A Personal Loan is an unsecured loan that is quite helpful in times of need. It has the capacity to save you from immediate financial constraint. Today, there are a number of banks and financial institutions that offer Personal Loans without too much documentation and hassle.
Gone are the days, when availing a loan was a tedious task. Step into any bank of your choice and get your Personal Loan sanctioned within a couple of minutes. Better still, now you have the option of Applying for Personal Loan Online! This saves you time and energy to physically go to a bank. Every bank has different interest rates that are levied on Personal Loans. It is always a good decision to compare the interest rates, carry out a thorough calculation, before investing in one. Before we highlight the banks that offer the Latest Personal Loan Interest Rates, let us have a look at things you should consider before applying for one.
Evaluate the need to avail a Personal Loan before actually investing in one. If you‘re facing a financial crisis and need certain loans to be cleared immediately, you can think about applying for this loan. Bank executives may try to offer loans that you are eligible for, rather than what you really want. You need to be sure whether you really want that amount to be processed and does it actually serve your purpose.
As a borrower, you have to know the costs attached to Personal Loans before availing it. These typically include:
If you have borrowed the amount for a short-term and have the capability to pay it off earlier, you need to check the prepayment options. Certain banks offer you the option to foreclose your loan with low or nil prepayment costs, saving you a great deal of interest rate. However, certain banks levy a prepayment penalty to ensure that you stay within the loan period and bear the full interest rate. Lower the penalty, better it is for you. Use MyMoneyMantra’s Prepayment Amount Calculator, to know how much you save on prepaying your loan.
Some banks typically charge a flat processing fee or around 1%-2% of the loan amount. This adds to the total cost of the loan. Lower the processing fee, better it is. Check with your bank before availing one.
Most banks charge a late payment fee if you are delayed in paying your EMI. You need to understand the charges before-hand.
Checking your credit score before applying for a loan gives you an idea regarding your eligibility. It is better to shop for better interest rates and check which banks offer Personal Loans at interest rates that are suitable for you.
Don’t fall for additional Offers with Personal Loans like accident insurance plans or life cover plans, even if they seem lucrative. Study it well before you invest in one. After you are clear with the purpose of your loan, let us have a look at banks that offer Latest Personal Loan Interest Rates ranging between 10% – 13%.
1. Citibank Offers Personal Loans based on the customer profile. The bank is known to service customers and have a steady clientele who hold a high profile. Their Personal Loan Interest Rates start at 11.75%.
2. ICICI Bank Personal Loan Interest Rate starts at 11.49%.
3. HDFC Personal Loan Interest Rate starts at 11.49% moving upwards. It is one of the most recognised financial institutions serving multiple corporates. Understand their personal loan policy before investing in one.
4. Kotak Mahindra Bank Personal Loan Interest Rate starts at 11.50%.
5. SBI Personal Loan Interest Rate starts from 12.55%. Evaluate the period that you require the loan for and your repayment capacity before applying for one.
Besides this, financial institutions such as Tata Capital, Bajaj Finserv, Axis Bank, Bank of Baroda, IndusInd Bank, and others Offer Personal Loans at interest rates ranging between 10% – 13%.
*Since Personal Loans are usually short tenure unsecured loans, the period makes a lot of difference in deciding the rates.
Compare the Latest Personal Loan Interest Rates and Eligibility on www.mymoneymantra.com to make an informed decision. We help you with the right tools and guide you with all the pros and cons before availing a personal loan.
Also Read: 5 Tips to Make Your Family Financially Savvy
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