When it comes to borrowing easily to meet an urgent need for funds, personal loans are at the top of the charts. They are a popular financing option because they do not require you to post collateral like with a home loan or car loan. This makes a personal loan an unsecured loan which is offered at a higher rate of interest by financial institutions for this reason. When you are in the market for a personal loan, try to focus on a lender who offers the lowest interest rate.
Before taking out a personal loan, make sure you are familiar with some of the crucial factors. While lenders are prepared to sanction a personal loan for any purpose, they will check your credit score and financial stability before doing so.
The loan eligibility criteria differ for employees and the self-employed. Employees looking for a personal loan would be required to provide 3-month payslips, Form 16, and previous year’s income tax returns, while self-employed individuals may be required to submit financial statements. audited as well as the RTI for the last two years. Their business must have been in business for at least two years. They may also need licensure if they are professionals such as doctors, CAs, etc., according to BankBazaar.
Also, if you are already managing other loans, you should clear them before applying for a new one in order to increase your credit score and your loan amount eligibility. Make sure there are no delays and defaults in paying your loan IMEs and credit card bills as this can affect your credit score and your chances of d loan approval.
When taking out a personal loan, remember to borrow only what you need. This will not only facilitate repayments, but also avoid unnecessary financial strain. To get the best deal, be sure to compare the interest rates offered by different lenders. This is because even a slight difference in the interest rate can help you save a good amount of money over the life of the loan. You can also use a personal loan EMI calculator to estimate how much you would pay as an Equivalent Monthly Payment (EMI).
If you are looking to take out a personal loan, here are 25 banks that currently offer the lowest interest rates on personal loans of Rs 5 lakh for a term of five years and indicative IMEs that you will have to pay. Note that the interest rates that apply to you may be higher depending on the amount of your loan, the length of your loan, your credit rating or any other condition of the lender you have chosen.
Banks offering the lowest interest rates and indicative IMEs on a personal loan of Rs 5 Lakh for 5 years
Disclaimer: Data compiled by BankBazaar.com from the respective bank’s website as of November 2, 2021. Lowest interest rates on personal loans for public and private listed banks (ESBs) (at the exclusion of small financial banks) were taken into account for the compilation of the data, regardless of the loan amount and duration of tenure. Banks for which data is not available on their website have not been taken into account. The data collected from the banks is listed in ascending order according to the interest rate, that is, the bank offering the lowest interest rate on the personal loan is placed at the top and the highest. down. The EMI is calculated on the basis of the interest rate mentioned in the table for a loan of Rs 5 lakh with a term of 5 years (the processing and other fees are assumed to be zero for the calculation of the EMI). The interests mentioned in the table are indicative and may vary depending on the conditions of the bank. * Rack interest rate; ** APR min from July 21 to September 21; * ^ for seniors ^^ Offer of festive interest until November 15, 21