A personal loan is often the best borrowing option if you have an urgent liquidity requirement. The possibility of a quick and hassle-free loan disbursal process, no requirement to pledge any security and competitive interest rates could make this all-purpose financing facility an ideal choice during an emergency.
Not just that, personal loans could also be an excellent tool to meet big-ticket funding requirements as their maximum permissible loan quantum could be as high as Rs 25 lakh or even more. Also, personal loans are usually available in multiple tenure options up to 5 years with some banks offering these loans for up to 7 years.
However, the best personal loan interest rates are usually reserved for borrowers with a steady income and a stellar credit score. Meaning, if your credit score is low, you might not be eligible for a personal loan and even if you do, the applicable interest rate is likely to be much higher than those offered to borrowers with credit scores over 750-800, according to BankBazaar.
Do note, the applicable personal loan interest rate and maximum loan quantum would be ascertained by the lender based on several factors like the borrower’s age, income, credit score, loan amount requirement, type of occupation, job stability, etc. Also, the documentation requirements could be slightly different for salaried and self-employed loan applicants.
As such, it’s always better to compare your options for the best rates according to your eligibility and get complete clarity on documentation requirements before signing up for a loan to avoid any unpleasant surprises later. Also, don’t forget to read the fine print of your shortlisted loan product and check the associated charges like processing fee and pre-closure and part-prepayment penalties to get complete clarity.
Aspiring borrowers should also check whether they’re eligible for any pre-approved personal loan offers from their banks as those could involve zero to minimal documentation and, thus, involve quick loan disbursal. Most importantly, assess the affordability of your personal loan EMIs before signing up for the loan as any laxity in this could lead to additional penalties, accumulation of debt and an adversely impacted credit score.
So, if you’re looking for a personal loan, here are the 10 lowest offers that are currently being extended by some of the leading banks in the country. Do note, we have only considered the lowest advertised interest rate for each of the banks mentioned in the table below that might involve additional eligibility requirements, and the interest rate applicable to you could be higher depending on any terms and conditions of your chosen bank.
10 Banks Currently Offering Personal Loans at Lowest Interest Rates
Disclaimer: Data collected from respective bank websites on June 17, 2021. Data compiled by BankBazaar.com, an online marketplace for loans, credit cards and more.