Looking for a personal loan, but apprehensive about the high interest rates? It is important to understand and compare personal loan interest rates before you make the choice.
A quick guide to help you find the best personal loan option:
A personal loan interest rate is usually high as compared to other type of loans. The best way to get low personal loan interest rate is by doing a comparative study of all the factors related to personal loan and all the benefits offered by all the lenders in the market. A comparative analysis will help you identify, which bank, lender or NBFC has the best personal loan to offer. Here’s a quick guide:
Everyone wants to save money wherever they can. This fact is truer when you are taking a personal loan. Think about it. What’s the first thing that comes to your mind when you are about to take a personal loan? Personal loan interest rate, right? You want the best personal loan interest rate so that you can save some money. Well, you’re not alone. Everybody taking a personal loan want to squeeze the most out of their loan by paying as low personal loan interest rate as possible.
Which bank is the best for a personal loan?
Going purely by the interest rates, Yes Bank is currently offering the lowest interest rate of 10.75%. Apart from this HDFC, RBL Bank, Tata Capital, IIFL, Citibank are the best banks to get a personal loan from. These banks offer interest in the range of 10.99-16% and the money is disbursed within 1-2 days.
Personal Loan Interest Rates Comparison 2018, Best Personal Loan Rates
|Bank||Personal Loan Interest Rates||Processing Fee||*Amount to be repaid|
|Yes Bank||10.75%||Starting at 0.99%, Up to 2%||111740|
|HDFC Bank Personal Loan||10.99%||Min 0.99%, Max 2.50% Up to Rs. 10,000||113490|
|Citibank||10.99%||Up to 0.5%||115990|
|Standard Chartered Bank||10.99%||1.00%||111990|
|IndusInd Bank||11.00%||Min 1% to Max 2.50%||112000|
|Indian Bank||11.05%||0.5%, Min- Rs. 508||111550|
|ICICI Bank Personal Loan||11.25%||Starting from 0.99%, Up to 2.25%||112240|
|Axis Bank||11.25%||1.50% to 2.00%||112750|
|Federal Bank||11.49%||0.5%, Min Rs. 500||111990|
|IDFC Bank||11.50%||Starting from 0.75%, Up to 2%||112250|
|Kotak Bank||11.50%||Up to 2.5%||114000|
|Andhra Bank||11.55%||Case to Case||113550|
|Bank of Baroda||11.60%||2%, Min Rs. 250||113600|
|Tata Capital||11.75%||Flat fee of Rs. 999*, Up to 2%||113750|
|Bajaj Finserv||11.99%||Starting from 1.50%, Up to 3%||113490|
|PNB||12.00%||1.8% + taxes||113800|
|SBI Personal Loan||12.50%||In the range of 2% to 3%||114500|
|Vijaya Bank||12.50%||0.25%, Max. Rs. 10000 + ST||112750|
|Union Bank of India||12.65%||0.5%, Min Rs. 500||113150|
|Indian Overseas Bank||12.70%||Rs. 204 per lakh||112904|
|Corporation Bank||12.95%||1.5%, Min Rs. 500||114450|
|IIFL||12.98%||1 - 2%||114980|
|Allahabad Bank||13.00%||1.06%, Min- Rs. 1068||114060|
|Syndicate Bank||13.40%||0.5%, Min Rs. 500||113900|
|Karur Vysya Bank||13.90%||0.40%||114300|
|RBL Bank||13.99%||Up to 2%||114990|
|HDB Financial||13.99%||Up to 2% of the loan amount||115990|
|Bank of Maharashtra||15.10%||1%, Min Rs. 1,000||116100|
|Fullerton India||17.25%||Up to 2.00%||119250|
- *Approx Amount To Be Repaid for a 1 Lakh loan in 1 year (assuming minimum interest and processing fee)
What do you understand by personal loan interest rate?
Simply put, the personal loan interest rate is the percentage of your loan balance that you need to pay in addition to the amount you borrowed. Personal loan lenders charge you interest with each scheduled repayment. Therefore, you monthly repayment is divided into two parts: an interest payment and a repayment on your balance. The interest amount decreases as your loan balance gets lower.
So, what exactly is the best personal loan interest rate?
The amount you pay every year to repay your loan depends upon the Annual Percentage Rate (APR). So, what’s an Annual Percentage Rate? APR is the amount of interest on your total loan amount that you’ll pay annually. The lower the APR, the better for you. So, the best personal interest rate for you will be the one where the APR is the lowest.
Read on for more information about personal loan interest rate to help you figure out the best personal loan interest rate.
Types of interest rates
There are 2 types of interest rates for personal loans – a fixed interest rate loan and floating interest rate loan.
Fixed Vs. Floating personal loan interest rates
Fixed personal loan interest rate as the name suggests is fixed for the entire term of the loan. The advantage with fixed interest rate is that you can plan your personal finances and not worry about the interest rate fluctuations in the market.
However, in floating personal loan interest rate, the rate can change anytime. Change in the interest rate can occur due to various factors and they are governed by the policy rate declared by the government. In this type of loan, the tenure of the loan is fixed, but the interest rate can increase or decrease, which invariably increases or decreases your EMIs. The advantage with floating rate is that it is cheaper than fixed rate loan by 2 to 3%, thus saving a lot of money when the rates go low.
What factors affect personal loan interest rates?
The rate of interest for personal loans vary from individual to individual and it is based on several factors, such as credit score, job history, income, past loan repayment history, etc. The factors are essentially put in place to ensure that the borrower has the financial capability to repay the loan. Some factors affecting the personal loan interest rates are as follows:
MoneyTap’s Personal Loan Interest Rates and Charges
MoneyTap’s Personal Loan is the simplest way to get a personal loan. It doesn’t follow the traditional loan procedure. You have the flexibility of accessing the loan at anytime and from anywhere through your personal line of credit. Best of all, it has the best personal loan rates and you pay interest only on the amount you use.