Personal loans are one of the most popular loan categories for banks. Many people avail personal loans to meet urgent financial needs. But taking a personal loan also has its pitfalls in terms of financial burdens and high interest rates. The key to ensuring you can get a good offer on a personal loan is to compare different lenders and choose which option is the best for you.
When comparing different personal loan rates, you need to look at both the tenure and the interest rate. A slightly lower interest rate, coupled with a longer tenure, can lead you to spend more in payments over the duration of the loan.
Interest Rates On Personal Loans By Top Banks
Many banks offer an interest rate of over 10 percent on personal loans. There are also criteria such as minimum monthly income, age, and credit score that need to be followed. Many banks state that the borrower must have a minimum monthly salary of Rs 25,000 to be able to get a personal loan and fulfil EMIs.
Take a look at the interest rates on personal loans provided by top banks in April 2025
Factors To Consider Before Applying For A Loan
Credit Score: Your credit score will affect your ability to get a personal loan. A high score (750 and above) can lead to more favourable interest rates. A lower credit score can lead to problems in securing a loan.
Salaried or non-salaried employees: Salaried employees often receive more favourable terms since their income is fixed compared to non-salaried personnel.
Prepayment charges: Take a look at the bank's prepayment charges, GST and any other hidden charges before applying for a loan. Also, calculate the interest you need to pay on a loan before applying for it. The rate will depend on the type of loan, tenure, and your credit history.
Those with a high credit score, a fixed salary and lower liabilities in terms of other loans or financial burdens will receive a personal loan more easily.
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