If you are falling short of funds, then a personal loan may be a good option. A personal loan is an unsecured loan obtained to fund your personal expenses such as wedding, holidaying, education, and so on. You do not have to specify the end-purpose for a personal loan as long as you are using the funds for something legal. There are various lending institutions in India that give personal loans and you can apply for it either offline or online. Let us know the current personal loans lowest interest rates 2022 and also check the EMI per lakh of top lenders.
|Lender Name||Interest Rate (in percentage)||EMI in Rupees Per Lakh For 5 Years||Processing Fee As A % of Loan Amount||Maximum Loan Amount In Rupees||Duration||Online Facility|
|HDFC Bank||10.25 % onwards||2,137.03 onwards||Upto 2.5%||Upto 40 Lakhs||Upto 6 years||Yes|
|ICICI Bank||10.25% onwards||2,137.03 onwards||Upto 2.50%||Upto 25 Lakhs||Upto 6 years||Yes|
|Kotak Mahindra Bank||10.25% onwards||2,137 onwards||Upto 2.5%||Upto 25 Lakhs||Upto 5 years||Yes|
|Bajaj Finserv||13.00 onwards||2,275 onwards||Upto 4%||Upto 25 Lakhs||Upto 5 Years||Yes|
|Tata Capital||10.99 onwards||2,174 onwards||Up to 2.75%||Upto 35 Lakhs||Upto 6 years||Yes|
|Axis Bank||10.25 onwards||2,1373.03 onwards||1.5% to 2% onwards||Upto 15 Lakhs||Upto 5 years||Yes|
|IndusInd Bank||10.49 onwards||2,149 onwards||Upto 3%||Upto 25 Lakhs||Upto 5 years||Yes|
|State Bank of India||9.60 to 13.85||2,105 to 2,319||Upto 1.5%||Upto 20 Lakhs||Upto 6 years||Yes|
|IDFC First Bank||10.49 onwards||2,149 onwards||Upto 3%||Upto 25 Lakhs||Upto 5 years||Yes|
How To Obtain Lowest Interest Rates On Personal Loan?
Here are some guidelines which will help you to get the most affordable and lowest interest rates on personal loans.
- Improve Your Credit Score: A credit score is a 3 digit numerical number that summarizes your credit history. The higher the credit score, you are considered more creditworthy. When your credit score is high, you will get loan approval and lower interest rates on personal loans easily. A credit score of above 750 is considered good and you can obtain the lowest and best interest rates from lenders for this credit score. Also, a high credit score gives you the power to negotiate from a pool of lenders and obtain the best interest rates.
- Follow Offers: Banks and financial institutions generally provide special interest rates for a specific period of time during festive seasons. If you apply for a loan while such an offer is present, then you can get the lowest and most affordable interest rates.
- Always Compare Interest Rates: Before applying with a bank or financial institution for a personal loan, you should compare the interest rates offered for personal loans by various banks and financial institutions. Then, you can choose the personal loan with the lowest interest rate based on your eligibility also.
- Negotiate with the Lender: If you are an existing customer of a bank or are maintaining a good relationship with the bank, then you can negotiate for the lowest interest rates. Also, if you have a good repayment history, it will help you get the lowest interest rate.
- Avoid Missing Repayments: Do not default on repayments. Missing out on EMIs for loans or credit card bills will have a negative impact on your credit score. Loan providers will generally take your repayment history into account before deciding the personal loan interest rates. If you have a good credit history and have rarely defaulted with loan EMIs and credit card bills, you will probably get a low interest rate on your personal loan.
How To Calculate The EMI On Your Personal Loan?
You can use the personal loan EMI calculator to calculate the EMI that you will have to pay on your personal loan. Enter the loan amount, repayment tenure, and interest rate in the calculator and it will give you the EMI on a monthly basis.
You can also use a formula to calculate the EMI on your personal loan.
Formula to Calculate Personal Loan EMI
EMI = [PxRX(1+R)^N]/[(1+R)^N-1]
Here, P represents the loan amount
R is the interest rate charged per month
N – It is the total number of monthly installments
What Are The Other Things That You Should Consider When You Select Personal Loans With Low Interest Rate?
The things to consider when you choose personal loans with low interest rates are:
- Processing Fee: People who lend loans charge processing fees, which features in the hidden charges of the loan. It increases the cost of the loan. Even if the personal loan is at lowest interest rate, it is essential to compare processing fees charged by various lenders.
- Pre-closure charges: If you repay the outstanding amount on your loan before you complete the loan repayment period, banks will charge you a pre-closure fee. If you repay the outstanding loan balance before you complete the duration of the loan, ensure to verify that the bank that you are applying to has a pre-closure charge.
- Customer Service: Ensure that you apply for a personal loan with a lender that offers you good customer service to get a good borrowing experience. Before you submit your loan application, you should check the customer care channels that are available and how quickly the person provides you assistance when required.
- Eligibility Criteria: Ensure to check if you meet the eligibility criteria set by the lender. Even though the bank may give you a loan at a low interest rate, make sure that you meet the income limit set and also meet the age requirements.
- Loan Disbursal Time: Take into account the loan disbursal time before you apply for a loan.
- Other Charges: Even if you go for a lower interest rate on your personal loan, if the processing fee, default charges, prepayment fee, loan cancellation charges, check/EMI bounce charges, Instrument return charges, stamp duty charges, duplicate statement issuance charges, swap charges, duplicate amortization schedule issuance charges, etc., are high, then you will end up spending more on the overall loan cost.
- Discounts and special offers
While a personal loan comes in very handy, it is essential to go for the best personal loan suited to you by comparing lenders. Apply for a personal loan at creditmantri. Get personal loans at lowest interest rates in 2022 and enjoy the benefits.