In times of financial emergencies, a personal loan can be a valuable resource to meet immediate monetary needs.
Various banks provide personal loans, each with its own set of interest rates.
If you’re considering taking out a personal loan, it’s crucial to compare the interest rates offered by different banks before making a decision.
Documents Required for Personal Loan
For salaried individuals, the documentation process for a personal loan typically includes a salary certificate, three recent salary slips, and proof of identity and address from your employer.
Existing bank customers adhering to KYC (Know Your Customer) procedures will find the personal loan application process smoother.
The Lowdown on Interest Rates from Top 10 Banks
If you’re on the lookout for personal loans with the lowest interest rates, consider these offerings from the top 10 banks:
- Bank of Maharashtra – 10.00%
- Bank of India – 10.25%
- Axis Bank – 10.49%
- IDFC First Bank – 10.49%
- HDFC Bank – 10.50%
- ICICI Bank – 10.50%
- State Bank of India (SBI) – 10.55%
- Kotak Mahindra Bank – 10.99%
- Tata Capital – 10.99%
- Bajaj Finserv – 11.00%
Factors Influencing Personal Loan Rates
The interest rates on personal loans are determined by various factors, including the bank’s policies, the applicant’s credit score, and the chosen repayment period.
The tenure and interest rate together dictate the Equated Monthly Installment (EMI) amount.
Banks typically offer personal loans ranging from Rs 50,000 to Rs 30 lakh, with repayment periods spanning one to five years.
Before securing a personal loan, prospective borrowers are advised to thoroughly understand the terms and conditions, compare interest rates, and assess their financial capability to ensure a smooth repayment process.
