In these times of pandemic-fuelled uncertainties and diminishing earnings, many would be relying on borrowed funds to meet their critical financial requirements. And as far as unsecured financing facilities are concerned, many would be looking to get a personal loan.
A major advantage with a personal loan is that eligible applicants can avail it in a contactless manner from the comforts of their home that would eliminate the risk of getting infected by the deadly Covid-19 virus. And going for a pre-approved loan facility is likely to involve zero to minimal document requirements and, therefore, ensure quick loan disbursal.
However, it is critical to note here that the lowest personal loan interest rates are reserved for those eligible applicants with a credit score of over 750-800. So, if you are looking for a personal loan and your credit score is less than that, you might get the loan at a rate higher than the lowest advertised rate, according to BankBazaar.
That being said, before applying for a personal loan, ensure you compare offers from different lenders based on your eligibility. Also, don’t forget to factor in different loan-related charges like processing fee, late payment charges, prepayment and part-prepayment penalties, etc. before finalizing your decision.
Most importantly, never borrow more than your requirement just because you are eligible for it and try to keep all your monthly debt obligations to less than 40% of your monthly household income. You also need to have a plan in place to repay the loan in full on time. Failing to do so could lead to debt accumulation and a damaged credit score that could jeopardize your future loan applications, informs BankBazaar.
So, if you are looking for a personal loan, here are 10 banks that are currently offering them at starting rates of less than 11% per annum. It will be worthwhile to re-emphasize these are the lowest advertised rates and the actual rate applicable to you could be higher based on your eligibility and creditworthiness.
Disclaimer: Lowest rates applicable to eligible borrowers only. For others, higher rates may be applied. Rates as advertised by banks on their websites on July 24, 2020. List of banks not exhaustive. Compiled by BankBazaar.com.