People are experiencing financial problems in the wake of the coronavirus pandemic owing to employment losses and salary cuts. To deliver certain help to individuals banks have come forward with personal loans with lower interest rates. One of the key factors in making use of a personal loan as a borrower is the interest rate. As an unsecured form of financing, the interest rates on personal loans are a little higher.
It is essential to check which banks are offering the lowest interest rates while opting for a personal loan. A borrower must keep in mind that interest rates are not the only aspect that is factored, a credit score also plays an essential role while availing a personal loan. A good credit score enables the borrower to be creditworthy and goodwill to cover loan reimbursement abilities.
|Sr No.||Bank||Interest Rates (in %)||Tenure|
|1||Punjab National Bank||8.80% and above||Up to 84 months|
|2||IDBI Bank||8.90%||12 months to 60 months|
|3||SBI||9.60% and above||6 months to 72 months|
|4||Central Bank of India||9.85% and above||Up to 48 months|
|5||Citi Bank||9.99% and above||12 months to 60 months|
|6||South Indian Bank||10.15% and above||Up to 60 months|
|7||Bank of Baroda||10.25% and above||12 months to 60 months|
|8||Bank of India||10.35%||Up to 60 months|
|9||Nainital Bank||10.40%||Up to 36 months|
|10||HSBC Bank||10.50% and above||12 months to 60 months|
Strategies to get low-interest rate on a personal loan
Follow the below-listed suggestions to get low interest rate on your personal loan:
- Always hold a good credit score
- Maintain a low status of credit usage.
- Preserve a fixed obligation to income ratio
- Do not avail a personal loan simultaneously with different lenders
- Always avail a personal loan from a bank/NBFC with which you already maintain a savings account or FD