Top 3 Banks Offering Lowest Rate on Personal Loan

Personal loans can help you meet all the expenses that are difficult to handle due to a financial crisis. Whether it is the marriage of your son/daughter that has to be solemnized or perhaps your much-awaited tour that you have been planning since long, a personal loan makes sure you deal with all such financial expenditures with ease. However, personal loan attracts some of the highest rates of interests as these loans do not require any collateral and are regarded as high risk by the lenders. If you are the one willing to get a personal loan to meet the financial crisis easily, listed below are key details of top 3 banks in India offering lowest rate on a personal loan.

SBI Personal Loan Interest Rate

Regarded as one of the top banks in the country, the State Bank of India offers several types of personal loans at competitive interest rates. A few of SBI’s personal loan options are listed in the subsequent section along with other features of these loan schemes.

1. Xpress Credit Personal Loan: The specific scheme for SBI is meant to fulfill various financial needs. The interest rate on this personal loan scheme is about 15% which is lower in comparison to other banks. The rate of interest in this scheme is also dependant on the check-off level. That means for partial check-off, the rate of interest will be 13 or 14%, whereas, for complete check-offs, a borrower needs to pay interest at 15% on the loan amount.
2. SBI Saral Personal Loan: This is a loan scheme designed for people from every walk of life. It helps them meet various urgent financial requirements. The limit under this scheme is defined as per the income of the borrower and his capacity to pay. The rate of interest on this personal loan is a few basis points above the applicable MCLR.
3. SBI Pension Loan: This is specifically for those applicants who are less than 76 years of age and get pension from the Central or State governments and those who are receiving a monthly pension from the government. The interest rate is often less as compared to other personal loan options.

In addition to these three personal loan schemes, the state bank of india also offer festival Loans that allow people to deal with the festival related expenses with ease. This option is suitable for relatively smaller loan amounts and features a higher interest rate that other SBI Personal Loan schemes.   

Axis Bank Personal Loan Interest Rates

Axis bank offers several features and benefits on its personal loan schemes. Be it your much-awaited vacation or your child’s wedding, the axis bank personal loan helps you fulfill all your urgent financial needs without worrying about extra cash. The rate of interest in case of an Axis personal loan ranges from 11.49% to 24%, which is quite reasonable as compared to other banks. Low processing fee, minimal documentation, and simple application procedure are some other key benefits of getting a personal loan from Axis bank.

HDFC Personal Loan Interest Rates

Personal loan scheme offered by HDFC is quick and easy to apply. The loan scheme offered by HDFC include nominal processing fee with zero hidden charges and convenient repayment options. The interest rate on HDFC personal loans ranges from 13-20% and is on a monthly reducing basis. As part of the personal loan, HDFC offers life protection cover of up to 8 lacs for sudden hospitalization due to accident and up to 1 lac for death or permanent disability of the loan borrower. In addition to this, HDFC cardholders can connect with the customer care center via phone calls, chats, and emails in case of any issue. Customers can even get a personal loan from HDFC in 1 day in case they have all the relevant documents in place.

4 Easy ways to Avoid TDS on Fixed Deposits

Fixed deposit is a deposit offered by banks wherein you agree to make a FD at a pre-determined rate of interest for a specified period of time. This time usually starts from 7 days up to maximum of 10 years. The interest rate varies according to the time limit. It is one of the most liked and safe investment options.

There are few types of FD provided by the banks

Regular Fixed Deposit Schemes

This is a regular FD where the interest period starts from 7 days up to 10 years.

Tax Saving Fixed Deposit Schemes

This FD has a lock in period of 5 years. An investor cannot withdraw the amount before FD term gets over, loan cannot be taken against such FD and auto renewal is not applicable for such FDs.

Recurring Fixed Deposit Schemes

This deposit allows an individual to deposit a fixed amount every month and earn interest at a fixed rate. It is more preferred by people having regular incomes.

Special Tenure Fixed Deposit

FD made for specific number of days such as 459 days, 779 days, 999 days etc. Special tenure FDs carry a little higher interest rate as compared to regular FD.

Fixed flexi Deposit Scheme

This is a flexible FD linked to your saving account wherein if the balance of account falls below minimum amount, the balance amount is swiped in from your FD thus avoiding the bank charges.

Floating rate Fixed Deposit

Few banks have come up with floating rates FD wherein the interest rate is not fixed and keeps varying. A change in RBI’s rate could benefit such investors.

