With interest rates on a decline, you can get personal loan at THESE rates. But only if…
Lenders tend to give personal loans at low rates of interest to those borrowers who have a good credit score
Personal loans: This calendar year, Reserve Bank of India (RBI) has cut repo rates by 100 basis points, thus leading to lower interest rates on loans as well as fixed deposits. From home to car – several loan categories are set to get cheaper now.
However, the same may not be true for personal loans. These loans are given at fixed rates, therefore, their interest rates do not change during the tenure of loan. These are the interest rates offered on personal loans by banks in the private and public sector.
Personal loan at low rate of interest
As personal loan interest rates tend to sway between two extremes, those borrowers whose credit score is high can procure loans at a low rate of interest. In contrast, borrowers with low credit scores are offered loans at a high rate of interest.
In fact, their loan application can be denied as well. Generally, borrowers whose credit score is more than 720 are offered at the lowest rate of interest. Read this article to know how one can achieve a high credit score.
Personal loan interest rates
ICICI Bank: This private bank charges interest in the range of 10.80 to 16.50 per cent per annum.
HDFC Bank: The largest private bank charges anywhere between 10.90 to 24 per cent per annum.
Kotak Mahindra Bank: This private sector bank charges 10.99 per cent per annum on personal loans.
| Bank | Interest rate (%) |
|---|---|
| ICICI Bank | 10.80 to 16.50 per cent |
| HDFC Bank | 10.90 to 24 per cent |
| Kotak Mahindra Bank | 10.99 per annum |
| Federal Bank | 11.49 to 14.49 per cent |
| Union Bank of India | 12.35 to 14.45 per cent |
| Bank of Baroda | 11.25 to 18.30 per cent |
(Source: Bank websites)
Federal Bank: This private sector bank charges interest in the range of 11.49 to 14.49 per cent per annum.
Union Bank of India: This public sector bank charges interest in the range of 12.35 to 14.45 per cent per annum or Union personal loan.
Bank of Baroda: This public sector bank charges interest in the range of 11.25 to 18.30 per cent per annum.
Disclaimer: Mint has a tie-up with fintechs for providing credit, you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit score. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.
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