A personal loan is an unsecured loan that provides an instant solution to your financial crisis. Various lenders are offering personal loans at this time. However, the most asked question is which personal loan offers the best interest rates.
We will find the actual answer that fulfills your expenses, such as medical bills, wedding costs, and other expenses, through this personal loan.
Factors Affecting Personal Loan Rates
Getting a personal loan at a low interest rate depends on various factors:
Borrower Credit Score: Enjoy lower interest based on your credit score. Your average credit score of 720 or above is good to score lower interest personal loans.
Debt-to-Income (DTI) Ratio: The lender calculates your DTI (Debt-to-Income) ratio, which shows your loan eligibility. A DTI ratio below 36% is good enough for loan approval.
Repayment Capacity: You should ensure enough income to pay the loan. A steady income helps to pay the loan on time, which will maintain your credit history. The borrower with a good credit history can reduce loan interest rates.
Employment Profile: If borrowers have a higher salary or are doing a job at a reputed company, the personal loan interest rate can be low.
How to Apply for a Personal Loan Online
Within some steps, you can get a personal loan from 24hrLoan:
Step 1: Check eligibility criteria with lenders such as income proof, company profile, etc.
Step 2: Determine how much you need.
Step 3: Know the interest rate & repayment tenure. You may use our Personal Loan EMI Calculator to know the EMI amount.
Step 4: Choose the best lender that provides low-interest personal loans.
Step 5: Now, directly apply for a loan without a branch visit.
Step 6: Submit the required documents, which you can upload online.
Compare Top Banks and NBFCs Personal Loan Interest Rates
| Bank / NBFC | Interest Rate (p.a.) | Processing Fee |
|---|---|---|
| State Bank of India | 10.05% – 15.05% | Up to 1.5% |
| HDFC Bank | 9.99% – 24% | ₹6,500 + GST |
| ICICI Bank | 9.99% – 16.5% | Up to 2% |
| Axis Bank | 9.5% – 21.5% | Up to 2% |
| Kotak Mahindra Bank | 10.99% – 16.9% | Up to 5% |
| IDFC FIRST Bank | 9.99% onwards | Up to 1.5% |
| IndusInd Bank | 10.49% onwards | Up to 3.5% |
| YES Bank | 10.85% – 21% | Up to 2.5% |
| Bank of Baroda | 10.15% – 18.75% | Up to 2% |
| Bank of India | 10.85% – 14.85% | Up to 1% |
| Punjab National Bank | 10.25% – 14.5% | 0.35% approx |
| IDBI Bank | 10.6% – 13.35% | Around 1% |
| Federal Bank | 11.49% – 14.49% | Up to 2% |
| Tata Capital | 11.5% – 29.99% | Up to 5.5% |
| Bajaj Finserv | 11% onwards | Up to 3.94% |
| Aditya Birla Finance | 10.99% onwards | Up to 3% |
| L&T Finance | 11% onwards | Up to 3% |
| Poonawalla Fincorp | 18% – 36% | Up to 3% |
| SMFG India Credit | 13% onwards | Up to 5% |
| Moneyview | 14% – 36% | Up to 2% |
Personal Loan Eligibility Criteria
24hrLoan provides personal loan at minimum eligibility criteria:
- Indian Citizenship
- A minimum salary of Rs. 12,000 must be deposited into a bank account
- Your minimum salary deposit should be 12 months.
- Credit Score: -1 or 700+
How to Borrow a Personal Loan at the Lowest Interest Rate
Here are some simple tips to get a personal loan at the lowest interest rate:
- Maintain a High CIBIL Score
Try to keep your CIBIL score 750 or above. A higher score helps you get loans at lower interest rates. - Compare Multiple Lenders
Always compare offers from banks and NBFCs before applying. Different lenders offer different rates. - Choose a Shorter Loan Tenure
A shorter tenure means less total interest, even though the EMI may be slightly higher. - Keep Your Income Stable
A regular salary or steady business income increases lender trust and helps you get better interest rates. - Maintain Low Existing Debt
If your current EMIs are low compared to your income, lenders are more likely to offer lower interest rates. - Check Pre-Approved Loan Offers
Many banks provide pre-approved personal loans to existing customers at lower interest rates and with quick approval. - Apply With a Co-Applicant
Adding a co-applicant with a good credit score can improve approval chances and reduce interest rates. - Avoid Multiple Loan Applications
Applying to too many lenders at once can reduce your credit score and increase rejection chances. - Look for Special Bank Offers
During festivals or promotional periods, banks sometimes offer lower interest rate deals.
These simple steps can help you save a lot of money on interest when taking a personal loan.
Final Thought
You must compare personal loan interest & processing fees before obtaining a loan. Match your eligibility among various banks. Also, calculate your monthly repayment amount to ensure the loan amount.
Understand all the details, and you can apply for a personal loan from 24hrLoan. Obtain a loan through the online application process.
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FAQs
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How much salary is enough for a personal loan?
Borrow a personal loan at minimum of Rs. 12,000 salary. Obtain up to 5 lakh loans at 18% interest rate.
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What is the interest rate PNB is offering?
Punjab National Bank offers 8.75% interest per annum for personal loans.
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Can I get a lower interest rate on a personal loan?
You can borrow a personal loan at a lower interest rate if you have a 750+ credit score. Banks like HDFC Bank, SBI Bank, Axis Bank, and ICICI Bank provide lower rates on personal loans.
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What is the interest of the SBI Personal Loan?
State Bank of India offers minimal interest, which starts from 11.45% to 14.85% p.a.