When applying for a personal loan, it is equally important to consider and compare the interest rates charged. The numerous banks currently in operation proposing personal loans make it difficult to establish a worthy comparison and hence differentiate the various worthy options to consider. To make it easier for you, this guide helps to compare the interest rate of personal loan for different banks so that you can make your decision.

Understanding Personal Loan Interest Rates

Personal loan interest rate is greatly influenced by some aspects such as the type of bank to be involved, credit status of the borrower among others. Usually these rates stand between 8% and 24% on the annual basis, although lower and higher rates are possible in some cases as well. The interest rate that you will be offered depends on your credit rating, income, the loan amount as well as the period. The issue of comparison of the different rates from different banks is highly recommended to make sure that one is awarded the best rate offer.

Bank Personal Loan Interest Rate Comparison

- HDFC Bank: HDFC Bank, which is famed for instant processing of personal loan requests and rather low interest rates, offers personal loan starting from about 10%. 50% per annum. It therefore having the facility of relaxed criteria of qualifying for the facility as many people can apply for it. Some of them are: Currently, HDFC Bank has a facility on its website to provide its customers with a personal loan eligibility calculator.

- State Bank of India (SBI): SBI is a leading public sector bank based in India and as of the resulting personal loan interest rate of about 9%. 60% per annum. The SBI personal loan is most suitable for the salaried and the government employees mainly because of the lower interest rate and easy terms and conditions to avail the loan.

- ICICI Bank: Personal loan of ICICI Bank comes with interest rate as low as 10%. 75% per annum. It has several branches and is well known for its policies towards the customers and simple paperwork. Like HDFC, ICICI also offers an online eligibility calculator for the prospective borrowers.

- Axis Bank: S One has applied the following lending rates to its personal portfolio: Minimum interest rate on personal loans is 10%. 49% per annum. The bank specialises in structured loan products hence their easy approval. Its loans are designed for those who have a regular source of income or who are self-employed people seeking affordable interest rates together with reasonable flexible repayment terms on their loans.

- Punjab National Bank (PNB): PNB also extends personal loans with an interest rate of as low as 8 percent. 95 percentage per annum and therefore is among the cheapest to avail in the market. It additionally offers personal loans that are attractive to customers especially those of good credit standing to PNB.

Key Considerations

While comparing the personal loan interest rate all bank in the country, it is also chief to compare the processing fees, prepayment charges and overall cost of the particular loan. Additional charges maybe added to the price and thus while the offer of a considerate low interest rate may be a plus, the total amount of the monthly repayment may be high.

Conclusion

Comparing personal loan interest rate and doing it heavily will help you lots in saving money throughout the life of the loan. Comparing HDFC Bank personal loan eligibility to that of State Bank of India personal loan , one needs to know the merits and demerits of the two. For instance, you can apply for a personal loan interest rate calculator when determining which option is more suitable in boosting personal finance.

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