Friday, September 18, 2020

Why should I compare personal loan interest rates?


 Personal loan Interest rates are considered as one of the key factors in determining the cost of borrowing. Interest rates are generally add-ons that one has to pay along with the amount they applied for a loan. If the interest rates are lower, then the borrower has to repay less debt during his total loan tenure and vice-versa. Following is the interest rate chart offered by major financial and non-financial institutions.

Lenders

Interest Rate* (p.a.)

Loan Amount (Rs.)

Allahabad Bank

9.20% onwards

As per  the applicant’s profile

Andhra Bank

10.80% onwards

As per the applicant’s profile

Axis Bank

12% onwards

50,000 to 15 lakh

Bajaj Finserv

12.99% onwards

Up to 25 lakh

Bank of Baroda

11.40% onwards

50,000 to 10 lakh

Bank of India

9.35% onwards

Up to 10 lakh

Bank of Maharashtra

10.85% onwards

Up to 10 lakh

CASHe

33% to 36%

9,000 to 3 lakh

Central Bank

8.45% onwards

Up to 20  lakh

Citibank

9.99-14.24%

10,000 to 30 lakh

Early salary

24% onwards

8,000 to 2 lakh

Federal Bank

11.49% onwards

Up to 25 lakh

Fullerton India

11.99% onwards

Up to 25 lakhs

HDFC Bank

10.75% onwards

50,000 to 40 lakh

Home Credit

24% onwards

25000 to 2.40 lakh

HSBC Bank

10.50% onwards

Up to 30 lakh

ICICI Bank

11.25% onwards

50,000-20 lakhs

IDBI Bank

12% onwards

25,000-5 lakhs

IDFC Bank

10.75% onwards

1 lakh-25 lakhs

Indiabulls

13.99% onwards

Rs.1000 to Rs. 15 lakh

Indian Bank

9.20% onwards

As per the applicant’s profile

Indian Overseas Bank

11% onwards

Up to 15 lakh

IndusInd Bank

11% onwards

50,000-15 lakhs

Kotak Mahindra Bank

10.75 onwards

50,000-20 lakh

Kreditbee

1.02% p.m. onwards

1000 to 2 lakh

MoneyTap

1.25% p.m. onwards

Rs. 3000 to Rs. 5 lakh

Money view

1.33% p.m. onwards

Rs. 10,000 to Rs. 5 lakh

Muthoot Finance

15% onwards

Rs. 50,000 onwards

Punjab National Bank

8.80% onwards

25,000 to 15 lakh

RBL Bank

14% onwards

1 lakh to 20 lakh

Standard Chartered Bank

11.00% onwards

1 lakh-50 lakhs

State Bank Of India

9.60% onwards

Up to 20 lakhs

TATA Capital

10.99% onwards

75,000 to 25 lakh

UCO Bank

9.45% onwards

Up to 10 lakh

Union Bank of India

8.90% onwards

Up to 15 lakh

Yes Bank

10.75% onwards

1 lakh to 40 lakh


From the above table, we can compare the interest rate of multiple Banks/NBFC and predict which institution is best to take a personal loan in the current scenario.


HDFC bank personal loan comes with added benefits. 


How to achieve a low interest rate on a personal loan?


Following are the tips that you have to follow to achieve a low interest rate on a personal loan:-


  • Always try to balance a good credit score.

  • Try to keep your credit utilization ratio on the lower side.

  • Achieve a lower FOIR(fixed obligation to income ratio).

  • When you are applying for a personal loan, don’t go for multiple lenders at the same time.

  • Try to get your loan approved from a bank/NBFC with whom you have a good relationship, such as a savings account and fixed deposit.  


The interest rate plays a crucial role in determining your total debt against the lender. There are multiple Banks/NBFS to choose from and get yourself a low-interest rate personal loan.

No comments:

Post a Comment