A personal loan comes in handy when we are short of funds and need the money at the earliest. It is an unsecured loan given by a lender. What this means is that while taking this loan, the potential borrower is not required to provide collateral or security against the loan, unlike in a gold loan where gold jewellery is taken as security by the lender.
Source: Compiled by ETIG; Interest rates data as on November 16, 2023
Here’s a list of banks which offer the lowest personal loan interest rates
Bank of Maharashtra personal loan interest rates
For loan amounts up to Rs 20 lakh Bank of Maharashtra would charge an interest rate of >=10.00% p.a. for up to 84 months tenure.
Punjab & Sind Bank personal loan interest rates
For loan amounts up to Rs 3 lakh Punjab and Sind Bank would charge an interest rate of 10.15% – 12.80% p.a. The tenure for this would be 60 months.
Bank of India personal loan interest rates
For loan amounts up to Rs 20 lakh and tenure up to 84 months, Bank of India would charge an interest rate of >=10.25% p.a.IndusInd Bank personal loan interest rates
For loan amounts greater than or equal to Rs 30,000 and up to Rs 25 lakh IndusInd Bank would charge an interest rate of 10.25% to 32.02% for tenures between 12 months and 60 months.
Bank of Baroda (BoB) personal loan interest rates
For loan amounts greater than equal to Rs 50,000 and up to Rs 20 lakh Bank of Baroda (BoB) would charge an interest rate of 10.35% to 17.50% p.a. The tenure would be in the range of 48 to 60 months.
Fixed or floating interest rate
While taking a loan, one should check with the lender if the interest rate offered on the personal loan is fixed or floating. In case the interest rate is fixed, changes in the bank’s MCLR will not impact your equated monthly instalment (EMI) amount.
Maximum personal loan you can take
The minimum and maximum amount that can be taken varies from one lending institution to another. “Personal Loan is offered upto Rs 40 Lakh. However, basis the loan requirement, one can avail up to Rs 75 Lakh subject to eligibility norms,” according to the HDFC Bank website. One can avail a maximum of Rs 20 lakh as personal loan from Bank of Baroda, according to its website.
Tenure of personal loans
Usually, a personal loan is offered for a maximum of five years by lending institutions such as banks. However, the tenure can vary from lender to lender.
Compiled by ETIG; Interest rates as on November 16, 2023