Top 10 banks offering most competitive personal loan interest rates (2024)
When faced with a sudden financial shortfall, many people turn to personal loans to meet their immediate needs. While personal loans typically come with higher interest rates, they provide a quick and convenient solution to obtain the necessary funds.
Obtaining a personal loan is particularly straightforward for salaried employees. The required documents usually include the past three months' salary slips, bank statements, and identification proof such as a driving licence or Aadhaar card.
Before settling on a specific lender, it is wise to compare the interest rates offered by different institutions to find the best option for your needs. In general, lenders tend to charge lower interest rates for borrowers with high credit scores, while those with lower scores may face higher rates.
How to get the lowest interest rate on a personal loan?
To get the lowest interest rate on a personal loan, it is important to have a high credit score. Applicants with a credit score over 750 are more likely to be offered low interest rates. It is also important to avoid missing loan or credit card payments, as your repayment history is taken into account by loan providers.
Keeping an eye out for special offers during festive occasions can also help in getting a lower interest rate. Comparing interest rates offered by different banks and financial institutions is essential to find the best rate. Additionally, negotiating with the lender, especially if you have a good relationship or are an existing customer, can help in obtaining the lowest interest rate on a personal loan.
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The easiest banks to get a personal loan from are USAA and Wells Fargo. USAA does not disclose a minimum credit score requirement, but their website indicates they consider people with scores below 640, so even people with bad credit may be able to qualify.
How do you know if the interest rate you're offered is good for you? A good personal loan interest rate depends on your credit score: 740 and above: Below 8% (look for loans for excellent credit)670 to 739: Around 14% (look for loans for good credit)
In general, people who have a FICO® Score 8 or FICO® Score 9 of at least 670 or a VantageScore 3.0 or VantageScore 4.0 of at least 661 are considered to have good credit or excellent credit, which means they may find it easier to qualify for a personal loan.
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.
What is the easiest loan to get approved for? The easiest types of loans to get approved for don't require a credit check and include payday loans, car title loans and pawnshop loans — but they're also highly predatory due to outrageously high interest rates and fees.
ICICI Bank offers personal loans that are relatively easy to obtain. By following five simple steps on the Official ICICI Bank website, you can apply for a personal loan seamlessly. Visit the Official Website: Navigate to the ICICI Bank website and locate the personal loan section.
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. Private sector lender IndusInd Bank offers an interest rate starting from 10.49 percent on personal loans.
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