Cheapest personal loan interest rates April 2024: List of banks offering lowest rates on personal loans (2024)

One of the easiest ways to get money in an emergency is to apply for a personal loan. It is simple to comprehend and may be repaid in a few Equated Monthly Instalments (EMIs). Borrowers can apply for a personal loan online or offline by visiting the branch. Also, there is no need to pledge any security to avail of a personal loan.

What is an EMI?

EMI means Equated Monthly Instalment, which includes principal and interest. You repay your loan through EMIs by giving standing instructions to debit your SB account with us. The EMI is recovered every month on a predetermined date.

Also read: Bank loan interest rates in April 2024 compared: SBI, HDFC Bank, ICICI Bank, IDBI Bank, Yes Bank, PNB, Bank of Baroda

The interest rate measures the cost incurred by a financial organisation, such as a bank, when lending you money. The lowest interest rate on a personal loan is advantageous as it lowers the total amount you must repay the lender.

Here are the top banks offering the cheapest rate on personal loans, according to the Paisabazaar data.

PERSONAL LOAN - RATES AND CHARGES
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 Rs 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 Rs 1,000 to Maximum Rs 15,000)
ICICI Bank	10.80 onwards	10,821 onwards	2,164 onwards	Up to 2.50%
Bank of Baroda	11.05-18.75	10,884-12,902	2,177-2,580	Up to 2% (minimum Rs 1,000 and maximum Rs 10,000)
Axis Bank	10.49 onwards	10,744 onwards	2,149 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 Rs 250 and Maximum Rs 10,000)
Canara Bank	10.95-16.40	10,859-12,266	2,172-2,453	0.50% (Maximum Rs 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 Rs 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 Rs 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% (Rs 1,000-Rs 10,000)
Karnataka Bank	13.43	11,487	2,297	Up to 2% of loan amount (Min. Rs 2,500 & Max. Rs 8,500)
IndusInd Bank	10.49 onwards	10,744 onwards	2,149 onwards	1.5% -3.5%
Rates and charges as of 9th April 2024
Rates and charges as of 9th April 2024
Source: Paisabazaar.com

Is it mandatory to buy insurance policy with Personal Loan?

According to the Union Bank of India website, "This is optional and purely at the discretion of the Borrower. However, getting a liability/life insurance cover is always advisable so that family members don’t suffer in case of any unfortunate event. For the benefit of the borrowers, a one-time Liability Insurance premium can be added to the cost of the property so that the burden can be reduced. Further, the Bank has tied up with various Insurance Providers so that suitable products can be available to its customers with reasonable premiums."

Also read: Home loan interest rates April 2024: Banks offering cheapest interest rates for home loans above Rs 75 lakh