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A Quick Look At How Personal Loan Interest Rates Compare
You can never predict the precise interest rates on personal loans in India, because they could vary, depending on the borrower. For example, if you have a bad credit score, the interest rate charged would be higher. It really depends on how well you negotiate with the bank. This is unlike a home loan, where the amounts are really fixed.
You need to really negotiate and negotiate well. Take a look at how personal loan interest rates compare, along with processing fees.
HDFC Bank
HDFC Bank charges an interest rate of 11.49 per cent to 20 per cent, depending on the creditworthiness of the borrower. The processing fee is up to 2.5 per cent of the loan amount with a maximum of Rs 25,0000 as processing fee and minimum of Rs 1,000.
The interest rates from HDFC Bank is pretty decent and the bank is also known to provide quality service and speedy disbursal.
Remember, there is a very high charge on pre-payment, so if you are planning to pre-pay, this may not be the best option.
ICICI Bank
The interest rates on ICICI Bank personal loan gets even higher at up to 22 per cent on the higher side.
The range is 11.49%-22.0% per annum. Remember, the upper end of the personal loan interest is very high. You should avoid taking loans at 22 per cent per annum.
Cannot help, if you are not too credit worthy. Also check with the bank as regards the pre-payment charges. The processing fee at 2.5 per cent of the loan amount is not the cheapest.
Bajaj Finserv
The Bajaj Finserv personal loan is good for one big reason and that is because there is no pre-payment charges. Imagine, if there is a 4 per cent pre-payment charge and you wish to repay the loan, you can end-up paying very high amounts.
It is a good idea to hence take a personal loan from Bajaj Finserv, just in case you wish to pre-pay. The interest rate charged is 12.5%-16% per annum, which is again not a bad deal at all.
Overall, pretty competitive on most parameters.
Tata Capital
Personal loan from Tata Capital is not the cheapest. The interest rate is 12.75 per cent to 19.0 per cent per annum. There is also a higher processing fee that ranges from 2-3 per cent of the disbursed loan amount, depending on a few other parameters.
We are not sure, if there is a pre-payment charge that applies. In case it is waived-off, personal loan from Tata Capital could be a good bet.
Kotak Bank
The personal loans from Kotak Bank are also very competitive. In fact, the interest rate of the bank ranges from 11.50%-24% per annum, which compares well with peers.
There is a processing fee that is charged up to 2 per cent of the loan amount and there is also a applicable service tax.
Go for it, if the bank charges, you an interest rate of around 11.50 per cent.
Disclaimer
While we have made every bit of effort to get right details, including the interest rates, you need to confirm with the banks for all the exact details including interest rates and processing fees.
