Union Bank, Central Bank of India offer the lowest rates on personal loans
Interest rates start at 8.9 percent for a Rs 5-lakh loan
September 06, 2021 / 10:32 AM IST
The unsecured loan segment has seen significant growth during the last 18 months, as COVID-19 took its toll on Indians’ jobs and finances. Non-performing assets, too, have risen in the personal, consumer and two-wheeler loan segments on the back of financial stress.
It is never a good idea to take a personal loan to take care of your regular expenses. However, if you have exhausted all other options, including gold loans and loans against mutual funds and stock investments, you can look at personal loans. The interest rates continue to be economical, with top ten cheapest bank loans carry interest rates of 8.9-10.05 percent.
Moreover, several banks also offer COVID-19-specific personal loans. Bank of India’s COVID-19 personal loan starts at an interest rate of 6.85 percent.
Ensure that you make use of these concessional rate loans only in times of crisis and pay off the loans as soon as you can to avoid stepping into debt traps.
A note on the table
Interest rates on personal loan for all listed (BSE) public and private banks have been considered for data compilation. Banks for which data is not available on their websites have not been considered. Banks are listed in the ascending order on the basis of interest rates, that is, banks 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 a Rs 5-lakh loan with tenure of five years (processing and other charges are assumed to be zero for EMI calculation). Interest and charges mentioned in the table are indicative and may vary depending on banks’ terms and conditions.