- Looking for the cheapest personal loan deal in India?
- Read this post that talks about lenders offering personal loans at lower interest rates
Personal loans are unsecured which means the interest rate on it is higher than secured loans. But if you compare the personal loan offers of different lenders, you can choose the low-cost offer available. The low-cost will mean a lower rate of interest so that you won’t have to pay much interest towards a loan. Plus, the loan must come with a less processing fee to be called a low-cost personal loan. There are several factors that banks consider while approving the loan as well as setting interest rates, such as credit history, income, age, etc. If you have a good income as well as a good credit history, there are chances of you getting the loan at lower interest rates compared to someone with limited income and bad credit history. Read the post and know which lender gives you the cheapest personal loan in India.
Table of Contents
SBI Personal Loan
SBI offers you personal loans at an interest of 9.60% - 13.60% per annum. And you need to pay 1.50% of your loan amount as a processing fee. You can borrow up to INR 20 lakh from SBI and can pay the loan amount in EMI for 6 to 72 months. To borrow a loan from SBI, your age should be 21 to 60 years and salary should be a minimum of INR 15,000 per month.
HDFC Bank Personal Loan
At an attractive rate of interest of 10.75% - 21.30% per annum, you can borrow a loan from HDFC Bank for which this private lender charges a processing fee of NIL-2.50% of your loan amount. The loan amount is based on the salary and credit score of the applicant. And to borrow a loan from HDFC Bank, you need to have a minimum monthly salary of INR 25,000 per month. If you are not the bank regular customer then the minimum required salary is INR 50,000. The bank offers you a tenure of 12 to 60 months to pay the borrowed loan in EMIs.
ICICI Bank Personal Loan
You can borrow a personal loan from ICICI Bank at a lower rate of interest 10.99% - 18.49% per annum. ICICI Bank charges a processing fee for the loan at 0.99%-2.25% of the loan amount. The bank sets the interest rate based on your income, credit score and repayment history. You can get a maximum of 5 years to repay the loan. To apply for the ICICI Bank personal loan, your age should be 23 to 58 years and income must be INR 17,500 or above.
Kotak Mahindra Bank Personal Loan
Kotak Mahindra Bank provides you a personal loan at an interest rate of 10.99% - 20.99% per annum for which it charges a processing fee of 0.99%-2.50% of the loan amount. You can borrow a loan from INR 50,000 to INR 20 lakh from Kotak Mahindra Bank. And the bank provides you a maximum tenure of 5 years to pay the loan amount. To apply for the loan, your age should be 21 to 60 years and a minimum income of INR 20,000 per month. You can’t get the loan if you don’t have a minimum work experience of 2 years.
Bajaj Finserv Personal Loan
With an attractive rate of interest of 10.99% - 16.00% per annum Bajaj Finserv provides you a personal loan for which the NBFC charges a processing fee up to 3% of your loan amount. To borrow a loan from Bajaj Finserv, your age should be 21 to 60 years and have a minimum net monthly income of INR 25,000-35,000 based on the residence state or city. You can borrow up to INR 25 lakh from the NBFC based on your income and credit score. And Bajaj Finserv provides a tenure up to 5 years to pay back the loan amount.
Bank of Baroda Personal Loan
Bank of Baroda personal loan interest rates range from 10.10% - 15.10% per annum. And to borrow a loan from Bank of Baroda, you need to pay 2% of your loan amount towards the processing fee. The bank provides you a loan up to INR 10 lakh without any collateral security. Both a salaried and self-employed individual can apply for the loan if they have a minimum work experience of 1 year.
Applicants living in semi-urban and rural areas can borrow only up to INR 5 lakh from the bank. Whereas the residents of metro and urban areas can borrow up to INR 10 lakh from Bank of Baroda. You have a maximum of 5 years to pay the loan via EMIs.
IndusInd Bank Personal Loan
IndusInd Bank personal loan interest rate ranges from 11.00% Onwards per annum. The bank charges 1%-3% of the loan amount to process your loan request. It offers a loan up to INR 15 lakh to the customers based on their income, and credit score. Using the factors, it calculates the loan eligibility to offer you the loan amount. With a minimum income of INR 25,000 per month, 2 years of work experience and 1 year of residency proof, you can apply for the loan online or by going to the bank branch. You can pay back the loan in equated monthly installments over a maximum of 5 years.
Can Choosing the Tenure Wisely Make Your Personal Loan Cheaper?
Tenure is one of the factors that can reduce the payment if chosen wisely. Yes, if you choose a long tenure, you end up paying a large amount of interest for your borrowed loan with smaller EMI amounts. Whereas if you choose a shorter tenure for the same loan amount then the interest amount is comparatively lower. But the EMI amount will be higher. So, choose the tenure carefully so that you can reduce interest payments and keep the EMI amount reasonable. You can also use the personal loan EMI calculator to understand the effects of tenure on your loan.