A personal loan is the best option that is available to an individual in times of a financial setback. This can be availed easily and requires minimum paperwork. These open-ended and unsecured loans come with higher rates of interest when compared with a gold loan, home loan or a car loan. Besides, these kinds of loans are collateral-free which makes it the most viable option in times of dire emergencies. While availing of a personal loan you must compare the interest rates offered by different banks and select the one with a low-interest rate. Presently, SBI, PNB and HDFC personal loan have the best interest rates
Below is a list of these three banks along with their interest rates, key features and benefits for you.
State Bank Of India
SBI is one of the largest lending institutions in India. It offers different types of loan schemes to its borrowers, such as the Xpress credit Loan, Xpress Elite Loan and SBI Pension Loan. It also allows pre approved loan facilities which involve very little paperwork and is hassle-free. SBI Personal Loan can be used for various purposes such as business expansion, marriage, debt consolidation and medical emergency.
Rate of Interest: The interest rate varies between 10.45% to 16.55% per annum.
- The highest loan amount that can be availed is Rs. 20 Lakhs.
- It charges a processing fee of 1% of the sanctioned loan amount.
- The repayment tenure is 5 years.
- The individual must have an income of Rs. 15000 per month to avail of an SBI personal loan.
- The age criterion is between 21 years to 60 years by the time of loan maturity.
- The prepayment charge is 3% of the prepaid loan principal.
- The tenure is flexible.
- It has different loan schemes depending pensioned, salaried and self-employed individuals.
- It can be availed online.
- It involves minimum documentation.
- It offers quick disbursal.
- The procedure is hassle-free.
Punjab National is among the top financial institutions of the country. It offers different loan schemes based on different types of applicant. The PNB personal loan can be availed to fulfil professional and personal needs.
Rate of interest: The PNB personal loan interest rate ranges from 9.95% to 14.50% per annum.
- The loan amount varies between Rs. 25,000 to Rs. 15 lakhs.
- The tenure of repayment varies between 1 year to 7 years.
- The processing charge is 1.80% of the principal loan.
- The minimum age must be 21 years and the maximum must be 58 years to avail of a personal loan.
- A salaried individual must have a monthly income of Rs. 30,000 to avail this loan.
- It does not charge any prepayment fees.
- PNB has several attractive personal loan schemes.
- The tenure is flexible.
- The loan can be availed both online and offline.
- It has the option of foreclosure.
- No hidden charges are levied. The bank informs the respective borrower about all the charges that will be imposed for processing the loan.
- The services are transparent.
HDFC is one of the leading financial institutions of India. HDFC personal loan can be availed easily during a financial emergency due to its easy documentation.
Rate of interest: The rate of interest ranges from 10.45% to 21.30% per annum.
- A maximum loan of Rs. 40 lakhs can be availed at a time.
- The tenure is between 1 year to 5 years.
- The processing fee is 2.50 of the loan amount, that is up to Rd. 2,999 of the total amount.
- The borrower must have a monthly income of Rs. 15,000 to avail HDFC personal loan.
- The borrower must have a working experience of two years to avail of this loan, where you need to be working with the present organisation for at least a year.
- The age criteria is between21 years to 60 years by the time of loan maturity.
- The bank levies a prepayment charge of 4% of the loan principal.
- The bank offers a flexible tenure.
- The processing involves minimal paperwork.
- With the HDFC Sarv Suraksha Pro policy, you can avail of an accidental health cover, hospitalisation cover, permanent disability cover and a credit shield cover.
- The bank offers insurance covers for serious illnesses and accidents.
- The processing is quick and the loan amount is disbursed the same day of the application.
Beside these factors, availing a personal loan also depends on your Cibil score. Usually, banks provide a personal loan when the individual has a credit score of 750 and above. Try maintaining a good score for a reduced interest rate. Besides, always have the repayment plan chalked out. Remember to choose a shorter period and a higher EMI. This will prevent you from paying higher interest rates and reduce your financial obligations in the long run.