When you are planning to raise a personal loan, it is vital to remember that being unsecured, a personal loan tends to carry a higher rate of interest.
Therefore, it is recommended to compare the interest rates charged by different banks so that you can choose the one which gives a better deal to borrowers. A small tiny difference of 50 basis point in interest rate for even ₹10 lakh loan, repayable over five years, can cost you an extra financial burden of ₹14,760 during the duration of loan.
Let us check how different banks are charging different interest rates from borrowers.
Personal loan interest rates
HDFC Bank: The largest private sector bank charges interest in the range of 10.90 percent to 24 percent per annum. Aside from this, the borrower is also meant to pay ₹6,500 plus GST as processing charges.
ICICI Bank: ICICI Bank charges interest in the range of 10.80 percent to 16.50 percent. Besides, the processing charges are up to 2 percent of the loan amount plus applicable taxes.
Kotak Mahindra Bank: The interest rates start from 10.99 percent per annum whereas loan processing charges are up to 5 percent per annum.
Federal Bank: This private sector bank charges an interest in the range of 11.49 to 14.49 percent per annum on personal loan.
State Bank of India (SBI): The largest private sector bank charges an interest in the range of 10.30 percent to 15.30 percent per annum.
Bank of Baroda: This public sector bank charges interest rate on personal loan in the range of 13.05 to 18.30 percent per annum.
Union Bank of India: This public sector bank charges interest rate in the range of 10.75 per cent to 14.45 percent per annum.
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