The festive season is coming, and if you are thinking of taking a personal loan to meet your expenses, then this news is for you. Know what the interest rates on personal loans are in the country’s leading private banks like HDFC, Axis, ICICI, and Kotak Mahindra, and which bank will be best for you.
Why is a personal loan a good option
Nowadays, people take many types of loans from the bank to meet their different needs. Some people take a home loan to buy a house, while others take a car loan to buy a car. Apart from this, a personal loan is also a very good and easy option to meet your needs during sudden expenses or the festive season. The advantage of taking a personal loan is that you do not have to mortgage anything in it, and you can use it for any of your personal needs.
Interest rates of major private banks
The starting interest rate of a personal loan in the country’s largest private bank, HDFC Bank, is 9.99%. Apart from this, a processing fee of up to ₹ 6,500 can also be charged.
At the same time, the starting interest rate of a personal loan in Axis Bank is 9.90%, which is the lowest among these banks. The processing fee in Axis Bank can be up to 2% of the loan amount.
Talking about ICICI Bank, the starting interest rate of a personal loan is 10.60%. Its processing fee can also be up to 2% of the loan amount.
The starting interest rate of a personal loan in Kotak Mahindra Bank is 9.98%, and here the processing fee can be up to 5% of the loan amount.
Which bank has the lowest interest rate?
If we compare these major banks, then Axis Bank has the lowest starting interest rate. However, you should also keep in mind that your final interest rate depends on your credit score, monthly income, and your existing relationship with the bank. HDFC and Kotak Mahindra Bank also have very competitive interest rates, but you also need to pay attention to the processing fees, which vary from bank to bank.
How to make the right decision
Before taking a personal loan, you should pay attention to a few things:
Make sure which bank is offering the lowest interest rate for you.
Apart from the loan amount, processing fees are also an important cost to consider.
Compare the terms of different banks, such as the repayment period and whether there are any charges for early repayment.
By keeping these things in mind, you can choose the best personal loan for yourself and enjoy the festivals to the fullest