IndusInd Personal Loan Interest Rates

From renovating your home and going on your dream vacation to buying your home appliances and planning a wedding, personal loans offered by IndusInd can help you fulfil your dreams. You can acquire a personal loan by simple documentation and hassle-free processing. You can choose a loan tenure from 1 to 5 years and avail of attractive personal loan interest rates without worrying about collaterals or guarantors. What’s more, you can also do away with high interest debt courtesy the 'Balance Transfer Option’. You can choose a convenient repayment option in terms of ECS from another bank. IndusInd Bank provides personal loans for Indian residents in 16 cities around the country.

IndusInd Bank Personal Loan Interest Rates

Personal loan offered by IndusInd depends on several factors such as customer’s credit history, monthly income and repayment capacity among others. IndusInd personal loan interest rate 2015 ranges from 12.99% to 18.25% (both salaried and non-salaried). IndusInd does not demand any guarantors. Customers can repay their personal loan in equated monthly installments (EMIs). The loan can be repaid through ECS. Customers can also pay through standing instructions to debit their IndusInd account with the EMI amount. If you an IndusInd Bank customer, you can avail of special interest rates and processing of loan request on priority.

How to Calculate Interest/ EMI on my IndusInd Bank Personal Loan?

Equated Monthly Installment or EMI for short is the amount paid to the bank every month until the loan is completely paid. EMI comprises the interest on loan in addition to the principal to be repaid. The sum of principal and interest is divided by the tenure of the loan. Top rate aggregator websites such as bankbazaar.com provide a personal loan EMI Calculator which helps customers calculate the exact EMI which needs to be paid. All a customer has to do is enter the details of loan amount, tenure, interest rate applicable and processing fee, if any and click ‘calculate’. The customer will then find all the required information such as amortization figures and loan repayment figures for a specific loan amount.

An amortization table provide a breakdown of loan repayment, i.e, principal and interest for a specific loan amount. After a customer enters a EMI payment, the principal reduces on the bases of which, the interest for the next term is calculated. The amortization table displays each payment to be made after principal is deducted resulting in new balance after each payment. For instance, Ramesh Sharma, a 31-year-old IT employee, takes a personal loan of Rs.2.5 lakh at an annual interest rate of 13.25%. Sharma opts for a repayment tenure of 5 years. Sharma, therefore, has to pay an EMI of Rs.5720 per month. The amortization table is as follows:

Factors affecting your IndusInd Personal Loan Interest Rates

There are various factors which affect interest rates offered on IndusInd personal loan as listed below.

• Loan tenure: Interest rate offered by IndusInd depends upon the loan tenure chosen by customers. If the customer opts for a short loan tenure, the bank is most likely to charge a higher interest rate as compared to loans offered on longer tenures.
• Repayment capacity: The repayment capacity of a borrower is of seminal importance. Banks usually provide personal loans up to 10 times the monthly salary of a customer. Banks check the CIBIL score of an applicant to determine his repayment capacity. IndusInd will offer attractive interest rates to loan applicants with a regular income and a robust credit history,
• Relationship with IndusInd: If a customer has a good rapport with his or her bank, there is no trust deficit. Consequently, the bank will be in a position to reduce their interest rates offered to privileged customers. Also, a long-standing customer of a bank can negotiate a lower interest rate, provided he or she fulfils all the required eligibility criteria for availing of a personal loan.
• Employment details: The employment history and profile of a customer plays a pivotal role in determining the interest rates offered by IndusInd bank. Salaried individuals working with high net worth companies may be offered lower interest rates as compared to those who are self-employed, who, typically, don’t have a steady income.

Note: IndusInd can alter its Interest rates at its discretion.

How CIBIL score affects IndusInd Personal Loan interest rate?

CIBIL score reveals an individual’s repayment capacity and credit history. A robust CIBIL score will boost the chances of a loan applicant to acquire a personal loan at competitive interest rates. If loan applicants have a low CIBIL score, their chances of getting their loan approved is miniscule. If IndusInd bank does decide to approve a loan request by an individual who has a low score, the interest rate charged on the loan may be on the higher side to offset the risk.

Key things about IndusInd Personal Loan Interest Rates

Q. How does repo rate affect the PL interest rate?

When the RBI raises the repo rate, banks do not immediately raise their interest rates. In several cases, if a bank has had a lean growth rate, it will be reluctant to immediately pass on the increased rates to its customers. Banks analyze their liquidity and cost of funds before passing on the hike in repo rate to their customers by way of increased interest rates.

Q. Do I need collateral or guarantor to avail of personal loan from IndusInd bank?

No. IndusInd bank does not demand any guarantors as security to provide personal loans.

Q. Can I acquire a personal loan from IndusInd bank without a good credit score?

It is always prudent to have a robust credit score to avail of the credit facility from any bank. A good credit score paves the way for a loan getting approved in that all banks including IndusInd review the credit history and repayment capacity of an individual before approving a loan.