Personal Loans Interest Rates and More

SBI loans offer affordable interest rates The State Bank of India (SBI) has been in the business for a long time now. In February this year, it came up with a bumper offer for car loan seekers. SBI loan interest rate was slashed from 11.5 per cent to 10 per cent and lenders were also freed from paying the car loan processing fee for an entire year. Personal loan interest rates at SBI are highly versatile. They let the borrower choose between a fixed interest rate and a floating one. In the former case, the interest rate on the loan remains fixed throughout the tenure. But in the case of a floating rate loan, the interest rate need not remain constant. It could decline or rise, depending upon the changes that the Bank’s Medium Term Lending Rate (SBMTLR) goes through.

A striking feature of SBI that makes it stand out among several others is the fact that the interest is levied based on the daily/monthly reducing balance. While others use the annual reducing balance method, SBI offers an advantage to the customer. He does not have to pay interest on the amounts he keeps repaying. The interest is computed only on the loan amount that is presently outstanding. Since, this figure goes down with every EMI, the effective rate of interest is considerably reduced.

Getting the ICICI Advantage

ICICI Bank is one of the top most approached banks, easily India’s second largest lender. ICICI bank loan interest rates have also been significantly lowered keeping in mind the need of the hour. A 50 basis point reduction in the benchmark lending rates is evident from the fall to 15.75 per cent. The floating reference rate, which applies to floating rate retail loans, has dropped to 12.75 per cent. Though the bank owes the reduction to a decrease in the cost of funds, the borrower’s convenience has enhanced manifold.

Loans are now available from ICICI bank at an increased comfort level. This includes personal loans of all types, including for home, car, education or any other. There are also plans that offer a fixed rate of interest for a period of the loan tenure and then switch to the floating rate. Similarly, ICICI bank loan interest rates for cars are not ruled by a uniform, absurd guideline. They vary according to the car model and the tenure of the loan, which is also dependent on the customer and his location.

Sky rocketing interest rates are no longer the obstacle they used to be. There are people who shy away from a loan even when they have the urgent requirement of one, only because they fear the impossible rate of interest. Gone are the days when wicked money lenders in villages would amass land and wealth by trickery and exorbitance. With reliable and helpful banks like ICICI, SBI and many more, getting a personal loan at a reasonable rate of interest is simple for one and all.