The bank pays interest monthly, quarterly, half yearly or yearly as pre agreed. An individual investing in FD has an option to either receive the interest amount monthly in a particular account or to let it accumulate and receive at the time of maturity.

As per Income tax act, interest income up to Rs.10,000/- is exempt.  Any income above Rs.10,000/- will be taxable if you have given the PAN card details to the bank ( In case the bank does not have PAN card, it will deduct tax at 20%)and the bank issues TDS certificates for the amount deducted as tax. This TDS certificate will then be submitted while filing income tax returns. But, there are few simple ways in which the interest amount can be received without deduction of TDS.

   1) Submission of form 15G/15H

If an individual’s taxable income is Nil or below the taxable limits, he should fill form 15G (form 15H for senior citizens) and submit it to the bank. This form is valid for a period of one year. It is preferable to submit this form at the beginning of the year

   2) Splitting the FD in different banks

You can make FD’s in different banks in such a way that the interest income does not exceed Rs.10,000/- for a particular year. The bank will include deposits it holds in all of its branches for the purpose of calculating total interest income earned during the year

   3) Preparing FD in the name of family members

The total amount for FDs could be split among the number of family members like spouse, children and parents in a manner that any of the interest on FD do not exceed Rs.10,000/-. This way the interest income will get split between the family members enabling the investor to avoid TDS deduction                 

   4) Depositing amount in HUF and personal account

You can split the amount under two accounts – one can be personal account and another can be HUF account thus dividing the amount to be invested.  Both of these accounts will be treated separately.  

Long Term Investments – All Will Be Well

The foundation of all financial planning is not about how much you earn – it’s about how much you invest. Investments not only help secure your money for the future but set a foundation for an added return on them. Investments can be for a short term or a long term. Long term investments are considered safer as they ensure a higher probability of ROI. Any investment for more than 5 years is typically considered a long term investment. Some of the essential long term investment schemes available in the market are as good as a godsend. They become your best friends when you are in dire need of money.

Public Provident Fund (PPF)

This comes on the top and is a proven safer investment platform. The best thing about PPF is that it is tax free. To open a PPF account, all you need to do is walk in your nearest bank or post office, fill up the form and there you go. Start filling in. The lock in period for PPF is 15 years that allows you compounded interest. However, if needed, you can withdraw your money only after six years – but with some terms and conditions. Tax benefits can be claimed for the maximum investment of 1.5 lakhs under this scheme.

Gold is Golden

Since ages, investing in gold is a part of Indian culture. And by doing so, many families have strengthened their finances for the bad times. Gold is certainly something that can be liquidated anytime of the day, which is a plus for investing in gold. Today, you have various forms of gold as opposed to only the physical form in the old days. Gold ETF and gold mutual fund are a classic example of owning a non-physical gold. Investing in gold can surely give you a handsome return. But do it only after a thorough study in gold market trends.

FDs (Fixed Deposits)

We all know about bank fixed deposit schemes. There is another called company fixed deposit scheme. These are considered better than the former as they yield higher rate of interest. These FDs are the instruments that companies leverage for the small investors to lend them money. The only requisite is when you invest in company fixed deposits, opt your investment period with caution as there is a specific lock in period. However, there is some risk involved in procuring these FDs as they are not governed by RBI.

ULIP (Unit Linked Insurance Plans)

By investing in ULIPs, your money is invested in equities. ULIP investments are expected to provide a return of nearly 7% on your investments. It also allows tax benefits under Section 80C, that implies, your actual return is higher than you get. Tax deduction can be claimed on maximum of 1.5 lakhs of investment under this scheme.

Mutual Funds

If you are attracted to bonds and equities, this is your go-to place. Investing in mutual funds create an equilibrium between your returns and the risk. Gone are the days when people only invested in individual stocks. Today mutual funds allow you to distribute your investments with safety margins among an array of stocks.

Mutual funds are considered a relatively safer measure to enter the equity market. You can do that through Systematic Investment Plans (SIP). SIPs allow you to invest in mutual funds for long term duration with higher returns over a period of time.

Remember, there no guarantees of ROIs in many investment products, but those are the products that can potentially give you unexpectedly high returns. Don’t fear losses. If you research upon your investment products thoroughly, you will very likely come out with flying colors. To minimize your risk, do invest in different plans and be patient. All will be well!