Top 10 Banks Bidding Lower Interest Rates On Personal Loans

One of the main factors deciding the borrowing costs is the interest rate. A lower interest rate is beneficial as it reduces the borrower's interest payout for the overall tenure of the loan. Unsecured loans, however, are better prevented since they come with elevated interest rates. After eliminating all the much cheaper secured loan alternatives, such as loans towards life insurance policies, securities, mutual funds and even top-up home loans, you have to think for personal loans only for emergency situations. That being said, if you have no other alternative but to avail for a personal loan, we have a selection of banks that give you the lowest interest rates on personal loans.

Union Bank of India heads the table with a five-year term and the lowest interest rate of 8.9 percent for a loan of Rs 5 lakh. Punjab National Bank (PNB) and the Central Bank of India are next on the ranking, with 8.95 percent. For a Rs 5-lakh personal loan, the state-owned giant State Bank of India (SBI) is reportedly offering an interest rate of 9.6 percent. For the data analysis, personal loan interest rates for all mentioned public and private banks (BSE) are considered. There is no consideration for banks for which data is not accessible on their portals. Based on interest rates, banks are classified in ascending order, i.e. banks promising the lowest interest rate on personal loans are positioned at the top and the highest at the edge. EMI is determined on the basis of the Rs 5-lakh loan and interest rate with a period of five years respectively. Remember that the interest rates shown in the table are emblematic and can differ based on the terms and conditions of the bank.

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