Borrowers can compare the personal loan interest rates 2020 of all the banks and NBFCs.
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Compare Personal Loan Interest Rates 2020, List of All Banks

Compare Personal Loan Interest Rates 2020, List of All Banks

posted on 2020-06-10 09:32:45 by Admin

Compare Personal Loan Interest Rates 2020, List of All Banks

A personal loan is unsecured loans which can be taken by anyone having a personal or professional needs. Salaried employees or self-employed can apply for a personal loan to fulfill the short or long term requirements.

One of the important factors while selecting the personal loan offer is the interest rate. Which ultimately will decide your Equated Monthly Income (EMI). So, thelist of the updated personal loan interest rates has been updated below. The list is given as per the rate offered by different Non-Banking Financial Institutions / Banks as of April 2020.

Personal Loan Interest Rate Comparison 2020

You can check the interest rate and the loan amount offered by different banks in the table below. The list has been prepared as per the alphabetical order.

Lenders

Interest Rate*

Loan Amount

Allahabad Bank

10.65% onwards

50,000-20 lakhs

Andhra Bank

RLLR + 3.00% to RLLR + 5.65%

As per the applicant’s profile

Axis Bank

12-24%

50,000-15 lakhs

Bajaj Finserv

12.99% onwards

Up to 25 lakhs

Bank of Baroda

11.40-16.40%

50,000-10 lakhs

Bank of India

10.50% onwards

Up to 10 lakh

Bank of Maharashtra

10.85-11.85%

Up to 10 lakh

CASHe

30% to 36%

9,000 – 3 lakh

Central Bank

11.25% onwards

Up to 10 lakhs

Citibank

10.50-18.99%

50,000-30 lakhs

Early Salary

24% to 30%

8,000 – 2 lakh

Federal Bank

11.49% onwards

Up to 25 lakhs

Fullerton India

12-36%

Up to 25 lakhs

HDFC Bank

10.75-21.30%

50,000-40 lakhs

Home Credit

24% to 49%

25000 – 2.40 lakh

HSBC Bank

10.50-17.84%

Up to 30 lakhs

ICICI Bank

11.25% onwards

50,000-20 lakhs

IDBI Bank

12% – 14%

25,000-10 lakhs

IDFC First

11.50% onwards

1 lakh-25 lakhs

Indiabulls

As per loan agreement

Rs. 1000 to Rs. 15 lakh

Indian Bank

10.35% onwards

As per the applicant’s profile

Indian Overseas Bank

10.50% onwards

Up to Rs. 15 lakh

IndusInd Bank

10.75% onwards

50,000-15 lakhs

Kotak Mahindra Bank

10.99-24%

50,000-15 lakhs

Kreditbee

12.24% onwards

1000 – 2 lakh

MoneyTap

1.25% p.m. onwards

Rs. 3000 to Rs. 5 lakh

MoneyView

1.33% p.m. onwards

Rs. 10,000 to Rs. 5 lakh

Muthoot Finance

14.50% onwards

50,000-10 lakhs

Punjab National Bank

RLLR+2.15 to RLLR+6.70%

50,000-10 lakhs

RBL Bank

12-23%

1 lakh-20 lakhs

Standard Chartered Bank

10.99% onwards

1 lakh-30 lakhs

StashFin

11.99% to 59.99%

500 – 5 lakh

SBI

10.50% onwards

Up to 20 lakhs

TATA Capital

10.99% onwards

75,000-25 lakhs

UCO Bank

10.95% onwards

Up to 10 lakhs

Union Bank of India

10.10% onwards

Up to 10 lakhs

Yes Bank

10.99% onwards

1 lakh-40 lakh


Interest Rate of Top Banks with Their Processing Fee

In this list, you can compare the interest rate of top banks with their processing fee. The processing fee may change as per the personal loan amount. You must check all the other fees while applying for the personal loan.

Bank Name

Interest Rate

Processing Fee

Axis Bank

12% Onwards

Up to 2%

Bank of Baroda

11.40% Onwards

Up to 2%

Bajaj Finserv

12.99% Onwards

Upto 4.13%

Citi Bank

9.99% Onwards

Up to 3%

Fullerton India

12.99% Onwards

Up to 3%

HDFC

10.75% Onwards

Upto 2.5%

ICICI

11.25% Onwards

Upto 2.5%

PNB

10.75% Onwards

Upto 1.80%

SBI

10.35% Onwards

Upto 1%

Standard Chartered

10.99% Onwards

Up to 3%

Tata Capital

10.99% Onwards

Rs. 1499 Onwards

How is Interest Calculated on Personal Loan?

