10 Banks Offering Lowest Personal Loan Rates in India
Personal loans are a popular choice for many people who need quick cash. It can be for anything from medical emergencies to weddings. If you have a good credit history and can prove the need, obtaining a personal loan is quick and easy.
Personal loans are given at a very high interest rate. It’s wise to seek out lenders who may provide the lowest personal loan rate. You should note that banks can give you lower interest rates if you have good credit ratings. Read more about personal loans and the banks that offer lower interest rates.
Types of Personal Loans in India
Financial Aid for the Wedding
There is a great deal of importance placed on weddings in Indian culture. This is why many financial firms now provide personal wedding loans so that you can make everlasting memories. A loan can be applied for by the couple getting married or any immediate family member. This type of personal loan allows the borrower to choose their loan amount. It is also necessary to pick a bank that provides your pocket with relief and offers the lowest personal loan rate.
Home improvement financing
Home loans are a common part of purchasing a property. We delay the process or make concessions to keep the price down because it is costly. Therefore, to meet this need, lenders offer personal loans at the lowest rate for home improvements. It is used to pay for repairs, new materials, labour, etc. Because of the improvements we’re making to your home with the help of this personal loan, you’ll be able to sell it for a higher price down the road.
Financial aid for college students
Given its term, this is among the most typical forms of consumer credit. Most often, parents take out school debts paid by their kids. Loans of this type are often known as “school fee financing.” It is used to pay for college expenses, along with studying abroad, for yourself or a family member. Banks have now found the lowest personal loan rates for the convenience of students.
Festival Loan
Lenders are financial institutions that grant loans to hold festivals and other celebrations. Compared to other types of unsecured loans, this one is very original.
Loan for consumer goods
Obtaining a Loan for Long-Lasting Goods Purchased by Consumers
Home improvement loans can be used to finance the purchase of major appliances.
Loans for electronics
Lenders offer PC- and laptop-specific loans for the express purpose of making PC and laptop purchases. Insurance is often bundled with loans by some financial institutions.
List of Banks Offering the Lowest Personal Loan Interest Rates
| Name of the Bank | Interest Rate P.A. (%) | Loan Amount |
| HSBC | >= 9.75 | Up to ₹30 lakhs |
| STATE BANK OF INDIA | >= 9.60 | Up to ₹20 lakhs |
| BANK OF MAHARASHTRA | >= 9.55 | Up to ₹20 lakhs |
| UCO BANK | >= 8.45 | Up to ₹10 lakhs |
| CENTRAL BANK OF INDIA | >= 8.45 | Up to ₹20 lakhs |
| UNION BANK OF INDIA | >= 8.90 | Up to ₹15 lakhs |
| PUNJAB NATIONAL BANK | >=8.95 | ₹25,000 to ₹15 lakhs |
| INDIAN BANK | >= 9.05 | Depends Upon the Applicant’s Data |
| BANK OF INDIA | >= 9.35 | Up to ₹10 lakhs |
| IDBI BANK | >= 9.50 | ₹25,000 to ₹5 lakhs |
How to qualify for the lowest personal loan rates?
If you want to get the lowest personal loan rates possible, keep the following in mind:
- Personal loan applications supported by a strong credit history have a better chance of being approved. When getting a personal loan, borrowers with excellent credit ratings can get the lowest interest rates from banks and other lending institutions.
- You should check your credit rating before applying for a personal loan. If it is less than 750, you should start thinking about what steps you can take to raise it.
- Your credit rating could suffer if you miss payments on loans or credit cards. Lenders commonly use the borrower’s credit history when setting interest rates for personal loans. Those with a history of timely EMI and credit card payments may qualify for lower interest rates.
- During the holidays, many banks and other financial firms offer exciting interest rates to attract customers. So, if you want the lowest loan rates, you should apply for a personal loan during this period.
- It is important to compare the interest rates offered. Several NBFCs and banks offer the lowest personal loan rate.
- Existing customers easily get the lowest personal loan rates.
Factors to keep in mind to get the lowest personal loan rate
- Loan companies will charge a one-time processing fee. The interest rate you’ll be paying is relatively low, but you should still compare the fees of various lenders.
- Some banks may charge a pre-closure fee if you pay off your loan balance before the loan tenure. So, it’s important to determine if the bank or NBFC you’re applying to requires a pre-closure fee.
- If you want to know how fast you’ll get a response from the lender’s support team, you should look into their available customer service channels before applying for a loan.
- To make the most of any low-interest personal loans offered by a bank or other financial institution, you should verify that you meet the requirements set forth by that institution. This is why it’s important to check your income and eligibility based on age.
- If you need a personal loan because of an unexpected expense, you should consider how long it will take you to repay it.
- Even though the interest rate may be slightly higher, you should also consider the lender’s processing fee, default charges, prepayment charges, loan cancellation fees, stamp duty fees, duplicate statement fees, and other fees.
Conclusion
It’s possible that, in addition to the institutions mentioned above, others offer the most affordable personal loans. Personal loan offers tailored to women often differ from the norm, even when the loan type is the same. For instance, a man and a woman applying to the same bank for a wedding loan may be offered different rates and terms, but both will receive loans for their weddings. Finally, your specific financial situation will determine the best type of loan for you. Depending on your specific need, choose the lowest personal loan rate from the list that best fits your situation. For further details, visit the Piramal Finance website and get assured assistance.