Personal loan demand typically rises during the festive season as major banks roll out incentives such as lower interest rates and waived processing fees, especially for borrowers with strong credit scores.
As a result, many people choose personal loans to cover festive spending, medical emergencies, or sudden financial needs. Since these loans require no collateral, they pose a higher risk for the lender.
To offset the risk, lenders evaluate applicants’ credit scores, income, and other factors before approving a personal loan. Because these loans carry higher risk, interest rates are generally steeper, so borrowers should stay alert to the cost.
BankBazaar reports that as of September 22, several banks provide one-year personal loans with interest rates between 9.98 percent and 13.75 percent.
Axis Bank and HDFC Bank offer personal loans with interest rates starting at 9.99 percent. For a Rs 1 lakh loan repaid over one year, the monthly EMI comes to about Rs 8,791 at these rates.
Bank of Baroda offers personal loans at an interest rate of 10.40 percent, where a Rs 1 lakh loan repaid over one year carries a monthly EMI of about Rs 8,810.
Union Bank of India provides personal loans with interest rates beginning at 10.75 percent, where a Rs 1 lakh loan repaid over one year results in a monthly EMI of about Rs 8,827.
Yes Bank offers personal loans starting at an interest rate of 10.85 percent, with a one-year Rs 1 lakh loan requiring a monthly EMI of about Rs 8,831.
