Take out a personal loan only in an emergency, but compare the rates first

Staff ready are one of the most expensive loan categories that you can avail. These are unsecured loans which can be easily used and the banks are keen to offer them. Indeed, you may have received a few calls offering an instant personal loan because you have been a loyal customer of your bank. However, if you opt for a personal loan, expect to pay a interest rate between 9% and 20% per year. The reason is simple: an unsecured loan means that the lender will not ask for collateral. This is only possible for the lender if they have a sense of your credit history and if you have the capacity to repay the loan. But that is not enough as a safety net. Hence the high interest rate.

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Source: MyMoneyMantra.com

Given that they are expensive, but readily available, personal loans seem to be a good option for financing an emergency expense, if you don’t have a contingency fund in place or if the fund has been depleted for some reason. any. With the income uncertainty and job losses that have occurred in the wake of the covid-19 pandemic, many are looking for solutions like personal loans. But bank intermediaries say banks are tightening lending standards, which could make it difficult for borrowers to get new loans.

While it is not advisable to take out a personal loan, unless you have an urgent or immediate need for funds that cannot be managed otherwise, if you want to go for a personal loan, it is wise to analyze which bank can offer you the lowest interest rates. Indian Overseas Bank offers the most affordable interest rates at 9-12.45%. But even among the top 15 banks we listed, the highest interest rates go up to 11.25-23% offered by IndusInd Bank. Check out the list of personal loans available at the best rates before making your decision.

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