What is a Personal Loan?

A personal loan could be understood as a sort of loan that can be obtained by a loan seeker from financial institutions such as banks, online lenders, or credit unions in order to meet expenses of various personal requirements.

Such loans are unsecured, unlike other forms of loans, meaning these don’t require any collateral. The amount received as a loan needs to be paid to the lender in the form of EMI or instalments.

Personal Loan Interest Rates Charged by Banks

Here is a list of banks and the rate of interest charged by them for personal loans:

• HDFC Bank: This financial institution charges between 10.90 and 24 per cent per annum.
• ICICI Bank: This privately owned bank charges personal loan seekers between 10.80 and 16.50 per cent per annum.
• Kotak Mahindra Bank: This famous private bank charges 10.99 per cent per annum on personal loans.
• State Bank of India: SBI is the biggest public-sector bank that charges an interest rate starting at 10.3 per cent per annum.
• Axis Bank: The interest rate for personal loans at Axis Bank starts at 11.25 per cent per annum.
• Yes Bank: This private sector bank levies an interest rate of 10.99 per cent per annum.
• HSBC Bank: The Interest rate for personal loans at HSBC bank stands at 10.15 per cent to 16 per cent per annum.

How to Secure a Personal Loan at a Lower Interest Rate?

These tips can help you secure a personal loan at a lower interest rate:

Comparing multiple lenders: The loan seeker should always do a comparison between various financial institutions providing personal loans at low interest rates. This will help in finding the most suited bank for the person seeking a personal loan.

Prepayment options: Choosing loans that come with flexible prepayment options, repayment structure or EMI options.

Customer service team: Asking or getting in touch with the loan provider’s customer support can help in bringing more clarity about the terms and structure at which the lender provides the loan.