Personal Loan: Which Bank Will Charge You Low Interest Rate On Rs 5 Lakh Loan

People often take personal loans from banks when they need money. Personal loans are easily available if the credit score is good. Each bank has different rates for loans and should be compared first.

Personal loans are easily available if the credit score is not bad. Each bank has different interest rates and it varies with every bank. Hence, you should apply for a loan only after calculating interest, processing fee, and EMI.

For the sake of understanding, let us assume that a loan of five lakhs is required. The EMI changes according to the loan period, the period is considered as 5 years. Check how much interest and EMI you will have to pay to take a loan from the bank.

Loan at an interest rate less than 10%: EMI's for personal loans start at 10,000 in banks with interest rates of less than 10 percent. The loan period will be five years. The interest rate on personal loans in SBI is from 9.60 percent to 13.85 percent. The processing fee is 1.5 percent. The same interest is being charged in Citibank and HSBC. Thus, an EMI of up to Rs. 10,000-11,000 is calculated on a loan of 10 percent interest rate.

 Processing fees up to 2.75 percent: Some banks like Bank of Baroda, HDFC Bank, ICICI Bank, Kotak Mahindra have an interest rate of up to 11 percent. These will have an EMI of up to Rs. 11,000 for a period of 5 years. The loan amount attracts processing fees of up to 2.75 percent. IndusInd, Axis Bank, and Bajaj Finserv charge interest from 11 to 13 percent. These banks will have EMIs between Rs 11,000 and Rs 11,500.

Take a personal loan in the offer: There are offers in some banks on personal loans. You can compare the interest rate of different banks on their website and then choose a bank for a loan.