Top 5 Banks Offering Most Affordable Loans

Keeping in mind the upcoming festivals and New Year numerous banks are offering festive loan in a variety of categories. Lower festival rates and processing fee waivers are among the incentives. Today we will tell you about few banks that offer cheapest loans.

Banks Offering Cheap Loans

Union Bank of India 

For a personal loan of Rs 5 lakh with a five-year term, Union Bank of India charges 8.9%. The EMI (equated monthly instalments) will be Rs 10,355. The same rate is offered by the Central Bank and Punjab National Bank (PNB). The latter has even offered to waive the processing charge. 

Indian Bank 

At the moment, Indian Bank has the second-best personal loan interest rate. It charges a 9.05 percent interest rate, with an EMI of Rs 10,391. 

Bank of Maharashtra 

Next on the list of cheapest personal loan lenders is Bank of Maharashtra. It has a 9.45 percent annual interest rate. The amount of your EMI would be Rs 10,489 per month. 

Punjab and Sind Bank and IDBI Bank 

Personal loans from Punjab and Sind Bank and IDBI Bank have the same lowest interest rate of 9.5 percent. If you acquire a personal loan of Rs 5 lakh from these banks for a five-year term, you'll have to pay an EMI of Rs 10,501 every month. 

State Bank of India 

Processing fees are waived as part of the country's leading bank's holiday concessions. The lowest annual interest rate on its personal loans is 9.6%, resulting in an EMI of Rs 10,525. 

Note: 

As of November 18, 2021, data was gathered from the websites of the respective banks. Banks are listed in ascending order based on interest rates, with the bank having the lowest personal loan interest rate at the top and the highest at the bottom. 

EMI is calculated on the basis of interest rate mentioned in the table for a Rs 5-lakh Loan with a tenure of five years (processing and other charges are assumed to be zero for EMI calculation).