Gone are the days when applying for personal loans was tedious and involved a lot of paperwork. With the rise of technology, online platforms have made it more accessible and convenient for people to get personal loans quickly. But when it comes to taking out a loan, we all are most concerned about the rate of interest.
In 2024, several loan apps offer low-interest personal loans online. This makes borrowing more affordable and eases the financial burden on the borrower. Whether you need a loan for an emergency or are planning a big purchase, choosing a personal loan with low interest rates is considered a reliable option. In this blog, we’ll explore the top 6 loan apps, focus on interest rates, key features and some tips that’ll help you make the right decision.
Understanding Personal Loan Interest Rates
Before learning about the platforms, let’s discuss interest rates, why they matter, and basic eligibility for personal loans. A personal loan interest rate refers to the extra money you’ll pay on top of the borrowed amount. Lower interest rates mean lower monthly payments and overall repayments, making managing your finances more manageable.
Key features of personal loan apps:
- Several apps offer convenient application procedures with fast disbursement of funds.
- With the online processing of loans, the documentation includes minimal to no paperwork.
- You can choose the repayment tenure based on your current financial situation.
- Many online providers charge fewer processing fees and have transparent terms and conditions.
Factors affecting interest rates:
- A higher credit score (700-900) generally leads to lower interest on personal loans.
- A stable, high-income job also impresses the lender, and the lender may offer better rates.
- The rate may vary depending on the amount you’re borrowing.
Basic eligibility for personal loan application:
- The minimum age should be 21 years for salaried and 23 years for a self-employed individual.
- Should either be a salaried employee or a self-employed individual.
- Must have valid documents like PAN and Aadhar Card.
Top 6 Loan Apps Offering the Lower Interest Rates
Let’s explore the top 6 online loan applications that offer competitive interest rates.
Stashfin
Stashfin is one of the leading online platforms offering several financial services, including personal loans. We stand out as the best choice among borrowers because we offer transparent terms and conditions, a fast application process, and a competitive personal loan interest rate.
Key Features:
- Interest rates start as low as 11.99% on the amount you draw.
- The credit limit is up to ₹ 5,00,000.
- Offers flexible repayment tenure of up to 36 months.
- The application process is quick and 100% digital.
- Safe and secure app with quick customer support.
Best for: Individuals looking for personal loans at low interest rates, transparent terms and flexible repayment options.
KreditBee
It’s a loan application that offers both personal and flexi loans for both salaried and self-employed individuals. It mainly caters to young professionals and provides a hassle-free process.
Key Features:
- The loan amount ranges from ₹ 1,000 to ₹ 5,00,000.
- Interest rates start from 17% to 29.95% per annum.
- Offers flexible repayment tenure of up to 36 months.
- Claims to disburse the loan in 10 minutes.
Best for: Someone looking for quick emergency loan disbursement with a flexible repayment structure.
MoneyTap
MoneyTap is a lender that offers a unique service and allows borrowers to pay interest only on the funds they’ve used rather than the amount that’s been approved.
Key Features:
- Users can borrow up to ₹ 5,00,000 with no collateral required.
- Interest rates start at 13% per annum.
- Repayment tenure offered is up to 36 months.
- Safe app offering fast online support
Best for: Borrowers looking for a safe app and want to pay interest for the loan amount they’ve used.
CASHe
The online digital platform that focuses on providing personal loans to young salaried professionals. It offers a seamless and quick application process with minimal documentation.
Key Features:
- The loan amount ranges from ₹ 1,000 and goes up to ₹ 4,00,000.
- Interest rates are charged per tenure from 2.25% to 2.50% monthly.
- Repayment tenure from 3 months to 1.5 years.
- Has a user-friendly interface and offers transparent terms.
Best for: Young professionals looking for quick loan approvals.
PaySense
The instant loan app offers loans to borrowers without having a credit history. It provides quick approvals on personal loans with paperless documentation and affordable EMI plans.
Key Features:
- Get instant loans from ₹ 5,000 to ₹ 5,00,000.
- Interest rates range from 16% to 36% annually.
- Offers one-click personal loans
Best for: First-time borrowers with zero credit history looking for paperless quick loan disbursements.
Fibe (Formerly EarlySalary)
Fibe offers accessible loan applications with competitive rates and has a 100% digital process. It provides flexible repayment options with zero foreclosure fees, making it convenient for borrowers.
Key Features:
- Loan amount from ₹ 5,000 to ₹ 5,00,000.
- Interest rates start at 16% per annum.
- Flexible repayment tenure of up to 36 months.
Best for: Individuals looking for a 100% digital process and need flexibility in repayment tenure.
How to Choose the Right App?
With so many online platforms available offering competitive personal loan interest rates, choose the one by following the below tips:
- Compare interest rates charged by online lenders.
- Make sure you meet the eligibility criteria of the platform you choose.
- Opt for a lender that provides flexible repayment options with transparent terms and conditions.
- Read the reviews and get insights into the app’s reliability and customer service.
Final Thoughts
Choosing the right loan app that offers low-interest personal loans online has become more convenient than ever. After carefully considering all the above factors, pick the one that suits you best. Whether you are a first-time borrower or not, remember to borrow responsibly, repay in the required time, and maintain a healthy credit score.