Cheapest Personal Loans : Personal loans have become a popular financial tool in India, offering individuals the flexibility to meet various personal and professional needs.
With numerous banks and financial institutions claiming to provide cheapest personal loans, it’s essential to understand the offerings of each to make an informed decision.
Here’s a comprehensive overview of the 10 institutions offering the cheapest personal loans in India, detailing their interest rates, processing fees, and prepayment charges.
1. State Bank of India (SBI) provides one of the Cheapest Personal Loans
- Interest Rate: 9.60% to 15.65% per annum
- Processing Fee: Up to 1% of the loan amount
- Prepayment Charges: Information not specified
SBI offers personal loans up to ₹20 lakhs with repayment tenures extending up to 72 months.
2. ICICI Bank
- Interest Rate: 10.50% to 19% per annum
- Processing Fee: Up to 2.50% of the loan amount plus applicable taxes
- Prepayment Charges: 5% of the principal outstanding plus applicable taxes
ICICI Bank provides personal loans up to ₹25 lakhs with flexible repayment options ranging from 12 to 60 months.
3. HDFC Bank is one of the private pioneer banks giving cheapest personal loans
- Interest Rate: 10.25% to 21.50% per annum
- Processing Fee: Up to ₹4,999
- Prepayment Charges: Prepayment within 13-24 months: 4% of the outstanding principal. Prepayment between 25-36 months: 3% of the outstanding principal. Prepayment after 36 months: 2% of the outstanding principal.
HDFC Bank offers personal loans up to ₹40 lakhs with repayment tenures up to 60 months.
4. Axis Bank
- Interest Rate: 10.49% to 24% per annum
- Processing Fee: Up to 2% of the loan amount plus applicable charges
- Prepayment Charges: 3% charge on the principal outstanding for EMIs paid up to 36 months. 2% charge on the principal outstanding for EMIs paid above 36 months.
Axis Bank provides personal loans up to ₹15 lakhs with repayment periods ranging from 12 to 60 months.
5. Bajaj Finserv
- Interest Rate: 13% to 16% per annum
- Processing Fee: Up to 4% of the loan amount
- Prepayment Charges: Bajaj Finserv charges a fee of up to 4.72% (inclusive of applicable taxes) on the outstanding loan amount.
Bajaj Finserv offers personal loans up to ₹25 lakhs with flexible repayment tenures up to 60 months.
6. Kotak Mahindra Bank
- Interest Rate: 10.25% to 16.99% per annum
- Processing Fee: Up to 3% of the loan amount
- Prepayment Charges: Foreclosure within 3 years of the loan: 4% of the outstanding principal amount plus GST. Foreclosure after 3 years of the loan: 2% of the outstanding principal amount plus GST.
Kotak Mahindra Bank provides personal loans up to ₹25 lakhs with repayment tenures up to 60 months.
7. Yes Bank
- Interest Rate: 10.99% to 20% per annum
- Processing Fee: Up to 2.5% of the loan amount
- Prepayment Charges: Information not specified
Yes Bank offers personal loans up to ₹40 lakhs with repayment periods up to 60 months.
8. IDFC First Bank
- Interest Rate: 10.49% to 23% per annum
- Processing Fee: Up to 3.5% of the loan amount plus applicable taxes
- Prepayment Charges: For loans with floating interest rates, there are no prepayment charges, while for loans with fixed rates, charges can be up to 2% of the outstanding principal.
IDFC First Bank provides personal loans up to ₹5 lakhs with flexible repayment tenures up to 60 months.
9. Tata Capital is a NBFC giving out one of the cheapest personal loans in its segment
- Interest Rate: 10.99% to 19% per annum
- Processing Fee: Flat ₹75
- Prepayment Charges: charges are 4.5% of the outstanding principal plus GST
Tata Capital offers personal loans up to ₹25 lakhs with repayment tenures extending up to 72 months.
10. IndusInd Bank
- Interest Rate: 10.49% to 16.75% per annum
- Processing Fee: Up to 3% of the loan amount plus applicable taxes
- Prepayment Charges: IndusInd Bank charges 4% of the outstanding principal loan amount as prepayment charges for personal loans, but only after the payment of 12 EMIs.
IndusInd Bank provides personal loans up to ₹30 lakhs with repayment tenures up to 60 months.
Conclusion
Cheapest personal loans not only means lowest rates of interest but also processing fee upfront and prepayment charges depending on the tenure.
Each financial institution offers unique terms and benefits, so aligning these with your financial goals and repayment capacity is essential. Always read the fine print and consult with the respective banks to understand the complete terms and conditions before proceeding for any of these cheapest personal loans.
