Do you need a personal loan? Who is providing the cheapest loan? Check the list

Personal loan interest rate: Nowadays, people often take personal loan to meet various financial requirements, the interest rate is higher than that of home loan and auto loan, hence The decision to take a loan should be taken only after comparing the loans of various banks and finance companies.

Nowadays, people often take loans from banks to meet various financial needs, in which home loans, auto loans, education loans and personal loans are the main ones. A personal loan is one of the fastest ways to arrange money to meet sudden financial needs in case of emergencies like health, marriage, travel, loan repayment etc.

Due to the quick approval and disbursement of personal loans, most people prefer to take them. As soon as one applies for a personal loan, the lending bank or finance company verifies all the details including your income, credit score and employment status, age and residence. Once the profile verification of the concerned person is found suitable, the bank or finance companies deposit the personal loan amount in your bank account.

Applying for a personal loan has become very easy these days. If you prefer, you can apply offline by visiting your nearest bank or finance company or you can apply online by visiting the respective bank’s website. Some customers get personal loan offers very easily due to their income and clean track record. It is very important to read the personal loan terms and conditions very carefully before accepting such a loan offer.

One should avoid spending personal loan money on unnecessary things and things. The most important thing is to try to repay the loan regularly without any delay or default after getting the loan. Adequate income and financial resources should be arranged in advance to repay the personal loan. The loan tenure should also be chosen carefully. Generally, the tenure of a personal loan is between 12 months to 84 months. However, it may also vary depending on the borrower’s profile and the lending bank or financial institution. In some cases the loan tenure is extended. In such a case, be aware that if the loan is for a long term, you will have to pay more interest.

Income and credit score required for loans

While applying for a personal loan the borrower is advised to check the loan eligibility according to his monthly income and credit score as well as the required loan amount. Decide how much money you want to borrow before borrowing money. Once the loan amount is decided, the repayment method of the loan should also be understood. 

After doing this, compare the offers of similar loan schemes offered by various banks and finance companies and check who is offering the loan at the cheapest interest rate. This exercise will help a lot in making decisions about who to borrow from. If any bank is offering a loan at 0.25 percent lower interest rate than others, understand that you can save a lot on interest payments by taking a loan from them.

Personal loan with lowest interest rate

Here, for your convenience, we have provided information on personal loans up to Rs 5 lakh offered by more than 20 banks, their interest rates and repayment terms in the form of EMIs (monthly installments). The loan tenure included in this list is 5 years. Bank of Maharashtra is at the top of the list offering personal loans at the lowest interest rates, while Canara Bank and Karnataka Bank have extremely high interest rates. By comparing on the basis of this list you can take the right decision for the loan according to your financial need and repayment capacity.

(Note: The details of all the banks included in the above list are taken from bankbazaar.com. All these figures are taken from the respective bank’s website as on 29 November 2022. For more information and latest updates, you can visit the bank and their website.)