RBI guidelines could make personal loans more expensive: Verify the best lenders’ lowest interest rates.

Reserve Bank of India guidelines could make personal loans.

Recently, the Reserve Bank of India (RBI) increased the risk weights by 25 percentage points to 125 percent for consumer credit exposure, especially for personal loans. As a result, banks must now maintain larger capital reserves, which raises the cost of capital for these loans. This adjustment affects both new and existing loans.

Consequently, while banks modify their lending practices to comply with the new capital requirements, borrowers may face higher interest rates and restricted access to credit.

The banks on this list have the lowest interest rates on personal loans, making it possible for people to get money at reasonable prices.

Name of Banks/NBFCsInterest Rates (p.a.)
Navi Finserv9.90% – 45.00%
HSBC9.99% – 16.00%
Faircent9.99% onwards
Bank of Maharashtra10.00% – 12.80%
Bank of India10.25% – 14.75%
Punjab National Bank10.40% – 16.95%
Axis Bank10.49% onwards
IndusInd Bank10.49% onwards
IDFC First Bank10.49% onwards
ICICI Bank10.50% onwards
HDFC Bank10.50% onwards
State Bank of India10.55% – 14.55%

Additionally, by February 29, 2024, all entities subject to regulation must comply with the new guidelines, as announced by the Reserve Bank of India.

Interest rates on personal loans vary depending on a number of variables, including credit score and bank preference. It is essential to compare the most recent interest rates and processing fees provided by several respectable banks before applying for a personal loan.