rs, 20,000 per month.
- Minimum education qualification of being a graduate is required.
- He/she should be an active resident of a city for at least a year.
- He/she should have a minimum work experience of a year.
HDFC Bank is the largest private sector bank by assets in India. To live up to its name, HDFC Bank lends personal loan at a low-interest rate. HDFC Personal Loan Interest Rate starts at 10.75%.
Highlights of HDFC Bank Personal Loan
- Pre-approved loan offers for valuable customers
- Fast loan approval and disbursal
- Option to borrow top-up loan
- Low processing fee
Eligibility Criteria for HDFC Bank Personal Loan
- Applicants who are working in limited companies, PSU companies, State/central government are eligible for HDFC Bank Personal Loan
- Applicants age must be above 21 years and below 60 years.
- Minimum work experience of 1 year with current employer is required
- To be eligible, people living in metro cities must have a minimum salary of Rs. 20,000. Those who are living in other cities and rural areas must have a minimum salary of Rs. 15,000.
- Standard Chartered Bank Personal Loan
Standard Chartered Bank has a reputation to provide banking and financial services without whatsoever hassle to its customers. The interest rate on Standard Chartered Bank Personal Loan starts at 10.99% per annum.
Highlights of Standard Chartered Bank Personal Loan
- Personal loan up to Rs. 30 Lacs
- Easy repayment process
- Quick approval
- Option to apply online
Eligibility Criteria for Standard Chartered Bank Personal Loan
- Applicant should be above 21 years and below 60 years in age.
- He/she should have a minimum salary of Rs. 22,000 per month.
- Applicants must have a credit score of 750 or above to be eligible for this personal loan.
- Yes Bank Personal Loan
When it comes to adding values to people’s life by providing excellent banking and financial services, no bank is better than Yes Bank. The Bank provides a wide range of financial products. One of its most popular products is Yes Bank Personal Loan. The interest rate of Yes Bank Personal Loan is reasonable and starts at 10.99% per annum.
Highlights of Yes Bank Personal Loan
- Personal Loan up to Rs. 40 Lacs
- Super-reasonable interest rates
- Amazing customer support
- Option to pre-pay the loan amount
Eligibility Criteria of Yes Bank Personal Loan
- Applicant must be a salaried or self-employed professional.
- He/she should meet the age criteria. The upper age limit is 60 years and the lower age limit is 21 years.
- He/she should be the resident of a locality from the last 1 year.
- He/she should have a minimum salary of Rs. 18,000 per month.
To easily compare and choose the best personal loan in India, get in touch with us.