The Reserve Bank of India has reduced the key interest rate (repo rate) by 100 basis points, or 1%, so far this year. Because of this cut, commercial banks are now getting cheaper loans from the RBI. To pass on the benefit to customers, many banks have reduced their interest rates on loans.

Now, you can get a personal loan at a lower interest rate—starting from just 9%. However, personal loans still have one of the highest interest rates among all types of loans. So, you should take a personal loan only when there is no other option available.

While applying for a personal loan, always check the processing fee. Some banks charge a high processing fee, while others may offer a waiver.

Let’s find out which banks are offering the lowest interest rates on personal loans.

Personal Loan at Just 9% Interest

Bank of Maharashtra is offering personal loans at interest rates ranging from 9% to 10.80%. As a government bank, it provides lower interest rates to eligible customers. To get the minimum rate of 9%, you need to meet some specific conditions.

Who Can Get the 9% Interest Rate?

To qualify for the 9% personal loan rate, your CIBIL score must be 800 or above. You must also be employed in the Central Government, State Government, PSU, or a Government Educational Institution. In addition, you should have a salary account with Bank of Maharashtra. If you fulfill all these conditions, you can get the loan at the lowest interest rate of 9%.

Interest Rates Based on CIBIL Score

If your CIBIL score is between 776 and 799, the bank will offer you a personal loan at 9.3% interest. For a score between 750 and 775, the interest rate will be 9.8%. The bank charges a 1% processing fee on the loan amount along with GST.

What If You Have a Salary Account in Another Bank?

If you don’t have a salary account in Bank of Maharashtra, the interest rates will be higher. For a CIBIL score of 800 and above, the rate will be 9.8%. For 776 to 799, it will be 10.3%, and for 750 to 775, it will be 10.8%.

Interest Rates for Private Sector Employees

If you work in a private or public limited company with an external rating of “A” or above, Bank of Maharashtra offers personal loans at interest rates of 9.8%, 10.3%, and 10.8%, depending on your CIBIL score.

Required Income and Age

To apply for a personal loan from the bank, your annual income should be at least ₹3 lakh. You must also provide the latest ITR or Form-16. Your age should be between 21 and 58 years. The loan repayment period should not go beyond your retirement age, which is generally 60 years.

Minimum Interest Rates by Different Banks

Here are the minimum interest rates on personal loans offered by some major banks:

  • Bank of Maharashtra: 9.00%
  • Indian Bank: 9.00%
  • Axis Bank: 9.99%
  • IDFC First Bank: 9.99%
  • SBI: 10.30%
  • ICICI Bank: 10.80%
  • HDFC Bank: 10.90%

EMI on ₹10 Lakh Loan for 5 Years

If you take a personal loan of ₹10 lakh from Bank of Maharashtra at 9% interest for 5 years, your monthly EMI will be ₹20,758. The total interest paid over 5 years will be ₹2,45,501.

At an interest rate of 9.8%, your EMI will be ₹21,149, and the total interest paid will be ₹2,68,926.