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The procedure to avail a personal loan is very simple, however, your eligibility for availing this form of loan depends upon your credit score.
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Personal loan vs gold loan: Which is better? Your loans decodedPersonal loans are considered small loans by lenders, however, they work like any other loan. In fact, they are among the most easy and flexible loans that can help you in times of financial aid like during weddings, travelling, buying gold and many more. The procedure to avail a personal loan is also very simple, however, your eligibility for availing this form of loan depends critically on your credit score.
Generally, personal loans are sanctioned to salaried, non-salaried and self-employed individuals. The documentation and rate of interest is different for personal loans granted to self-employed individuals.
If you’re dealing with an intense financial emergency or your financial situation has suddenly turned too fluid, a personal loan can be your ultimate rescuer.
Moreover, if you have multiple loan accounts that are hurting your financial security, a debt consolidation loan (also a form of personal loan) can turn your fortunes around. A debt consolidation loan is a loan that you can take out to eliminate multiple sources of debt and direct all your debt to a single source.
Personal loans come with tenures ranging from 12 months to 60 months. Some lenders offer tenures starting from 6 months as well.
Now that the festive season is just around the corner, many citizens would be looking for personal loans. But, where to avail these from and which bank offers the best are questions that need to be answered first.
So, your bank may actually be charging you a higher interest rate for a loan. Therefore, it is always advisable to know the banks that are offering a lower interest rate when it comes to opting for personal loans.
Among the banks, currently, it would be Yes Bank giving the lowest interest rate on your personal loan at 10.75%. Meanwhile, banks like HDFC Bank, ICICI Bank, Citibank and Standard Chartered Bank charge 10.99% interest rate each on your personal loan.
Interestingly, it would be Bank of Maharashtra which charges you with highest interest rate of 15.10%. Then would be RBL Bank on second spot charging you 13.99%, Karur Vysya Bank by 13.90%, Syndicate Bank with 13.40% and IDBI Bank with 13.20%.
On the other hand, lenders like Dena Bank, Allahabad Bank and Canara Bank levies 13% interest rate each on your personal loan.
Guess what! Even the largest state-owned lenders like State Bank of India, PNB and Bank of Baroda charge you heavy interest rate of 12.50%, 12% and 11.60% respectively.
Other state-owned banks like Indian Bank, Corporation Bank, Andhra Bank, Indian Overseas Bank, Union Bank of India and Vijaya Bank charge you with interest rate of 11.05%, 12.95%, 11.55%, 12.70%, 12.55% and 12.50%.
Coming to other private lenders - Axis Bank, IndusInd Bank, Kotak Bank and Federal Bank, they charge you with interest rate of 11.25%, 11%, 11.50% and 11.49% respectively.
From the above, one thing is clear that private banks are better option for opting loans than compared to state-owned ones.
Hence, if you are planning for opting a loan this festive, you might to compare the above mentioned banks interest rate, in order to avail best benefit and avoid burden of heavy repayment.
