|Interest rate||Under Corporate Salary Scheme tie-up: 13% p.a. (fixed rate). Others: 14% p.a. (fixed rate).|
|Loan Amount||Minimum: Rs.15,000. Maximum: Up to 9 times of gross monthly income subject to a maximum of Rs.1 lakh.|
|Loan Tenure||Maximum up to 36 months 9 times of NMI: 36 months. 6 times of NMI: 24 months. 3 times of NMI: 12 months. *NMI stands for Net Monthly Income.|
|Lowest EMI||Rs.506 p.m. for individuals under Corporate Salary Scheme tie-up.
Rs.513 p.m. for others. (Calculated for the minimum loan amount for the longest tenure allowed at the lowest interest rate available.)
|Processing Fee||1% of the loan amount sanctioned.|
|Age||Minimum: 22 years Maximum: 55 years|
|Prepayment/Foreclosure Charges||No charge|
Dena Bank Personal Loans are available for varied purposes and for different categories of individuals. These loans can help out with purchase, personal needs and others. In short, personal loans from Dena can help out for expenses that haven’t actually been planned in advance and can be a lifesaver in many situations. Personal loans from Dena Bank are readily available through minimal documentation and low waiting periods.
Dena Bank Personal Loan Interest Rates
Dena Bank Personal Loan interest rates have varied within 1% to 2% in the past five years and the recent changes in the repo rate from RBI have resulted in a lowering of the interest rate recently. As per the data, the rates for personal loans from Dena Bank could be as low as 12% or as high as 15% and is applicable for both salaried and self-employed individuals. The interest rates are variable for different customers and categories of customers and are at the sole discretion of the bank.
Calculating Interest on Dena Personal Loan
A personal loan of any amount from Dena Bank needs to be paid back in equated monthly installments (EMIs) and every EMI consists of a portion of the principal amount as well as the interest. As the personal loan moves towards maturity, the principal portion gradually increases and at the same time, the interest portion decreases.
The method for calculating the EMI on a personal loan can be mentioned as follows -
E = P*r*[(1+r)^n/((1+r)^n-1)]
Here E - Monthly EMI, r - rate of interest per month, n - number of years.
For a ballpark figure of Rs. 1,00,000 at an interest rate of 12% with a loan tenure of 1 year, the first EMIs for the first year would be Rs. 44,424 out of which the interest will account for Rs. 4,204.
For example, a personal loan of Rs. 10,00,000 for a period of 4 years at an interest rate of 12% from Dena Bank would have the following scenario for the EMI to be paid (starting from August 2015) -
|Year||Total Payment (INR)||Balance (INR)||Principal Portion (INR)||Interest Portion (INR)|
The total of all EMIs per year doesn’t vary much, while the ratios of the principal amount and interest amount keep increasing and decreasing as the loan proceeds towards maturity
Factors affecting Dena Personal Loan Interest Rates
Dena personal loan interest rates can change for any individual who has been approved for availing a personal loan. The approval process might be dependent on several factors such as -
- Personal loan amount - Based on the amount of personal loan applied for, the interest rate might be changed beyond the advertised rate for specific customers or categories of customers. A higher loan amount could cause a lower or higher rate of interest
- Tenure of the personal loan - Based on the discretion of the bank, a longer tenure might have a lower or higher rate of interest
- Repayment capacity - Dena Bank keeps a tab on the income and consequently the repayment capability of a customer. Depending on amount of cash inflows and transactions carried out by a customer, the bank might offer some leniency on personal loan interest rates. Additionally, the repayment capacity of the spouse can also be added while applying for a loan to increase the eligibility and get preferential rates
- Income - Income plays an important part in making sure if one is eligible for even applying for the loan. Additionally, the bank may change the interest rate for a personal loan based on the income of a customer
- Assets - Presence of fixed and movable financial assets play a crucial loan in improving the financial picture of one’s life. Based on the same, Dena Bank might provide a preferential rate of interest for personal loans
- Relationship with the bank - An existing customer of Dena Bank is bound to get preference when applying for a personal loan and the bank might consider providing a better rate of interest to the customer
- CIBIL scores - Approval of a personal loan takes one’s credit history into account. So, the CIBIL score might also work in favour of getting a better interest rate from the bank
All the above factors notwithstanding, any change in the advertised interest rates is at the sole discretion of the bank.
How does the CIBIL Score affect Personal Interest Rates of Dena Bank?
A personal loan is a great help, but also a liability at the same time. A bit of planning always helps and it especially comes in handy when dealing with CIBIL scores. Along with a credit history report, scores from CIBIL play a pivotal role in furthering the case of getting a personal loan approved from Dena Bank. CIBIL scores range from 300 to 900 and a score above 700 is considered a good one. Scores above 750 might allow the bank to consider offering a better rate of interest to the customer. Else the rates might be higher than expected. Doing a check on the CIBIL score and fixing the same to an appreciable level might help in getting preferential interest rates.
Key Points regarding Dena Bank Personal Loan Interest Rates
Availing a personal loan from Dena Bank is easy for salaried individuals who meet the base minimum eligibility criteria, however, the following points should be borne in mind -
- The interest rates in Dena Bank for personal loan are subject to the repo rate of RBI and may come down further, but not with an immediate effect
- The personal loan interest rates in Dena Bank are fixed, not floating and are among the lowest rates available in the market
- Many personal loans from Dena Bank don’t require a security or a collateral, addition of such factors may not have any impact on the interest rate
- On approaching Dena Bank for a personal loan, the bank will already have a look at your credit score. Based on the same, the loan amounts might be vary, and there might changes in the interest rates as well