A personal loan is one of the best ways to utilize future income in the present. This loan is easier than taking other products such as a home or education loan.
If you already have an account with any bank then you must have got many offers for personal loan. By the way, taking a personal loan is quite easy and you get it instantly. But its interest rates are higher than that of car loans. This is because personal loans are unsecured loans. This means the loan is not backed by any asset. You do not need to own any asset like property or gold to avail a personal loan.
Although many banks are offering personal loans at affordable rates, these affordable rates also depend on the credit score of the borrower. If you give a personal loan of Rs 1 lakh, then the EMI will be Rs 2049 to Rs 2363 per month for 5 years according to the prevailing interest rates. Let us also tell you which bank is giving which interest rate personal loan. According to that how much EMI will have to be paid.
Loan of 1 lakh and Tenure and EMI of 5
| banks’ name | Interest Rate (in %) | EMI (in Rs.) |
| Punjab National Bank | 8.45 to 14.50 | 2049 to 2363 |
| bank of maharashtra | 8.55 to 12.90 | 2054 to 2270 |
| Indian Bank | 9.05 to 13.65 | 2078 to 2309 |
| Union Bank of India | 9.30 to 13.40 | 2090 to 2296 |
| Punjab And Sind Bank | 9.50 to 11.50 | 2100 to 2199 |
| IDBI Bank | 9.50 to 14 | 2100 to 2327 |
| State Bank Of India | 9.60 to 13.85 | 2105 to 2319 |
| Central Bank Of India | 9.85 to 10.05 | 2117 to 2149 |
| Bank Of Baroda | 10 to 15.60 | 2125 to 2411 |
| HDFC bank | 10.25 to 21 | 2137 to 2877 |
Keep these things in mind before taking a personal loan
- Personal Loan Eligibility: The first thing you should do is check your own personal loan eligibility. You should also check where your bank is and how much loan other banks are giving you.
- Checking Credit History : Before applying for a loan, it is most important to check the credit history or CIBIL score. If your credit score is good then you can get loan easily and at attractive interest rate. A credit score over 700 is considered good.
- Comparison of Offers: While taking a loan, we should pay the most attention to which bank is giving the loan at the lowest interest. The aspect of processing fees should also be taken into account. Also, other offers should be considered.
- Credibility: The creditability of the banker must also be checked before taking a loan. Offer to give loan in few minutes. Don’t fall for them. Loan should be taken from a reputed lender only.
- These documents are required: Income related document proof, Form 16, ITR, Aadhar card and PAN card are required for personal loan.
