Dhanlakshmi Bank Personal Loan Interest Rates

Dhanlakshmi Bank offers personal loan to people to meet their diverse financial needs. It could be to pay your child’s fee or upgrade your house appliances or for any other financial needs. The process is hassle free and easy. Dhanlakshmi Bank personal loan is available for salaried and self-employed individuals.

Dhanlakshmi Bank Personal Loan interest rates

Dhanlakshmi Bank personal loan interest rates depends the borrower’s on income, borrower’s credit history, the RBI rates, inflation etc. Dhanlakshmi Bank personal loan interest rate is charged at the sole discretion of the bank but the base rate is 11.50 percent. The interest rates is offered to a borrower in such a way that he is not burdened with the EMI payment.

Dhanlakshmi Bank Personal Loan Interest rates detail table

How to calculate interest or EMI on Dhanlakshmi Bank Personal Loan?

EMI or Equated Monthly Instalment 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 amortization table that will contain details of the EMI amount that goes towards the principal amount payment and the interest amount.

For example, Mr. Saul has taken a personal loan for Rs.1 lakh from Dhanlakshmi Bank. The interest rate he is being offered is 11.50 percent for a tenure of 5 years. By the end of the fifth year, he would have paid Rs.31,956 towards total interest and his loan EMI is Rs.2,199. He will be paying 24.2 percent towards the interest and 75.8 percent towards the principal loan amount. His amortization table will look as follows:

Factors affecting Dhanlakshmi Bank Personal Loan interest rates

Dhanlakshmi Bank personal loan interest rate varies for every applicant due to various factors. Some major factors affecting the interest rates are as follows:

• Loan tenure: Shorter term loans may have a higher rate of interest when compared to loans with a longer tenure.
• Repayment capacity: Dhanlakshmi Bank looks into the borrower’s income, his assets and his creditworthiness before finalising on an interest rate. The bank don’t wish to burden the borrower and therefore makes sure that the EMI amount is not more than 40 percent of the borrower’s 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 how he is repaying his credit card bills.
• Borrowing class: The borrower’s age also plays a crucial role in deciding the interest rate. Young applicant’s will not be preferred as they are unstable at their jobs, so banks may be sceptical about them having a regular flow of income. Dhanlakshmi Bank offers personal loan to salaried and self-employed individuals.
• Relationship with the bank: Banks usually offer special offers, interest rates and charges to those who have been having a good 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 towards 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.

How CIBIL score affects Dhanlakshmi Bank Personal Loan interest rates?

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. It usually shows how responsible the applicant is towards the credit he has taken. The banks usually accept application of individuals having an ideal CIBIL 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.

Key things about Dhanlakshmi Bank Personal Loan interest rates

Before applying for Dhanlakshmi Bank 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 Dhanlakshmi Bank Personal Loan, you need not have a guarantor or provide any security.
• When the repo rate goes up, your interest rate will also go up.
• Dhanlakshmi Bank offer personal loans to salaried and self-employed individuals.