Best Personal Loan Interest Rates Comparison

Personal Loan

Personal loans are unsecured loans available for both salaried and self-employed professionals to help meet their general personal or private expenses that are urgent and immediate in nature. Unsecured loans are loans without any security that can be availed quickly. The rate of interest on personal loans is higher than that on secured loans. There are multiple personal loan providers in India which offer cheap and quick loans. You need a new loan only if:

• You are in the midst of a financial crisis and need immediate funds.
• You do not have a collateral to take a secured loan.
• You do not have time to go through detailed documentation and loan process.
• You need a short term loan of not more than five years.

Benefits of taking a personal loans are : -

• Unsecured in nature with no requirement of collateral or a security
• Fast turnaround with loan approval in as quick as a few hours. Banks now offer instant personal loans as well.
• Minimum documentation with approval based on basic KYC, quick background checks, CIBIL score and income proofs

How to Get the Best Personal Loan Interest Rates?

As per the current rates, Citibank, Bank of Baroda offers the lowest interest rate of 10.50%. You can get best personal loan depending upon the company you are working with, loan amount you have applied for and your repayment capacity. Higher the loan amount, lower will be the rate of interest.

HDFC Bank, Tata Capital, RBL Bank, Citibank, ICICI Bank are the best banks for personal loan, if you are looking for an instant personal loan with in 1-2 days. The interest rates of these banks are in the range of 10.5% to 18%. These loans providers offer online lending process. You can get instant personal loan approval from these banks online at workloans and check eligibility without having to submit paper documents. Post approval, in case you are an existing bank account holder or existing loan customer of HDFC Bank, Tata Capital, RBL Bank, Citibank, ICICI Bank, you may be eligible for instant disbursement without any documents. In other cases, you may upload a few documents on mobile app or submit them physically to a bank loan officer who will visit you at your place before loan disbursement.

To get lowest personal loan interest rate online, read the do’s and don’ts mentioned below.

Compare Personal Loan Interest Rates of All Banks

You should do a detailed comparison of personal loan interest rates and charges of all banks before chosing the best bank for personal loan.

• Interest rates for personal loans: Banks launch attractive schemes with low interest rates on a regular basis, especially for individuals working with large reputed companies. Rate of interest varies based on the categorisation of your company in the internal categories of banks which can vary from bank to bank. Hence, always check for personal loan offers from multiple banks to get the cheapest rates
• Personal loan processing fees – Most banks charge a processing fees of Rs. 999 to upto 2% of loan amount, whichever is higher. Since these loans are short tenure loans, higher processing fees can result in significantly high cost on loans. Hence, it is important to compare the All Inclusive Rates (AIRs) for personal finance loans to compare and shortlist the top offer. Get detailed comparison on interest rate, processing fees and attractive cash back offers by applying online through workloans.
• Insurance premium - Since these are unsecured loans, banks request the borrower to take an insurance policy when availing a loan. However, the premium varies from bank to bank depending upon the risk coverage under various policies. So, check the loan sanction letter carefully to know the coverage and premium. You may also want to do a comparison of various insurance policies to be able to choose a policy which gives you adequate coverage at lowest premium.
• Personal loan prepayment and foreclosure – Nobody wants to keep paying interest on a loan when you have surplus money available to repay it. Sometimes you may want to repay a part of your loan before time which is called part prepayment. In case you decide to pay the entire loan amount before time, it is called foreclosure. Banks typically levy prepayment or foreclosure charges on personal loans ranging from nil to up to 5%. So, check carefully if the low interest rate personal loan you are getting comes with high prepayment or foreclosure charges. Some banks, might not allow you to prepay your loans before few months and the same needs to be considered while taking a loan.

Quick Guide on Personal Loan

• Purpose: Some of the basic purposes for which this loan is granted include vacation or travel, higher education, wedding, medical treatment, credit card payment and many more. Banks specify the purpose for which they are willing to grant this loan.
• Key Features:
  • Age of the borrower: Loan available for both salaried and self-employed profesionals within the age group of 21 and 60 years
  • Loan Amount: In the range of ₹ 9,000 to ₹ 75 Lakh.
  • Loan Tenure: Can range from 1 to 72 months.
  • Interest rates: Personal Loan Interest Rates starting from 10.50%.
  • Personal Loan EMI: Lowest EMI of ₹ 2,149 per lakh.
  • Work Experience: Up to 3 years of total experience.
  • Processing Fees: Up to 2% of loan amount.
  • Documents Required: Address Proof, Identity Proof, Income Documents.
  • Special Schemes: Banks offer customized personal loan interest rates and schemes for salaried borrowers working in government, defense, private or MNC companies. Banks offer personal loan to self employed professionals like Doctors, CA, CS, Architects. Top banks has also launched special loan schemes to pensioners up to an age of 76 years.