|Central Bank of India Personal Loan Interest Rates 2018|
|Interest rate||MCLR (12 months) + 3.00% = 11.50% p.a.|
|Loan Amount||20 times the gross salary subject to maximum of Rs.10 lakh|
|Loan Tenure||Maximum: 48 Months|
|Processing Fee||Rs.500.00 + GST|
Central Bank of India Bank offers personal loan to permanent employees of large corporate clients, to non-corporate client to meet finances for domestic needs. Personal loan is offered to permanent employee of Maharatna/ Navratna/ major PSUs. Personal loan is provided to meet expenses of marriage, medical and educational needs, to pensioners, for teachers, salaried corporate employees and employees of railways, government institutions, schools, hospitals etc. The borrower will have to provide a security or a collateral against the loan he takes from Central Bank of India.
Central Bank of India personal loan interest rates depends the borrower’s on income, borrower’s credit history, the RBI rates, inflation etc. Central Bank of India personal loan interest rate for the year 2015 varies from 13.15 percent to 14.4 percent. The interest rates is offered to a borrower in such a way that he is not burdened with the EMI payment.
EMI or Equated Monthly Instalment is the amount that the borrower has to pay each month to the bank until the loan amount is fully paid off. The EMI amount consists of interest as well as the principal amount that is to be repaid. The principal amount and interest is divided by the tenure in which the loan has to be repaid. The formula to calculate the EMI is:
EMI= Principal X Rate of interest on a monthly basis X (1+rate of interest on a monthly basis) to the power of the loan tenure divided by [(1+rate of interest on a monthly basis) to the power of the loan tenure – 1]
You can make use of the EMI calculator available on BankBazaar.com and you will get the result. You will also get amortization table that will contain details of the EMI amount that goes towards the principal amount payment and the interest amount.
For example, Mr. Mike has taken a personal loan for Rs.1 lakh from Central Bank of India. The interest rate he is being offered is 13.75 percent for a tenure of 5 years. By the end of the fifth year, he would have paid Rs.38,833 towards total interest and his loan EMI is Rs.2,314. He will be paying 28 percent towards the interest and 72 percent towards the principal loan amount. His amortization table will look as follows:
|Year||Principal paid (Rs.)||Interest paid (Rs.)||Balance amount (Rs.)|
Central Bank of India personal loan interest rate varies for every applicant due to various factors. Some major factors affecting the interest rates are as follows:
Shorter term loans may have a higher rate of interest when compared to loans with a longer tenure.
Central Bank of India checks a person’s repayment capacity before offering him a loan and before deciding the interest rate. The bank looks into the borrower’s income, his assets and his creditworthiness before finalising on an interest rate. The banks don’t wish to burden the borrower and therefore make sure that the EMI amount is not more than 40 percent of his net salary. The bank also checks the applicant’s CIBIL report as it gives detailed information about his repayment capacity. It also holds all the details of the previous loans he had taken and repaid and it also gives information on how he is paying off his credit card bills.
The borrower’s age also plays a crucial role in deciding the interest rate. Young applicant’s will not be so stable at their job and would be shifting jobs till they find one that works best for them, so banks may be sceptical about them having a regular flow of income. Central Bank of India offers personal loan to non-corporate employees, to pensioners, for teachers, salaried corporate employees and employees of railways, government institutions, schools, hospitals etc.
Banks usually offer special offers, interest rates and charges to those who have been having a long term relationship with the bank. You may even get a discount on the processing charges or the bank might reduce your interest rate if you have managed to show commitment to making payments on time in the past.
The interest rates and processing charges are charged at the sole discretion of the bank and are subject to change.
CIBIL Score and credit report plays a major role in deciding an applicant’s interest rate. CIBIL report consists of your repayment history and shows how efficiently you have made the payments and if you have missed making any payments on your loans or credit cards. It usually shows how responsible the applicant is towards the credit. The banks usually accept application of individuals having an ideal score of 750 and above. Those with a lower score are termed as a risk and the bank might offer you a personal loan at a higher interest rate or they might just reject the application. Check your credit score before applying for a loan so if the score is low, you can fix it and then apply for a fresh loan.
Before applying for Central Bank of India Personal Loan, you must know the following factors:
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