Interest on the personal loan is calculated based on the rate, loan amount, and the repayment period.

Interest= (Principal * Rate * Time in Months) /100

This is the total interest on your loan. However, monthly equated income will be calculated taking the proportion of interest amount and principal amount.

You can check it easily using the Online EMI Calculator. It will show you how much monthly payment you need to deposit every month.

Banks calculate rates via two methods ie. flat rate and reducing balance method.

Flat Rate Interest Calculation Method

In this method of interest calculation, you have to the same EMI throughout the tenure.

EMI by Flat Rate Method = (Principal + Total Interest Payable) / Loan Tenure in Months

Reducing Balance Method

In this method, the interest is calculated based on the outstanding loan balance. As you pay off the EMIs, the loan amount will decrease and hence the interest on the credits.

EMI by Reducing Balance Method = [P x R x (1+R)^N]/[(1+R)^ (N-1)] where P is the loan amount, R is the interest rate, and N is the repayment tenure in months.

 

Compare

Types of Personal Loan Interest Rate

There are two types of interest rates that a lender applies on a personal loan that are fixed and floating rates of interest.

  • Fixed-Rate of Interest- In this, the same interest rate is applicable during the loan tenure. You will have to same EMI monthly as fixed during the loan agreement. This way, you can easily plan your EMI.
  • Floating Rate of Interest- In this type, the interest rate gets changed as per the internal benchmark of the lending institution or the current market rates. The rate can be decreased or increased from time to time. You can save money or need to pay more if the interest rate goes down or up.

Variation of Interest Rate for Different Applicant Type

There are chances that you can get an affordable rate of interest depending on the applicant type. As a lender consider various factors while giving the loan, this parameter is also important which will decide the interest rate.

The low-interest rate is not limited to applicant type. Candidates with good credit history, high CIBIL score, and regular sources of income easily get the personal loan at a low-interest rate.

  • Women Applicant- Some banks offer preferential rates of interest to female candidates. This is done to promote working women, professionals, and entrepreneurs to be financially stable and fulfill their dreams.
  • Pensioners - Such applicants can avail low rate of interest from banks like SBI, PNB, etc. Also, you can get a preferential interest rate if the have you have a pension account with the lender giving the loan.
  • Salaried / Self-Employed- The salaried employed get the personal faster if they are working with the reputed organization for a long time. As it gives the lender confidence about the regular sources of income of the borrower. Self - Employed also can get competitive rates at various banks and NBFCs.

How Can I Reduce the Interest Rate on the Existing Personal Loan?

Did you take the loan at a higher rate earlier? Don’t worry you can reduce the rate on the existing loans by using Personal Loan Transfer service. In this, you can transfer the existing outstanding loan to another bank and can save on EMIs per month. You just have to pay processing fees and foreclosure charges to your current lender.

To give an idea, consider that you have 2 Lacs outstanding loan with a 24 months repayment period.

 

 Old Loan

 New Loan

 Amount outstanding

 INR 2,00,000

 INR 2,00,000

 Repayment Period

 24 months

 24 months

 Interest Rate

 13.75%

 10.75%

 EMI (Monthly)

 INR 9578.97

 INR 9298.27

 Total Interest

 INR 29,895.35

 INR 23,160.90

 Total Saving

 

 INR 7015.15

 

How to Get Personal Loan at Lowest Rate of Interest?

Here are some factors that you increase your chance to get a personal loan at a low rate of interest.

#1. High Income- Candidates with high income can easily get the loan. Since they have high repayment capacity they tend to get the interest at a lower rate.

#2. High Credit Score- Applicants even with low income but high credit score can get the loan at low rates. You should maintain the credit score of atleast 750+. In case of a low score, you can always increase the CIBIL score to improve the creditworthiness.

#3. Multiple Loan Applications- Whenever you are looking for a loan, don’t put applications in multiple banks. It will be seen that you desperately need the money and will decrease your credit score. So the best way to avoid that is to compare the process online, then apply to 2-3 lending institutions.

#4. Fixed Obligation to Income Ratio (FOIR) or Debt to Income Ratio- This ratio calculates the total debt you have as compared to your income. Ideally, this ratio should not increase by 50%. With low debt to income ratio, you have high chances to get the loan at low rates.

#5. Contact your current bank - If you have a fixed deposit or income account at a bank, then contact the same for loan application. Banks with an existing relationship tends to give low rates to their customers.

To apply for personal loans, home loans, business loans, credit cards, visit Loanadda.com. Best assistance and guidance is just one call away.

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