A Loan is the lending of money to a person in need by another person, a group of people, an organization, or other institutions. The one who has borrowed money will owe a debt of the principal amount as well as a particular amount as interest.
Years ago, when people required money for personal needs, they preferred to borrow it from the people they know; friends, family, or money lenders who charge heavy interest. The banks were preferred when gold loans, house loans, or vehicle loans were considered. But, nowadays since the banks are providing much better deals and also a huge amount of principal, people are in dilemma whether to take personal loans from banks. Let’s delve deep into it.
State Bank of India
SBI is the top-ranking bank in the public sector in India. It offers personal loans in various forms with the lowest rate of interest among its peers: 8.40% to 15.30%. It also provides a long term to pay the amount back: up to 72 months. There are many kinds of personal loans available: SBI Pension Loan. SBI Xpress Credit, Pre-Approved Personal Loan on YONO, Loans Against Securities, SBI Xpress Elite, Real Time Xpress Credit, and Loans to customers who don’t maintain a salary account with SBI.
Punjab National Bank
Even though they are not ranking above CBI and such, PNB provides the next best rate of interest among its peers: 8.90% to 14.45%. It also provides the longest term to pay the amount back: up to 84 months.
HDFC Bank being the largest private bank in India, could be the first option if you would prefer to take a personal loan from a private sector bank. You would have to be at least 21 years old and no more than 60 years old to be eligible to take avail of the personal loan from here. The bank expects you to have been employed for a minimum of two years, with at least one year with the current employer, and also must have a minimum annual salary of three lakh. The rate of interest is from 11% to 21% for salaried people. Senior citizens receive a discount of 10% on all service charges. Others are required to pay up to Rs. 5000 as a loan processing fee.