Personal loans: At the time of applying for personal loans, it is important to check the interest rates charged by different banks – both state and private.
On April 9, Reserve Bank of India (RBI) cut the repo rate by 25 basis points, thus incentivising banks to lower their interest rates on their borrowings. However, the immediate impact is seen on home loans (with variable interest rates) and not on personal loans which typically charge a fixed rate of interest across the loan tenure.
Here, we list out the interest rates charged by banks on their personal loans.
These are the interest rates charged by banks:
I. HDFC Bank: The largest private sector bank charges an interest in the range of 10.90 percent to 24 percent per annum on personal loan. Additionally, the bank charges process fee of ₹6,500 plus GST.
II. ICICI Bank: This private lender charges an interest in the range of 10.85 per cent to 16.65 percent per annum. Additionally, the bank charges processing charges of 2 percent of loan amount plus taxes.
III. Kotak Mahindra Bank: This private bank charges an interest in the range of 10.99 to 16.99 per cent per annum on personal loan. Besides this, the bank also charges upto 5 percent of final loan amount as processing charges.
IV. Federal Bank: This private sector bank charges interest in the range of 11.49 to 14.49 percent per annum.
V. Union Bank of India: This state lender charges an interest in the range of 11.25 to 14.95 percent per annum on personal loan.
VI. State Bank of India (SBI): The largest lender in India charges annual interest in the range of 10.30 to 15.30 percent on personal loans.
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