Applying for a Personal Loan? Here are 5 Private Banks that offer the Lowest Interest Rates

A personal loan helps you when you are in urgent need of some extra cash. The money you get from this loan can be used for any purpose and you do not have to provide any specific reason to your bank for borrowing this money. It could be used for many purposes: like buying your wedding ring or renovating your house. It could also be used to pay off other debts such as credit card dues.

As in the case of every other loan, this loan also requires you to repay the money with the rate of interest within a specific period of time. The rate of interest is decided by the bank based on a number of factors such as the amount borrowed, the time period, credit score, market rate, etc.

These loans are provided by many banks, Non-banking financial companies (NBFCs), and other third-party private lenders in India at competitive interest rates. Below you will find information about the top private banks offering the lowest interest rates on personal loans in India.

1. MoneyTap – One of the top private lenders in India, Money Tap offers personal loans up to Rs 5 lakhs at attractive interest rates. You can apply for the loan online by uploading a few documents and the loan application will be processed and the money will be credited to your bank account within 4 minutes upon approval. You can borrow any amount starting from Rs 3,000 depending on your need.

Loan AmountUp to 5 Lakhs
Interest Rate1.08 percent per month or 13 percent per annum
Minimum incomeRs 20,000 per month
TenureFlexible tenure of 2 months to 36 months

2. Money View Loans – If you are looking for instant cash, you will benefit from the services offered by Money View. It is one of the top private lenders in the country and offers a completely paperless application and approval process for personal loans in India. They have their own credit model to determine loan eligibility and offer personal loans to even those individuals who have a relatively low credit score. You can perform an eligibility check on their website within 2 minutes. You can borrow an amount as low as Rs 10,000 and up to Rs 5 lakhs.

Loan AmountUp to 5 Lakhs
Interest RateStarting from 1.33 percent per month
Minimum incomeRs 13,500 per month
TenureFlexible tenure of up to 60 months (5 years)

3. Bajaj Finserv – Being one of the most reputed lenders in the country, Bajaj Finserv offers personal loans to help customers with a variety of needs. You can apply for the loan online and avail up to Rs 25 lakh. If you meet their eligibility criteria, you can avail of an instant personal loan from them online. Upon approval, the loan is disbursed within 24 hours and the amount is credited directly to the bank account of the applicant.

Loan AmountUp to 25 Lakhs
Interest RateStarting from 12.99 percent per annum
Minimum incomeDepends on the city of residence
TenureFlexible tenure of up to 60 months

4. Paysense – It is a web and mobile-based lending platform that offers fast personal loans in India. Paysense even offers personal loans to people who have no credit history and so it is ideal for people who have just started working and first-time borrowers. You can check your eligibility online or on the app and choose a loan plan that suits your needs the most. You will need to be minimum 21 years of age to avail of a loan from Paysense.

Loan AmountUp to 5 Lakhs
Interest RateStarting from 1.40 percent per month
Minimum incomeRs 12,000 for salaried; Rs 15,000 for self-employed
TenureFlexible tenure depending on eligibility

5. Kreditbee – Kreditbee is an app-based private finance company that offers personal loans at attractive interest rates. You can sign up on the app using your existing Google or Facebook account and apply for the loan in no time. Currently, the app is available on the Google Play Store for Android devices and they are soon going to launch an app for Apple’s iOS devices. Apart from personal loans, Kreditbee also offers zero-cost EMI vouchers for shopping on popular online shopping sites in India.

Loan AmountUp to 2 Lakhs
Interest Rate0 – 2.49  percent per month
Minimum incomeNot mentioned on the site
TenureFlexible tenure of 62 days to 15 months

In order to get a lower rate of interest, you will need to maintain a very good credit score. People with an average score will still be able to find personal loan offers but there are very few options available for individuals with low scores. There are a few lenders who will provide loans to people with lower scores, but these loans usually have a very high rate of interest. People with bad credit can get lower interest either by getting a co-signer or by providing collateral security.

As credit score plays such an important role in your loan application process, you should ensure that you have a good score before applying for a personal loan. In order to maintain a good score, you should pay off all your debts on time and check your report regularly. If you find any mistakes in your report, you should get it rectified before applying for the loan.

Author Bio: Surya Patra is a qualified webmaster by profession and Marathon Runner/Cyclist by passion with more than 6+ years of expertise in the financial domain. Surya is also an entrepreneur, enthusiastic in storytelling, content writing, and digital marketing professional.

About RJ Frometa

Head Honcho, Editor in Chief and writer here on VENTS. I don't like walking on the beach, but I love playing the guitar and geeking out about music. I am also a movie maniac and 6 hours sleeper.

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