Personal Loan of Rs. 50000 – EMI of 4418 @10.99% Interest Rate

Ramesh from small town recently got an excellent job from a leading IT company in India’s IT hub – Bengaluru. The salary too was above Rs. 10, 00,000 per annum. He was supposed to receive his first salary in 15 days. However emergency arise and he badly needed Rs. 50000 for medical treatment for one of his family member within 7 days. Being from a poor family and no one to support in such short span of time, he was largely worried.

In this situation, he contacted the company HR and requested the bank in which salary account was opened to offer personal loan. But since the account was with the foreign bank, the loan was denied due to no credit history. However he was advised by the HR to research and apply at other banks. Since his salary met the income eligibility criteria, chances of approval were high.

Read more on personal loan for individuals with no CIBIL score.

Here’s the table showing monthly EMI and the total amount Ramesh will end up paying along with the interest for tenure of 1 year. Current rates (as on May 2017) from different banks in India are listed. The loan amount was Rs. 50, 000. EMI is calculated using lower range of interest rate.

Name of BankInterest RateMonthly EMITotal amount to be paid
ICICI Bank11.70 – 18.85%443553225
Axis Bank15.50 - 24%452554297
State Bank of India11.95 - 16.55%444153295
HDFC Bank15.75% to 20%453154368
Bank of Baroda11.60%  to 16.60%443353197
UCO Bank15.35%452154254
Syndicate Bank14.2%449453929
Punjab National Bank11.55 – 14.55%443253183
IndusInd Bank12.99 - 20.00%446553587
Union Bank of India14.40%449953985
Oriental Bank of Commerce10.85% to 11.85%441652987
Bajaj Finserv11.99% onwards444053281
Standard Chartered10.99 - 14.49%441853026
Kotak Mahindra11.50 - 19.65%443052169

To Ramesh’s luck, he selected bank offering cheapest interest rate and got money into the bank account in less than 3 days.

Ramesh also had other options to get loan by asking someone to become guarantor and providing advance cheques. However the conditions were not favorable at that point of time for him.

Other cheaper options to arrange money for unforeseen events for individuals like Ramesh wanting small loan amount are:

  • Peer to peer lending: These are nothing but lending marketplaces where lenders are typically individuals. There is no financial institution in the middle and loans are approved within shortest period of time. Borrower can directly deal with multiple lenders and bargain on interest rates. Since the loan amount is fifty thousand only, low interest rate can be offered. Prominent peer to peer lending platforms in India are,,,
  • Co-operative banks: Compared to commercial banks, taking loan from co-operative bank is much simpler. And most importantly, the interest rate is on a lower side. And for the loan amount of Rs. 50, 000; such banks are highly recommended.
  • Friends/relatives: This ideally should be the first option to be tried. Since the personal loan amount of Rs. 50000 is small, you can ask your acquaintances to pay this money and in return you can repay along with the interest. This way, both the parties would be at the advantage.
  • Against securities: You can also get personal loan against fixed deposit, shares, mutual funds, and LIC policy. Benefit of going through this route is that the interest rate would be low, which will help in saving money.

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