Know who offers the lowest interest rate among these five banks
As banks raise interest rates after the Reserve Bank of India (RBI) raised its key repo rate, lending is also becoming more expensive, with several lenders in recent weeks having already revised higher their interest rates. Here is the comparison of interest rates of five banks – Punjab National Bank, State Bank of India, Bank of Baroda, Bank of Maharashtra and Union Bank of India – on personal loans:
The Punjab National Bank currently offers personal loans at an interest rate of 8.80-15.35% per annum. Basically, on a loan of Rs 5 lakh, the equivalent monthly installment (EMI) will be Rs 10,331 to 11,987 for a term of five years. Apart from this, a processing fee (as a percentage of the total loan amount) is also charged. PNB charges a processing fee of up to 1%.
The interest rate offered varies from person to person, depending on gender, age, and credit score, among other factors.
The State Bank of India now offers personal loans at an interest rate of 9.80 to 13.80%. By the way, on a loan of Rs 5 lakh, the EMI will be Rs 10,574 to 11,582 for five years. In addition to this, a processing fee (as a percentage of the total loan amount) is also charged. SBI charges a processing fee of up to 1.5% or Rs 15,000, whichever is lower.
Meanwhile, Bank of Baroda has an interest rate of 9.20 to 16.55% per annum on the personal loan. If you take out a personal loan of Rs 5 lakh, your EMI will be around Rs 10,428 to Rs 12,306 per month, depending on the interest rate offered to you. Apart from that, a processing fee of up to 2% of the total loan will have to be paid, with minimum fees at Rs 1,000 and maximum at Rs 10,000.
Bank of Maharashtra offers interest rates between 9.35% and 13.70% on personal loans. On a personal loan of Rs 5 lakh, the EMI will be around Rs 10,464-11,557 for five years. In addition to this, a processing fee (as a percentage of the total loan amount) is also charged. Bank of Maharashtra charges up to 1% processing fee on loans.
The highest interest among these five banks is charged by the Union Bank of India. It charges interest in the range of 9.8 to 13.9 percent per year on personal loans. On a loan of Rs 5 lakh, an EMI of Rs 10,574-11,608 will have to be paid for five years.
Personal Loan Rates and Fees
|Name of the bank||Interest rate (in %)||EMI (Rs) Loan Amount – 5 lakh Term – 5 years||Processing fee (% of loan amount)|
|National Bank of Punjab||8h80-15h35||10,331-11,987||Up to 1%|
|Bank of Baroda||9:20 a.m.-4:55 p.m.||10,428-12,306||Up to 2% (minimum Rs 1,000 and maximum Rs 10,000)|
|Bank of Maharashtra||9:35 a.m.-1:70 p.m.||10,464-11,557||Up to 1%|
|National Bank of India||9h80-13h80||10,574-11,582||Up to 1.5% (maximum Rs 15,000)|
|Union Bank of India||9h80-13h90||10,574-11,608||Up to 1% (maximum Rs 7,500)|
Several lenders, including ICICI Bank, Kotak Mahindra Bank, HDFC Bank and Punjab National Bank, have recently increased their interest rates for deposits and loans. The RBI’s Monetary Policy Committee recently unanimously decided to raise the repo rate by 50 basis points to 4.90% with a focus on the withdrawal of accommodation. He prompted lenders to raise interest rates on loans. According to the latest official data, retail price inflation declined slightly to 7.04% in May.
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