Personal loan is one of the most sought avenue for money among the Indians because it's collateral-free. An applicant need not mortgage any asset for availing of this loan. However, personal loan interest rate is slightly higher in comparison to mortgage loans like gold loan, etc. But, it's not necessary that every loan seeker will have an asset and hence, banks offer personal loans to address such loan applicants' needs. At a time, when COVID-19 has wreaked havoc on the world economy, what to talk about one's own personal budget! So, if you are applying for a personal loan from a public sector bank, you need to check which bank is offering such a loan and that too by charging loan-takers the LEAST interest rate. In short, here is how to get the lowest or cheapest loans where you pay the smallest amounts.

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According to BankBazaar.com, Union Bank of India is the bank that is offering personal loans at the least interest rate of 8.9 per cent. If we talk about the top 5 banks offering personal loans at the lowest interest rate, then Union Bank of India tops the list with 8.9 per cent interest rate per annum followed by Punjab National Bank or PNB, State Bank of India (SBI), Bank of Baroda and HDFC Bank.

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Union Bank Personal Loan
Union Bank of India is offering personal loan starting at 8.9 per cent per annum. The personal loan interest rate range applicable to a loan applicant here is from 8.9 per cent to 12 per cent. This variation in interest rate depends upon the amount and time period.

Personal Loan interest rate at PNB
Union Bank of India is closely followed by Punjab National Bank or PNB as it's offering personal loans from 8.95 to 11.80 per cent per annum range. So, one is applying for larger amount for a larger time period, PNB can be a better option as its higher range of personal loan interest rate is lower than the Union Bank of India.

Personal Loan interest rate at SBI
State Bank of India or SBI is offering personal loans from 9.60 per annum to 13.85 per annum. So, if someone is unable to get a personal loan from the above two banks, he or she can take their chance at the largest Indian commercial bank.

Bank of Baroda Personal Loan
Bank of Baroda is offering personal loan from 10.10 per cent per annum to 15.45 per cent

HDFC Bank Personal Loan interest rate
HDFC Bank is one of the Indian banks that has a big range of personal loan interest rate from 10.75 per cent to 21.30 per cent per annum. So, a loan applicant is advised to confirm the interest rate levied on one's personal loan and try to bargain in this regard while applying for the same.

Source: BankBazaar.com