If you are short of funds and need the money urgently, it is recommended to raise a personal loan. For instance, if there is a wedding at home and you have run out of money, you can raise a personal loan.
Otherwise, your house needs renovation, and the bank balance is inadequate to meet the requirements. In such a case too, you can raise a loan. Alternatively, you want to buy an expensive gift for your partner on her anniversary, but you have to wait for your next appraisal to be able to buy it. Not a good idea, right? All you can do is raise a small instant loan.
After you have decided to raise a loan, you are expected to compare the interest rates charged by different banks in order to make a calculated decision.
Interest rates & processing fee
Here, we share the interest rates charged by the mainstream banks – both private and government – as on January 2, 2025. It is vital to note that the interest rates keep fluctuating from time to time. So, these rates are only indicative, and one should check with the bank’s representative for the correct comparison.
Notably, the rate of interest that a bank charges depends on several factors including your credit score and the employer.
As the table above shows, HDFC Bank charges interest between 10.85 per cent and 24 per cent based on your profile, which includes an array of factors such as your credit score and employer, among other factors. The bank charges a processing fee of ₹6,500 plus GST.
ICICI Bank charges an interest rate between 10.85 per cent and 16.25 per cent. It charges a processing fee of up to 2 per cent.
Kotak Mahindra Bank charges interest in the range of 10.99 per cent to 16.99 per cent with a processing fee of up to 5 per cent.
At the same time, State Bank of India (SBI) charges an interest rate of 11.45 to 14.60 per cent. Interestingly, the state lender has zero processing fee until January 31, 2025.
Another state lender, Punjab National Bank (PNB), charges interest in the range of 12.40 per cent to 17.95 per cent per annum.
Axis Bank charges an interest rate in the range of 10.49 per cent to 22.50 per cent. The private lender charges a processing fee of up to 2 per cent.
