Top 10 Banks Offering the Lowest Personal Loan Interest Rates in 2024

Low-Interest on Personal Loans

We understand that exploring the personal loan market can be overwhelming but our comprehensive guide will help you find the best deal. Our in-depth analysis uncovers the banks offering the lowest personal loan interest rates in 2024, providing the information you need to make an informed decision. And there is more valuable insight waiting for you. 

Our comprehensive guide goes beyond just numbers, providing essential insights into the factors that impact your personalized loan rate. Whether it is understanding the secrets of credit scores or devising repayment strategies, we empower you to confidently navigate the world of loans and save significantly. Say goodbye to financial stress and open the door to achieving your financial goals with the lowest personal loan rates in 2024. 

Why Now is the Right Time to Take a Personal Loan?

It is important to weigh the pros and cons before taking a personal loan. While it may not be the perfect time for everyone to consider taking a personal loan, there are situations where it can be a good financial decision. Some reasons to consider taking a personal loan right now include - 

  • Consolidating Debt at Lower Interest Rates: Consolidating your debt through a personal loan can help you save money by combining high-interest debt into a single monthly payment with lower interest rates. This approach not only simplifies your finances but also provides the potential for long-term savings. 
  • Financing Major Expenses: A personal loan helps with unexpected expenses like car repairs, home improvements and medical bills by providing a lump sum that can be repaid over a manageable period. 
  • Capitalizing on Low Interest Rates: Taking advantage of low interest rates can be a smart financial move. Currently, in June 2024, interest rates are relatively low. By opting for a fixed-rate personal loan, you can secure a favourable rate, making it easier to budget and plan your finances. This is particularly advantageous if you expect interest rates to increase in the coming years. 
  • Building Credit Score: Responsible use of a personal loan and making consistent one-time payments can improve your credit score, leading to better loan rates and financial opportunities in the future. 

Indian Banks With the Lowest Interest Rates on Personal Loans in 2024

The table below contains the list of all those Indian banks that charge the lowest interest rates on personal loans in 2024 - 

Bank Name

Interest Rate (per annum)

EMI (per Rs. 1 lakh for 5 years)

Processing Fee

IndusInd Bank

10.49% onwards

Rs. 2,149

1.5% - 3.5% of the loan amount

HDFC Bank

10.50% onwards

Rs. 2,149

Up to Rs. 4,999

ICICI Bank

10.65% onwards

Rs. 2,164

Up to 2.5% of the loan amount

Kotak Mahindra Bank

10.99% onwards

Rs. 2,174

Up to 3% of the loan amount

Axis Bank

10.99% onwards

Rs. 2,174

Up to 2% of the loan amount

Bank of India

10.85% - 14.85%

Rs. 2,167 - 2,371

0.5% - 1% (Min. Rs. 250, Max. Rs. 10,000)

Punjab National Bank

10.40% - 17.95%

Rs. 2,144 - 2,537

Up to 1% of the loan amount

HSBC Bank

9.99% - 16.00%

Rs. 2,124 - 2,432

Up to 2% of the loan amount

Bank of Maharashtra

10.00% - 12.80%

Rs. 2,125 - 2,265

1% (Min. Rs. 1,000, Max. Rs. 10,000)

UCO Bank

Starts from 8.45%

Up to 10 lakhs

₹8,720

Central Bank of India

Starts from 8.45%

Up to 20 lakhs

₹8,720

Union Bank of India

Starts from 8.90%

Up to 15 lakhs

₹8,741

Indian Bank

Starts from 9.05%

As per the applicant’s profile

₹8,747

IDBI Bank

Starts from 9.50%

₹25,000 to ₹5 lakhs

₹8,768

State Bank of India

Starts from 9.60%

Up to 20 lakhs

₹8,773

*Note: The rates discussed in the table above are subject to change. Please visit the official bank website before coming to a decision. 

Conclusion

We hope our comprehensive guide empowers you to explore the banks with the lowest personal loan interest rates confidently and secure the financial resources you need. We have analyzed interest rates offered by the top public and private sector Indian banks to provide a clear picture of the lenders with the lowest rates. We have secured the numbers from various sources to help you in your personal loan journey. Take control of your finances and unlock your potential with the knowledge to secure the lowest personal rates this year. 

Frequently Asked Questions (FAQs)

Q: What are some red flags to watch out for when comparing personal loan offers?

A: Make sure to stay alert when considering lenders who promise incredibly low interest rates, as these offers could conceal hidden fees or unfair loan conditions. Take the time to thoroughly review the loan agreement and comprehend all the associated expenses before committing to the loan.

Q: When should I consider seeking professional help when applying for a personal loan?

A: Consider seeking guidance from a financial advisor if you're facing a complicated financial situation, have a low credit score, or find it challenging to understand loan options. A financial advisor can evaluate your specific requirements, suggest appropriate loan choices, and assist you in completing the application process.

Q: What happens if my credit score has dropped since I pre-qualified for a loan?

A: If your credit score has dropped considerably since pre-qualification, the lender could either raise your interest rate or reject your loan application. To avoid this, it's advisable to monitor your credit score closer to the formal application period.

Q: Should I consider a personal loan from a credit union?

A: Credit unions are a great choice for personal loans, especially if you're already a member. Due to being non-profit organizations, credit unions often provide lower interest rates and more flexible loan terms than traditional banks. Just keep in mind that membership eligibility can vary among different credit unions.

Q: Are there any government programs or assistance available for personal loans?

A: Government programs often don't provide personal loans directly, but there might be loan programs from certain government agencies for specific purposes such as education or small business development. These programs might have lower interest rates and less strict credit score requirements compared to traditional lenders.

Q: How often are personal loan interest rates adjusted?

A: Fixed interest rates always remain constant over the entire duration of the loan, offering predictability in monthly payments. Conversely, variable interest rates can change in line with a benchmark rate determined by the lender, typically tied to the prime rate. These adjustments occur at regular intervals, such as quarterly or annually, potentially impacting the overall cost of borrowing.

Q: What happens to my interest rate if I refinance my personal loan?

A: Refinancing a personal loan means replacing your current loan with a new one, typically with a lower interest rate based on your credit score and the new lender's terms. This process can potentially save you money and lower your monthly payments.

 

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Author: Abhik Das

Abhik Das is a versatile content writer with over 5 years of experience crafting engaging and informative content across diverse industries. His expertise spans the fields of ed-tech, pharmaceuticals, organic food, travel, sports, and finance.

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