Lakshmi Vilas Bank Personal Loan Interest Rates

1. To avail this loan, you can pledge KVPs, NSCs, and LIC policies.
2. The interest rate on the personal loan from Lakshmi Vilas Bank is linked to the Marginal Cost based Lending Ratio (MCLR).
3. You can fund your personal and business expenses with the Lakshmi Easy Loan.
4. There is no limit on the maximum loan amount that can be availed.

Factors Affecting Lakshmi Vilas Bank Personal Loan Interest Rates

The interest rates on Lakshmi Vilas Bank depend on a lot of factors and we've listed them for you below:

1. Amount of loan availed - You are likely to receive a lower interest rate on personal loans from Lakshmi Vilas Bank if you avail a lower amount of loan. This is because the lower the amount of loan, the higher are the chances of you being able to repay the loan faster which is what most lenders want. This will, however, lie solely at the discretion of the bank.
2. Repayment tenure - A shorter repayment tenure may lead to the bank offering you a lower interest rate as it indicates your high repayment capacity. Opting for a shorter tenure will also ensure that you do not pay higher interest over the loan tenure.
3. Income - If your yearly income is high, there are chances of the bank offering you a lower rate of interest simply because a higher income shows your ability to repay the loan. The bank may also offer a lower interest rate if your debt-to-income ratio is low.
4. Assets - Depending on the valuation of your assets, Lakshmi Vilas Bank may offer you preferential rates of interest on the personal loan.
5. Credit score - Most lenders offer competitive interest rates to people with credit scores above 750. So, if your credit score is above this limit, you can negotiate with the bank for a lower interest rate. Before you approach the bank, make sure that you check your credit score. Doing so will either give you confidence while approaching the lender if you have a good score or will let you take corrective measures to enhance your score if it is low.

Example of Lakshmi Vilas Bank Personal Loan EMI Calculation

When you avail a personal loan from Lakshmi Vilas Bank, the amount of Equated Monthly Payments (EMIs) that you need to pay each month will depend on the interest rate, loan amount, and the repayment tenure. The interest rate, in turn, will depend on a lot of other factors such as your income, credit score, etc. Below, we will talk about how interest rate impacts the EMI by considering 2 scenarios:

Scenario 1: Individuals Earning Rs.25,000 a month

Mr. Chowdhury draws a monthly salary of Rs.25,000 and wishes to avail a personal loan of Rs.3 lakh. His credit score is only 730 as he has been working only for the last 1 year. Since most banks look at a credit score of over 750 to offer a loan, Mr. Chowdhary was initially refused a loan by many lenders. One lender offered him a loan, but he was charged a high rate of interest. Let us say he was charged 20% and he chose a repayment tenure of 3 years. Supposing that the processing fee of the loan is 2%, let us look at the EMI he must pay for the loan along with the amortisation table.

So, for the above case, Mr. Chowdhury will be paying a monthly EMI of Rs.11,149, a processing fee of Rs.6,000 and total interest of Rs.1,01,367. Hence, the total amount payable over the loan tenure is Rs.4,07,367.

Scenario 2: Individuals Earning Rs.50,000 a month

Mr. Debbarma has a monthly income of Rs.50,000 and has a credit score of more than 800. He wants to avail a personal loan of Rs.5 lakh. Since his credit score is excellent, he was offered a lower rate of interest by his bank. Let us assume that he was offered an interest rate of 12% for a tenure of 2 years and for a processing fee of 2%.

Using the EMI Calculator tool on BankBazaar, the amortisation table will look like below:

In this case, Mr. Debbarma will be paying a monthly EMI of Rs.23,537 and a total interest of Rs.64,882. He will be charged a processing fee of Rs.10,000 and hence, over the loan tenure, the total cost of the loan will be Rs.5,74,882.

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