Personal loans: Banks that offer the lowest interest rates on a Rs 1-lakh loan
Bandhan Bank, HDFC Bank, and State Bank of India offer interest rates between 9.47 and 11.15 percent on a personal loan of Rs 1 lakh for a tenure of 4 years.
A personal loan is an unsecured loan that requires no collateral. Good credit scores make it easier to get personal loans quickly. You could apply for a personal loan if you need money for emergency purposes such as sudden and uninsured medical expenses, situations arising out of job loss, and so on. Be cautious though; interest rates on personal loans are high. It's easier to get a loan, but if you miss your Equated Monthly Instalments or worse, fail to repay principal, your debt balloons, credit score becomes bad, and you face the wrath of debt collectors. It is better to redeem from low-yield or dud investments for emergency needs. As per data compiled by Bankbazaar, these are the banks offering the cheapest personal loans with interest rates in the range of 9.47-12.4 percent.
Starting at 9.47 percent, Bandhan Bank offers the cheapest interest rate on personal loans of Rs 1 lakh that come with a repayment tenure of four years. The equated monthly installment (EMI) will be Rs 2,592.
Private sector lender IndusInd Bank offers an interest rate starting from 10.49 percent on personal loans. The EMI on a Rs 1-lakh loan with a four-year repayment period amounts to Rs 2,560.
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Axis Bank, Bank of India, Citibank, HDFC Bank, and IDFC First Bank levy an interest rate starting from 10.75 percent on personal loans. The EMI on a Rs 1-lakh loan with a four-year repayment period is Rs 2,572.
Private sector lender ICICI Bank levies an interest rate starting from 10.8 percent on personal loans. The EMI on a Rs 1-lakh loan with a four-year repayment period is Rs 2,575.
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Kotak Mahindra Bank and Yes Bank levy an interest rate starting from 10.99 percent on personal loans. The EMI on a Rs 1-lakh loan with a four-year repayment period is Rs 2,584.
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India's largest bank the State Bank of India charges an interest rate starting from 11.15 percent on personal loans. The EMI on a Rs 1-lakh loan with a four-year repayment period is Rs 2,592.
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Government-owned Bank of Baroda offers an interest rate starting from 11.4 percent for personal loans. Canara Bank also offers a personal loan at an interest rate starting from 11.4 percent. The EMI on a Rs 1-lakh loan with a four-year repayment period at these banks is Rs 2,604.
Union Bank of India levies an interest rate starting from 11.75 percent on personal loans. The EMI on a Rs 1-lakh loan with a four-year repayment period amounts to Rs 2,621.
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Public sector bank Punjab National Bank charges an interest rate starting from 12.4 percent on Rs 1-lakh personal loans with four-year tenures. The EMI will amount to Rs 2,653.
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A note from Bankbazaar.com: Interest rates on personal loans from the top 15 banks by unsecured assets are considered. Interest rates for eligible borrowers only. Data has been collected from the respective banks' websites as on March 20, 2024. Banks are listed in ascending order on the basis of interest rates — the bank offering the lowest interest rate on the personal loan is placed at the top and the highest at the bottom. EMI is calculated on the basis of the interest rate mentioned in the table for Rs 1 lakh loan with a tenure of four years (processing and other charges are assumed to be zero for EMI calculation).
is a personal finance journalist with over 10 years of reporting experience. Based in Mumbai, he covers financial planning, banking and fintech segments from personal finance team for Moneycontrol.
