Personal loan rates: Personal loan interest rates 2022: Comparison of personal loan rates from the best banks

Interest rates on personal loans are among the highest, so it would be prudent to borrow from a lender offering relatively low rates with a lower term (the longer the term, the higher the interest). Moreover, banks offer the lowest interest rate to customers who have an excellent credit rating.

For example, IDBI Bank personal loan interest rates start at 8.15% and go up to 14%; these come with a term of 12 to 60 months and for an amount between Rs 25,000 and Rs 5 lakh. State Bank of India (SBI) personal loan rates start at 9.6% and go up to 15.65%; these come with a tenor of 6 to 72 months and one can borrow between Rs 25,000 and Rs 20 lakh.

Interest rate, loan amount offered by banks for personal loans

BANKS Personal loan amount Mandate Return on investment (%)
AU Small Financial Bank Up to 7.5 lakes Up to 60 months 12.00% – 22.00%
Axis Bank Up to 15 lakes Up to 60 months 12.00% – 21.00%
Bandhan Bank >=50000 and 12 – 36 months >=10.50%
Bank of Baroda >=50000 and 48 – 60 months 10.60% – 15.60%
Bank of India Up to 10 lakes 36 – 60 months 10.75% – 12.75%
Bank of Maharashtra Up to 10 lakes 60 months >=9.45%
Canara Bank Up to 20 lakes Up to 60 months 12.40% – 13.90%
central bank of india Up to 10 lakes 48 months 9.85% – 10.05%
city ​​union bank >=5000 and 12 months >=9.50%
Dhanlaxmi Bank >=1 lakes and 12 – 60 months 11.90% – 15.70%
federal bank Up to 25 lakes 48 months 10.49% to 17.99%
HDFC Bank Up to 15 lakes 12 – 60 months 10.50% – 21.00%
BIO Up to 5 lakes Up to 60 months 10.00% – 11.00%
ICICI Bank Up to 20 lakes 60 months 10.25% – 19.00%
IDBI Bank >=25000 and 12 – 60 months 8.15% – 14.00%
First IDFC Bank >=1 lakes and 12 – 84 months >=10.49%
Indian bank >=50000 and 12 – 36 months >=8.50%
IndusInd Bank >=50000 and 12 – 60 months 10.49% – 31.50%
J&K Bank Up to 1.50 Lacs 48 months >=10.80%
Bank of Karnataka Up to 5 lakes Up to 60 months >=12.45%
Karur Vysia Bank Up to 10 lakes 12 – 60 months 9.40% – 19.00%
Kotak Mahindra Bank >=50000 and 12 – 60 months >=10.25%
Bank of Punjab and Sindh >=1 lakes and Up to 60 months 9.50% – 11.50%
National Bank of Punjab Up to 10 lakes Up to 60 months 7.90% – 14.45%
RBL Bank Up to 20 lakes 12 – 60 months 14.00% – 23.00%
Bank of South India >=1 lakes and Up to 60 months 10.60% – 18.10%
National Bank of India >=25000 and 06 – 72 months 9.60% – 15.65%
Union Bank of India >=5 lakes and Up to 60 months 8.50% – 13.00%
Yes Bank >=1 lakes and 12 – 60 months >=10.99%
Ujjivan Small Finance Bank >=50000 and 12 – 60 months 11.49% – 16.49%

All data sourced from Economic Times Intelligence Group (ETIG)
Data as of May 19, 2022

A personal loan comes in handy when we are low on funds and need money as soon as possible. A personal loan is an unsecured loan granted by a lender. While taking this loan, the potential borrower is not required to post any collateral or collateral against the loan unlike a gold loan where the gold jewelry is taken as collateral by the lender.

Read on to learn more about personal loans.

Where can you get a personal loan?
While one can approach friends and relatives for a personal loan, lending institutions such as banks and non-bank financial companies (NBFCs) offer personal loans in a more structured, “on-demand” format. Apart from banks like State Bank of India (SBI), HDFC Bank, NBFCs like Tata Capital, Bajaj Finserv also offer personal loans. As the personal loan from friends and relatives is not always readily available, we will consider the more structured format of personal loans offered by lending institutions.

Maximum and minimum amount
The minimum and maximum amount that can be withdrawn varies from one lending institution to another. For example, according to its website, SBI offers a maximum personal loan of Rs 20 lakh to salaried employees. On the other hand, HDFC Bank offers personal loans up to Rs 12 lakh, according to the bank’s website.

According to the Tata Capital website, you can take out a minimum personal loan of Rs 75,000 and maximum of Rs 25 lakh depending on your eligibility.

Fixed or variable interest rate
While taking a loan, one should check with the lender whether the interest rate offered on the personal loan is fixed or floating. In the case where the interest rate is fixed, changes to the bank’s MCLR will not impact the amount of your equivalent monthly payment (EMI). Also keep in mind that normally the interest rates charged on personal loans are much higher than on mortgages or loans against gold, as the former are unsecured loans.

Ability to apply for personal loans
Eligibility criteria for sanctioning personal loans vary from lender to lender. To qualify for a personal loan from SBI, your minimum monthly income must be Rs 15,000 whether or not you have a salary account with the bank, as per the bank’s website.

In the case of HDFC Bank, to be eligible for a personal loan, a person must be between the ages of 21 and 60 and have been employed for at least two years, with a minimum of one year with the current employer. Additionally, if the salary account is maintained with HDFC Bank, the individual must have a minimum net income of Rs 25,000 per month. If the person is not an HDFC bank account holder, he must have a minimum net income of Rs 50,000 per month.

Your credit score will also play an important role in determining whether or not you qualify for the personal loan.

Duration of personal loans
Usually, a personal loan is offered for a maximum of five years by credit institutions such as banks. However, the duration may vary from one lender to another.

Personal loan fees
To avail a personal loan, a bank or NBFC will levy certain fees such as processing fees, stamp duty and other statutory fees etc. These fees vary from lender to lender.

Additionally, a lender may also levy prepayment fees or pre-closing fees. Therefore, before taking a loan from the lender, check the different types of fees payable.

Disclaimer: The data/information provided above is subject to change. Therefore, before making a decision based on these, please check the terms and conditions with the relevant bank/institution.

For any questions or changes, please write to us at [email protected] or call us at 022 – 66353963.

Bernadine J. Perkins