During the festive season, there is a surge in demand for personal loans. Leading banks offer discounted interest rates on personal loans to borrowers with good credit scores and often waive processing charges. Consumers typically apply for personal loans to fund travel and shopping during this time. Additionally, personal loans can be useful for emergencies such as unexpected medical expenses, job loss, and other unforeseen financial needs.
A personal loan is an unsecured loan that does not require collateral, prompting lenders to carefully evaluate applicants based on factors such as credit scores, monthly income, occupation, and employer profiles. It’s important to be cautious when applying for a personal loan, as interest rates can be high. According to data compiled by Paisabazaar, the following banks offer the most affordable personal loans with interest rates starting from 10-10.99 percent:
- Bank of Maharashtra: Offers the lowest interest rate starting at 10 percent. The equated monthly installment (EMI) on a Rs 5-lakh loan with a five-year repayment period is Rs 10,624.
- Punjab National Bank: Offers loans starting at 10.4 percent. The EMI for a Rs 5-lakh loan over five years is Rs 10,772.
- IndusInd Bank: Interest rates start from 10.49 percent. The EMI on a Rs 5-lakh loan with a five-year repayment period is Rs 10,744.
- HDFC Bank: Charges interest rates starting from 10.5 percent. The EMI on a Rs 5-lakh loan with a five-year repayment period is Rs 10,747.
- Punjab & Sind Bank: Offers interest rates starting from 10.75 percent. The EMI on a Rs 5-lakh loan with a five-year repayment period is Rs 10,809.
- ICICI Bank: Charges interest rates starting from 10.8 percent. The EMI on a Rs 5-lakh loan with a five-year repayment period is Rs 10,821.
Also read: Skill Ministry Announces Revised Loan Scheme, up to Rs 7.5 Lakh Per Student
- Bank of India: Offers interest rates starting from 10.85 percent. The EMI on a Rs 5-lakh loan with a five-year repayment period is Rs 10,834.
- Canara Bank: Charges interest rates starting from 10.95 percent. The EMI on a Rs 5-lakh loan with a five-year repayment period is Rs 10,859.
- Kotak Mahindra Bank and IDFC First Bank: Both offer interest rates starting from 10.99 percent. The EMI on a Rs 5-lakh loan with a five-year repayment period is Rs 10,869.