Kolkata: Personal loans are one of the easiest means of financing for any individual who does not have/want to spend his/her own money but needs to undertake some quick expenditure be it in gadgets, or go on a dream trip. In fact, the growth of personal loans is one of the key reasons for the growth of consumption in India, which, in turn, steps up the growth rate of the economy and provides fillip to employment as well. All banks chase consumers with the lure of easy personal loans.
However, from the standpoint of the consumer – or the borrower – he/she must scout the market for the best deal. And perhaps the most important variable in a personal loan is the rate of interest charged by the bank. Therefore, even if you have to buy something hurriedly you must scan the market to find out what interest rates are top banks such as SBI (State Bank of India), HDFC Bank, ICICI Bank and Axis Bank are charging customers.
Interest rate on SBI personal loans
For those who work in private sector companies, India’s largest bank SBI is charging a spread of 3.55% to 5.55% over and above 2-year MCLR, which is 9.05%. Accordingly, the rate of interest on personal loans varies between 12.60% and 14.60% for private sector employees. The rate drops to 11.45%-12.95% for employees of Defence, or Central Armed Police or Indian Coast Guard. The interest rate marginally rises to 11.60% and 14.10% for employees of the Central Govt/ State Govt/ Police / Railway/ Central Public Sector Enterprises (CPSEs) Considered Under ‘RATNA’ Status.
Interest rate on HDFC Bank, ICICI Bank personal loan
According to India’s largest private sector lender, HDFC Bank charges an interest rate that varies between 10.85% and 24%. The loan processing fees can go up to Rs 6,500 and GST. ICICI Bank will charge interest rate between personal loans hovering between 10.85% and 16.25%. The ICICI Bank website mentions a loan processing amount up to 2% and applicable taxes. The second biggest private sector bank of India charges a spread between 1.75% and 7.15% over the 1-year MCLR of 9.10%.
Interest rate on Axis Bank personal loan
The interest rate charged by Axis Bank ranges between 10.49% and 22.50% — the mean rate being 13.08% for the period July-September 2024. There can be a host of additional charges such as penal charges for defaults on EMI payment. Therefore, one has to be careful in repayments.
If you don’t have money in your pocket but have to buy that cherished phone model or consumer durable in the New Year, personal loans offer fast financing. Check what interest rates are SBI (State Bank of India), HDFC Bank, ICICI Bank, Axis Bank etc are charging on personal loans. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
