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    About Lakshmi Vilas Bank Personal Loan

    Lakshmi Vilas Bank Personal Loans are loans offered to individuals and groups and are aimed at fulfilling any personal needs that are not covered under traditional loan schemes. In short term personal loans from Lakshmi Vilas can aid in expenses that haven’t actually been planned in advance. Personal loans from Lakshmi Vilas Bank are readily available through minimal documentation and low waiting periods.

    Lakshmi Vilas Bank Personal Loan Interest Rates

    Lakshmi Vilas Bank Personal Loan interest rates have had a marginal change within 1-2% 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 of July 2015, the rate for personal loans from Lakshmi Vilas Bank stands at 14.7% and is applicable for all categories of loan seekers meeting the eligibility criteria set by the bank. Further increase or decrease of the interest rate will be at the sole discretion of the bank.

    Interest Rate (for all applicable customers) 14.7% (depends on the bank’s discretion and other factors)
    Loan Types Lakshmi Easy Loan - The classic personal loan scheme for applicable individuals and groups
    Loan Amount Minimum - Rs. 10,000 Maximum - No limit
    Loan Tenure 12 months to earlier of 2 months before maturity or 60 months
    Lowest EMI per lakh Rs. 2363
    Prepayment Charges Might be applicable at the discretion of the bank
    Base Rate (as of July 2015) 10.95%

    Calculating Interest on Lakshmi Vilas Personal Loan

    A personal loan from Lakshmi Vilas Bank needs to be paid back in equated monthly installments (EMIs) and each EMI consists of a portion of the principal amount as well as the interest. As the maturity year draws closer, the principal portion gradually increases and simultaneously 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 14.7% with a loan tenure of 1 year, the first EMIs for the first year would be Rs. 45,058 out of which the interest will account for Rs. 5,159.

    For example, a personal loan of Rs. 10,00,000 for a period of 2 years at an interest rate of 14.7% from Lakshmi Vilas 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)
    2015 2,41,721 8,15,053 1,84,947 56,774
    2016 5,80,131 3,22,419 4,92,634 87,497
    2017 3,38,410 0 3,22,419 15,991

    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 Lakshmi Vilas Personal Loan Interest Rates

    Lakshmi Vilas 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 -

    1. 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 interestM
    2. Tenure of the personal loan - Based on the discretion of the bank, a longer tenure might have a lower or higher rate of interest
    3. Repayment capacity - Lakshmi Vilas Bank will check 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
    4. 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
    5. 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, Lakshmi Vilas Bank might provide a preferential rate of interest for personal loans. Plus, having sizable government securities might help in getting better rates
    6. Relationship with the bank - An existing customer of Lakshmi Vilas 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
    7. 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

    In spite of the above factors, 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 Lakshmi Vilas 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 Lakshmi Vilas 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 Lakshmi Vilas Bank Personal Loan Interest Rates

    Availing a personal loan from Lakshmi Vilas Bank is easy for individuals who meet the base minimum eligibility criteria, however, the following points should be borne in mind -

    • The interest rates in Lakshmi Vilas 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 Lakshmi Vilas Bank are floating, not fixed and are among the better rates available in the market
    • Personal loans from Lakshmi Vilas Bank require government securities and a larger security amount might impact the interest rate preferably
    • Lakshmi Vilas Bank will already have had a look at your credit score on receiving a loan application. Based on the same, the loan amounts might be vary, and there might changes in the interest rates as well
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