State-owned banks, like other retail loan segments, dominate the battle in providing lower interest rates on personal loans. The personal loan rate of the Union Bank of India on a Rs 5-lakh loan with a term of 5 years begins at 8.9 percent. With 8.95%, it is followed by the Punjab National Bank (PNB) and the Central Bank of India. Generally speaking, personal loans are pricey, and they are unsecured loans.
If you have explored all other investment options, including loans against endowment insurance plans, mutual funds or other government backed funds, personal loans are considered useless. To settle your personal loan dues, look at borrowing against those assets and hence, avoid a fall into a debt pitfall. You need to take immediate action to reduce your credit strain, if you have already availed personal loans or applied for a six-month moratorium granted last year by the RBI.
|Sr No.||Banks||ROI per annum in %|
|1||Union Bank of India||8.90|
|2||Punjab National Bank||8.95|
|3||Central Bank of India||8.95|
|5||Bank of Maharashtra||9.55|
|8||Bank of Baroda||10.10|
Banks are classified in increasing order on the basis of interest rates on the above framed table, i.e. banks providing the cheapest personal loan interest rate are put at the top and highest at the end. EMI is determined on the basis of the interest rates set out in the table for the five-year term and a loan amount of Rs 5 lakh.