During the festive season, personal loan demand surges as top banks offer attractive deals, including discounted interest rates and waived processing fees for borrowers with good credit scores. Festive expenses, emergency medical bills, and unexpected financial needs drive this demand.
2/11
Personal loans are unsecured, meaning no collateral is required, but this increases lender risk. To offset this, lenders evaluate creditworthiness based on credit score, income, occupation, and employer profile. Because of the higher risk, interest rates are typically high, so borrowers should be cautious. According to BankBazaar, some banks offer personal loans with interest rates starting from 9.98 percent to 13.75 percent for a 1-year tenure. Data as of September 22.
3/11
Private sector lender Kotak Mahindra Bank charges an interest rate starting from 9.98 percent on personal loans. The EMI on Rs 1-lakh loan with a one-year repayment period is Rs 8,791.
4/11
Axis Bank and HDFC Bank charge interest rates starting from 9.99 percent on personal loans. The EMI on a Rs 1-lakh loan with a one-year repayment period is Rs 8,791.
Public sector lender, the State Bank of India offers the cheapest interest rate on personal loans starting at 10.05 percent. The EMI on a Rs 1-lakh loan with a one-year repayment period amounts to Rs 8,794.
6/11
Bank of Baroda levies an interest rate starting from 10.40 percent on personal loans. The EMI on a Rs 1-lakh loan with a one-year repayment period amount to Rs 8,810.
7/11
Starting at 10.5 percent, Punjab National Bank offers personal loans of Rs 1 lakh for a repayment tenure of one year. The EMI will be Rs 8,815.
8/11
ICICI Bank levies an interest rate starting from 10.6 percent on personal loans. The EMI on a Rs 1-lakh loan with a one-year repayment period is Rs 8,820.
Union Bank of India levies an interest rate starting from 10.75 percent on personal loans. The EMI on a Rs 1-lakh loan with a one-year repayment period is Rs 8,827.
10/11
Starting at 10.85 percent, Yes Bank offers personal loans of Rs 1 lakh for a repayment tenure of one year. The EMI will be Rs 8,831.
11/11
Starting at 13.75 percent, Canara Bank offers personal loans of Rs 1 lakh for a repayment tenure of one year. The EMI will be Rs 8,967.
