|Particulars||Interest Rate and Other Charges Applicable|
|Interest rate||10.99% to 24% p.a.|
|Processing fee||0 to 5% of personal loan amount|
|Type of interest rate||Fixed or floating|
|Loan amount||Rs.1 lakh to Rs.30 lakh|
|Loan tenure||1 to 5 years|
|Preferred credit score||750 or above|
|Pre-closure fee||NIL to 4% of principal outstanding loan amount|
|Interest on late payment||24% p.a.|
|Amortization schedule charges||Rs.200 to Rs.250 for each schedule along with applicable GST|
|Foreclosure or pre-payment statement charges||Up to Rs.100 along with applicable GST|
|Loan cancellation charges||Up to Rs.3,000 (Sometimes, customer will be asked to pay interest from loan disbursement date until loan cancellation date|
|Repayment mode swap charges||Rs.500 along with applicable GST|
|Duplicate No Objection Certificate (NOC) or No Due Certificate (NDC)||For each NOC: Up to Rs.500 For each NDC: Up to Rs.200 (Along with applicable GST)|
|Account statement charge||Rs.200 to Rs.250 plus applicable GST|
|EMI bounce charge||Rs.400 to Rs.450 plus GST|
|Duplicate prepayment statement charges||Rs.200 plus GST|
|Stamping charges||At actuals|
The table mentioned above displays the interest rate and other charges associated with personal loan effective from 6 June 2018.
Note: These rates can change as per different bank's updates.
While personal loans are a great way of receiving financing for any any short-term requirements, the interest rate and other charges associated with it are usually dependent on the type of credit facility availed. The rate of interest for personal loans in India can range from as low as 10.99% p.a. to as high as 24% p.a. or even more depending on multiple factors. Some of the key elements which determine the interest rate offered by a lender to a borrower are:
|Bank Name||Personal loan interest rates|
|Aditya Birla Finance Personal loan||
|Capital First Personal loan||12% to 18%|
|CitiBank Personal loan||13% to 14.50% p.a. (Instant loan)|
|Fullerton Personal loan||20% to 49% p.a.|
|HDBFS Personal loan||14.99%|
|HDFC Bank Personal loan||15.50% to 21.50% p.a.|
|ICICI Bank Personal loan||10.99% to 19% p.a.|
|IndusInd Personal loan||11.25% onwards p.a.|
|India Infoline Finance Ltd||13% onwards p.a.|
|Kotak Personal loan||10.99% to 24% p.a.|
|Oriental bank of Commerce||One Year MCLR + 2.75%|
|Standard Chartered Bank Personal loan||10.99% to 14.49%|
|Tata Capital Personal loan||11.50% to 17.25%|
When you are facing a short-term financial crisis, you can receive the required funds you need quickly through a personal loan. The borrower does not have to provide the reason towards the expenditure of this type of a loan. Therefore, it can be availed for numerous reasons such as medical bill payments, wedding expenses of self or a family member, education fees, home renovations, vacation expenses, etc. Here are a few significant features that will prove that taking a personal loan for any of your requirements is a great idea.
Given below are details of Personal Loan Interest Rates of a few top banks of the country.
State Bank of India (SBI) is the apex nationalized bank of the nation. The bank has several personal finance solutions to its credit and SBI Personal Loan Interest Rates are quite competitive and varied as per its customers’ requirements. A few of these personal loans are listed below along with the rate of interest applicable for each of these loan schemes as on June 2018.
|Minimum Income Requirement||Rs.5,000|
|Minimum loan amount||
Maximum: 24x NMI subject to a maximum of Rs.15 lakh
Minimum: Rs.5 lakh
Maximum: 24x NMI subject to a maximum of Rs.15 lakh
|Maximum repayment period||60 months|
|Processing fees||1% of the loan amount plus service tax as applicable|
|Prepayment charges||3% of prepaid amount|
|Interest rate||12.05% to 15.05%|
Minimum of Rs.25,000 for Central and State Government Pensioners
Minimum of Rs.25,000 for Defence Pensioners
Minimum of Rs.25,000 for family pensioners
|Age and Repayment Period||
For Central and State Government Pensioners:
For Defence Pensioners:
For family pensioners:
|Prepayment charges||3% of prepaid amount|
|Processing fee||1% of the loan amount plus tax as applicable|
|Maximum repayment period||60 months|
|Interest rate||12.15% to 13.80%|
Not only is the application process of the personal finance scheme offered by HDFC Bank is simple and hassle-free, but the loan disbursal under this plan is also extremely quick. This scheme requires minimum documentation and HDFC Bank Personal Loan Interest Rates are also very attractive. This loan scheme offers zero hidden charges with nominal processing fees and convenient repayment options.
The interest rates of HDFC Bank Personal Loans are competitive with respect to other banks offering personal loans and ranges between 15% and 20.99% p.a. for salaried individuals on a monthly reducing basis.
