Personal loan is a wonderful weapon to have in your arsenal against financial demons that cause you sleepless nights. One of the best things about such loans is that the personal loan interest rate is dependent on various factors that are within your control. The factors that impact personal loan interest rates are:

  • Your credit score
  • Your credit history
  • You age
  • Your financial history and current financial status
  • Your nature of employment
  • Your annual income

Thus, if you are able to keep these factors in check and ensure that you have a good credit score, then you will get a lower interest on personal loan.

However, you should also be aware if you are eligible for the loan or not. Therefore, you should always check the eligibility criteria to ensure that you do not have to reapply for a loan. The eligibility criterion includes:

  • Age of the applicant
  • Income of the applicant
  • Employment of the applicant
  • Financial history of the applicant
  • Credit history and score of the applicant
  • Purpose of the loan

 

Banks that Provide the Lowest Personal Loan Interest Rates

There are a lot of banks in India that provide a decent interest rate. Click here to know which bank provides the lowest interest rate. However, you should consider a lot of other factors other than interest rates when applying for a loan. The factors you should consider include tenure of the loan, processing fees, maximum amount of loan, etc. The reasons you should consider these factors is because while the bank could offer a low interest rate, the processing fee could be very high. Additionally, the maximum amount of loan offered by the loan could be lower than what you require. That being said here is a list of the banks that provide the lowest personal loan interest rates:

Yes Bank

Yes bank is one of the financial institutions in India that is continuing to expand its market share by offering attractive interest rates and offers. The customers also appreciate the facilities offered by the bank. Noteworthy features of the loan are:

Interest Rate 10.75%
Loan Term 12 to 60 months
Max Loan Amount Offered 20 Lakhs
Processing Fee 0.99% to 2%

Bank of Baroda

Bank of Baroda offers good personal loan interest rates as it has a reputation to protect. However, you should be aware of the factors that influence the interest rates along with the processing fee. Noteworthy features of the loan are:

 

Interest Rate 11.60%
Loan Term 12 to 36 months
Max Loan Amount Offered 2 Lakhs
Processing Fee 2%

Punjab National Bank

Punjab National Bank is one of the largest public sector banks in the nation. The bank offers a two-wheeler loan scheme especially for women known as PNB Power Ride. Noteworthy features of the loan are:

Interest Rate 12%
Loan Term 12 to 60 months
Max Loan Amount Offered 15 Lakhs
Processing Fee 1.8% in addition to taxes

 

Citibank

Compared to other banks on the list, Citibank is relatively new. But, that has not stopped the bank from offering a very low interest rate to the customers. The interest rate on personal loan is Noteworthy features of the loan are:

Interest Rate 10.99%
Loan Term 12 to 60 months
Max Loan Amount Offered 30 Lakhs
Processing Fee 0.5%

 

State Bank of India

The biggest lender in the country is known for offering low interest rates. But, SBI is a public sector bank, and like all banks they take a lot of time to approve a loan. Noteworthy features of the loan are:

Interest Rate 12.50%
Loan Term 12 to 48 months
Max Loan Amount Offered 15 Lakhs
Processing Fee 2% to 3%

Get Personal Loans Instantly

Now you know the banks offer the lowest interest rates on personal loan. But you are also aware that the processing fee makes a huge impact on the amount. So, you need to take that into consideration as well. Additionally, all the banks mentioned above do not offer instant loans. While some of the banks approve personal loans faster compared to other banks, the process is still slower compared to PaySense. PaySense offers you personal loans that are approved instantly. Moreover, the amount is credited to your account instantly as well. Additionally, you do not have to deal with the tiresome application process that includes the never ending documentation process. PaySense has hassle-free documentation process that is streamlined to treat every loan as if they were required urgently. The interest rate on personal loan offered by PaySense is a bit higher compared to the banks but the processing fee is lower than many. However, before applying for any loan, you should always determine the interest rate on personal loan and the EMI that you will need to pay. You can do so by checking it out the EMI calculator for personal loan. So what are you waiting for, check your eligibility and apply for personal loans at PaySense now!