Taking a personal loan is one way to get access to funds when you need them. Personal loans typically have lower interest rates than credit cards and allow you to borrow a lump sum and repay it over fixed EMIs (equated monthly installments). When choosing a bank for a personal loan, interest rate is a key factor as it impacts your overall repayment amount.
Here are the top 5 banks offering personal loans at competitive interest rates in 2024:
1. SBI – Starting at 8.9% Interest
The State Bank of India (SBI) offers personal loans starting at an interest rate of 8.9% per annum for salaried individuals.
Key features:
- Loan amount up to ₹35 lakh
- Repayment tenure up to 5 years
- Minimal documentation
- Pre-approved offers for existing customers
SBI offers competitive rates and charges no processing fees on loans. You can get approvals within a few days. It also has an easy application process with the option to apply online or at your nearest branch.
2. HDFC Bank – Starting at 10.5% Interest
HDFC Bank provides personal loans starting at 10.5% interest per annum for good credit customers.
Key features:
- Loan amount up to ₹40 lakh
- Repayment period from 1 to 5 years
- Online application and tracking facility
- Fast processing and disbursal
HDFC Bank offers personalized quotes using a personal loan eligibility calculator. It also provides flexibility in EMIs. You can get approval in as little as 30 minutes with minimal documentation. HDFC offers competitive rates for salaried and self-employed borrowers.
3. ICICI Bank – Starting at 10.75% Interest
ICICI Bank provides instant personal loans starting at 10.75% per annum interest for amounts up to ₹40 lakh.
Key features:
- Collateral free loans
- Exclusive pre-approved offers for existing customers
- Flexible tenure from 1 to 5 years
- Quick approval through an easy online process
ICICI offers instant disbursement for pre-approved customers. For others, approval happens within a few working days. The application process is digital and paperless. The interest rate is competitive for both salaried and self-employed individuals.
4. Axis Bank – Starting at 10.9% Interest
Axis Bank’s personal loan interest rates start at just 10.9% per annum.
Key features:
- Loan amount up to ₹40 lakh
- Online application with minimal documents
- Flexible repayment upto 5 years
- Pre-approved offers and fast disbursal for existing customers
Axis Bank offers high eligibility and attracts lower interest rates for customers with an excellent credit score. You can check your pre-approved offer and apply online. The process is quick and transparent. The minimum documentation feature expedites approval and disbursal.
5. Bank of Baroda – Starting at 9.9% Interest
Bank of Baroda (BOB) offers personal loans starting at an interest rate of just 9.9% per annum on a reducing balance method.
Key features:
- Borrow up to ₹40 lakh
- Repay over 1 to 5 years
- Nil foreclosure and prepayment charges
- Minimal documentation
BOB has easy eligibility criteria and extends loans to salaried, self-employed professionals and businessmen. Existing customers can get pre-approved offers with expedited disbursal. The application process can be completed online or at your nearest branch.
Key Takeaways
- SBI, HDFC, ICICI, Axis and BOB offer the most competitive interest rates on personal loans.
- Interest rates start at 8.9% and go up to 10.9% based on eligibility criteria.
- Loan tenure ranges from 1 to 5 years across most leading banks.
- Online application and fast disbursal make the process quicker and more convenient.
- Check your pre-approved offer eligibility before applying.
- Compare across banks to get the best interest rate based on your credit profile.
Lower interest rates help reduce your overall repayment burden. Evaluate all the features, eligibility criteria and charges while choosing the right lender for your personal loan.