Here are the best banks for Personal Loans
They’re in all 21 PSU banks, 1000+ co-operative banks & more than 10,000+ NBFC’s which provide the loans to the customers. Thus the market for home loans is fiercely competitive. It is effortless to obtain a loan in case of clear property documents. Banks charge average interest rates of more than 11% onwards, but still, some banks offer interest rates in the range of 9-11%. Banks charge slightly higher interest rates on personal loans than home loans or else car loans. Personal loans have frequently been taken mostly by people from low-income or moderate-income groups. These people are most likely to spend money on personal finance as they do not have sufficient bank balances. Personal loans are taken maximum in case of the purchase of electronic goods. Markets of electronic goods or else biked, or else gold jewelers largely benefit in the people who obtain personal loans. A personal loan increases the buying capacity of the individual and thus gives a boost to the markets. The personal needs are satisfied largely through personal loans, and the borrower does not need to replenish the existing savings for the large expenses required. Instead, the amount can be paid in installments.
The minimum salary requirement for obtaining personal loans is Rs.25,000 per month. The borrower should have active income in case of the loans are to be obtained. The borrower should be able to provide proper income proof in case of obtaining personal loans. The borrower needs to immediately start repaying the installments from the subsequent month in case of personal loans. The loans can be obtained for a maximum tenure of five years. The banks charge a heavy penalty to the borrower in default of loans or delay in repayment of installments. The top leading banks in India charge the interest rates lower as compared to their other competitors. Also, the processing fees range between 0.50%-2.50% one time before the start of the loans. The banks charge processing fees as a part of the recovery of the loans from the borrower. Personal loans are also helpful for an emergency necessity like paying the hospital bills in which speedy approval of loans is processed in case of emergency. Bank does not ask for the utilization of funds for the loans being approved by the bank.
Following are the banks with the lowest interest rates for Personal Loans:
Bank name – State Bank of India
Loan amount – Up to Rs.20 lakh
Interest rates – 9.60% onwards
Processing Fees – 1.50% of the loan amount.
Bank name – HDFC Bank
Loan amount – Up to Rs.40 lakh.
Interest rates – 10.50% onwards
Processing Fees – Up to 2.50% of the loan amount
Bank name – ICICI Bank
Loan amount – up to 25 lakh
Interest rates – 10.50% onwards
Processing Fees – Up to 2.25% of the loan amount
Bank name – Axis Bank
Loan amount – upto 15 lakh
Interest rates – 11% onwards
Processing Fees – Up to 2% of the loan amount
Bank name – Bajaj Finserv
Loan amount – upto 25 lakh
Interest rates – 11.49% onwards
Processing Fees – Up to 4.13% of the loan amount
Bank name – Tata Capital
Loan amount – upto 25 lakh
Interest rates – 10.99% onwards
Processing Fees – upto 2.75% of the loan amount
Different banks charge interest rates and processing fees differently. The banks listed above are amongst the leading banks which provide loans at lower interest rates and lower processing fees. The finance companies have more liberal policies for the disbursement of loans as they are exclusively dependent on the loan disbursement.
Thus, the public sector lender State bank of India is amongst the best lender in India, which charges the lowest interest rates to the borrowers. The best part of the public sector banks is that the bank follows only the legal process for the recovery of the loans in default. Thus it is beneficial to obtain a loan from the State bank of India at the lowest interest rates and the lowest processing fees. The tenure provided by the SBI is also high up to 6 years six months against the average term of 5 years is applicable by other banks. Traditionally, the Public sector banks are amongst the most trustworthy lenders who do not mislead the customers in recovering the loans. The borrower should never forget that the interest rates charged by the banks should be thoroughly verified before obtaining the loans.
