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New Delhi: People often take personal loans for their small needs. It is a loan that does not require any kind of collateral or security. This loan is given to a person on his creditworthiness. It requires minimum documents. This loan can be used for any financial need. Like any other loan, a personal loan has to be repaid as per the agreed terms. Personal loans are repaid in monthly installments (EMIs). Through auto debit mandate, instructions can be given to directly debit the monthly installment. If there is an alternate bank account, this can be done through NACH mandate. Usually EMI can be made for a few months or a few years.
Fees may apply for foreclosure
Some banks allow you to prepay or close your personal loan after payment of at least one EMI. However, fees (and taxes) apply for foreclosure of a personal loan. Banks keep many things in mind while calculating interest rates on personal loans. This usually depends on the credit history of the person taking the loan. The better the credit history, the higher are the chances of getting a loan at attractive rates. Here we are telling you about the interest rates on personal loans of 10 banks. This will help you in comparison before taking a personal loan.
Personal Loan Rates and Charges (March 2024)
| Lender's Name | rate of interest | EMI(Rs.)Loan amount – 5 lakhsTenure – 5 years | EMI(Rs.)Loan amount – 1 lakhTenure – 5 years | processing fee(% of loan amount) |
|---|---|---|---|---|
| HDFC bank | Starting from 10.50% | Starting from Rs 10,747 | 2,149 | up to Rs 4,999 |
| Tata Capital | Starting from 10.99% | 10,869 | 2,174 | up to 5.5% |
| state Bank of India | 11.15%-15.30% | 10,909-11,974 | 2,182-2,395 | Zero |
| ICICI Bank | Starting from 10.80% | 10,821 | 2,164 | up to 2.50% |
| Bank of Baroda | 11.05%-18.75% | 10,884-12,902 | 2,177-2,580 | Up to 2% (minimum Rs 1,000 and maximum Rs 10,000) |
| axis Bank | Starting from 10.49% | 10,744 | 2,149 | up to 2 |
| Kotak Mahindra Bank | Starting from 10.99% | 10,869 | 2,174 | up to 3 |
| Canara Bank | 10.95-16.40 | 10,859-12,266 | 2,172-2,453 | 0.50% (maximum 2,500) |
| Punjab National Bank | 10.40-17.95 | 10,772-12,683 | 2,144-2,537 | up to 1% |
| hsbc bank | 9.99-16.00 | 10,621-12,159 | 2,124-2,432 | up to 2 |
EMI is an important part of the loan. This is the intermittent installment amount that you pay to repay your loan. There are three factors that decide your EMI. These include loan amount, interest rate and loan tenure.