HDFC Bank personal loans also offer life protection cover of up to Rs.8 lakh for accidental hospitalization and up to Rs.1 lakh for death or permanent disability of the loan borrower.
A few important features of HDFC Bank personal loans are mentioned below:
The following are the fees and charges of HDFC Bank personal loans:
|Interest rate||Salaried - 15.50% TO 21.50%|
|Loan processing charges||Up to 2.50% of the loan amount, subject to a minimum of Rs.1,999 and Maximum of Rs.25,000/- for Salaried Customers.|
|Prepayment||Salaried- No pre-payment in part or full is allowed until repayment of 12 EMIs
Part Payment is allowed for up to 25% of the outstanding principal. It is permitted only once per financial year and twice over the course of the loan tenure.
Part Payment Charges
|Salaried – 13 months to 24 months: 4% of outstanding principal
25 months to 36 months: 3% of outstanding principal
>Over 36 months: 2% of outstanding principal
ICICI Bank offers customised personal loans to its customers at attractive interest rates based on the benchmark 1-year Marginal Cost of funds-based Lending Rate (MCLR). This means that a customer can choose the amount of loan depending upon his requirement. The interest rates offered by ICICI Bank to a customer opting for a personal loan depends on numerous factors such as income, credit score, etc. The ICICI Bank Personal Loan usually varies from 10.99% p.a. to 19% p.a. The loan amount depends upon the nature of employment of the applicant. A few benefits of ICICI Bank personal loans are:
The following are the rates and charges applicable to ICICI Bank personal loans:
|Interest rate||Minimum: 10.99% p.a. Maximum 19% p.a.|
|Loan Processing Charges / Origination Charges (Non-Refundable)||Up to 2.25% per annum of loan amount plus GST|
|Prepayment Charges||5% per annum of outstanding principal plus GST|
|Additional Interest on late payment||24% per annum|
|Repayment Mode Swap Charges||Rs.500/- per transaction plus GST|
|Loan Cancellation Charges||Rs.3,000/- plus GST|
|EMI Bounce Charges||Rs.400/- per bounce plus GST|
Axis Bank offers great features and benefits on its personal loans. Be it your child's education or a family wedding, you need not worry about the extra cash that you might require for urgent needs. Axis Bank Personal Loan interest rates are also quite competitive and attractive. A few highlights of Axis Bank Personal Loans are:
See the table below to learn about Axis Bank Personal Loan Interest Rates:
|Interest rate||15.75% to 24% p.a.|
|Loan processing charges||1.50% to 2% plus GST as applicable|
|Cheque bounce charges||Rs.500 per cheque bounce plus GST as applicable|
|Cheque/instrument swap charges||Rs.500 per instance plus GST as applicable|
While opting for a personal loan is helpful when you are in urgent need of funds to meet your short-term financial crisis, there are a few things that you should keep in mind before applying this loan. Below mentioned are the points to note before applying for a personal loan:
Getting a personal loan is very simple and quick. You need not specify your intention for taking a personal loan. Also, your lender will process your loan application in a very short period of time without causing much trouble to you.
However, you need to be cautious about the interest rates when it comes to personal loans. These interest rates are provided depending on various criteria. For other loans such as car loans and home loans, the interest rates are flat in nature.
Your personal loan interest rates can be impacted by numerous factors:
In India, there are chiefly 2 types of interest rates and they include fixed/flat rates and floating/variable rates. Under fixed interest rates, your interest rate will be fixed or locked for the entire loan period. Whether the rate increases or decreases, your rate will remain the same. On the other hand, with a floating or variable interest rate, your rate will depend on the fluctuations in the market. If the same rate of interest goes down in the market then your interest rate will be low. When the interest rate increases in the market, your interest rate will be high.
Under this interest rate system, the interest rate does not change during the entire loan period. It is fixed by the lender as per his or her assumptions regarding the average discount rate over the entire loan tenure. The capital value of a fixed rate personal loan is fixed as per the future interest rates that are determined during the computation process.
A personal loan with a variable or reducing interest rate has a rate that changes on a regular basis. This happens as it changes according to the benchmark interest rate that fluctuates over a period of time. When the benchmark interest rate goes down, it is very helpful to a borrower since the interest rate reduces as well. If you anticipate that the interest rate will go down during a particular time frame, you can go for a personal loan reducing or variable interest rate. A reducing or variable interest rate is also known as an adjustable interest rate.
Based on the requirement for collateral, personal loans can be categorised into two types - secured and unsecured. When a customer opts for a secured personal loan, he or she has to provide a collateral to receive the required funds. This collateral or security offers lenders the guarantee that the borrower will repay the loan on time. In case of default, the lender will gain complete rights over the collateral. Due to this reason, secured loans are low-risk schemes and therefore, lenders usually offer a lower interest rate for such loans.
