Basic facts of Personal loans in India:

Which bank gives lowest personal loan interest rates?

There are multiple lenders in India. These Banks and NBFCs provide best deals on personal loans. With so much competition in the market to get customers, Banks and NBFCs provide schemes which can lure any customer into taking a loan from that Bank/NBFC.

A customer might be confused and hence need help. In order to clear this confusion, we have provided below with a list of banks that offer personal loans in India. This list will help you compare and choose the Bank/NBFC which suits your requirements.

Here you can compare which bank provides with the lowest interest rates. But please note that you must also calculate the processing fee along with this interest rate so you can derive the final amount which you will have to repay as EMI.

Prepaying the whole loan amount:

Prepaying personal loan at an early stage is a good option because you save a huge amount of interest. At an average, a loan taken at 15% for 4 years for any amount above 1 lakh results in you repaying more than 40% of interest value in the first year. Hence it’s wise to prepay as early as possible.

Some lenders will maintain lock in period of 1 year* where you cannot prepay until the first year is complete. In this case, you can opt to prepay after the lock in period is complete. Look out for prepayment charges levied by lender while signing the loan agreement.

Prepaying the partial loan amount:

Prepaying partial loan amount is another good option. You can prepay partial amount of personal loan few times in a year. The cap on number of times you can prepay is set by the lender. The advantage is that when you prepay a partial amount of personal loan, it gets deducted from the principal amount. Hence your interest amount and EMI reduces with each part repayment.