As banks are raising their interest rates after the Reserve Bank of India (RBI) has raised its key repo rate, loans are also becoming costlier with several lenders in the past weeks have already revised upwards their interest rates. Here’s the comparison of interest rates of five banks — Punjab National Bank, State Bank of India, Bank of Baroda, Bank of Maharashtra and Union Bank of India — on personal loans:
Punjab National Bank is currently offering personal loans at an interest rate of 8.80-15.35 per cent per annum. Broadly, on a loan of Rs 5 lakh, the equated-monthly instalment (EMI) will be Rs 10,331-11,987 for a tenure of five years. Apart from this, a processing fee (as a percentage of the total loan amount) is also charged. PNB levies a processing fee of up to one per cent.
Read More: LIC Policy: Invest Rs 253 Daily, Get Rs 55 Lakh at Maturity; All You Need to Know
The interest rate being offered varies from person to person, depending upon gender, age and credit score, among other factors.
State Bank of India is now offering personal loans at an interest rate of 9.80-13.80 per cent. Going by this, on a loan of Rs 5 lakh, the EMI will be Rs 10,574-11,582 for five years. Over and above this, a processing fee (as a percentage of the total loan amount) is also charged. SBI charges a processing fee of up to 1.5 per cent or Rs 15,000, whichever is lower.
Meanwhile, Bank of Baroda has an interest rate of 9.20-16.55 per cent per annum on the personal loan. If you take a personal loan of Rs 5 lakh, your EMI will be around Rs 10,428-12,306 per month, depending upon the interest rate offered to you. This apart, a processing fee of up to 2 per cent of the total loan will have to be paid, with the minimum fees at Rs 1,000 and the maximum at Rs 10,000.
Bank of Maharashtra offers interest rates between 9.35 per cent and 13.70 per cent on personal loans. On a personal loan of Rs 5 lakh, the EMI will be around Rs 10,464-11,557 for five year. Over and above this, a processing fee (as a percentage of the total loan amount) is also charged. Bank of Maharashtra charges up to 1 per cent processing fees on loans.
The highest interest among all these five banks is charged by Union Bank of India. It charges interest in the range of 9.8-13.9 per cent per annum on personal loans. On a loan of Rs 5 lakh, an EMI of Rs 10,574-11,608 will have to be paid for five years.
Several lenders, including ICICI Bank, Kotak Mahindra Bank, HDFC Bank and Punjab National Bank, recently increased their interest rates for both deposits as well as loans. The RBI’s Monetary Policy Committee recently unanimously decided to raise the repo rate by 50 basis points to 4.90 per cent with the focus on withdrawal of accommodation. It has prompted the lenders to hike interest rates on loans. According to the latest official data, retail inflation slightly eased to 7.04 per cent in May.