On the other hand, when a customer chooses an unsecured loan, he or she is not under any obligation to provide a collateral or security. Therefore, the risk associated with such schemes are comparatively higher than that of secured loans. This usually translates to a higher interest rate on unsecured personal loans.
Prepayment is the process of repaying a loan early. If you have a sudden inflow of cash, you can opt for this facility to repay your loan before the loan tenure ends. You can choose to prepay a loan installment, a part of the total debt, or your entire loan. This can help you avoid any debt situation in the future as the chances of you defaulting will be significantly reduced.
When you make a personal loan prepayment, your lender might levy an additional charge as prepayment fee since you are clearing the loan before the official due date.
When you make a personal loan prepayment, your loan tenure will decrease with your existing EMI or your loan your current EMI amounts will go down for the rest of your loan tenure. Most banks and NBFCs require that your prepayment amount is at least 3 or 4 times your current EMI.
When you are computing your EMIs, you can enter your pre-payment details for a clear understanding of how the pre-payment will have an impact on your loan expenses.
You can calculate your EMIs for your personal loan with the help of an online EMI calculator which is available on several third-party financial portals as well as banking websites. You will only need to key in the loan amount, loan tenure, interest rate, and the processing fee for your personal loan. If you are planning to pre-pay your loan, you can enter those details also.
You can check out the BankBazaar personal loan EMI calculator which is very user-friendly. When you plan to make a pre-payment, you can open the BankBazaar personal loan calculator and then enter information about pre-payment. You will need to key in your pre-payment frequency, your pre-payment amount, your pre-payment fee, and click on any of the drop-down options against the ‘Pre-payment applies to’. The options include ‘Final pre-payment made’, ‘Sum of all pre-payments’, ‘Sum of pre-payments made in last year of the loan.
You will get results for your EMIs and then you can decide your loan amount and loan tenure accordingly. You can also decide how much you want to pre-pay for each installment or for your full loan period.
Before you finalize on any one personal loan option, you can follow a few simple guidelines to get better interest rates than the ones that have already been offered to you.
Before you apply for a personal loan, make sure you have boosted your credit score and that you meet all the eligibility criteria laid by your bank or NBFC. This will assist you in obtaining a good interest rate for your personal loan.
Step 1: In the first step, the user must fill the Personal Loan Interest rate eligibility form available online with required personal data. Once submitted the Personal Loan Interest rate tool automatically checks for eligibility of the applicant and personalized Personal Loan Interest rate options.
Step 2: In the second step, the applicant can compare various Personal Loan Interest rate options offered by the tool interface and apply for the best suitable Personal Loan Interest rate.
Step 3: The last step involves receiving an instant e-approval from BankBazaar.com after successful submission of Personal Loan Interest rate application online.
The application is sent electronically to the selected bank. The Personal Loan Interest rate department of the concerned bank gets in touch with the applicant directly. Users can check the status of their application through SMS alters as well as emails.
The demonetisation drive has been tough on all of us. But it also spells good news for borrowers. Ready to see your Personal Loan interest rates sink?
Flash Flood of Funds
Banks have hit a jackpot after the demonetisation. People are making a beeline to deposit money. Cha-ching!
Lower Interest Rates
An excess in deposits in banks may mean a drop in interest rates and have borrowers singing all the way to the banks.
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Scout Out the Best
They say, “No pain, no gain”, right? Same goes for a Personal Loan. Do your homework and find a deal that will delight.
Personal loan interest rates are classified into fixed interest rates and floating interest rates. Many of you may not be aware of how these different interest rates are calculated. Due to this lack of knowledge, you may end up paying much higher amounts for your loan unnecessarily. Under a fixed interest rate system, the interest rate is fixed when the loan is approved and is charged on the full loan and it remains the same for the loan tenure. Under the reducing balance interest rate or the floating interest rate system, interest is charged only for the unsettled loan amount.
A personal loan interest rate is computed by taking many significant factors into consideration. Your lender will check your monthly income, employer details, and credit history. Your salary will directly affect your loan interest rate. If your income is very high, your interest rate will be lower. If you have a good credit history, you will be able to enjoy a good interest rate. Your lender will check out your credit score and determine your interest rate. You will need to bring confidence in your lender regarding your repayment behaviour. Your negotiation skills with your lender will assist you in securing a favourable interest rate.
A personal loan is one of the best ways to meet your multiple financial requirements. It is easily available and requires minimum documentation work. You can compare different personal loan options provided by different banks before you finalise on one. To get an affordable interest rate for your loan, you can follow a few important tips. You will have to make sure your credit history looks good before you apply for a loan. You could work on enhancing your credit report in case it is bad. You should also maintain excellent job stability to get a good interest rate.
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