Lenders are cautious about personal loans because they don’t need collateral. Lenders evaluate a borrower’s creditworthiness based on many criteria, including credit scores, income, occupation, employer profile, and more. You can apply for a personal loan in an emergency, such as unanticipated medical costs or losing your job. But remember that there are significant interest rates.
According to data from Bankbazaar, here are the banks offering the most affordable personal loans with interest rates ranging from 9.47% to 12.40%:
– Bandhan Bank: Starting at 9.47% interest, with an EMI of Rs 12,455 for a Rs 5-lakh loan over four years.
– IndusInd Bank: Starting at 10.49% interest, with an EMI of Rs 12,690 for a Rs 5-lakh loan over four years.
– HDFC Bank: Starting at 10.75% interest, with an EMI of Rs 12,750 for a Rs 5-lakh loan over four years.
– ICICI Bank: Starting at 10.8% interest, with an EMI of Rs 12,760 for a Rs 5-lakh loan over four years.
– Axis Bank, Kotak Mahindra Bank, IDFC First Bank, and Yes Bank: Starting at 10.99% interest, with an EMI of Rs 12,805 for a Rs 5-lakh loan over four years.
– State Bank of India: Starting at 11.15% interest, with an EMI of Rs 12,840 for a Rs 5-lakh loan over four years.
– Bank of Baroda: Starting at 11.4% interest, with an EMI of Rs 12,900 for a Rs 5-lakh loan over four years.
– Union Bank of India: Starting at 11.75% interest, with an EMI of Rs 12,980 for a Rs 5-lakh loan over four years.
– Canara Bank: Starting at 11.95% interest, with an EMI of Rs 13,025 for a Rs 5-lakh loan over four years.
– Punjab National Bank: Starting at 12.4% interest, with an EMI of Rs 13,130 for a Rs 5-lakh loan over four years.
Lenders are cautious about personal loans because they don’t need collateral. Lenders evaluate a borrower’s creditworthiness based on several criteria, including credit scores, income, occupation, employer profile, and more. You can apply for a personal loan in an emergency, such as unanticipated medical costs or losing your job. But remember that there are significant interest rates.