Best Personal Loans Of September 2024 (2024)

• SBI Personal Loan
• Mahabank Personal Loan
• PSB Personal Loan
• Star Personal Loan
• Bandhan Bank Personal Loan
• Karur Vysya Bank
• Naini Sahyog Personal Loan

Policy Name	Company – Logo	Forbes Advisor India Rating	Forbes Advisor Rating	Annual Fee	Welcome Benefit	Key Feature	Learn More CTA text	Learn more CTA below text	View more
SBI Personal Loan		4.5		Starting with 11.05%	1%	INR 25 lakh	View More
Mahabank Personal Loan		4.5		Starting with 10%	1%	INR 20 Lakh	View More
PSB Personal Loan		4.5		Starting with 14.75% (Unsecured loan)	0.5% to 1%	INR 10 lakh	View More
Star Personal Loan		4.0		Starting with 11.55%	INR 500 to 5,000	INR 25 lakh	View More
Bandhan Bank Personal Loan		4.0		Starting with 10.15%	1%	Up to INR 25 lakh	View More
Karur Vysya Bank		4.0		Starting with 13%	1.5%	INR 10 lakh	View More
Naini Sahyog Personal Loan		3.0		Starting with 12.50%	Nil	INR 15 lakh	View More

Plans and rate of interest of personal loans are accurate as of Dec. 22, 2023.

While analyzing personal loan offering from all the banks in India, following factors have been taken into consideration:

1) Specific Qualification Requirements: How many people can be facilitated by a particular loan and if any complex reservations like the customer should have a salary account with them bars an individual from getting a loan.

2) Interest Rates: We have considered the banks with interest rates close to or below 11 percent.

3) Processing Fee: Banks that charge processing fee of up to 1% have been given preference

4) Availability: Loan offering to all kinds of applicants has been considered an important parameter.

5) Geography: The area covered by the bank as a service provider as banks do not cater to all the districts has been kept in mind

Several companies in India are offering loans very aggressively. While interest rate may appear to be the first thing on your checklist while taking a loan, it isn’t the only important factor. Following are the factors that need to be checked.

Interest rate:

Before selecting a personal loan one will have to compare the interest rates that various banks are offering and accordingly go with the best personal loan. One can check the interest rates here.

Processing fee:

Interest rate is not the only thing making your loan expansive, there is something which is known as the processing fee and this is something that people do not pay attention to, it can be as low as .25% of the loan amount to 6% or even higher, making your loan extremely expensive. At times companies do not highlight this and applicants are also not aware of this. For example a company would come up with an offer of personal loan at 8% which would appear to be very reasonable, but at the same time the applicant will not check the processing fee, which would be 7% making the loan really expensive.

Pre-closure charges:

If the borrower wants to close a particular loan by paying it in full there is a charge levied by the bank on that. One should always go for a loan which has a minimum or no pre closure charge. Like prepayment there is a lock-in period for pre closure as well. So, minimum the loc-kin better the loan.

Prepayment charges:

Like pre-closure one can also pay a portion of the loan before the scheduled time. Some banks charge a good amount of money as prepayment charges and some do not. Hence, one needs to go with the bank charging a minimum amount as prepayment. At the same time some banks also have a lock-in period of 12 months or so and one can not close an account within that period.

Late Payment Charges:

Banks also charge late payment if you were not able to deposit your EMI on time, this can be anything between some small amount like INR 400 to 5% of the EMI. This penalty is also compounded if you miss it for a few months. If you foresee a possibility of missing an EMI go for a bank which has less late payment charges, but people who think that they have credible sources to pay the EMIs can ignore this factor as at times companies giving relaxation in late payment charges may have increased interest rates.

Applicants must have a solid reason to apply for a loan as loan is burdensome activity and with a lot of competition in the loan market the companies are trying to lure the customer into taking it. Following are the reasons to take a loan:

• Requirement: One can apply for a personal loan to address a requirement which needs to be fulfilled immediately. Buying property or a vehicle does not come under it as there are separate loans available at a cheaper rate of interest for such requirements. Personal loans are taken for more personal needs like medical expenses, a wedding.
• Balance transfer: One can apply for a balance transfer if some other financial institute is giving the same amount at a lower interest rate.
• Top-ups: If the requirement of money has increased and the applicant has good relations with the bank then the bank will give additional loans at a lower or the same interest rate.
• To Improve the credit score: Loan can also be taken to improve the credit score as payment of the loan on time and its closure will improve the credit score of a person making way for bigger amounts.

There are two aspects of this, missing on an EMI and not paying the loan at all. Every default in EMI is reported to the credit bureaus, this may reduce your credit score temporarily, but does not hamper it permanently. On defaulting for three months the bank will consider the loan as NPA or non-performing asset.

As soon as the bank identifies it as an NPA it will be reported to various credit bureaus ruining the credit report of an individual. Once your credit history has the tag of an ongoing default, you will not be considered to be eligible to get a loan elsewhere.

In order to get back on track, the borrower will have to pay the dues. These dues will consider EMIs and the penalties. The penalties charged will also consist of the interest on the penalties and lapsed EMIs. After paying the dues and then paying the EMIs regularly you will be able to get the credit score back to normal. To know more about credit history please read, ‘ CIBIL Score Check: How Does Credit Score Work?’.