With the festive season upon us, many people seek financial assistance to manage their expenses. Personal loans are one of the most popular ways to meet those needs, along with credit cards. Banks are offering attractive loan deals during this time. Here, we explore the personal loan offers from different banks, helping you find the most affordable options based on interest rates, monthly EMI, and processing charges.
Why Personal Loans?
Personal loans are an easy way to get funds without collateral. Unlike a credit card, a personal loan comes with fixed interest rates and monthly installments. However, while credit cards may charge up to 45% interest annually, personal loans typically range between 10% to 24%, making them a more affordable option for larger expenses.
Documents Required for Personal Loans
When applying for a personal loan, you need to provide essential documents like proof of income, bank statements, identity proof, and proof of residence. After submitting these, the bank reviews your application and decides on approval. This process is simple compared to a credit card application, which may take less time and could even be pre-approved for some customers.
Best Banks Offering Low Interest Rates on Personal Loans
Here is a list of banks offering personal loans at competitive interest rates. The table includes details like interest rates, monthly EMI (based on ₹1 lakh and ₹5 lakh loans for 5 years), and processing fees.
Bank Offers for Personal Loans:
| Bank Name | Interest Rate (p.a. %) | EMI for ₹5 Lakh (5 Years) | EMI for ₹1 Lakh (5 Years) | Processing Fee |
| HDFC Bank | 10.75% onwards | ₹10,809 | ₹2,162 | Up to ₹6,500 |
| State Bank of India (SBI) | 11.45% – 14.85% | ₹10,984 – ₹11,856 | ₹2,197 – ₹2,371 | Nil |
| ICICI Bank | 10.85% onwards | ₹10,834 | ₹2,167 | Up to 2% of loan amount |
| Bank of Baroda | 10.55% onwards | ₹10,759 | ₹2,152 | Nil |
| Axis Bank | 11.25% onwards | ₹10,934 | ₹2,187 | Up to 2% of loan amount |
| Kotak Mahindra Bank | 10.99% onwards | ₹10,869 | ₹2,174 | Up to 5% of loan amount |
| Bank of India | 10.85% – 16.10% | ₹10,834 – ₹12,186 | ₹2,167 – ₹2,437 | 0.50% – 1% (Max ₹10,000) |
| Canara Bank | 10.95% – 16.40% | ₹10,859 – ₹12,266 | ₹2,172 – ₹2,453 | 0.50% (Max ₹2,500) |
| Punjab National Bank | 11.40% – 17.95% | ₹10,971 – ₹12,683 | ₹2,194 – ₹2,537 | Up to 1% of loan amount |
| Federal Bank | 11.49% onwards | ₹10,994 | ₹2,199 | Up to 3% of loan amount |
| Union Bank of India | 11.35% – 15.45% | ₹10,959 – ₹12,013 | ₹2,192 – ₹2,403 | Up to 1% (Max ₹7,500) |
| Punjab & Sind Bank | 11.25% – 14.00% | ₹10,934 – ₹11,634 | ₹2,187 – ₹2,327 | 0.50% – 1% of loan amount |
| UCO Bank | 12.45% – 12.85% | ₹11,236 – ₹11,338 | ₹2,247 – ₹2,268 | Up to 1% (Min ₹750) |
| IDFC First Bank | 10.99% onwards | ₹10,869 | ₹2,174 | Up to 2% of loan amount |
| Bank of Maharashtra | 10.00% – 12.80% | ₹10,624 – ₹11,325 | ₹2,125 – ₹2,265 | 1% (Min ₹1,000, Max ₹10,000) |
| Karnataka Bank | 13.43% | ₹11,487 | ₹2,297 | Up to 2% (Min ₹2,500, Max ₹8,500) |
| IndusInd Bank | 10.49% onwards | ₹10,744 | ₹2,149 | 1.5% – 3.5% of loan amount |
Important Considerations for Festive Personal Loans
While personal loans offer more affordable interest rates than credit cards, they still come with additional charges. Processing fees, prepayment charges, and late payment fees can add to the cost of the loan. Before finalizing any loan, carefully review the terms and conditions, and compare offers from multiple banks to get the best deal.
Interest rates and charges mentioned above are as of October 8, 2024, and are subject to change. Always check the latest rates by visiting the respective bank’s official website or contacting their branches.
