In getting the economy back on track after the implication of the Covid-19 pandemic and lockdowns, liquidation in the market will play a crucial role. To increase the money flow in the market banks through loan demand, Reserve Bank of India Governor Shaktikanta Das introduced the Resolution framework 2.0 for restructuring loans of Covid-19 hit borrowers. Some public sector banks also introduced special Covid-19 personal loans for their customers to meet the sudden demand of cash during the treatment of the virus. While the pandemic situation has become better in the last few days, the economic implication of it still remains there.
However, we can expect the situation to be better in the coming days and normalcy to return and people to move back to economic activities. In times like these, personal loans could be a very useful way of managing the money required to meet sudden cash demand. Here, we list some of the cheapest personal loans that are currently being offered by public sector banks. The interest rates are for a loan amount of up to Rs 5 lakhs and a tenure of 5 years.
Union Bank of India
The cheapest personal loan that’s being offered by Union Bank comes at an interest rate of 8.90% and repay facility with a monthly EMI of Rs 10, 355.
Central Bank of India
The Central of India is offering the cheapest personal loan to its customers at an interest rate of 8.90 per cent with a 5 year tenure, and EMI of Rs 10, 3555.
Punjab National Bank
PNB cheapest offering in personal loan for its customer comes at an interest rate of 8.95 per cent and a monthly EMI of Rs 10, 367.
Indian Bank’s cheapest personal loan has an interest rate of 9.05 per cent and EMI of Rs 10, 391.
Punjab and Sindh Bank
The cheapest personal loan offered by Punjab and Sindh Bank evokes an interest rate of 9.50 per cent and the repayment can be done in a monthly EMI of Rs 10, 501.
Bank of Maharashtra
Bank of Maharashtra is offering personal loans at 9.55 per cent which have an EMI of Rs 10, 513 per month.
State Bank of India.
India’s largest public sector bank the State Bank of India offers personal loans starting at 9.60 per cent interest and an EMI of Rs 10, 525. However, it recently introduced its SBI Kavach personal loan for the treatment of COVID-19 patients. The loan under the Kavach plan will be offered at an interest rate of 8.50 per cent p.a. for a period of 5 years.
Please Note:The above-mentioned interest rate are based on the latest information available on banks’ website. The EMIs are being calculated with an assumption of no processing fees levied by the bank. The interest mentioned here is indicative and may vary depending upon the credit score of the loan seeker and the terms and condition of the various banks.