In need of a personal loan? Check out banks offering the lowest interest rates

By: |
November 05, 2021 12:39 PM

Here are 25 banks that are currently offering the lowest interest rates on personal loans of Rs 5 lakh for a tenure of five years and the indicative EMIs you will have to pay.

Before taking a personal loan, ensure you are well-versed with some of the crucial factors.

When it comes to easy borrowing to meet an urgent need for funds, personal loans top the charts. They are a popular financing option as they don’t require you to pledge collateral as in case of a home loan or a car loan. This makes a personal loan an unsecured loan that is offered at a higher interest rate by financial institutions for this reason. When you are out in the market to avail a personal loan, try to zero in on a lender that is offering the lowest interest rate.

Before taking a personal loan, ensure you are well-versed with some of the crucial factors. While lenders would be forthcoming in sanctioning a personal loan for any purpose, they will check your credit score and financial stability before they do so.

The loan eligibility criteria differ for salaried and self-employed ones. Salaried individuals seeking a personal loan would be required to furnish 3 months’ payslips, Form 16, and income tax returns from the previous year, whereas self-employed individuals may have to present audited financials as well as the ITR for the last two years. Their business should have been in operation for a minimum of two years. They may also need to have licences to practice in case they are professionals such as doctors, CAs, etc, according to BankBazaar.

Additionally, if you are already servicing other loans, then you should clear them off before applying for a new one to increase your credit score and loan amount eligibility. Make sure there are no delays and defaults in paying your loan EMIs and credit card bills as it can impact your credit score and your loan approval chances.

While taking a personal loan, keep in mind to borrow only what you need. This will not only make the repayments easier but would also keep unnecessary financial stress at bay. To get the best deal, do not forget to compare the interest rates offered by various lenders. This is because even a slight difference in interest rates can help you save a good amount of money during the loan tenure. You can also take the help of a personal loan EMI calculator to estimate how much you would pay as your equated monthly instalment (EMI).

If you are looking to take a personal loan, here are 25 banks that are currently offering the lowest interest rates on personal loans of Rs 5 lakh for a tenure of five years and the indicative EMIs you will have to pay. Do note, the interest rates applicable to you could be higher based on your loan amount, tenure, credit score, or any other terms and conditions of your chosen lender.

Banks Offering The Lowest Interest Rates And Indicative EMIs on Personal Loan of Rs 5 Lakh For 5 Years Tenure

Disclaimer: Data compiled by BankBazaar.com from respective bank’s website as of November 2, 2021. The lowest interest rates on personal loans for listed (BSE) public and private banks (excluding small finance banks) were considered for data compilation irrespective of the loan amount and tenure. Banks for which data is not available on their website were not considered. Data collected from banks are listed in ascending order based on interest rate i.e. bank offering the lowest interest rate on the personal loan is placed at the top and highest at the bottom. EMI is calculated based on the interest rate mentioned in the table for an Rs 5 lakh loan with a tenure of 5 years (processing and other charges are assumed to be zero for EMI calculation). The interest mentioned in the table is indicative and it may vary depending on the bank’s terms and conditions. * Rack Interest Rate; ** min APR during Jul 21 to Sep 21; *^for senior citizens ^^Festive interest offer till 15 Nov 21

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