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Business News/ Money / Personal Finance/  Personal loan: These are the lowest interest rates offered by top banks in May 2024
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Personal loan: These are the lowest interest rates offered by top banks in May 2024

When unexpected expenses arise, seeking a personal loan from a bank can be a solution. Borrowers with good credit scores can benefit from lower rates. Explore top banks offering the lowest interest rates on personal loans to save money.

Cheapest personal loan interest rates May 2024: List of banks offering lowest rates on personal loansPremium
Cheapest personal loan interest rates May 2024: List of banks offering lowest rates on personal loans

When unexpected expenses come knocking, while your savings fall short, reaching out to a bank to seek personal loan can be a saviour. Choosing the right lender, therefore, is crucial to avoid high-interest rates that can make repayment burdensome and at times – unaffordable.

The good news is that looking around can lead to significant savings, especially if you have a good credit score. Borrowers with high credit scores often enjoy lower interest rates, making it imperative to compare offers from different banks.

Also Read: How does a pre-approved loan influence your CIBIL score? MintGenie explains

Today we will explore the top banks offering the lowest interest rates on personal loans, helping you make an informed decision and secure the best deal. Whether you're planning a major purchase, consolidating debt, or facing an emergency, knowing where to find the most competitive rates can save you money and reduce financial stress.

Also Read: Benefits of securing a personal loan for salaried employees

Let’s dive in and see which banks top the list for affordable personal loans:

Name of lender

Interest rate (p.a %)

EMI (Rs)
Loan amount- 5 lakh
Tenure - 5 years

EMI (Rs)
Loan amount- 1 lakh
Tenure - 5 years

Processing fee 
(% of loan amount)

HDFC Bank

10.50 onwards

10,747 onwards

2,149 onwards

Up to 4,999

Tata Capital

10.99 onwards

10,869 onwards

2,174 onwards

Up to 5.5%

State Bank of India

11.15-15.30

10,909-11,974

2,182-2,395

1.50% (Minimum 1,000 to Maximum 15,000)

ICICI Bank

10.80 onwards

10,821 onwards

2,164 onwards

Up to 2%

Bank of Baroda

11.10-18.75

10,896-12,902

2,179-2,580

Up to 2% (minimum 1,000 and maximum 10,000)

Axis Bank

10.99 onwards

10,869 onwards

2,174 onwards

Up to 2%

Kotak Mahindra Bank

10.99 onwards

10,869 onwards

2,174 onwards

Up to 3%

Bank of India

10.85-14.85

10,834-11,856

2,167-2,371

0.50%-1% (Minimum 250 and Maximum 10,000)

Canara Bank

10.95-16.40

10,859-12,266

2,172-2,453

0.50% (Maximum 2,500)

Punjab National Bank

10.40-17.95

10,772-12,683

2,144-2,537

Up to 1% 

HSBC Bank

9.99-16.00

10,621-12,159

2,124-2,432

Up to 2%

Federal Bank

11.49 onwards

10,994 onwards

2,199 onwards

Up to 3%

Union Bank of India

11.35-15.45

10,959-12,013

2,192-2,403

Up to 1% (Maximum 7,500)

Bajaj Finserv

11.00 onwards

10,871 onwards

2,174 onwards

Up to 3.93%

Punjab & Sind Bank

10.75-13.50

10,809-11,505

2,162-2,301

0.50%-1%

South Indian Bank

12.85-20.60

11,338-13,414

2,268-2,683

Up to 2%

UCO Bank

12.45-12.85

11,236-11,338

2,247-2,268

Up to 1% (Minimum 750)

IDFC First Bank

10.99 onwards

10,869 onwards

2,174 onwards

Up to 2%

Bank of Maharashtra

10.00-12.80

10,624-11,325

2,125-2,265

1% ( 1,000- 10,000)

Karnataka Bank

13.43

11,487

2,297

Up to 2% of loan amount (Min. 2,500 & Max. 8,500)

IndusInd Bank

10.49 onwards

10,744 onwards

2,149 onwards

1.5% -3.5%

Source: Paisabazaar, Rates as of 22nd May 2024

How can you secure a personal loan with a poor credit score?

Securing a personal loan with poor credit is challenging but possible with strategic measures. You can start by reviewing your credit report for inaccuracies and addressing them.

Also Read: Applying for a personal loan? Here are 6 key factors your CIBIL score can influence

Understand your credit score impact on your loan eligibility and interest rates. Consider your debt-to-income ratio and strive to lower it by paying off existing debts. Determine a manageable monthly payment by budgeting your income and expenses.

When applying for a loan, compare banks which specialise in bad credit and beware of predatory practices. Obtain prequalification to understand potential loan terms without affecting your credit score.

Also Read: CIBIL: Applying for an unsecured loan? These are the credit score requirements

Adding a co-signer with good credit can significantly improve your approval chances and secure better rates. By following these steps and borrowing responsibly, you can enhance your prospects of securing a loan despite a poor credit score.

 

 

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ABOUT THE AUTHOR
Deepika Chelani
A business media enthusiast. She covers personal finance beat for LiveMint.
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
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Published: 23 May 2024, 12:53 PM IST
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