Now get personal loans at less than 9% – Compare Interest Rates and EMIs

When you quickly need money, the first thing that comes to your mind is a personal loan. It is the easiest way to arrange funds without offering any specific collateral for borrowing. You can take a personal loan from any institution that gives you good deals depending on your eligibility criteria. Personal loans can be used when you are running short of funds to fulfill any financial requirements relating to repairing your house, children education, marriages, paying off small debts, traveling or any other purpose that needs instant funding.

One of the best features of a personal loan is its flexibility in disbursal and usage. After the approval, personal loans are disbursed in a few hours, and some lenders may take 1-2 days. You can use your loan proceeds to meet any unplanned or emergency need.

Personal loans are also getting popular owing to lower interest rates now. Many banks offer lucrative interest rates on their personal loans to customers with good credit scores. Some banks provide pre-approved personal loans to customers with good track records. It is easy to check how much loan you can get. It depends on your company, annual income, credit score, and credit history of paying back your debts. Lenders will consider your debt-to-income ratio while deciding how much personal loan you are eligible for.

Credit score plays a significant role when it comes to the personal loan. You need to maintain a good credit score and should be paying your debts like a housing loan, car loan or credit card bills on time. It is advised to go through all the banks and their interest rates before applying for a personal loan. You should also check your credit score and assess your eligibility. Once you have done this, you can calculate how much money you need and apply for a personal loan accordingly.

The interest rates for personal loans vary from each lender, so you need to check before applying. Also, your eligibility in terms of credit score, income and existing loans may influence how much money you will be able to borrow as a personal loan. You can compare the different tenures and amounts, considering your requirements and flexibility to repay the loan. Besides comparing interest rates and tenures, you should also check other charges like processing fees and any other hidden charges when you take out a personal loan, according to BankBazaar.

You can also check the disbursal time before taking a personal loan since personal loans are borrowed to meet immediate urgency, and you would not like to wait too long for the loan to get disbursed. Typically, disbursal time is less for personal loans, but you may check with your lender and apply depending on what suits your condition the best. Also, go through the terms and conditions carefully and pay back the EMIs on time without delay. Personal loans may attract a slightly higher interest rate as banks take higher risks while sanctioning unsecured loans.

You can always prepay the personal loan before its tenure. If you have extra funds available or got a bonus or increase in your income, you can consider prepayment of your personal loans fully or partially. The total interest on your personal loan may vary depending on the tenure and the interest rates at which you have taken the loan.

Below is a list of banks that are currently offering the lowest interest rates on personal loans of Rs 5 lakh for five years and the indicative EMIs you will have to pay. Please note that the interest rates could be higher based on your loan amount, tenure, credit score, etc.

Interest Rates & EMIs on Personal Loans of Rs 5 Lakh for 5 year Tenure

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Note: Interest rate on Personal Loan for all listed (BSE) Public & Pvt Banks considered for data compilation. Banks for which data is not available on their website are not considered. Data collected from respective bank’s website as on 29 March 2022. Banks are listed in ascending order on the basis of interest rate ie, bank offering lowest interest rate on Personal loan is placed at top and highest at the bottom. EMI is calculated on the basis of interest rate mentioned in the table for Rs 5 Lac Loan with a tenure of 5 years (processing and other charges are assumed to be zero for EMI calculation); Interest rates and charges mentioned in the table are indicative and may vary depending on bank’s T&C. * Rack Interest Rate; ** min APR during Oct 21 to Dec 21; * ^ for senior citizens.

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