We take a look at 25 banks that are currently offering the lowest interest rates on personal loans of Rs 5 lakh for a tenure of five years, and the indicative EMIs you will have to pay.
Personal loans are like our best friend when we need funds to meet an urgent need or handle an emergency at home. They are one of the easiest loans to get when you don’t have any collateral to offer. This is an unsecured loan where the lenders check your income and credit score for sanctioning funds. You can get a personal loan for any immediate need such as wedding, home renovation, medical emergency, education etc.
One of the most attractive features of a personal loan is its disbursal time. Getting a personal loan can take hours for pre-approved customers to some days for others depending on your profile. Many banks and other lenders promise to disburse personal loans within a week. So, if your credit score is healthy and you also meet the eligibility criteria, then availing a personal loan becomes hassle-free.
Moreover, it is a good idea to compare interest rates of personal loans which may vary from lender to lender. A personal loan is available at a higher interest rate. Therefore, it is advisable to compare lenders and compute their interest rates along with processing time and other facilities and hidden charges before committing yourself to any legal agreement, according to Bankbazaar.com.
Often salaried individuals are preferred by financial institutions for sanctioning personal loans but others with clean credit history can also avail it. You just need to fill a loan application and submit all relevant documents verifying your personal, professional and income details.
Also you must do your own due diligence on your financial stability and how are you going to manage monthly repayments. Remember the interest rates are going to be higher so delay in payments or defaults may cost dearly to your credit score. It is a must to timely make the payments to avoid getting listed as a defaulter.
Salaried can avail personal loans by submitting 3 months’ payslips, Form 16, and income tax returns from the previous year, while self-employed need to present audited financials as well as the ITR for the last two years.
For self-employment individuals, their business should have been in operation for a minimum of two years. Professionals such as doctors, CAs, etc. also need to have licences to practice in order to be eligible for personal loans.
To avoid financial stress, it is good to take a personal loan which you can comfortably serve and repay through EMIs. It really makes no sense to avail a bigger amount personal loan and increase your chances of delay in payments and defaults.
These days a personal loan EMI calculator is available online. You can compute the equated monthly instalment (EMI) by submitting details such as amount, interest rates and tenure.
Here are 25 banks that are currently offering the lowest interest rates on personal loans of Rs 5 lakh for a tenure of five years and the indicative EMIs you will have to pay. Please remember, the interest rates applicable to you could be higher based on your loan amount, tenure, credit score etc
Interest Rates & Charges on Rs 5 Lakh Personal Loan
Compiled by BankBazaar.com
Note: Interest rate on Personal Loan for all listed (BSE) Public & Pvt Banks considered for data compilation; Banks for which data is not available on their website, are not considered. Data collected from respective bank’s website as on 28 Dec 2021. Banks are listed in ascending order on the basis of interest rate i.e. bank offering lowest interest rate on Personal loan is placed at top and highest at the bottom. EMI is calculated on the basis of Interest rate mentioned in the table for Rs 5 Lac Loan with a tenure of 5 years (processing and other charges are assumed to be zero for EMI calculation); Interest and charges mentioned in the table is indicative and it may vary depending on bank’s T&C. * Rack Interest Rate; ** min APR during Jul 21 to Sep 21; *^for senior citizens”
