Interest rates differ when it comes to personal loans, banks and NBFCs offer different rates. Here are 10 banks offering the best personal loan interest rates for salaried individuals and business persons.
Importance of credit score
A credit score is a number between 300 and 900 that credit bureaus assign to you (such as CIBIL). Your chances of having your loan application approved increase with your credit score. You can be eligible for a loan with a larger amount or at a reduced interest rate if your credit score is high.
However, if your score is below 750, it may be harder for you to receive a personal loan, or you might only get a smaller loan or one with a higher interest rate.
The personal loan amount, term, and interest rate are taken into account when calculating the EMI. Note that banks also charge fee for disbursing of personal loan.
How to check How to check credit scores for free on WhatsApp?
Step 1: Send ‘Hey’ to Experian India’s WhatsApp number +91-9920035444, or go to
Step 2: Enter basic information, such as your name, email address, and phone number. Instantly receive your Experian credit score via WhatsApp.
A password-protected copy of the Experian credit report can be requested and sent to the registered email address.
Things to know when applying for personal loan
According to the Yes Bank website, here are important tips to keep in mind while applying for personal loan
- “First try the bank where you have a relationship, such as a salary account, home loan, car loan, etc, as the KYC process will be easier and faster.
- Compare personal loan interest rates, processing charges, the penalty for pre-payment/foreclosure, etc. All these charges will add up to your cost. A bank that offers a lower interest rate may charge a higher processing charge or penalty for foreclosure.
- Try to achieve and maintain a high credit score as that could improve the chances of your loan request getting approved. Remember, this is only one of the conditions for eligibility. The bank will evaluate it along with other conditions while reviewing your loan application.
- If you have other loans ensure the repayments are on time. This too could improve your chances of securing the loan.”