Personal loans: Banks that offer the lowest interest rates on a Rs 1-lakh loan (2024)
Bandhan Bank, HDFC Bank, and State Bank of India offer interest rates between 9.47 and 11.15 percent on a personal loan of Rs 1 lakh for a tenure of 4 years.
Hiral Thanawala
April 02, 2024 / 06:35 AM IST
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A personal loan is an unsecured loan that requires no collateral. Good credit scores make it easier to get personal loans quickly. You could apply for a personal loan if you need money for emergency purposessuch assudden and uninsured medical expenses, situations arising out of job loss, and so on. Be cautious though; interest rates on personal loans are high. It's easier to get a loan, but if you miss your Equated Monthly Instalments or worse, fail to repay principal, your debt balloons, credit score becomes bad, and you face the wrath of debt collectors. It is betterto redeem from low-yield or dud investments for emergency needs. As per data compiled by Bankbazaar, these are the banks offering the cheapest personal loans with interest rates in the rangeof 9.47-12.4 percent.
Starting at 9.47 percent, Bandhan Bank offers the cheapest interest rate on personal loans of Rs 1 lakh that come with a repayment tenure of four years. The equated monthly installment (EMI) will be Rs 2,592.
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Private sector lender IndusInd Bank offers an interest rate starting from 10.49 percent on personal loans. The EMI on a Rs 1-lakh loan with a four-year repayment period amounts to Rs 2,560.
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Axis Bank, Bank of India, Citibank, HDFC Bank, and IDFC First Bank levy an interest rate starting from 10.75 percent on personal loans. The EMI on a Rs 1-lakh loan with a four-year repayment periodis Rs 2,572.
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Private sectorlender ICICI Bank levies an interest rate starting from 10.8 percent on personal loans. The EMI on a Rs 1-lakh loan with a four-year repayment periodis Rs 2,575.
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Kotak Mahindra Bank and Yes Bank levy an interest rate starting from 10.99 percent on personal loans. The EMI on a Rs 1-lakh loan with a four-year repayment periodis Rs 2,584.
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India's largest bank the State Bank of India charges an interest rate starting from 11.15 percent on personal loans. The EMI on a Rs 1-lakh loan with a four-year repayment periodis Rs 2,592.
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Government-owned Bank of Baroda offers an interest rate starting from 11.4 percentfor personal loans. Canara Bank also offers a personal loan at an interest rate starting from 11.4 percent. The EMI on a Rs 1-lakh loan with a four-year repayment periodat these banks is Rs 2,604.
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Union Bank of India levies an interest rate starting from 11.75 percent on personal loans. The EMI on a Rs 1-lakh loan with a four-year repayment period amounts to Rs 2,621.
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Public sector bank Punjab National Bank charges an interest rate starting from 12.4 percent on Rs 1-lakh personal loans with four-year tenures. The EMI will amount to Rs 2,653.
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A note from Bankbazaar.com: Interest rates on personal loans from the top 15 banks by unsecured assets are considered. Interest rates for eligible borrowers only. Data has been collected from the respective banks' websites as on March 20, 2024. Banks are listed in ascending order on the basis of interest rates — the bank offering the lowest interest rate on the personal loan is placed at the top and the highest at the bottom. EMI is calculated on the basis of the interest rate mentioned in the table for Rs 1 lakh loan with a tenure of four years (processing and other charges are assumed to be zero for EMI calculation).
Hiral Thanawala is a personal finance journalist with over 10 years of reporting experience. Based in Mumbai, he covers financial planning, banking and fintech segments from personal finance team for Moneycontrol.
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SBI offers personal loan interest rates ranging between 11.40% to 11.55% p.a. to salaried applicants under SBI Quick Personal Loan scheme. The bank also offers personal loan interest rates to salaried applicants having minimum monthly income of Rs 1 lakh at interest rates ranging between 11.15% p.a. to 11.90% p.a.
So, if you are looking at determining monthly interest for a fixed deposit of 1 lakh, you can divide the monthly interest pay out at 7.11% which is 6,581p.a. and divide that by the number of months which is 12. The monthly interest for a Rs. 1,00,000 FD is Rs. 548.
For example, if an applicant avails a loan amount of Rs 1 lakh at 10.50% p.a. for tenures of up to 5 years, the total interest cost payable would be Rs 28,963 whereas the interest cost for the same loan amount for the same tenure but availed at interest rate of 16% p.a would be Rs 45,908.
Some of the easiest loans to get approved for if you have bad credit include payday loans, no-credit-check loans, and pawnshop loans. Personal loans with essentially no approval requirements typically charge the highest interest rates and loan fees.
Rates range from 7.49% to 23.24% Annual Percentage Rate (APR) 4, which includes a relationship discount of 0.25%. No origination fee or prepayment penalty.
Higher interest rates and fees: Banks tend to charge higher interest rates and more fees compared to their credit union and online lender counterparts. 12 If you don't qualify for a discount rate, you might end up paying more through a bank than you would with another lender.
HDFC Bank offers pre-approved loans to customers in 10 seconds flat*. Non – HDFC Bank customers can get loans in 4 hours. If you've wondered how to get an instant loan, wonder no more.
If approved, you'll pay the same amount every month for a term of 12 to 84 months (maximum 60 months for non-customers), with a fixed annual percentage rate (APR), ranging from 8.74% to 24.99% APR 1.
On average, credit unions offer higher saving rates and lower loan rates. This could help group your savings grow faster and your loan will cost less. Credit unions also tend to charge lower fees, require lower deposit balances and offer better service.
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