Multiple banks. Different interest rates. Call it a "conflict of interest".

Central Bank of India Personal Loan Interest Rates

Central Bank of India offers personal loans to help you meet your personal expenses such as wedding, home renovation, etc. To calculate the total cost of your personal loan, find out the latest Central Bank of India personal loan interest rate.

Interest rate 11.55% p.a.
Processing Fee Rs.500 + GST
Loan Tenure Up to 48 Months
Loan Amount Up to Rs.10 lakh
Lowest EMI per Lakh Rs.2611

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

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 2019 varies from 11.55% p.a. The interest rates is offered to a borrower in such a way that he is not burdened with the EMI payment.

Factors affecting Central Bank of India Personal Loan interest rates

The interest rate charged by Central Bank of India for its personal loan is influenced by a variety of factors as listed below:

  • Credit score: Most of the lenders in the market identify the creditworthiness of an individual with his/her credit score. People with good credit score can get loans at competitive interest rates.
  • Income level: Your income is one of the key indicators about your repayment capacity. People with high income can easily get personal loans from various lenders. Central Bank of India provides personal loans to corporate and non-corporate individuals as long as they have a steady income every month.
  • Existing loans: This is one of the major factors considered by most lenders. Individuals with too many existing loans may find it difficult to get loans, even if their income is high.
  • Reputation of the employer: If you work for a reputed organisation, it is viewed as a favourable factor by lenders. Banks provide special interest rates for employees of some organisations in the country.
  • Negotiation skills: Your negotiation skills can also help you in getting a small discount on your personal loan. If you have favourable terms on all the above-mentioned factors, you will be able to negotiate a discount on your personal loan interest rate. You can visit the branch and speak to a representative of Central Bank of India to get this discount

The interest rates and processing charges are charged at the sole discretion of the bank and are subject to change.

How to calculate interest or EMI on Central Bank of India Personal Loan?

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.

Illustration

1. For salary of Rs.25,000 per month 

Mr. Kumar earns a monthly salary of Rs.25,000. He started working in his new job about 6 months ago. He has a credit score of only 720 as he had defaulted on a couple of credit card monthly instalments a few months ago. He has applied for a personal loan of Rs.2 lakh from the Central Bank of India. Considering this low credit score and monthly income, the bank charges an interest rate of 18% p.a. on his loan.

For a loan tenure of 1 year, the amortisation table for Mr. Kumar’s loan repayment schedule is given as follows:

Loan amount Rs.2 lakh
Processing fee Rs.500
Interest rate 18% p.a.
Month Principal paid (A) (in Rs.) Interest paid (B) (in Rs.) EMI = (A + B) (in Rs.) Outstanding Loan Balance (in Rs.)
1 15,336 3,000 18,336 1,84,664
2 15,566 2,770 18,336 1,69,098
3 15,800 2,536 18,336 1,53,298
4 16,037 2,299 18,336 1,37,262
5 16,277 2,059 18,336 1,20,985
6 16,521 1,815 18,336 1,04,464
7 16,769 1,567 18,336 87,695
8 17,021 1,315 18,336 70,674
9 17,276 1,060 18,336 53,398
10 17,535 801 18,336 35,863
11 17,798 538 18,336 18,065
12 18,065 271 18,336 0

2. For salary of Rs.50,000 per month 

Mr. Rogers work for an IT company and earns Rs.50,000 per month. He has a credit score of 830 due to his proactive financial planning. He is working in his current job for the last 3 years. He has applied for a personal loan of Rs.2 lakh from Central Bank of India. Considering his good credit history and monthly income, the bank charges an interest rate of 12% p.a. on his loan.

For a loan tenure of 1 year, the amortisation table is given as follows: 

Loan amount Rs. 2 lakh
Processing fee Rs.500
Interest rate 12% p.a.
Month Principal paid (A) (in Rs.) Interest paid (B) (in Rs.) EMI = (A + B) (in Rs.) Outstanding Loan Balance (in Rs.)
1 15,770 2,000 17,770 1,84,230
2 15,927 1,842 17,769 1,68,303
3 16,087 1,683 17,770 1,52,216
4 16,248 1,522 17,770 1,35,968
5 16,410 1,360 17,770 1,19,558
6 16,574 1,196 17,770 1,02,984
7 16,740 1,030 17,770 86,244
8 16,907 862 17,769 69,337
9 17,076 693 17,769 52,261
10 17,247 523 17,770 35,013
11 17,420 350 17,770 17,594
12 17,594 176 17,770 0

Key things about Central Bank of India Personal Loan interest rates

Before applying for Central Bank of India Personal Loan, you must know the following factors:

  • If a fixed interest rate is set on the personal loan then you will be required to pay a fixed amount of interest throughout the tenure.
  • Floating interest rate will change as per the change in the bank’s base lending rate. In this case the EMI will keep changing with the changing rate.
  • To avail Central Bank of India Personal Loan, you will have to have a guarantor or provide security.
  • When the repo rate goes up, your interest rate will also go up.
  • Central Bank of India offer personal loans to non-corporate employees, to pensioners, for teachers, salaried corporate employees and employees of railways, government institutions, schools, hospitals etc.

FAQs

1. How much credit score should I have to qualify for a personal loan?

It is better to have a credit score of at least 750 to qualify for a personal loan from Central Bank of India. If the score is lower than this limit, the bank might consider it too risky to lend to that individual.

2. When will I get the loan amount after the approval of my application?

Once your loan application has been accepted, the bank will communicate its acceptance to you. The loan amount will be credited in your bank account within a maximum of 48 hours.

3. Can I take a personal loan from Central Bank of India even if I have other existing loans?

Yes. You can take a personal loan from Central Bank of India even with other existing loans. However, your net take home pay after paying for all monthly instalments (including the loan you have applied) must be at least 40% of the gross take home pay.

4. Can existing customers of Central Bank of India get a lower interest rate?

Yes. Typically, existing customers of banks with good credit scores can get loans at a lower interest rate. You can check with the bank directly and negotiate a discount for your personal loan.

5. How can I check the status of my loan application?

You can easily check the status of your personal loan application by calling the customer service department. When you call the customer service department, make sure that you have the reference number with you.

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