These five banks are offering the cheapest personal loans

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A personal loan is one of the quickest and most preferred unsecured loans. Now various banks are offering interest rates that have climbed down substantially over the past few years and stand well below 10%.

Best interest rates

Union Bank of India, Punjab National Bank and Central Bank of India are offering the cheapest personal loan with interest rates starting from 8.90% per annum. If any person takes a personal loan of Rs 5 lakh for a tenure of five years, he or she has to pay an EMI of Rs Rs 10,355 every month.

Indian Bank, another public sector bank, is in the second position. It is taking a minimum of 9.05% interest on personal loans. A five-year loan of Rs 5 lakh will entail an EMI of Rs 10,391.

Bank of Maharashtra is in the third position with 9.45% rate of interest. The EMI would work out to be Rs 10,489.

Punjab & Sind Bank and IDBI Bank, the only private banks in the list, jointly occupied the fourth position with 9.50% interest on personal loan. If any customer takes a loan of Rs 5 lakh for the tenure of five years, he or she has to pay an EMI of Rs 10,501 every month.

State Bank of India, country’s largest lender, is in the fifth position. Now they are offering personal loans at 9.60% interest per annum, which translates into an EMI of Rs 10,525.