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During the festive season, there is a surge in demand for personal loans. Some of the leading banks offer personal loans at discounted interest rates to borrowers with a good credit score and waive off processing charges. The consumers apply for personal loans to travel and shop during festive time. Besides this, you could apply for a personal loan if you need money for emergencies such as sudden and uninsured medical expenses, situations arising out of job loss, and so on.
A personal loan is an unsecured loan that requires no collateral. The absence of collateral in personal loans leads lenders to take a cautious approach while evaluating personal loan applicants. Lenders consider multiple factors, such as credit scores, monthly income, occupation profiles, and employer profiles, among others, of the applicants to evaluate creditworthiness. Be cautious while applying for a personal loan, as interest rates on personal loans are high. As per data compiled by Paisabazaar, these are the banks offering the cheapest personal loans with interest rates starting in the range of 10-10.99 percent.
Public sector lender Bank of Maharashtra offers the cheapest interest rate on personal loans starting at 10 percent. The equated monthly installment (EMI) on a Rs 5-lakh loan with a five-year repayment period amounts to Rs 10,624.
Starting at 10.4 percent, Punjab National Bank offers personal loans of Rs 5 lakh for a repayment tenure of five years. The EMI will be Rs 10,772.
IndusInd Bank levies an interest rate starting from 10.49 percent on personal loans. The EMI on a Rs 5-lakh loan with a five-year repayment period is Rs 10,744.
Also explore: Online personal loan up to Rs 15 lakh via Moneycontrol
Private sector lender HDFC Bank charges an interest rate starting from 10.5 percent on personal loans. The EMI on a Rs 5-lakh loan with a five-year repayment period is Rs 10,747.
Punjab & Sind Bank levies an interest rate starting from 10.75 percent on personal loans. The EMI on a Rs 5-lakh loan with a five-year repayment period amounts to Rs 10,809.
ICICI Bank levies an interest rate starting from 10.8 percent on personal loans. The EMI on a Rs 5-lakh loan with a five-year repayment period is Rs 10,821.
Bank of India levies an interest rate starting from 10.85 percent on personal loans. The EMI on a Rs 5-lakh loan with a five-year repayment period amounts to Rs 10,834.
Canara Bank levies an interest rate starting from 10.95 percent on personal loans. The EMI on a Rs 5-lakh loan with a five-year repayment period amounts to Rs 10,859.
Kotak Mahindra Bank and IDFC First Bank levy an interest rate starting from 10.99 percent on personal loans. The EMI on a Rs 5-lakh loan with a five-year repayment period is Rs 10,869.
A note from Paisabazaar.com: Interest rates on personal loans from the top 10 banks offering at the lowest rates are considered. Interest rates for eligible borrowers only. Data has been collected from the respective banks' websites as of July 31, 2024. Banks are listed in ascending order based on 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 based on the interest rate mentioned in the table for a Rs 5 lakh loan with a tenure of five years (processing and other charges are assumed to be zero for EMI calculation).
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