Which Bank is Best for Personal Loan with Low Interest?
| Bank | Interest Rates | Loan Amount |
|---|---|---|
| DBS Bank | From 10.99% | Up to ₹15 lakhs |
| HDFC | 10.85% – 24.00% | Up to ₹40 lakhs |
| Axis Bank | 11.25% onwards | Up to ₹40 lakhs |
| ICICI Bank | 10.85% – 16.25% | Up to ₹50 lakhs |
| Bank of Baroda | 11.05% – 18.75% | Up to ₹20 lakhs |
| SBI | 11.45% – 14.85% | Up to ₹30 lakhs |
| IndusInd | From 10.49% | Up to ₹50 lakhs |
| Yes Bank | 11.25% – 21.00% | Up to ₹35 lakhs |
| Standard Chartered | From 11.5% | Up to ₹50 lakhs |
| IDFC | 10.99% – 23.99% | Up to ₹50 lakhs |
| Kotak Mahindra | 10.99% onwards | Up to ₹40 lakhs |
| PNB | 11.40% – 17.95% | Up to ₹20 lakhs |
| Indian Bank | 10.90% onwards | Up to ₹50 lakhs |
Personal loans do not come with restrictions as to how they should be used and can be a useful financial instrument for fulfilling a number of requirements. It is, therefore, important to identify the loan and find one which comes with the least interest charges. This blog focuses on various personal loan products and useful guidance to avail personal loan at low interest rate for the salaried individuals.
What is a Personal Loan with low interest rate?
Having a personal loan with a low interest rate is financially beneficial. When you keep the interest paid within the duration of the loan low, then the cost of the loan is significantly lowered. This ensures that your repayments are a bit easy to make and most of your cash is made productive for other purposes
Factors Affecting Personal Loan Interest Rates
- Credit Score: A person with a credit score equal to or greater that 750 is more likely to get loan at a cheaper rate.
- Income Level: Greater and improved income standards put one in a better position to bargain.
- Employment Stability: Employment history is also important where lenders confirm if the borrower has served the current organization for at least a year consecutively.
- Loan Amount and Tenure: Sometimes, larger loan amounts or shorter pay-back tenures come at cheaper loan costs
- Lender Relationship: Interest rates may vary depending on whether the customer is a returning customer or a new customer.
Tips for Securing the Lowest Interest Rate
- Maintain a High Credit Score: Make sure that your credit score is always above 750+. There is absolutely no compromise to it. Most lenders would reject your loan application if your credit score is less than 750
- Go for Shorter Tenures: Opt for shorter tenures so that you do not pay more interest charges
- Regular Income: A regular and steady revenue helps to stand on a better ground while bargaining for favourable terms
- Leverage Existing Relationships: Lenders under this system are probable to give their customers who bank with them, some convenience terms.
- Apply with Pre-Approved Offers: Most of the lenders also have pre-approval options to help customers to get approval more quickly.
Conclusion
It is very important to compare personal loans from different lenders before making your decision. Interest rates, other fees, and charges, eligibility criteria must be considered for decision making. To make it easier you can use online financial marketplace such as Fincover to ensure that you get the right deal on a personal loan.
