ET OnlineOne of the easiest ways to get money in an emergency is to apply for a personal loan. It is simple to comprehend and may be repaid in a few Equated Monthly Instalments (EMIs). Borrowers can apply for a personal loan online or offline by visiting the branch. Also, there is no need to pledge any security to avail of a personal loan.
EMI means Equated Monthly Instalment, which includes principal and interest. You repay your loan through EMIs by giving standing instructions to debit your SB account with us. The EMI is recovered every month on a predetermined date.
Also read: Bank loan interest rates in April 2024 compared: SBI, HDFC Bank, ICICI Bank, IDBI Bank, Yes Bank, PNB, Bank of Baroda
The interest rate measures the cost incurred by a financial organisation, such as a bank, when lending you money. The lowest interest rate on a personal loan is advantageous as it lowers the total amount you must repay the lender.
Here are the top banks offering the cheapest rate on personal loans, according to the Paisabazaar data.
According to the Union Bank of India website, "This is optional and purely at the discretion of the Borrower. However, getting a liability/life insurance cover is always advisable so that family members don’t suffer in case of any unfortunate event. For the benefit of the borrowers, a one-time Liability Insurance premium can be added to the cost of the property so that the burden can be reduced. Further, the Bank has tied up with various Insurance Providers so that suitable products can be available to its customers with reasonable premiums."
Also read: Home loan interest rates April 2024: Banks offering cheapest interest rates for home loans above Rs 75 lakh
What is an EMI?
EMI means Equated Monthly Instalment, which includes principal and interest. You repay your loan through EMIs by giving standing instructions to debit your SB account with us. The EMI is recovered every month on a predetermined date.
Also read: Bank loan interest rates in April 2024 compared: SBI, HDFC Bank, ICICI Bank, IDBI Bank, Yes Bank, PNB, Bank of Baroda
The interest rate measures the cost incurred by a financial organisation, such as a bank, when lending you money. The lowest interest rate on a personal loan is advantageous as it lowers the total amount you must repay the lender.
Here are the top banks offering the cheapest rate on personal loans, according to the Paisabazaar data.
| PERSONAL LOAN - RATES AND CHARGES | ||||
| Name of Lender | Interest rate (p.a %) | EMI (Rs) Loan amount- 5 lakh Tenure - 5 years | EMI (Rs) Loan amount- 1 lakh Tenure - 5 years | Processing fee (% of loan amount) |
| HDFC Bank | 10.50 onwards | 10,747 onwards | 2,149 onwards | Up to Rs 4,999 |
| Tata Capital | 10.99 onwards | 10,869 onwards | 2,174 onwards | Up to 5.5% |
| State Bank of India | 11.15-15.30 | 10,909-11,974 | 2,182-2,395 | 1.50%(Minimum Rs 1,000 to Maximum Rs 15,000) |
| ICICI Bank | 10.80 onwards | 10,821 onwards | 2,164 onwards | Up to 2.50% |
| Bank of Baroda | 11.05-18.75 | 10,884-12,902 | 2,177-2,580 | Up to 2% (minimum Rs 1,000 and maximum Rs 10,000) |
| Axis Bank | 10.49 onwards | 10,744 onwards | 2,149 onwards | Up to 2% |
| Kotak Mahindra Bank | 10.99 onwards | 10,869 onwards | 2,174 onwards | Up to 3% |
| Bank of India | 10.85-14.85 | 10,834-11,856 | 2,167-2,371 | 0.50%-1% (Minimum Rs 250 and Maximum Rs 10,000) |
| Canara Bank | 10.95-16.40 | 10,859-12,266 | 2,172-2,453 | 0.50% (Maximum Rs 2,500) |
| Punjab National Bank | 10.40-17.95 | 10,772-12,683 | 2,144-2,537 | Up to 1% |
| HSBC Bank | 9.99-16.00 | 10,621-12,159 | 2,124-2,432 | Up to 2% |
| Federal Bank | 11.49 onwards | 10,994 onwards | 2,199 onwards | Up to 3% |
| Union Bank of India | 11.35-15.45 | 10,959-12,013 | 2,192-2,403 | Up to 1% (Maximum Rs 7,500) |
| Bajaj Finserv | 11.00 onwards | 10,871 onwards | 2,174 onwards | Up to 3.93% |
| Punjab & Sind Bank | 10.75-13.50 | 10,809-11,505 | 2,162-2,301 | 0.50%-1% |
| South Indian Bank | 12.85-20.60 | 11,338-13,414 | 2,268-2,683 | Up to 2% |
| UCO Bank | 12.45-12.85 | 11,236-11,338 | 2,247-2,268 | Up to 1% (Minimum Rs 750) |
| IDFC First Bank | 10.99 onwards | 10,869 onwards | 2,174 onwards | Up to 2% |
| Bank of Maharashtra | 10.00-12.80 | 10,624-11,325 | 2,125-2,265 | 1% (Rs 1,000-Rs 10,000) |
| Karnataka Bank | 13.43 | 11,487 | 2,297 | Up to 2% of loan amount (Min. Rs 2,500 & Max. Rs 8,500) |
| IndusInd Bank | 10.49 onwards | 10,744 onwards | 2,149 onwards | 1.5% -3.5% |
| Rates and charges as of 9th April 2024 | ||||
| Source: Paisabazaar.com | ||||
Is it mandatory to buy insurance policy with Personal Loan?
According to the Union Bank of India website, "This is optional and purely at the discretion of the Borrower. However, getting a liability/life insurance cover is always advisable so that family members don’t suffer in case of any unfortunate event. For the benefit of the borrowers, a one-time Liability Insurance premium can be added to the cost of the property so that the burden can be reduced. Further, the Bank has tied up with various Insurance Providers so that suitable products can be available to its customers with reasonable premiums."
Also read: Home loan interest rates April 2024: Banks offering cheapest interest rates for home loans above Rs 75 lakh
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