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Personal loans | Banks that offer the lowest interest rate on a Rs 5-lakh loan

Bank of Maharashtra, Bank of India and State Bank of India offer interest rates between 8.9-10.55 percent on personal loans

November 15, 2022 / 05:30 PM IST
It is never a good idea to take an unsecured loan - be it personal loan or credit card debt - unless you have exhausted other options. These are high-cost loans that can push you into a debt trap, affecting your credit score and financial goals. It is best to tap your low-yield or dud investments for emergency needs. However, between credit card debt and personal loan, the latter is a better option as credit card interest rates can go up to 44 percent.
It is never a good idea to take an unsecured loan—be it personal or credit card debt—unless you have exhausted other options. These are high-cost loans that can push you into a debt trap, affecting your credit score and financial goals. It is best to tap low-yield or dud investments for emergency needs. However, between credit-card debt and personal loan, the latter is a betteroption. Credit card interest rates can go up to 44 percent. As per data from Bankbazaar.com, ten cheapest personal loan interest offers range from 8.9-10.55 percent. 
Government-owned At 8.9 percent, Bank of Maharashtra offers the cheapest interest rates on personal loans of Rs 5 lakh that come with a repayment tenure of five years
At 8.9 percent, Bank of Maharashtra offers the cheapest interest rates on personal loans of Rs 5 lakh that come with a repayment tenure of five years. The equated monthly installment (EMI) will be Rs 10,355.
The state-run Bank of India offers an interest rate of 9.75 percent on personal loans of Rs 5 lakh with tenure of five years. The EMI will work out to Rs 10,562.
The state-run Bank of India offers an interest rate of 9.75 percent on personal loans of Rs 5 lakh with a tenure of five years. The EMI works out to Rs 10,562.
Public sector banking major Punjab National Bank charges an interest rate of 9.8 percent on Rs 5-lakh personal loans with five-year tenures. The EMI will amount to Rs 10,574.
Public sector banking major Punjab National Bank charges an interest rate of 9.8 percent on Rs 5-lakh personal loans with five-year tenures. The EMI will amount to Rs 10,574.
Private sector lender YES Bank offers an interest rate of 10 percent on personal loans. The EMI on a Rs 5-lakh loan with five-year repayment period amounts to Rs 10,624.
Private sector lender YES Bank offers an interest rate of 10 percent on personal loans. The EMI on a Rs 5-lakh loan with a five-year repayment period amounts to Rs 10,624.
This government-owned banking major Bank of Baroda offers an interest rate of 10.2 percent. The EMI will work out to Rs 10,673.
Government-owned Bank of Baroda offers an interest rate of 10.2 percent. The EMI works out to Rs 10,673.
At 10.25 percent, Kotak Mahindra Bank is sixth on the list of cheapest personal loan lenders. The EMI will amount to Rs 10,685.
At 10.25 percent, Kotak Mahindra Bank is sixth on the list of cheapest personal loan lenders. The EMI amounts to Rs 10,685.
Indian Bank offers an interest rate of 10.3 percent on personal loans. The EMI in this case works out to Rs 10,697.
Indian Bank offers an interest rate of 10.3 percent on personal loans. The EMI in this case works out to Rs 10,697.
Private sector lender Federal Bank charges an interest rate of 10.49 percent on personal loans. The EMI will work out to Rs 10,744.
Private sector lender Federal Bank charges an interest rate of 10.49 percent on personal loans. IDFC Bank and IndusInd Bank also offer the same interest rates on Rs 5-lakh loans with a repayment tenure of five years. The EMI will work out to Rs 10,744.
India's largest bank SBI charges an interest rate of 10.55 percent on such loans. The EMI amounts to Rs 10,759.
India's largest bank SBI charges an interest rate of 10.55 percent on such loans. The EMI amounts to Rs 10,759.
Interest rates on personal loans for all listed (BSE) public and private sector banks have been considered for data compilation. Banks for which data is not available on their websites have not been considered. Data has been collected from respective banks' website as on November 8, 2022. Banks are listed in ascending order on the basis of interest rates, that is, bank offering the lowest interest rate on personal loan is placed at top and the highest at the bottom. EMI is calculated on the basis of interest rate mentioned in the table for Rs 5 lakh loan with tenure of five years (processing and other charges are assumed to be zero for EMI calculation). Interest and charges mentioned in the table are indicative and it may vary depending as per bank's terms and conditions.
A note from Bankbazaar.com: Interest rates on personal loans for all listed (BSE) public and private sector banks have been considered for data compilation. Banks for which data is not available on their websites have not been considered. Data has been collected from the respective banks' websites as on November 8, 2022. Banks are listed in ascending order on the basis of interest rates—the bank offering the lowest interest rate on the personal loan is placed at the top and the highest at the bottom. EMI is calculated on the basis of the interest rate mentioned in the table for Rs 5 lakh loan with a tenure of five years (processing and other charges are assumed to be zero for EMI calculation).
Moneycontrol PF Team
first published: Nov 15, 2022 12:56 pm