Banks across the country offer different types of loans to meet the needs of the common man. These include home loans, car loans, personal loans, gold loans, and business loans. Personal loans help individuals meet financial needs such as medical expenses, travel, education, wedding expenses, home renovations, or other urgent needs. Several banks increased their personal loan rates after the Reserve Bank of India (RBI) raised the repo rate by 0.25 per cent in October. Let’s have a look at which banks – IDFC FIRST Bank, ICICI Bank, and HDFC Bank – are offering affordable personal loans to their customers.
IDFC FIRST Bank
Private-sector IDFC First Bank offers personal loans to its customers at interest rates starting at 9.99 per cent. Notably, it waives any processing fees or foreclosure charges on personal loans. This private bank offers personal loans from Rs 50,000 to Rs 1 crore, with repayment terms from 9 to 60 months.
If you take out a personal loan of Rs 5 lakh from IDFC First Bank for a term of 3 years, you will have to pay an EMI of Rs 16,131 per month. This means you will have to pay a total of Rs 80,716 in interest. Consequently, your total principal and interest payments will be Rs 5,80,716.
ICICI Bank
ICICI Bank is offering personal loans to its customers at interest rates starting at 10.25 per cent. To obtain a personal loan from ICICI Bank, you will need to pay a processing fee of 2 per cent of the loan amount. Additionally, you will also have to pay taxes. Furthermore, this private bank is also charging a foreclosure charge of 3 per cent. ICICI Bank offers personal loans from Rs 50,000 to Rs 50 lakh, with repayment terms from 12 to 84 months.
If you take a personal loan of Rs 5 lakh from ICICI Bank for 3 years, you will have to pay an EMI of Rs 16,193 per month. This means you will have to pay a total of Rs 82,924 in interest. This means you will have to repay a total of Rs 5,82,924, including principal and interest. Additionally, you will have to pay a processing fee of Rs 10,000 (2 per cent).
HDFC Bank
HDFC Bank offers personal loans to its customers at interest rates starting at 9.99 per cent. You’ll need to pay a processing fee of up to Rs 6,500 for a personal loan from HDFC Bank. Additionally, you’ll need to pay GST. This private bank also charges a foreclosure fee of 2-4 per cent. HDFC Bank offers personal loans from Rs 25,000 to Rs 1 crore, with repayment terms from 12 to 84 months.
If you take out a personal loan of Rs 5 lakh from HDFC Bank for a term of 3 years, you will have to pay an EMI of Rs 16,131 per month. This means you will have to pay a total of Rs 80,725 in interest. Consequently, the total principal and interest payment will be Rs 5,80,725. Additionally, you will have to pay a processing fee of up to Rs 6,500.
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