When you suddenly fall short of finances, precipitating the need to raise money at the drop of a hat, all you can think of is a personal loan. Although the interest rates on personal loans are usually on a higher side, they can at least meet the urgent need of finances as and when they arise.
Raising a personal loan is super easy if you are a salaried employee. The documents required for the same include the past three months’ salary slips, bank statement and ID proof documents such as driving license or Aadhaar card.
In some cases, the bank could even ask for the income tax return (ITR) proof documents such as 26AS and AIS (Annual Information Statement).
Notably, some banks recently raised their marginal cost of lending based rates, or MCLR, thus impacting the EMIs of borrowers.
Here we give a lowdown on some of the top banks and interest rates they charge on offering personal loans:
Lowest interest rates on personal loans:
HDFC Bank: The largest private bank charges a minimum of 10.5 percent and up to 24 percent for the salaried persons. However, one has to pay processing charges of ₹4,999.
ICICI Bank: The second largest private bank charges a minimum of 10.65 percent while the maximum rate is 16 percent per annum. But the borrower might have to pay a processing fee of up to 2.5 percent of loan amount plus applicable taxes.
The tenure can be anywhere between 12 months and 72 months.
Kotak Mahindra Bank: This private lender offers personal loans at interest rates that start at 10.99 percent per annum. The bank’s website does not specify the higher limit.
However, the loan processing charges can be up to 3 percent of loan amount.
| Bank name | Minimum interest rate (%) |
| HDFC Bank | 10.5 |
| ICICI Bank | 10.65 |
| Kotak Mahindra Bank | 10.99 |
| IndusInd Bank | 10.25 |
| State Bank of India | 12.30 |
| Bank of Baroda | 12.40 |
(Source: Banks’ websites)
IndusInd Bank: This private bank charges a minimum of 10.25 percent of interest rate and a maximum of 26 percent. The tenure of personal loan can be anywhere between 12 and72 months. The processing charges are anywhere up to 3 percent.
State Bank of India (SBI):The largest government lender offers loans at an interest rate that varies between 11.30 percent and 13.80 percent for government employees.
The state lender offers loans to corporate employees at a rate that is between 12.3 percent and 14.3 percent. The employees of defence forces are eligible to procure personal loan for interest rates that vary between 11.15 and 12.65 percent.
Bank of Baroda (BOB): This state lender offers personal loan for interest rate that starts at 11.90 percent for government employees and 12.40 percent for corporate employees. The maximum interest can go up to 16.75 percent.
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Published: 12 Jan 2024, 05:52 PM IST
