Compare Personal Loan Rates: Indian Banks Offer Varied Interest and Fees

Personal loans are a frequent financial tool for individuals covering expenses such as medical emergencies, weddings, travel, or debt consolidation. However, the cost of these loans varies considerably across different financial institutions. Even a minor difference in the annual interest rate can amount to a significant sum over the loan's tenure. Since personal loans are unsecured, meaning they do not require collateral, they typically carry higher interest rates compared to secured loans like home or car loans. Generally, banks charge interest rates ranging from 12% to 18% for personal loans, with the exact rate being highly dependent on the borrower's credit score.

Here's a look at some major Indian banks:

* **State Bank of India** offers rates between 10.05% and 15.05%, with processing fees from Rs 1,000 to Rs 15,000. * **ICICI Bank** charges between 10.45% and 16.50%, with processing fees up to 2% plus GST. * **HDFC Bank** rates start from 9.99% up to 24%, with a fixed processing fee of Rs 6,500 plus GST. * **Kotak Mahindra Bank** has rates starting at 9.98%, but processing fees can be as high as 5% of the loan amount. * **Union Bank of India** offers rates between 10.75% and 14.45%. * **Canara Bank** provides fixed rates (14.50-16%) and floating rates linked to RLLR (13.75-15.25%). * **Bank of Baroda** rates are between 10.4% and 15.75%, influenced by employment sector and credit score.

Impact This news is important for consumers making borrowing decisions and highlights competition among banks in the retail lending space. It can influence consumer behavior and bank strategies, making it moderately impactful. Rating: 7/10

Difficult Terms Explained: * **Collateral**: An asset pledged by a borrower to a lender as security for a loan. If the borrower defaults, the lender can seize the collateral. * **Credit Score**: A numerical representation of a person's creditworthiness, based on their credit history. A higher score indicates lower risk for lenders. * **GST**: Goods and Services Tax, a consumption tax imposed on the supply of goods and services in India. * **RLLR (Repo Linked Lending Rate)**: A benchmark interest rate set by banks, which is linked to the Reserve Bank of India's policy repo rate. Changes in the repo rate directly affect the RLLR.