Personal loan is easily available if the credit score is not bad. Each bank has different interest rates and it varies with every bank. Hence, you should apply for the loan only after calculating the interest, processing fee and EMI.
To understand, let us assume that a loan of five lakhs is required. The EMI varies according to the loan tenure, the tenure is assumed to be 5 years. Check how much interest and EMI you will have to pay to take a loan from the bank.
Loans at interest rate below 10%: The EMI for personal loans in banks with interest rates below 10 per cent starts from Rs 10,000. The loan tenure will be five years. The interest rate on personal loans in SBI ranges from 9.60 percent to 13.85 percent. The processing fee is 1.5%. The same interest is being charged in Citibank and HSBC. Thus, an EMI of up to Rs. 10,000-11,000 is calculated on a loan of 10% interest rate.
Processing fee up to 2.75 percent: Some banks like Bank of Baroda, HDFC Bank, ICICI Bank, Kotak Mahindra have interest rates up to 11 percent. These will have an EMI of up to Rs. 11,000 for a period of 5 years. There is a processing fee of up to 2.75 per cent on the loan amount. IndusInd, Axis Bank and Bajaj Finserv charge interest ranging from 11 to 13 per cent. The EMI of these banks will be between Rs 11,000 to Rs 11,500.
Take a personal loan on offer: Some banks have offers on personal loans. You can compare the interest rate of different banks on their website and then choose the bank for the loan.
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