posted on 2020-06-10 09:32:45 by Admin
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.
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 |
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 |
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 |
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 |
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 |
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.
There are two types of interest rates that a lender applies on a personal loan that are fixed and floating rates of interest.
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.
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
|
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.