HomeLoanWhat is a personal loan? Personal Loan Interest Rates

What is a personal loan? Personal Loan Interest Rates

What is a personal loan? Personal Loan Interest Rates: Loans are a way for individuals to make purchases and financial decisions that they otherwise could not do due to lack of capital. There are many other types of loans available in the market including personal loans.

There are many different types of loans available that individuals can go for, from auto loans that help people buy a vehicle, to home loans that allow individuals to buy a home. But one of the most popular types of loans is a personal loan.

What is a personal loan? Personal Loan Interest Rates

What is a personal loan?

A personal loan is a type of unsecured loan that individuals can borrow from a bank for many different purposes. A personal loan allows individuals financial freedom. Personal loans are used for weddings, medical expenses, travel, and for the purchase of goods and items. Personal loans are also known as consumer loans.

Personal loans are popular because they are unsecured loans, meaning they do not require any collateral or security to be disbursed.

Instead, a personal loan is granted on the basis of an individual’s employment history, repayment capacity, income level, and credit history. But as a result, the interest rates of personal loans are usually much higher than those of other types of loans.

Also Read: Home loan interest rates – SBI, ICICI, HDFC, and PNB Bank compared

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Unlike secured loans, where the loan amount disbursed is proportional to the value of the collateral or security offered to the bank, the amount of personal loan disbursed is dependent on income level, profession, and overall loan application.

Lenders usually give loans only where the monthly installment of an individual does not exceed 40-50 percent of their monthly salary.

Also unlike other loans, personal loans can be availed quickly. A personal loan requires only proof of income (salary slip, bank account details, ITR form), proof of residence, and identity proof to provide a loan.

Personal Loan Interest Rates

One of the financial products you can avail yourself of is a personal loan. You can avail of a personal loan to meet your various financial needs.

There are many banks in India that provide the best personal loan to their customers and you can easily apply for them online or offline.

Also Read: For the first time, ICICI Bank will offer debit cards for customers availing loans on the security

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However, before taking a personal loan, you should check the interest rates offered by different banks which vary from around 7.90% per annum. And it can be more than this.

Compare all banks’ latest personal loan interest rates and processing fees and apply today.

BankInterest Rate (p.a.)Processing Fee
HDFC Bank10.5% p.a. – 21.00% p.a.Up to 2.50%
TurboLoan Powered by Chola15% – 21% (fixed) p.a.3.00%
Yes Bank10.99% p.a. onwards – 16.99% p.a.At the discretion of the bank Up to 2.50%
Citibank9.99% p.a. – 16.49% p.a.Up to 3%
Kotak Mahindra Bank10.25% and aboveUp to 2.5%
Axis Bank12% p.a.- 21% p.a.At the discretion of the bank
IndusInd Bank10.49% p.a. – 31.50% p.a.3% onwards
HSBC Bank9.50% p.a. – 15.25% p.a.Up to 1%
IDFC First Bank10.49% p.a. onwardsUp to 3.5%
Tata Capital10.99% onwardsUp to 2.75%
Home Credit Cash Loan19% p.a. – 49% p.a.0%-5%
Ujjivan Small Finance Bank11.49% p.a. – 16.49% p.a.At the discretion of the bank
Aditya Birla Capital14% p.a. -26% p.a.Up to 2%
State Bank of India9.60% p.a. – 15.65% p.a.Up to 1.50%
Karnataka Bank12% p.a. – 17% p.a.Maximum of Rs.8,500
Bank of Baroda10.50% p.a. – 12.50% p.a.Up to 2%
Federal Bank10.49% p.a. – 17.99% p.a.Up to 3%
IIFL24% p.a. onwards2% onwards
Bank of India10.35% p.a. – 12.35% p.a.Up to 2%
Fullerton India11.99% p.a. – 36% p.a.Up to 6%
IDBI Bank8.15% p.a. – 10.90% p.a.Contact the bank
Karur Vysya Bank9.40% p.a. – 19.00% p.a.0.30% onwards
South Indian Bank10.60% p.a. – 18.10% p.a.Up to 2%
Indian Overseas Bank9.30% p.a. – 10.80% p.a.Up to 0.50%
RBL Bank14% p.a. – 23% p.a.Up to 3.5%
Punjab National Bank7.90% p.a. onwardsUp to 1.00%
Bank of Maharashtra9.45% p.a. – 12.80% p.a.Up to 1%
Central Bank of India9.85% and aboveUp to 1%
City Union Bank12.75% p.a.1.00% subject to a minimum of Rs.250
J&K Bank10.80% p.a.Up to Rs.500

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